Debt weiver & Relief Scheme ( DWRS-2008 )

In consonance with the recommendations made by the Radhakrishnan Committee, the Govt. of India announced Debt Relief Scheme(DRS) in its budget announced in Feb,08. The total overdue loans were estimated to be around Rs.71,680 crores.. The guidelines under DRS are as under:-

• All the agricultural loans disbursed by scheduled commercial banks, Regional Rural Banks and Co operative Credit Institutions up to March 31, 2007 and overdue as on December 31, 2007 are covered under this scheme.
• For Small and Marginal Farmers, there will be a complete waiver of the loans that were overdue as on December 31, 2007, and which were unpaid until February 29, 2008.
• The Rescheduled Agriculture loans during the years 2004 and 2006 are also eligible either for complete waivers or One Time Settlement.(OTS)
• The implementation of DRS should be completed by June 2008 and the farmers is entitled to fresh agriculture loans.
• The waived amount will be released in five instalments to the financing banks over a period of five years and completed by 2012

Reverse Mortgage

It is a loan that allows you to convert your existing home ownership into cash flows, which you can use for meeting your living expenses. Unlike a mortgage, which is generally used to secure finances for the purchase of a property belonging to somebody else, the ‘reverse mortgage’ converts a self-owned property into finance.

A large number of elderly people in developed countries like USA use this product to fund their post- retirement living expenses. In a mortgage, they pay monthly installment in order to attain ownership of a house. The reverse mortgage is exactly the opposite, wherein a person sells the ownership of your home (to say a bank) and in exchange get a monthly income. Normally, the loan is paid off when the homeowner dies (or sells the property).

Union Budget 2010-11 Highlights

1. Additional Rs 1,65,000 Crs for bank re-capitalisation
2. Rs 3000 Crs for agricultural impetus
3. Farm loan payments to be extended for six months
4. Fertiliser subsidy to be reduced
5. Rs 100 Cr woman farmer fund scheme
6. Coal regulatory authority to be set up
7. Clean energy fund to be established
8. Interest subvention of 2% to be extended for handicrafts and SMEs
9. Rs 200 Crs for Tamilnadu textile sector
10. India faces a challenge of reverting to double digit growth
11. Economy can achieve GDP growth of 10%
12. Intrest subvention for housing loans up to 1 lacs
13. Allocation to defence raised to Rs 1.47 lac Crs
14. Defence capex raised to Rs 60000 Crs
15. Hope to implement Direct Tax Code from April 2011
16. GST to be implemented from 2011
17. Divestment target of Rs 25,000 Crs
18. Rs 1200 Crs assistance for drought in Bundelkhand
19. Rs 48000 Crs for Bharat Nirman
20. NREGA scheme allocation raised to Rs 41000 Crs
21. Allocation to health Rs 22,300 Crs
22. Allocation for school education up from Rs 26800 Crs to Rs 31036 Crs
23. Allocation to power sector at Rs 5130 Crs
24. Rs 10,000 Crs allocated for Indira Awaas Yojna
25. Social Security Fund to have corpus of over Rs 1000 Crs
26. Rs 2400 Crs for MSMEs
27. Government to contribute Rs 1000 per month for pension security
28. Rs 5400 Crs allocated for urban development
29. Rs 66100 Crs allocated for rural development
30. Rs 1900 Crs allocated for UID project
31. Gross tax receipts Rs 7.46 lac Crs
32. Govt to set up National Mission for delivery of justice
33. 15% rise in planned expenditure
34. Fiscal deficit target of 5.5% in FY11
35. Excise on all non smoking tobacco raised
36. Televisions to be costlier
37. Mobile phones to become cheaper
38. Cement to be costlier
39. Refrigerators to be costlier
40. Jewellery to be more expensive
41. Monorail granted project import status
42. CDs to be cheaper
43. Excise duty on CFL halved to 4%
44. Customs duty on Gold and Platinum hiked
45. Service Tax rates unchanged
46. More services to be brought under tax net

Presidents of India -- In Serial Order -- Quiz

India had 11 Presidents since independence.Here is a list of all Presidents in the serail order.

