Bank Wants You: IBPS exam essay writing

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Friday, 24 July 2015

Essay Writing -Descriptive English For Bank Exam IBPS And SBIPO MAIN BANK EXAM

Write a short notes on Benefits of Globalisation for Developing and Developed Countries

Globalisation – the process of increased integration and co-operation of different national economies. It involves national economies becoming increasingly inter-related and integrated.

Reasons for growth of globalisation

National Economies are becoming more closely integrated with each other. For example the Common Market in the EU, harmonization of Monetary Policy. But also closer integration in America and Africa
Increase in World Trade, Tariffs and other impediments to world trade have gradually been reduced leading to an increase in world trade.
The WTO has been instrumental in bringing about a more integrated and interdependent global economy
Economies tend to move in trade cycles together. A slow down in US growth has an impact on the whole world economy, because of the importance of trade.
Monetary Policy is linked between the economies, if US cuts its interest rate, this is likely to lead other countries to cut theirs

The benefits of globalisation
1. Consumers will have a wider choice of goods, and prices are likely to be lower. Globalisation has been an important factor in the falling price of manufactured goods.

2.Globalisation gives an opportunity for domestic firms to export a wider market. Export led growth has been an important factor in increasing economic welfare in Asian countries.

3. Globalisation enables increased specialisation of production. This specialisation enables firms to benefit from economies of scale. This leads to lower average costs and increased efficiency.

4. Globalisation causes increased competition between different firms and countries. This puts pressure on firms to be increasingly efficient and offer better products for consumers.

5. Increased Inward Investment. The process of globalisation has encouraged firms to invest in other countries. For example, many firms are relocating call centres to countries like India, where wage costs are lower. This inward investment benefits developing countries because it creates employment, growth and foreign exchange. Some foreign companies are criticised for exploiting cheap labour. But often the wages are higher than otherwise.

Problems of Globalisation

1. Developing Countries May Struggle to compete.

If a developing country wishes to develop a new manufacturing industry, it may face higher costs than advanced industries in the west, who will benefit from years of experience and economies of scale. To develop an industry it may be necessary to have protection from cheap imports; this gives the firm chance to develop and gain economies of scale.

2. Globalisation keeps Developing countries producing primary products. Developing countries may have a comparative advantage in primary products, however, this offers little scope for economic growth. Primary products have a low income elasticity of demand. Therefore, with economic growth demand for products increases only slowly. Primary products often have volatile prices, this can cause the economy to be subject to fluctuations in income

3. Multi national Companies may be able to force out local retailers, leading to less choice for consumers and less cultural diversity.

4. Movement of Labour. globalisation enables workers to move easily around. however, this may cause the highest skilled workers of developing countries to leave for better paid jobs in developed countries.

Essay Writing -Descriptive English For Bank Exam IBPS And SBIPO Main Exam

G7 Summit 2015, India's Role

The 41st G7 summit was held in Schloss Elmau, Krün, Bavaria, Germany on June 7–8, 2015 .The mean of G7 summit is the group of seven countries. The name of these country Canada, France, Germany, Italy, Japan, United kingdom, United state and European union. The Chancellor Angela Merkel has invited the heads of states government.The G7 organization also invitees some guest countries like Ethiopia, Iraq, Liberia, Nigeria, Senegal and also invited international Institutions like African Union, International Monetary Fund, United nation and World Bank.

The G7 Summit 2015 in Schloss Elmau will focus on the global economy as well as on key issues regarding foreign, security and development policy. Additionally the UN conferences to be held in 2015 as well as the post-2015 agenda will be discussed.

Protection of the marine environment, marine governance and resource efficiency,
Antibiotic resistance, neglected and poverty-related diseases, and Ebola,
Retail and supply chain standards, and
Empowering self-employed women and women in vocational training.

The motto of this year’s summit is “Think Ahead. Act Together”. Key topics for the German G7 Presidency and G7 Summit in Schloss Elmau include the global economy, foreign, security and development policy, as well as empowering self-employed women and women in vocational training, energy security, and the upcoming UN conferences on international climate protection and the post-2015 agenda. These issues are all of global medium- to long-term importance. The Group of Seven are aware of their shared responsibility – and conscious that they will only be able to find answers to the questions of the future if they closely coordinate their policies.

