Category Archives: Personal Banking

Tips to protect against On line Fraud and Phishing Variations

For safer online transactions the first thing we have to learn is that to be suspicious of anything that comes to your inbox. Sometimes, we check the Spam mails and suddenly there could have been any mail containing which demands sharing of information about your bank accounts, and even passwords and other financial transactions indications. Continue Reading »

Basel Committee guidelines on back testing and stress testing

Basel Capital Accord OF 2003 released by the Basel Committee on Banking Supervision (BCBS) envisages a three-pillar approach to risk management under which the first pillar signifies total minimum capital requirement for credit, market and operational risks. To determine the minimum capital requirement for an approach, subject to certain minimum conditions and disclosure requirement may Continue Reading »

Basic Safeguards in the conduct of Forex business

Handling forex business has become simpler and easier with the use of latest technology and significant liberalisation in the rules, regulations and procedures under the FEMA regime. Against the above backdrop, the responsibility of the banks has increased many fold and the principle of “Know Your Customer” has assumed critical importance. Money laundering is one Continue Reading »

Know Your Customer (KYC) guidelines for non-banking financial Institutions (NBFCs)

Banks are advised to constitute an ad hock committee to undertake procedures and performance audit on public services rendered by them. The uniform margin to be applied on all advances against shares/financing of initial public offerings/issues of guarantees raised from 40 percent to 50m percent.  Banks are advised to constitute a Special Committee to monitor Continue Reading »

Should the Indian banking sector approach the issue of its global aspirations

In a closed economy, investments are limited by the savings. A closed economy can invest only what it saves. Trade in capital allows cross border separation of savings and investment. Investments can be higher than savings by borrowings from abroad. As a developing economy offers higher returns to capital than a developed economy, removal of Continue Reading »

Importance of customer due diligence as a critical element in the effective management of banking risks

Term ‘Due diligence, ’ is increasingly becoming popular in the financial world. More and more financial analysts are realizing the importance of due diligence process in identifying the risks involved in various transactions. Merchant bankers/ investment bankers engaged in the activities of managing public issues. Acquisition and investment activities have fine-tuned due diligence processes and Continue Reading »

Basel II & Risk Management

The Basel Committee on Banking Supervision [BCBS], is a committee of central banks and bank supervisors / regulators from major industrialized countries, that meets every three months at the Bank for International Settlement [BIS] in Basel, to provide broad policy guidelines that each country’s supervisors can use to determine their own supervisory policies. The Basel Committee Continue Reading »

Basel frame work impact on the banks

In addition to the work on capital standards, particular supervisory questions which the Committee has addressed include the supervision of bank’s foreign exchange positions, the management of banks international lending (i.e. country risk ), the management of bank’s off –balance –sheet exposures, the prevention of criminal use of the banking system, the supervision of large Continue Reading »

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