1. Dr. Rajendra Prasad -- 26 January 1950 to 13 May 1962
2.Dr. Sarvapalli Radhakrishnan --13 May 1962 to 13 May 1967
3.Dr. Zakir Husain -- 13 May 1967 to 3 May 1969
4.Shri Varahagiri Venkata Giri -- 3 May 1969 to 20 July 1969 and 24 August 1969 to 24 August 1974
5.Dr. Fakhruddin Ali Ahmed -- 24 August 1974 to 11 February 1977
6.SHRI Neelam Sanjeeva Reddy-- 25 July 1977 TO 25 July 1982
7.Giani Zail Singh -- 25 July 1982 to 25 July 1987
8.Shri R Venkataraman -- 25 July 1987 to 25 July 1992
9.Dr Shankar Dayal Sharma -- 25 July 1992 to 25 July 1997
10.Shri K. R. Narayanan -- 25 July 1997 to 25 July 2002
11.DR. A.P.J. Abdul Kalam -- 25 July 2002 to 25 July 2007

National Film Awards 2008 Winners -- Quiz

The Best Feature Film -- Antaheen, a Bengali film

The best actor award -- Upendra Limaye for the Marathi movie Jogva.
Here is a list of the winners of the National Film Awards 2008, This will be particularly useful for those who are preparing for bannk exams and other competitive exams.


Best Director --- Bala, Tamil Film, NAN Kadavul

Best Actress Award -- Priyanka Chopra ,Fashion

Best Male Playback Singer-- Hariharan

Best Female Playback Singer -- Shreya Ghoshal

The best supporting actress award -- Kangana Ranaut for the movie Fashion.

Best Supporting Actor -- Arjun Rampauul.

Kannada film Gubbachigalu received the Best Children’s Film Award.

REPO & REVERSE REPO

The term repurchase agreement (REPO) and reverse REPO refer to a type of transaction in which money market participant raises funds by selling securities and agreeing simultaneously to repurchase the same after a specified time generally at a specified price which typically include interest at agreed rate of interest.

Such a transaction is called REPO when viewed from the perspective of seller of securities(the party acquiring funds)and reverse REPO, when described from the perspective of supplier of funds.Thus whether a given agreement is termed Repo or reverse repo depends largely on which party initiated transaction.

Repos are usually arranged with a short term maturity.Sometimes it is overnight finance also. Repo are usually issued from 3 day to 14 days due to certain legal formalities.
In India the REPO market in govt securities and PSU bonds became very active in 1980s.Deals were generally inter bank.Certain regulatory restrictions were put in place in 1987.RBI imposed a ban in Inter Bank REPO in 1992 in all instruments except treasury Bill. Again RBI permitted interbank REPOS in certain central and govt stocks AND TREASURY BILLS of all maturities.

Money Market Instruments

The development of money market depends upon the availability of variety of instruments to suit the requirements of various borrowers and lenders. These are
* Money at call and short notice
* Treasury bills- 91 day,182days, 364 days
* Bills re discounting scheme
* Certificate of deposit
* Commercial paper
* Repos
* Inter bank participation certificates
* Securitized debt
There are certain money market instruments which are yet to inter Indian money market.These are
i) Options
ii) Financial futures
ii) Forward rate agreement
Among all the instruments operating in Indian money market the most commonly used instrument is money at call. The activity in call money market is generally confined to interbank business mostly on overnight basis. However the maximum period is 14 days. Large mutual funds promoted by banks can participate as lenders only. Certain lenders have been permitted through DFHI .

MONEY MARKET

Money market is a wholesale market for low risk, highly liquid short term prommissory notes /financial assets that are close substitute of money. It is also a market for various sorts of debt securities rather than equities, banks actively participate in money market. Transactions include outright or repo transactions. In other words money market embraces not only open market but also near money liquid asset market.
The important feature of money market instrument is it is liquid and can be terned over quickly at low cost and it provides an avenue for equilibriating the short term surplus funds of lenders and the requirements of borrowers
It deals in high value transactions Hence it is also called whole sale financial market.It is basically a telephone marketand and most of the deals are matured over telephone. Deals are honoured when concluded. Movements are determined by liquidity in market.The effect of movement of rate is reflected in the prices of various securities. In tight money conditions the yield of securities move up and under easy money conditions the yield of securities decline.
The basic function of money market is to provide efficient facilities for adjustment of liquiditiy position of commercial bank, non banking financial institutions,business corporates and other investers.

