Fwd: ECONOMICS : BANKING JARGONS EXPLAINED SUCCINCTLY IN AAM ADMI'S LINGUA !!!
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K. Shankara Bhat
Oct 12, 2015, 6:26:58 AM10/12/15
to Dilip Kumar Malanda, MCE1981&1982 BATCHES, NRIMCEALUMNI, Dinesh Shanbhag, Bobby (Antony) D'Souza, 1992-Auto, Kiran Kumar Nethrakere, 2001-Mech, Voltas-DIP, Agnello D'Souza, 1988-I&P, Muscat-Oman, Ajith Nalluraya, 2003-Mech, Ajith Sequeira, 1993-CS, Akhil Shetty, 1993-Auto, Amber (Hitamber) Attavar, 1993-I&P, anil bolar, Anil Shenoy, 1988-E&C AMEC (Shj), Arun Ramaswamy, 1992-Instr-Tech., Aswath Bhargava, 1992-Instr. Tech., Bhat, Subramanyam,1988-Mech., Bhattacharya, Atrinath, Brian Rodrigues, 1990-Auto, Champsey Mutappa 1987 E&C, Denish Pathok 2002 Instru., Dev Anand, 1986 E&E (2nd FYS), Devraj Fernandes, Dinesh D'Souza, 1993 I&P, Edward Felix Pinto, 1984-Mech., Ganesh Pai Neelavar, 1988-Mech., George Stanley, 1990-Mech., Gerard N Barnes 1990 Mech., Gokuldas Hegde 1976-Civil, Harry Moraes, 1976-Mech., James Mendonca, 1977-Civil, Javagal Sudarshan, 1988-CS Al Ain, Jeevan Cutinha, 2001-Auto, Jnanesh Bangady Killuru, 1996-Mech., Johnson Thomas, 1992-Instr-Tech, ABB, AUH, Lancy Aranha, 1984-Mech., Lancy Pinto, 1984-Mech., Larry Rolson D´Souza,, M Kiran Lobo Dxb DG, Manoranjan Rao, 1989-E&C, Maxwill D'Souza, 1989-Mech., Muralidhar Shenoy, 1984-Mech., Muyeed Ahmed, 1992 Instr.Tech, Dubai Municipality, Nagaraj-70, 1981-Civil, nagaraja thunga, Nagesh Shettigar, 2001-Mech., Pragnya Bidare, Ms. 2004-CS, Prasanna AVS 1988-I&P, Muscat-Oman, Prashanth Hegde, 1988, Instru.Tech., Praveen Joy Mascarenhas, 2002-Mech., Rajesh Mestha, 1995-Civil, Rakesh Fernandes, 2001-Auto, Ramesh Achar, 1989-Mech., Ramkrishna Karanth 1986-Mech., Rayan Castelino 1988-Auto, Renuka Padmaraj, 1992-Instru.Tech, Dubai, Roshan Sequeira 1992-civil AUH, Safraz, 1996-Arch., Salvadore D'Souza, 1984-Mech., Sanjeev Coelho, 1993-Arch., Santosh Prabhu 1990-Civil, Sapna Shetty 1990 Arch Doha Dxb, Shamin Sequeira, 1993-I&P, Muscat-Oman, Shivprasad Kolattaya NL, 1984-Mech., Stany D'Mello, 1990 E&E, Kuwait, Stephen Monterio 1992 I&P, Subba Rao N, 1988 E&C, Sujith Shetty, 1999-civil, Dxb Si. OA, Sundresh, 1973 E&E, Ticky Thomas, 1992-Instru.Tech, Dubai, Titu Kurian, 1992-Instr-Tech, Gasco, AUH, Vasanth Pattar, 1996 E&C, Vaseem Ahmed, 1992, Instr.Tech, GE Sensing, AUH, Vinod Pais, 1995-CS, Vishanth Menezes, 2002-Mech., Viswanath Varma, 1992 Instr.Tech. ABB-AUH, VK Vinod Kumar, 1992-Instr.Tech, ADNOC-AUH, Ahmed Saeed Assadi-Qatar Aeronauticaal College 1999-I&P, Anser Anjum, Arun Seetharam, B. Dayanand Shenoy, Ganesh Bhat Mech 1987-91, Henry Miranda, MANJUNATH PRASAD K, Mujeeb Shariff, Nelson Almeida, IECC-Oman, Norman Corda, Oman, Rafath Bari, Rajesh Sheregar, Ramesh B.A., Riyaz Talkhani, Ruben D'Souza, Santosh Rodrigues, Seetharama KS, Subhash Sanubhogh, 1989-Mech, Jacobs Engg-Al Khobar, Sujay Suvarna, Suresh NN, Syed Munawer, 1992, Arch. Qatar, Ulhas Rao, Ullas Kamath, Umesh Rai – 1989 Mech, Sabic-Jubail, Vijay D'Silva – STS Oman, Vijaya Kumar Nanjappa, Vivian Rodrigues, Achuth Kini (MIT), Ajith Kumar M., Ajith Shetty-Videocon, MCE-1985 batch E&C, akshay bangera, Amogh shetty, Appu, Aravind Prakash, Aravinda Herle-Gmail, Architect Sharath Munivenkate Gowda, arun