The G7 countries are key actors in international economic relation and as such carry great responsibility for creating reliable, sustainable and viable global economic conditions. If those countries are agreed on basic issues around economic development, cross border trade and effective prudent financial Market. That's why G7 will continue to work towards establishing an enabling environment that is stable in the long term in order to promote dynamic economic growth and well functioning labour market.
he role of India in G7 summit 2015.

India is the part of the Asia and fastest growing country in the world and it's playing very important role in the economy of many worlds.India is planning to raise the issue on terrorism in the G7 conference. Terrorism is the most important issue in the G7 meeting. Indian also requested to united nation to seize property and account to this terrorists and terrorist organization India also put these points in front of United Nation in G7 summit.

Essay Writing -Descriptive English For Bank Exam Paper 2

Role of banking sector in Indian economy

Introduction
Banking system plays a very significant role in the economy of a country. It is central to a nation’s economy as it caters to the needs of credit for all the sections of the society. Money-lending in one form or the other has evolved along with the history of mankind. Even in the ancient times, there are references to the money-lenders, in the form of sahukars and zamindars who lend money by mortgaging the land property of the borrowers.

Towards the beginning of the 20 century, with the onset of modern industry in our country, the need for government-regulated banking system was felt. The British government began to pay attention towards the need for an organized banking sector in the country and the Reserve Bank of India was set up to regulate the formal banking sector in the country.

Ever since they were nationalized in 1969, banks have been playing a major role in the socio-economic life of the country. The have to act not only as purveyors of credit, but also as harbingers of social and economic development through a variety of enterprises, many of which may tiny and yet capable of generating productive energies

.India is not only the world’s largest independent democracy, but also an emerging economic giant. Without a sound and effective banking system, no country can have a health economy. For the past three decades, India’s banking system has several outstanding achievements to its credit. It is no longer confined to only the metropolitan, but have reached even to the remote corners of the country. This is one of the reasons of India’s growth process
Improvement in Agriculture
.Agriculture in India has a significant history and it is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India. Finance in agriculture is an important as development of technologies. A dynamic and growing agricultural sector needs adequate finance through banks to accelerate overall growth. Most of the credit-related schemes of the government to uplift the poorer and the under-privileged sections have been implemented through the banking sector. With the passing of the Reserve Bank of India Act 1934, there were improvements in agricultural credit. Earlier, the co-operative banks were the main institutional agencies providing finance to agriculture.

Improvement in rural sector
But after nationalization of 14 major commercial banks, it was mandatory for them to provide finance to agriculture as a priority sector. Thus, agricultural credit acquired multi-agency dimension.The government has allocated `10000 crore to the National Bank for Agriculture and Rural Development (NABARD) for refinancing Regional Rural Banks (RRBs) to disburse short term crop loans to small and marginal farmers. The short-term crop loans scheme offers credit to farmers at 7 per cent interest rate. Besides, in order to reduce post-harvest losses, farmers are eligible to get post-harvest loans up to six months at 4 per cent interest rate provided they keep their produce in warehouses. The rural sector in a country like India can growth only if cheaper credit is available to the farmers for their short-and medium-term loans. In addition, the farmers get loans for purchase of electric motors with pump, tractors and other machinery, digging wells or boring wells, purchase of dairy animals and for many other allied enterprises.

Improvement in Industrial Concerns
The Industrial Development Bank of India (IDBI) is the premier institution in India purveying financial assistance to the industrial sector projects. It provides direct financial assistance to the industrial concerns in the form of granting loans and advances, and purchasing or underwriting the issues of stocks, bonds or debentures. The creation of the Development Assistance Fund is the special of the IDBI. The Fund is used to provide assistance to those industries which are not able to obtain funds mainly because of heavy investment involved or low expected rate of returns. Assistance from the Fund requires the prior approval by the government. Apart from this, the IDBI even gives guidance to start a business.In addition to the above traditional roles, banks also perform certain new age functions which could not be thought of a couple of decades ago.