SME- SMALL & MEDIUM ENTERPRISES

AS per MSMED Act 2006 SMEs are classified in two categories
(a) Enterprises engaged into manufacturing or production of goods where the investment in plant and machinery is to be considered and cost of land and building is not included.
(b)Enterprises engaged in providing and rendering services, where investment in equipment is to be considered. e.g.small road transport operator / water transport operator professional and self employed persons.
FOLLOWING ARE THE CRITERIA FOR CLASSIFYING DIFFERENT CATEGORIES

S. PARTICULARS MANUFACTURING SERVICE
N. ENTERPRISE ENTERPRISE

1 MICRO UP TO 25 LAC UP TO 10 LAC
ENTERPRISE

2 SMALL 25 LAC TO 5 CRORE 10 LAC TO 2 CRORE
ENTERPRISE

3 MEDIUM 5 CRORE TO 10 CRORE 2 CRORE TO 10 CRORE

Current Affairs : February 2010: 1

1. Name the popular Bollywood actor who was recently awarded the Padma Bhushan award. 
   a. Saif Ali Khan
   b. Shah Rukh Khan
   c. Aamir Khan
   d. Salman Khan
   
2. Which neighboring country recently conducted their sixth presidential election?
   a. Nepal
   b. Bhutan
   c. Bangladesh
   d. Sri Lanka
   
3. India recently celebrated its … Republic Day this year.a. 50th
   b. 60th
   c. 55th
   d. 65th
   
4. Which former Lok Sabha member has replaced Amar Singh as the national general secretary of the Samajwadi party? 
   a. Mohan Singh
   b. Jai Prakash
   c. Shailendra Kumar
   d. Mahabir Prasad
   
5. Which famous snack food chain owner was recently convicted in an attempt-to-murder case along with four others by a Sessions court?
   a. Nathus
   b. Haldirams
   c. Bikanerwala
   d. Nirulas
   
6. Which company recently launched the recently launched the iPad, a tablet-style computer?a. Sony
   b. Samsung
   c. Apple
   d. Compaq
   
7. Name the US novelist remembered for his 1951 bestseller The Catcher in the Rye who recently died at the age of 91. 
   a. Herman Melville
   b. JD Salinger
   c. Vladimir Nabokov
   d. Richard Bach
   
8. The conferment of the prestigious Padma Shri award to this popular Bollywood actor courted many controversies recently . Name him. 
   a. Shah Rukh Khan
   b. Salman Khan
   c. Saif Ali Khan
   d. Aamir Khan
   
9. Who won her fifth Australian Open title recently at Melbourne? 
   a. Venus Williams
   b. Serena Williams
   c. Jelena Jankovic
   d. Justine Henin
   
10. Which famous Indian leader ashes were recently immersed sixty-two years after his assassination? 
    a. Indira Gandhi
    b. Rajiv Gandhi
    c. Mahatma Gandhi
    d. Feroze Gandhi
    
11. Which Indian tennis player recently won his 11th Grand Slam in the Australian open?a. Mahesh Bhupathi
    b. Prakash Amritraj
    c. Leander Paes
    d. Yuki Bhambri
    
12. Roger Federer won his … Australian Open crown beating Great Britain’s Andy Murray in Melbourne recently. 
    a. 3rd
    b. 5th
    c. 4th
    d. 6th
    
13. AR Rahman recently bagged two … awards for his foot-tapping number ‘Jai Ho’ and outstanding soundtrack for the film Slumdog Millionaire. 
    a. Filmfare
    b. Grammy
    c. Mtv Music awards
    d. Star Screen awards
    
14. Name the England and Chelsea football skipper who has recently found himself in similar controversies as golfer Tiger Woods. 
    a. David Beckham
    b. Wayne Rooney
    c. John Terry
    d. Michael Owen
    
15. Charged with anti-party activity this Lok Sabha member along with Amar Singh has been expelled by the Samajwadi Party. Name the expelled member. 
    a. Azam Khan
    b. Ram Gopal Yadav
    c. Jaya Prada
    d. Akhilesh Yadav
    
16. The Shiv Sena has recently threatened that it would not allow the screening of this actor’s movie till he apologized for his remarks regretting the absence of Pakistani cricketers in the forthcoming Indian Premier League tournament. Name the actor. 
    a. Preity Zinta
    b. Shilpa Shett
    c. Akshay Kumar
    d. Shah Rukh Khan
    
17. Name the leader of the Pakistani Taliban, a violent Islamist group with close links to Al Qaeeda who has recently been declared dead. 
    a. Hakimullah Mehsud
    b. Mohammed Omar
    c. Abdul Jalil
    d. Abdul Razaq
    