Shetty, Balipaguli Rajaram C.G., Barkur Gopalakrishana, Bhoopali, BR Shankar alias Shankar Bangalore, BS Somshekhar MCE 1980 Civil, Chandulal-alias- Chandrashekar GL, D. Keshava Kumar, Dayananda Shetty, MCE‘84 batch, Prop. Hotel Sagar, Vijayanagar, Dinesh Kamath, DINSHA BABU PALETI, Dr. Abdul Sharief, Haaji, Dr. DL Prabhakara, Dr. Gopalakrishna SG, Principal, Nagarjuna College of Engg, Devanahalli, B'lore, Dr. K.N. Balasubramanya Murthy, Dr. Karisiddappa, Principal, Govt. Engg. College, Hassan, Dr. N. Harischandra Hebbar [MU-MCIS], Dr. SR Shankapal, President, MSR School of Advanced Studies, B’lore, Dr. Sunderesh Heragu, DS Krishnachandra, Ganapathi Golla, Gerald Romel Mascarenhas, GP Manjunath, Gurupadaswamy Belur, H.A.Kiran, Mob. 9448885556, Harin Hattangady, Harish Baliga, Harsha Gurukar, Hemanth Kumar DB, Immi, Jagdish Singhal, Jayaram HS, JNH KUMAR, John D'Cunha, K. Raghuram Prabhu, KB Bhat, Keshava Prasanna-MCE 1976, kiddo, Kuldeep Kokeri, Kumaraswamy Tekkunja, Lakshminarayana H K, M K Venkatesh, Principal RNSIT, B'lore, M.K.G.Kumar- 9448468230, Mahesh Babu, Manjunath Prabhu Gurpur, MDS, Mohan Kumar, Moodbidri K. Karunakar Shetty, Mukul Tagore, NA Kalappa MCE 81 batch, Prop. Kiran Constructions, Civil Bldg Contractor & Developer, Nagaraj Uppunda, Nagesh NK, Nalina K. Shetty, Naveen Kannan, Palti Ramesha, Phalguna Jois, Prabhakara H S, Pradeep Abraham, Pradeep Kumar LS, Prakash Nayak, Prapanch Mandana, Premananda Kamath, Priyadarshi Kibballi, Prof.T Narayana Shanubhogue, Canara Engg.College, R. B. Subramanya, Rajendra Ullal, Ramakrishna Hegdekatte, Ramaprasad Srinivasachar, Rammohan Pai, Ratnaraj Jain, Ravi Kumar Bidare, Ravindranath Kadiwal, Jt. Dir., BBMP, B-lore, RAVISHANKAR MK, Roland Pinto, Sadan Kumar, Sadashiva Reddy Patil alias SB Patil,[MCE’82] Chief Engineer, PWD, GoK, B'lore, Sanath Kumar Shetty, Santhosh Kumar Shetty, Sathyan, Satish Kumar, Satyesh, Shashi, Hassan MCE, Shashidhar Rao, Shetty SPS, Shivaram Bhat, Negalaguli, Shivaram Bhat, Negalaguli, Simon Rodrigues, Siva Kumar, Sreenath K, MCE-1978, 9900096949, Sri Balaji, Sridhar DT, SS Rao, Subbayya Bhandary, MCE’84 Tata Power, Subhaschandra, Subramanya Udupa-Chief Manager-HAL B'lore, MCE-1986 batch E&C, Sudeeth hegde, Sudhakar Reddy Shimoga MCE-1979 Mech mobile # +91-9845296050, Sudhin Kumar, Sudhir Kumar, SuhasKumar Hegde, Sumanth Reddy, sunil igoor, Suresh A, Tradevision, Malleswaram, Suresh Babu Tarikere, Suresh Kumble, Sushil Chandra M, Syed Aleem, T SHAM BHAT, IAS, BDA Commissioner, B'lore, GoK, TANVEER, TM Nagaraja 1985 FYS civil, V. Bharatheesha Rao, Dy. Dir. (Projects), KPTCL, Kaveri Bhavan, B-lore, vijaykumar, Vijayshankar JS, Vijayshankar JS, Dir., Op's, vishwanath hebbar, Vishwanath Hegde, Yeshvanth Kumar MP
Dilip-ji, Namaskara.
Thanks, quite informative.
Btw,
Let me add a couple of more for you to remember: 1. NEFT = National Electronic Fund Transfer (upto Rs. 2 lakhs during Banking hours, almost free)
2. RTGS = Real Time Gross Settlement (Above Rs. 2 lakhs during any hours. i.e., Real Time, has some fee, NOT free)
---------- Forwarded message ----------
From: Dilip Kumar Malanda <starg...@gmail.com>
--
From: Dilip Kumar Malanda <starg...@gmail.com>
Santa Singh and Banta
Singh in 'serious' conversation
!!