Internet Banking
Today, the banking sector is one of the biggest service sectors in India. Availability of quality services is vital for the well-being of the economy. The focus of banks has shifted from customer acquisition to customer retention. With the stepping in of information technology in the banking sector, the working strategy of the banking sector has been revolutionary changes. Various customer-oriented products like internet banking, ATM services, telebanking and electronic payment have lessened the workload of customers. The facility of internet banking enables a consumer to access and operate his bank account without actually visiting the bank premises. The facility of ATMs and credit/debit cards has revolutionized the choices available with the customers. Banks also serve as alternative gateways for making payments on account of income-tax and online payment of various bills like the telephone, electricity and tax. In the modern-day economy where people have not time to make these payments by standing in queue, the services provided by banks are commendable
conclusion
To conclude, we can say that the modern economies of the world have developed primarily by making best use of the credit availability in their systems. India is on the march; far reaching socio-economic changes are taking place and Indian banks should come forward to play this role in the process. The role of banks has been important, but it is going to be even more important in the future.-

Banking system plays a very significant role in the economy of a country. It is central to a nation’s economy as it caters to the needs of credit for all the sections of the society. Money-lending in one form or the other has evolved along with the history of mankind. Even in the ancient times, there are references to the money-lenders, in the form of sahukars and zamindars who lend money by mortgaging the land property of the borrowers.

Towards the beginning of the 20 century, with the onset of modern industry in our country, the need for government-regulated banking system was felt. The British government began to pay attention towards the need for an organized banking sector in the country and the Reserve Bank of India was set up to regulate the formal banking sector in the country. Ever since they were nationalized in 1969, banks have been playing a major role in the socio-economic life of the country. The have to act not only as purveyors of credit, but also as harbingers of social and economic development through a variety of enterprises, many of which may tiny and yet capable of generating productive energies.

India is not only the world’s largest independent democracy, but also an emerging economic giant. Without a sound and effective banking system, no country can have a health economy. For the past three decades, India’s banking system has several outstanding achievements to its credit. It is no longer confined to only the metropolitans, but have reached even to the remote corners of the country. This is one of the reasons of India’s growth process.

Agriculture in India has a significant history and it is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India. Finance in agriculture is an important as development of technologies. A dynamic and growing agricultural sector needs adequate finance through banks to accelerate overall growth. Most of the credit-related schemes of the government to uplift the poorer and the under-privileged sections have been implemented through the banking sector. With the passing of the Reserve Bank of India Act 1934, there were improvements in agricultural credit. Earlier, the co-operative banks were the main institutional agencies providing finance to agriculture. But after nationalization of 14 major commercial banks, it was mandatory for them to provide finance to agriculture as a priority sector. Thus, agricultural credit acquired multi-agency dimension.

The government has allocated `10000 crore to the National Bank for Agriculture and Rural Development (NABARD) for refinancing Regional Rural Banks (RRBs) to disburse short term crop loans to small and marginal farmers. The short-term crop loans scheme offers credit to farmers at 7 per cent interest rate. Besides, in order to reduce post-harvest losses, farmers are eligible to get post-harvest loans up to six months at 4 per cent interest rate provided they keep their produce in warehouses. The rural sector in a country like India can growth only if cheaper credit is available to the farmers for their short-and medium-term loans. In addition, the farmers get loans for purchase of electric motors with pump, tractors and other machinery, digging wells or boring wells, purchase of dairy animals and for many other allied enterprises.

The Industrial Development Bank of India (IDBI) is the premier institution in India purveying financial assistance to the industrial sector projects. It provides direct financial assistance to the industrial concerns in the form of granting loans and advances, and purchasing or underwriting the issues of stocks, bonds or debentures. The creation of the Development Assistance Fund is the special of the IDBI. The Fund is used to provide assistance to those industries which are not able to obtain funds mainly because of heavy investment involved or low expected rate of returns. Assistance from the Fund requires the prior approval by the government. Apart from this, the IDBI even gives guidance to start a business.

In addition to the above traditional roles, banks also perform certain new age functions which could not be thought of a couple of decades ago. Today, the banking sector is one of the biggest service sectors in India. Availability of quality services is vital for the well-being of the economy. The focus of banks has shifted from customer acquisition to customer retention. With the stepping in of information technology in the banking sector, the working strategy of the banking sector has been revolutionary changes. Various customer-oriented products like internet banking, ATM services, telebanking and electronic payment have lessened the workload of customers. The facility of internet banking enables a consumer to access and operate his bank account without actually visiting the bank premises. The facility of ATMs and credit/debit cards has revolutionized the choices available with the customers. Banks also serve as alternative gateways for making payments on account of income-tax and online payment of various bills like the telephone, electricity and tax. In the modern-day economy where people have not time to make these payments by standing in queue, the services provided by banks are commendable.