18. Name the Formula One driver who recently got back on track six months after suffering life-threatening head injuries.
    a. Michael Schumacher
    b. Felipe Massa
    c. Rubens Barrichello
    d. Jenson Button
    
19. Which country has recently decided to suspend accepting student visa applications claiming to have detected education agents misusing the system for sending wrong candidates?
    a. USA
    b. Australia
    c. Canada
    d. UK
    
20. Which Indian state has recently been in news for its bizarre political situation of having appointed 4 heads of the state? 
    a. Nagaland
    b. Meghalaya
    c. Assam
    d. Mizoram

Answers 1. c. Aamir Khan 2. d. Sri Lanka 3. b. 60th 4. a. Mohan Singh 5. c. Haldirams 6. c. Apple 7. b. JD Salinger 8. c. Saif Ali Khan 9. b. Serena Williams 10. c. Mahatma Gandhi 11. c. Leander Pae 12. c. 4th 13. b. Grammy 14. c. John Terry 15. c. Jaya Prada 16. d. Shah Rukh Khan 17. a. Hakimullah Mehsud 18. b. Felipe Massa 19. d. Uk 20. b. Meghalaya

MICR- MAGNETIC INK CHARACTER RECOGNITION

It is a special type of INK PRINTING which is recognized by its magnetic character by special type of machines.

It is used in cheques having 9 numbers. First 3 numbers denote city in which branch of any bank is situated. Second three no. denotes name of Bank and last three digits denote branch of a bank.

It is used to protect frauds because it is not available easily.Clearing houses find it easy as it is sorted branch wise by machines.

NEFT- National Electronic Fund Transfer

It is Nationwide fund Transfer System to facilitate transfer of fund from one bank branch to another bank branch. The system uses the concept of cetralised account system.
in other words all transactions of all branches of a bank are netted with all debits and credits and are settled in one centre with other banks (in India at Mumbai)
It is settled in six batches at 9.00,11.00,12.00,13.00,15.00,17.00. hrs on week days.and for batches on saturday
There is no value for individual transaction. minimum amount is Rs. 1 only. there is no maximum limit for the same.
NEFT transaction can be done in cash transaction also
it also requires Indian financial system code of the branch where amount is to be remmitted

Next post-- MICR SYSTEM

MAT February 2010 General Knowledge Question Bank

1. This disease is caused by the deficiency of protein. Can you identify it from the given options?

a. Goitre b. Kwashiorkar c. Hypokalemia d. Dermatosis

2. We all know very well that the Pacific Ocean is the earth’s largest ocean. Which of the following

represents the percentage area (approximately) of the earth covered by it?

a.     25% b. 35% c. 40% d. 45%

3. This place is the wettest place on earth. Can you identify it from the given options?

a. Mount Waialeale b. Cherapoonji c. Mawsynram d. None of these

4. The number of non-permanent members of the UN Security Council is

a. 5 b. 10 c. 15 d. 20

5. According to the latest population Census, the state with the least population density is

a. Sikkim b. Mizoram

c. Andaman & Nicobar Islands d. Arunachal Pradesh

6. The number of Union Territories in India is

a. 5 b. 6 c. 7 d. 8

7. The maximum duration for which the President’s office can remain vacant is

a. 1 month b. 2 months c. 3 months d. 6 months

8. Which of the following represents the minimum age required to become the member of the Rajya Sabha?

a. 25 years b. 30 years

c. 35 years d. There is no age limit as such

9. Which of the following represents the percentage contribution of the agriculture sector to the Growth Domestic Product of the Indian Economy (approximately)?

a 15% b. 17% c. 21% d. 30%

10. Sakyamuni is another name of

a. Mahavir b. Buddha c. Lord Shiva d. Lord Vishnu

11. The last amendment to the Preamble of the Constitution of India was carried out in the year …

a. 1958 b. 1962 c. 1976 d. 1978

12. Which of the following is NOT a primary activity?

a. Fishing b. Mining c. Agriculture d. Banking

13. How many Bharat Ratna awardees have won the Nobel Prize till date?

a. 1 b. 2 c. 3 d. 4

14. Who discovered Ultrasound ?

a. Ian Donald b. Roger Bacon c. JP Merril d. Joseph Lister

15. Maltimadhava is the famous creation of which of the following personalities?

a. Kalidas b. Bharat Muni c. Bhavabhuti d. Vishnu Sharma

16. The work for which French Nobleman Baron Pierre de Coubertin is known for, is

a. He was the founder of Scouts movement

b. He was the founder of Amnesty International

c. He was the founder of Red Cross Society

d. He was responsible for the revival of modern Olympic games.