Santa: I
have heard recently that Mr. Rajan has
reduced Repo
Rate by 50
basis points and everyone is
saying that this is good for the
market. Loan EMI may also come down.
What is this rate cut means actually?
I want to understand this.
Banta: To understand this you first need to know, how does a bank function.
Santa: Why?
Banta: Because all these are inter-related. Tell me – what does a bank do?
Santa: Bank takes money from depositors and gives loan to earn interest. That way they keep everyone happy and make a profit also.
Banta: Correct, but there are more to it. Let me explain this in a very simplistic way. Bank needs money. Bank can get money from depositors like you and me and also from RBI. But bank also needs to pay certain interest to us and also to RBI.
Santa: Ok.
Banta: Let us try to understand first – what happens when we deposit, say, Rs. 100 with a bank.
Santa: I know that. Bank gives that Rs. 100 to someone who needs a loan.
Banta: No, it is not that simple. Remember, though bank can earn interest by giving away loans, but it is also very risky. There are many cases of loan defaults. This way banks can put all our money into high risk areas. It has to be protected.
Santa: How?
Banta: Ok, RBI has made it mandatory that upon receiving, say, Rs. 100 – banks first have to deposit Rs. 4 with RBI.
Banta: To understand this you first need to know, how does a bank function.
Santa: Why?
Banta: Because all these are inter-related. Tell me – what does a bank do?
Santa: Bank takes money from depositors and gives loan to earn interest. That way they keep everyone happy and make a profit also.
Banta: Correct, but there are more to it. Let me explain this in a very simplistic way. Bank needs money. Bank can get money from depositors like you and me and also from RBI. But bank also needs to pay certain interest to us and also to RBI.
Santa: Ok.
Banta: Let us try to understand first – what happens when we deposit, say, Rs. 100 with a bank.
Santa: I know that. Bank gives that Rs. 100 to someone who needs a loan.
Banta: No, it is not that simple. Remember, though bank can earn interest by giving away loans, but it is also very risky. There are many cases of loan defaults. This way banks can put all our money into high risk areas. It has to be protected.
Santa: How?
Banta: Ok, RBI has made it mandatory that upon receiving, say, Rs. 100 – banks first have to deposit Rs. 4 with RBI.
RBI
keeps this Rs. 4 in its current
a/c and hence banks do not receive
any interest on this money.
This
is known as Cash
Reserve Ratio or CRR,
which is currently at 4%.
Santa: Hmmm, then?
Banta: RBI has also made it mandatory that upon receiving, say, Rs. 100 – banks need to compulsorily buy central and state govt. securities of Rs. 21.50.
Santa: Hmmm, then?
Banta: RBI has also made it mandatory that upon receiving, say, Rs. 100 – banks need to compulsorily buy central and state govt. securities of Rs. 21.50.
Of course banks will earn
some interest income here.
This
is known as Statutory
Liquidity Ratio (SLR), which
is currently at 21.50%.
Santa: Ok, so you mean to say that upon receiving Rs. 100, banks can spend only Rs. 74.50 at its own will.
Banta: Correct. 100 – (4 + 21.50) = 100 – 25.50 = 74.50
Santa: But you were saying that banks can also borrow from RBI. What interest banks pay to RBI?
Banta: Before 30th September, banks were paying 8.25% interest to RBI when it borrows money from RBI.
Santa: Ok, so you mean to say that upon receiving Rs. 100, banks can spend only Rs. 74.50 at its own will.
Banta: Correct. 100 – (4 + 21.50) = 100 – 25.50 = 74.50
Santa: But you were saying that banks can also borrow from RBI. What interest banks pay to RBI?
Banta: Before 30th September, banks were paying 8.25% interest to RBI when it borrows money from RBI.
Now
this rate has been reduced by 50
basis points.
So banks now need to pay
interest to RBI, if it borrows from
RBI, at the rate of 7.75%.
This is known as Repo Rate.
Santa: Can fixed deposit rate be affected by reduction of Repo Rate?
Banta: Of course.
Santa: Can fixed deposit rate be affected by reduction of Repo Rate?
Banta: Of course.
If banks get money from
RBI @7.75%, why will banks pay
higher interest to you and me?
One year FD rate is already
revised by many banks and it is equal
to or very close to 7.75%.
Santa: But as now banks are getting money at a cheaper rate, then they should reduce the loan interest rate i.e. passing on the benefits it receives.
Banta: Correct. They should. And on that hope market is cheering. If companies get loan at a cheaper rate, they will likely to expand their businesses. That will create more jobs, more income and boost the economy.
Santa: How is inflation linked to this?