To conclude, we can say that the modern economies of the world have developed primarily by making best use of the credit availability in their systems. India is on the march; far reaching socio-economic changes are taking place and Indian banks should come forward to play this role in the process. The role of banks has been important, but it is going to be even more important in the future.

- See more at: http://www.sbank.in/2013/02/role-of-banks-in-indian-economy.html#sthash.lViPRANC.dpuf

Essay Writing -Descriptive English For Bank Exam

Write a short notes on White Label ATMs (WLA )

Introduction
Traditionally, Automated Teller Machines (ATMs) have respective bank’s logo. So just by looking, this is SBI’s ATM, this is ICICI’s ATM and so on.But White label ATM doesn’t have such Bank logo, hence called White label ATMs.RBI has given license / permission to non-bank entities to open such ATMs.
Any non-bank entity with a minimum net worth of Rs.100 crore, can apply for white label ATMs. (not just NBFC, any non-bank entity can apply.)
Tata Communications Payment Solutions Limited is the first company to get RBI’s permission to open White label ATMs.They started their chain under brandname “Indicash”.
Other White label are Muthoot Finance, Srei Infra., Vakrangee Software, Prizm Payments, AGS. More than 15 companies given such permission.

Need for introduction of White Label ATMs

So far, the banks have played major role in setting up and encouraging usage of Automated Teller Machines (ATMs) in India. The total number of ATMs set up in India by public, private and foreign banks is around 90,000 ATMs across India, but they are mostly concentrated in the urban areas and cities. While, the other parts of country especially, the tier III to tier VI cities have not seen any substantial growth in number of ATMs, which could have popularised the personal banking in rural areas and could have played an important part in financial inclusion.
Therefore, RBI has relaxed its policy about setting up of ATMs and has allowed the participation of non-banking financial institutions to set up the White Label ATMs. These White Label ATMs are owned and operated by the NBFCs while functioning just in the same way as any other bank-run ATM does.

The RBI aims at expanding the reach of banking services in rural areas since the non-banking financial companies have to maintain a certain ratio of their ATMs between the rural and urban India.
RBI wants to expand the ATM network to ensure financial inclusion. With more and more people indulging in personal banking and having easy access to cash, white label ATMs will deepen the reach of banking services.

Features of White Label ATMs

The five free transactions in a month that are applicable to bank customers for using other bank’s ATMs would also include the transactions effected at the White Label ATMs.
The WLA operator is entitled to receive a fee from the customer’s banks for the giving the service of their ATM resources to the banks customers. But the WLAs are not permitted to charge bank customers directly for use of WLAs.
The cash facility to the White Label ATM will be provided by the Sponsor bank.
The authorised non-bank financial company or the WLA Operator (WLAO) have the freedom to choose the location for setting up of the WLA.

Benefits of White Label ATMs:

The white label automated teller machines(ATM) are likely to benefit customers as well as banks.

The expansion of ATM network will allow customers to withdraw funds at more varied locations.
WLA will make personal banking more convenient by facilitating cash withdrawal facilities near to a large number of bank customers.
Banks support introduction of white label ATMs because these are likely to reduce pre-transaction cost for the banks.
Due to WLAs, banks will not have to deal with the problems relating to maintaining and running the payment channel.

Problems and Limitations of White Label ATMs:

A major concern is regarding the issue of failed transaction. The inconvenience caused to customers in case of failed transactions on WLAs will have to be addressed.
In case of dispute, the dispute resolution mechanism will involve three entities, namely the WLA operator, the sponsor bank of the WLA operator, and the bank of the customer.
Since the WLA operators will be a non bank entity and will be running purely on profit basis, they may take long time or completely avoid timely payments on account of failed transactions.
The issue of cost will discourage customers, as they will be required to pay a fee to use the white label ATMs, given that no free transactions are allowed on the WLAs.
So far no state-run bank has tied up with a WLA operator, this sidelines the field of WLAs from mainstream financial inclusion agenda.
The financial viability of white label ATMs is under scanner due to their low interchange fee, and high operation costs.
If there is a bank-managed ATM in the same area as a WLA, then the white label ATMs would be a victim of cannibalisation.

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