17. Which of the following is NOT a recipient of Bharat Ratna?

a. Aruna Asaf Ali

b. PV Kane

c. DK Karve

d. MGK Menon

18. Which of the following is not matched properly?

a. Dibru Saikhowa Assam

b. Dehang Debang Mizoram

c. Norkek Meghalaya

d. Pachmarhi Madhya Pradesh

19. The first cotton mill of India was set up at…

a. Surat b. Mumbai c. Kanpur d. Ahmedabad

20. Which Indian city is also known as the ‘school capital of India’?

a. Lucknow b. New Delhi c. Dehradun d. Ajmer

21. Reserve Bank of India was nationalized in

a. 1949 b. 1952 c. 1955 d. 1964

22. We all know very well that the largest planet of the solar system is Jupiter. Can you identify the

name of the second largest planet of the solar system?

a.     Earth b. Saturn c. Uranus d. Venus

23. You would find Andes mountain range in

a. North America b. South America c. Europe d. Australia

24. The world’s rarest element on earth is

a. Palladium b. Astatine c. Radium d. None of these

25. Which of the following is the densest planet of the solar system?

a. Earth b. Saturn c. Jupiter d. Mercury

26. Which of the following is NOT based on the banks of river Danube?

a. Vienna b. Belgrade c. Budapest d. Warsaw

27. Which of the following cases highlighted that ‘total reservation in the government jobs cannot exceed

50% of total?

a. T.A. Pai case b. Minerva Mills case

c. Keshvanand Bharti case d. Indira Sawhney case

28. Ngultrum is the name of the currency of

a. Chile b. Bhutan c. Botswana d. Bulgaria

29. International Committee of Red Cross has won the Nobel Peace Prize for record _____times.

a. Three b. Four c. Five d. Six

30. Poise is the unit of

a. pressure b. viscosity

c. luminous intensity d. inductance

31. This personality is credited with the invention of Electro cardiogram (ECG). Can you identify the

personality from the given options?

a. Ian Donald b. A. Laveran

c. Williem Einthoven d. C.Sholes

32. Time Machine is the name of a famous work of

a. Carl Segan b. H.G. Wells c. Alvin Tofler d. Arthur C. Clarke

33. Jakob Von Vexkull was the founder of

a. Booker Prize b. Pulitzer Prize

c. Right Livelihood Award d. Templeton Prize

34. Which of the following chemical elements is used for the bleaching process?

a. Fluorine b. Bromine c. Chlorine d. Xenon

35. Cirrhosis is the disease which affects the

a. brain b. liver c. kidney d. lungs

36. Which of the following is the capital of Ireland?

a. Dublin b. Istanbul c. Amsterdam d. Berne

37. Where would you find the Indian Textile Institute?

a. Surat b. Kanpur c. Pune d. Mysore

38. Which of the following is the least populous union territory of India?

a. Pondicherry b. Lakshadweep

c. Dadra and Nagar Haveli d. Andaman & Nicobar Islands

39. The first Indian state where the President’s rule was imposed in the year 1951 was ...

a. Uttar Pradesh b. Rajasthan

c. Punjab d. Orissa

40. Which of the following Indian states has the lowest sex ratio (number of females per thousand

males)?

a. West Bengal b. Haryana c. Punjab d. Uttar Pradesh

41. Which of the following is NOT a work of Salman Rushdie?

a. Moor’s Last Sigh b. Midnight’s Children

c. Shalimar The Clown d. The Piano Teacher

42. International Labor Day is celebrated on ___every year.

a. August 1 b. March 1 c. September 1 d. May 1

43. Who wrote Ramayana?

a. Vishwamitra b. Maharishi Valmiki

c. Tulasidas d. None of these

44. Who is credited with the construction of the Grand Trunk road?

a. Tipu Sultan b. Mohammed –bin-Tughlaq

c. Shershah Suri d. Jehangir

45. Which of the following is also known as “ Silicon valley of India”?

a. Hyderabad b. Bangalore c. Chennai d. Noida

46. This personality is also considered as the Father of computers . Can you name him from the given

options?