Banta: See, when loan becomes cheaper, people tends to borrow more. That means people will have more money to spend. This will increase the demand for goods, and if supply does not increase to match this demand, then prices will increase.
Santa: So there is a chance, that inflation may rise also?
Banta: Well, yes. But inflation depends on many other factors as well, like production (industrial and agricultural), manufacturing, export – import, foreign currency movement etc. So inflation may increase or may not.
Santa: One last question. Like we deposit our money with banks, can banks also deposit their money with someone?
Banta: Yes, they can deposit with RBI and earn interest too. This interest is typically 1% less than the repo rate.
Santa: But as now banks are getting money at a cheaper rate, then they should reduce the loan interest rate i.e. passing on the benefits it receives.
Banta: Correct. They should. And on that hope market is cheering. If companies get loan at a cheaper rate, they will likely to expand their businesses. That will create more jobs, more income and boost the economy.
Santa: How is inflation linked to this?
Banta: See, when loan becomes cheaper, people tends to borrow more. That means people will have more money to spend. This will increase the demand for goods, and if supply does not increase to match this demand, then prices will increase.
Santa: So there is a chance, that inflation may rise also?
Banta: Well, yes. But inflation depends on many other factors as well, like production (industrial and agricultural), manufacturing, export – import, foreign currency movement etc. So inflation may increase or may not.
Santa: One last question. Like we deposit our money with banks, can banks also deposit their money with someone?
Banta: Yes, they can deposit with RBI and earn interest too. This interest is typically 1% less than the repo rate.
This
rate is known as Reverse
Repo Rate.
Santa: Great! So now I understand CRR, SLR, Repo Rate, Reverse Repo Rate and their impact on deposit rate, loan interest rate and on inflation. Thanks.
Banta: Welcome!
Santa: Great! So now I understand CRR, SLR, Repo Rate, Reverse Repo Rate and their impact on deposit rate, loan interest rate and on inflation. Thanks.
Banta: Welcome!
Balasubramanyam TV
Oct 13, 2015, 11:07:44 AM10/13/15
to mce-ol...@googlegroups.com, Dilip Kumar Malanda, NRIMCEALUMNI, Dinesh Shanbhag, Bobby (Antony) D'Souza, 1992-Auto, Kiran Kumar Nethrakere, 2001-Mech, Voltas-DIP, Agnello D'Souza, 1988-I&P, Muscat-Oman, Ajith Nalluraya, 2003-Mech, Ajith Sequeira, 1993-CS, Akhil Shetty, 1993-Auto, Amber (Hitamber) Attavar, 1993-I&P, anil bolar, Anil Shenoy, 1988-E&C AMEC (Shj), Arun Ramaswamy, 1992-Instr-Tech., Aswath Bhargava, 1992-Instr. Tech., Bhat, Subramanyam,1988-Mech., Bhattacharya, Atrinath, Brian Rodrigues, 1990-Auto, Champsey Mutappa 1987 E&C, Denish Pathok 2002 Instru., Dev Anand, 1986 E&E (2nd FYS), Devraj Fernandes, Dinesh D'Souza, 1993 I&P, Edward Felix Pinto, 1984-Mech., Ganesh Pai Neelavar, 1988-Mech., George Stanley, 1990-Mech., Gerard N Barnes 1990 Mech., Gokuldas Hegde 1976-Civil, Harry Moraes, 1976-Mech., James Mendonca, 1977-Civil, Javagal Sudarshan, 1988-CS Al Ain, Jeevan Cutinha, 2001-Auto, Jnanesh Bangady Killuru, 1996-Mech., Johnson Thomas, 1992-Instr-Tech, ABB, AUH, Lancy Aranha, 1984-Mech., Lancy Pinto, 1984-Mech., Larry Rolson D´Souza,, M Kiran Lobo Dxb DG, Manoranjan Rao, 1989-E&C, Maxwill D'Souza, 1989-Mech., Muralidhar Shenoy, 1984-Mech., Muyeed Ahmed, 1992 Instr.Tech, Dubai Municipality, Nagaraj-70, 1981-Civil, nagaraja thunga, Nagesh Shettigar, 2001-Mech., Pragnya Bidare, Ms. 2004-CS, Prasanna AVS 1988-I&P, Muscat-Oman, Prashanth Hegde, 1988, Instru.Tech., Praveen Joy Mascarenhas, 2002-Mech., Rajesh Mestha, 1995-Civil, Rakesh Fernandes, 2001-Auto, Ramesh Achar, 1989-Mech., Ramkrishna Karanth 1986-Mech., Rayan Castelino 1988-Auto, Renuka Padmaraj, 1992-Instru.Tech, Dubai, Roshan Sequeira 1992-civil AUH, Safraz, 1996-Arch., Salvadore D'Souza, 1984-Mech., Sanjeev Coelho, 1993-Arch., Santosh Prabhu 1990-Civil, Sapna Shetty 1990 Arch Doha Dxb, Shamin Sequeira, 1993-I&P, Muscat-Oman, Shivprasad Kolattaya NL, 1984-Mech., Stany D'Mello, 1990 E&E, Kuwait, Stephen Monterio 1992 I&P, Subba Rao N, 1988 E&C, Sujith Shetty, 1999-civil, Dxb Si. OA, Sundresh, 1973 E&E, Ticky Thomas, 1992-Instru.Tech, Dubai, Titu Kurian, 1992-Instr-Tech, Gasco, AUH, Vasanth Pattar, 1996 E&C, Vaseem Ahmed, 1992, Instr.Tech, GE Sensing, AUH, Vinod Pais, 1995-CS, Vishanth Menezes, 2002-Mech., Viswanath Varma, 1992 Instr.Tech. ABB-AUH, VK Vinod Kumar, 1992-Instr.Tech, ADNOC-AUH, Ahmed Saeed Assadi-Qatar Aeronauticaal College 1999-I&P, Anser Anjum, Arun Seetharam, B. Dayanand Shenoy, Ganesh Bhat Mech 1987-91, Henry Miranda, MANJUNATH PRASAD K, Mujeeb Shariff, Nelson Almeida, IECC-Oman, Norman Corda, Oman, Rafath Bari, Rajesh Sheregar, Ramesh B.A., Riyaz Talkhani, Ruben D'Souza, Santosh Rodrigues, Seetharama KS, Subhash Sanubhogh, 1989-Mech, Jacobs Engg-Al Khobar, Sujay Suvarna, Suresh NN, Syed Munawer, 1992, Arch. Qatar, Ulhas Rao, Ullas Kamath, Umesh Rai – 1989 Mech, Sabic-Jubail, Vijay D'Silva – STS Oman, Vijaya Kumar Nanjappa, Vivian Rodrigues, Achuth Kini (MIT), Ajith Kumar M., Ajith Shetty-Videocon, MCE-1985 batch E&C, akshay bangera, Amogh shetty, Appu, Aravind Prakash, Aravinda Herle-Gmail, Architect Sharath Munivenkate Gowda, arun Shetty, Balipaguli Rajaram C.G., Barkur Gopalakrishana, Bhoopali, BR Shankar alias Shankar Bangalore, BS Somshekhar MCE 1980 Civil, Chandulal-alias- Chandrashekar GL, D. Keshava Kumar, Dayananda Shetty, MCE‘84 batch, Prop. Hotel Sagar, Vijayanagar, Dinesh Kamath, DINSHA BABU PALETI, Dr. Abdul Sharief, Haaji, Dr. DL Prabhakara, Dr. Gopalakrishna SG, Principal, Nagarjuna College of Engg, Devanahalli, B'lore, Dr. K.N. Balasubramanya Murthy, Dr. Karisiddappa, Principal, Govt. Engg. College, Hassan, Dr. N. Harischandra Hebbar [MU-MCIS], Dr. SR Shankapal, President, MSR School of Advanced Studies, B’lore, Dr. Sunderesh Heragu, DS Krishnachandra, Ganapathi Golla, Gerald Romel Mascarenhas, GP Manjunath, Gurupadaswamy Belur, H.A.Kiran, Mob. 9448885556, Harin Hattangady, Harish Baliga, Harsha Gurukar, Hemanth Kumar DB, Immi, Jagdish Singhal, Jayaram HS, JNH KUMAR, John D'Cunha, K. Raghuram Prabhu, KB Bhat, Keshava Prasanna-MCE 1976, kiddo, Kuldeep Kokeri, Kumaraswamy Tekkunja, Lakshminarayana H K, M K Venkatesh, Principal RNSIT, B'lore, M.K.G.Kumar- 9448468230, Mahesh Babu, Manjunath Prabhu Gurpur, MDS, Mohan Kumar, Moodbidri K. Karunakar Shetty, Mukul Tagore, NA Kalappa MCE 81 batch, Prop. Kiran Constructions, Civil Bldg Contractor & Developer, Nagaraj Uppunda, Nagesh NK, Nalina K. Shetty, Naveen Kannan, Palti Ramesha, Phalguna Jois, Prabhakara H S, Pradeep Abraham, Pradeep Kumar LS, Prakash Nayak, Prapanch Mandana, Premananda Kamath, Priyadarshi Kibballi, Prof.T Narayana Shanubhogue, Canara Engg.College, R. B. Subramanya, Rajendra Ullal, Ramakrishna Hegdekatte, Ramaprasad Srinivasachar, Rammohan Pai, Ratnaraj Jain, Ravi Kumar Bidare, Ravindranath Kadiwal, Jt. Dir., BBMP, B-lore, RAVISHANKAR MK, Roland Pinto, Sadan Kumar, Sadashiva Reddy Patil alias SB Patil,[MCE’82] Chief Engineer, PWD, GoK, B'lore, Sanath Kumar Shetty, Santhosh Kumar Shetty, Sathyan, Satish Kumar, Satyesh, Shashi, Hassan MCE, Shashidhar Rao, Shetty SPS, Shivaram Bhat, Negalaguli, Shivaram Bhat, Negalaguli, Simon Rodrigues, Siva Kumar, Sreenath K, MCE-1978, 9900096949, Sri Balaji, Sridhar DT, SS Rao, Subbayya Bhandary, MCE’84 Tata Power, Subhaschandra, Subramanya Udupa-Chief Manager-HAL B'lore, MCE-1986 batch E&C, Sudeeth hegde, Sudhakar Reddy Shimoga MCE-1979 Mech mobile # +91-9845296050, Sudhin Kumar, Sudhir Kumar, SuhasKumar Hegde, Sumanth Reddy, sunil igoor, Suresh A, Tradevision, Malleswaram, Suresh Babu Tarikere, Suresh Kumble, Sushil Chandra M, Syed Aleem, T SHAM BHAT, IAS, BDA Commissioner, B'lore, GoK, TANVEER, TM Nagaraja 1985 FYS civil, V. Bharatheesha Rao, Dy. Dir. (Projects), KPTCL, Kaveri Bhavan, B-lore, vijaykumar, Vijayshankar JS, Vijayshankar JS, Dir., Op's, vishwanath hebbar, Vishwanath Hegde, Yeshvanth Kumar MP
One from me.