a. Blaise Pascal b. Alan M. Turing

c. Charles Babbage d. None of these

47. Peace Palace is the official headquarters of

a. WHO b. FAO c. ICJ d. IBRD

48. Find the odd one out.

a. DOS b. WINDOWS c. LINUX d. LISP

49. Which of the following is the capital of ‘the land of midnight sun’?

a. Vienna b. Oslo c. Helsinki d. Prague

50. Christiana is the former name of which of the following cities?

a. Copenhagen b. Oslo c. Ottawa d. Berlin

Answers

1 b

2 b

3 c

4 b

5 d

6 c

7 d

8 b

 9 c

10 b

11 c

12 d

13 d

 14 a

15 c

16 d

17 d

18 b

19 b

20 c

21 a

22 b

23 b

24 b

25 a

26 d

27 d

28 b

29 a

30 b

31 c

32 b

33 c

34 c

35 b

36 a

37 b

38 b

39 c

40 b

41 d

42 d

43 b

44 c

45 b

46 c

47 c

48 d

49 b

50 b 

RTGS -- REAL TIME GROSS SETTLEMENT

This is the fastest means of transfer of funds from the account of A customer of one Bank to the account of another customer of another bank. it is used for an amount not less than 1 lac.There is no LIMIT for maximum amount for transaction.

RTGS stands for Real time gross settlement.Real time means a time having zero waiting period. Gross settlement means settlement on individual basis.This is different from net settlement where transactions of a bank is processed throughout the day but interbank settlement takes place after certain period after netting the debits and credits of a particular bank against another bank.

Thus, RTGS Payment is a system in which fund transfer between Banks are processed and settled individually through out the day.INDIAN FINANCIAL SYSTEM CODE is must for this transaction, which is a unique code allotted to any individual branch of a bank.

NEXT POST-- NEFT- NATIONAL ELECTRONIC FUND TRANSFER

CBS -- CORE BANKING SOLUTION

Historically banks were doing their business on manual systems with manual ledgers passbooks, supplementary books etc. Every Branch of a bank were maintaining it's customers details within the periphery of its branch
Core Banking solution is a system wherein all data relating to customers of all branches of a bank are kept at one place.In other words all customers of branches become customer of a bank and branches become service outlets after migration from manual system to CBS. Every service outlet has to link to its centralized data center through lease line,ISDN line or VSAT technique. When transaction is to be affected a service outlet has to retrieve its specific data from data center. It is modified and submitted for updation to data center. In this system a customer of a branch/service outlets can get banking services from any of the service outlets within a geographical boundary

RBI - RESERVE BANK OF INDIA

Reserve Bank of India came into existence in 1934 through Reserve Bank of India act 1934. It is central monitory authority in India. It has been given power to act as central monitory authority through the same act as well as through Banking Regulation act 1949. It has been given responsibility to control financial system of the country which includes all India financial institutions, scheduled commercial bank, cooperative Banks and non banking financial institutions.

it is the note issuing authority of India.It undertakes a variety of developmental and promotional functions for smooth running of economy in India.It has responsibility of maintaining external value of rupee and holding foreign exchange stock. It publishes exchange control manual and issues instructions and guidelines for its strict compliance. It acts as adviser to central govt.It has added responsibility for ensuring solvency of banking system,quality of assets and safeguarding interests of depositors
As such, it has been vested with wider powers, so as to control the domestic as well as foreign exchange operations.

SLR - STATUTORY LIQUIDITY RATIO

Scheduled commercial banks are required to maintained statutory liquidity ratio in certain proportion of their net Demand and time liabilities ( Excluding liabilities subject to zero SLR) in the form of certain liquid assets under section 24 of Banking Regulation Act 1949. SLR has been introduced with a view to safe guard the interest of depositors as well as money supply in the economy.
SLR has been defined in detail in the Banking regulation act1949. It includes investment in cash and unencumbered approved securities. RBI is empowered to increase the SLR FOR SCHEDULED COMMERCIAL BANKS up to 40.

CRR - Cash reserve Ratio

Banks raise deposits for lending purpose. But Banks can not freely use it for lending. As per section 42(1) of Reserve Bank of India Act 1934,scheduled commercial Banks are required to maintain certain amount in cash with RBI in a definite proportion of their net demand and time liabilities (excluding liabilities subject to zero CRR ). It has been introduced with a view to safe guard the interest of depositors as well as to control the money supply in the economy.
All scheduled commercial Banks except RRBs are required to maintain CRR as stated above. liabilities of Banks are excluded from it