Our FD in a bank is not all that risk free. In case the bank goes bankrupt, they are obliged to give us back only max Rs 1 lakh. If you have FD of 10 lakhs, you will get back only 1 lakh, if there is a run on the bank
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TV Balasubramanyam
K. Shankara Bhat
Oct 13, 2015, 12:26:54 PM10/13/15
to MCE1981&1982 BATCHES, Dilip Kumar Malanda, NRIMCEALUMNI, Dinesh Shanbhag, Bobby (Antony) D'Souza, 1992-Auto, Kiran Kumar Nethrakere, 2001-Mech, Voltas-DIP, Agnello D'Souza, 1988-I&P, Muscat-Oman, Ajith Nalluraya, 2003-Mech, Ajith Sequeira, 1993-CS, Akhil Shetty, 1993-Auto, Amber (Hitamber) Attavar, 1993-I&P, anil bolar, Anil Shenoy, 1988-E&C AMEC (Shj), Arun Ramaswamy, 1992-Instr-Tech., Aswath Bhargava, 1992-Instr. Tech., Bhat, Subramanyam,1988-Mech., Bhattacharya, Atrinath, Brian Rodrigues, 1990-Auto, Champsey Mutappa 1987 E&C, Denish Pathok 2002 Instru., Dev Anand, 1986 E&E (2nd FYS), Devraj Fernandes, Dinesh D'Souza, 1993 I&P, Edward Felix Pinto, 1984-Mech., Ganesh Pai Neelavar, 1988-Mech., George Stanley, 1990-Mech., Gerard N Barnes 1990 Mech., Gokuldas Hegde 1976-Civil, Harry Moraes, 1976-Mech., James Mendonca, 1977-Civil, Javagal Sudarshan, 1988-CS Al Ain, Jeevan Cutinha, 2001-Auto, Jnanesh Bangady Killuru, 1996-Mech., Johnson Thomas, 1992-Instr-Tech, ABB, AUH, Lancy Aranha, 1984-Mech., Lancy Pinto, 1984-Mech., Larry Rolson D´Souza,, M Kiran Lobo Dxb DG, Manoranjan Rao, 1989-E&C, Maxwill D'Souza, 1989-Mech., Muralidhar Shenoy, 1984-Mech., Muyeed Ahmed, 1992 Instr.Tech, Dubai Municipality, Nagaraj-70, 1981-Civil, nagaraja thunga, Nagesh Shettigar, 2001-Mech., Pragnya Bidare, Ms. 2004-CS, Prasanna AVS 1988-I&P, Muscat-Oman, Prashanth Hegde, 1988, Instru.Tech., Praveen Joy Mascarenhas, 2002-Mech., Rajesh Mestha, 1995-Civil, Rakesh Fernandes, 2001-Auto, Ramesh Achar, 1989-Mech., Ramkrishna Karanth 1986-Mech., Rayan Castelino 1988-Auto, Renuka Padmaraj, 1992-Instru.Tech, Dubai, Roshan Sequeira 1992-civil AUH, Safraz, 1996-Arch., Salvadore D'Souza, 1984-Mech., Sanjeev Coelho, 1993-Arch., Santosh Prabhu 1990-Civil, Sapna Shetty 1990 Arch Doha Dxb, Shamin Sequeira, 1993-I&P, Muscat-Oman, Shivprasad Kolattaya NL, 1984-Mech., Stany D'Mello, 1990 E&E, Kuwait, Stephen Monterio 1992 I&P, Subba Rao N, 1988 E&C, Sujith Shetty, 1999-civil, Dxb Si. OA, Sundresh, 1973 E&E, Ticky Thomas, 1992-Instru.Tech, Dubai, Titu Kurian, 1992-Instr-Tech, Gasco, AUH, Vasanth Pattar, 1996 E&C, Vaseem Ahmed, 1992, Instr.Tech, GE Sensing, AUH, Vinod Pais, 1995-CS, Vishanth Menezes, 2002-Mech., Viswanath Varma, 1992 Instr.Tech. ABB-AUH, VK Vinod Kumar, 1992-Instr.Tech, ADNOC-AUH, Ahmed Saeed Assadi-Qatar Aeronauticaal College 1999-I&P, Anser Anjum, Arun Seetharam, B. Dayanand Shenoy, Ganesh Bhat Mech 1987-91, Henry Miranda, MANJUNATH PRASAD K, Mujeeb Shariff, Nelson Almeida, IECC-Oman, Norman Corda, Oman, Rafath Bari, Rajesh Sheregar, Ramesh B.A., Riyaz Talkhani, Ruben D'Souza, Santosh Rodrigues, Seetharama KS, Subhash Sanubhogh, 1989-Mech, Jacobs Engg-Al Khobar, Sujay Suvarna, Suresh NN, Syed Munawer, 1992, Arch. Qatar, Ulhas Rao, Ullas Kamath, Umesh Rai – 1989 Mech, Sabic-Jubail, Vijay D'Silva – STS Oman, Vijaya Kumar Nanjappa, Vivian Rodrigues, Achuth Kini (MIT), Ajith Kumar M., Ajith Shetty-Videocon, MCE-1985 batch E&C, akshay bangera, Amogh shetty, Appu, Aravind Prakash, Aravinda Herle-Gmail, Architect Sharath Munivenkate Gowda, arun Shetty, Balipaguli Rajaram C.G., Barkur Gopalakrishana, Bhoopali, BR Shankar alias Shankar Bangalore, BS Somshekhar MCE 1980 Civil, Chandulal-alias- Chandrashekar GL, D. Keshava Kumar, Dayananda Shetty, MCE‘84 batch, Prop. Hotel Sagar, Vijayanagar, Dinesh Kamath, DINSHA BABU PALETI, Dr. Abdul Sharief, Haaji, Dr. DL Prabhakara, Dr. Gopalakrishna SG, Principal, Nagarjuna College of Engg, Devanahalli, B'lore, Dr. K.N. Balasubramanya Murthy, Dr. Karisiddappa, Principal, Govt. Engg. College, Hassan, Dr. N. Harischandra Hebbar [MU-MCIS], Dr. SR Shankapal, President, MSR School of Advanced Studies, B’lore, Dr. Sunderesh Heragu, DS Krishnachandra, Ganapathi Golla, Gerald Romel Mascarenhas, GP Manjunath, Gurupadaswamy Belur, H.A.Kiran, Mob. 9448885556, Harin Hattangady, Harish Baliga, Harsha Gurukar, Hemanth Kumar DB, Immi, Jagdish Singhal, Jayaram HS, JNH KUMAR, John D'Cunha, K. Raghuram Prabhu, KB Bhat, Keshava Prasanna-MCE 1976, kiddo, Kuldeep Kokeri, Kumaraswamy Tekkunja, Lakshminarayana H K, M K Venkatesh, Principal RNSIT, B'lore, M.K.G.Kumar- 9448468230, Mahesh Babu, Manjunath Prabhu Gurpur, MDS, Mohan Kumar, Moodbidri K. Karunakar Shetty, Mukul Tagore, NA Kalappa MCE 81 batch, Prop. Kiran Constructions, Civil Bldg Contractor & Developer, Nagaraj Uppunda, Nagesh NK, Nalina K. Shetty, Naveen Kannan, Palti Ramesha, Phalguna Jois, Prabhakara H S, Pradeep Abraham, Pradeep Kumar LS, Prakash Nayak, Prapanch Mandana, Premananda Kamath, Priyadarshi Kibballi, Prof.T Narayana Shanubhogue, Canara Engg.College, R. B. Subramanya, Rajendra Ullal, Ramakrishna Hegdekatte, Ramaprasad Srinivasachar, Rammohan Pai, Ratnaraj Jain, Ravi Kumar Bidare, Ravindranath Kadiwal, Jt. Dir., BBMP, B-lore, RAVISHANKAR MK, Roland Pinto, Sadan Kumar, Sadashiva Reddy Patil alias SB Patil,[MCE’82] Chief Engineer, PWD, GoK, B'lore, Sanath Kumar Shetty, Santhosh Kumar Shetty, Sathyan, Satish Kumar, Satyesh, Shashi, Hassan MCE, Shashidhar Rao, Shetty SPS, Shivaram Bhat, Negalaguli, Shivaram Bhat, Negalaguli, Simon Rodrigues, Siva Kumar, Sreenath K, MCE-1978, 9900096949, Sri Balaji, Sridhar DT, SS Rao, Subbayya Bhandary, MCE’84 Tata Power, Subhaschandra, Subramanya Udupa-Chief Manager-HAL B'lore, MCE-1986 batch E&C, Sudeeth hegde, Sudhakar Reddy Shimoga MCE-1979 Mech mobile # +91-9845296050, Sudhin Kumar, Sudhir Kumar, SuhasKumar Hegde, Sumanth Reddy, sunil igoor, Suresh A, Tradevision, Malleswaram, Suresh Babu Tarikere, Suresh Kumble, Sushil Chandra M, Syed Aleem, T SHAM BHAT, IAS, BDA Commissioner, B'lore, GoK, TANVEER, TM Nagaraja 1985 FYS civil, V. Bharatheesha Rao, Dy. Dir. (Projects), KPTCL, Kaveri Bhavan, B-lore, vijaykumar, Vijayshankar JS, Vijayshankar JS, Dir., Op's, vishwanath hebbar, Vishwanath Hegde, Yeshvanth Kumar MP
TV Balasubramanyam, namaskara.
That depends on the statutory (mandatory) group Insurance the Banks take for customers' deposit in Banks.
Many years ago, it was Rs. 35K per customer. It is the Insurance companies that pay this money.
But, in India, most of the Indian banks are stable (due to strict RBI control) & healthy (for many years) including many co-op banks (not controlled by politicians), such as Bharath Co-op Bank (Mumbai), Saraswat bank, Saraswat Co-op bank Abhyudhaya Co-op Bank, to name few. NBFC's are risky
NBFC = Non-Banking Financial Co's, Best Example: Maharashtra Apex of Manipal Pai-group, where people lost their retirement benefits deposited in it.
Regards,
-Bhat
Balasubramanyam TV
Oct 13, 2015, 12:34:08 PM10/13/15
to mce-ol...@googlegroups.com, Dilip Kumar Malanda, NRIMCEALUMNI, Dinesh Shanbhag, Bobby (Antony) D'Souza, 1992-Auto, Kiran Kumar Nethrakere, 2001-Mech, Voltas-DIP, Agnello D'Souza, 1988-I&P, Muscat-Oman, Ajith Nalluraya, 2003-Mech, Ajith Sequeira, 1993-CS, Akhil Shetty, 1993-Auto, Amber (Hitamber) Attavar, 1993-I&P, anil bolar, Anil Shenoy, 1988-E&C AMEC (Shj), Arun Ramaswamy, 1992-Instr-Tech., Aswath Bhargava, 1992-Instr. Tech., Bhat, Subramanyam,1988-Mech., Bhattacharya, Atrinath, Brian Rodrigues, 1990-Auto, Champsey Mutappa 1987 E&C, Denish Pathok 2002 Instru., Dev Anand, 1986 E&E (2nd FYS), Devraj Fernandes, Dinesh D'Souza, 1993 I&P, Edward Felix Pinto, 1984-Mech., Ganesh Pai Neelavar, 1988-Mech., George Stanley, 1990-Mech., Gerard N Barnes 1990 Mech., Gokuldas Hegde 1976-Civil, Harry Moraes, 1976-Mech., James Mendonca, 1977-Civil, Javagal Sudarshan, 1988-CS Al Ain, Jeevan Cutinha, 2001-Auto, Jnanesh Bangady Killuru, 1996-Mech., Johnson Thomas, 1992-Instr-Tech, ABB, AUH, Lancy Aranha, 1984-Mech., Lancy Pinto, 1984-Mech., Larry Rolson D´Souza,, M Kiran Lobo Dxb DG, Manoranjan Rao, 1989-E&C, Maxwill D'Souza, 1989-Mech., Muralidhar Shenoy, 1984-Mech., Muyeed Ahmed, 1992 Instr.Tech, Dubai Municipality, Nagaraj-70, 1981-Civil, nagaraja thunga, Nagesh Shettigar, 2001-Mech., Pragnya Bidare, Ms. 2004-CS, Prasanna AVS 1988-I&P, Muscat-Oman, Prashanth Hegde, 1988, Instru.Tech., Praveen Joy Mascarenhas, 2002-Mech., Rajesh Mestha, 1995-Civil, Rakesh Fernandes, 2001-Auto, Ramesh Achar, 1989-Mech., Ramkrishna Karanth 1986-Mech., Rayan Castelino 1988-Auto, Renuka Padmaraj, 1992-Instru.Tech, Dubai, Roshan Sequeira 1992-civil AUH, Safraz, 1996-Arch., Salvadore D'Souza, 1984-Mech., Sanjeev Coelho, 1993-Arch., Santosh Prabhu 1990-Civil, Sapna Shetty 1990 Arch Doha Dxb, Shamin Sequeira, 1993-I&P, Muscat-Oman, Shivprasad Kolattaya NL, 1984-Mech., Stany D'Mello, 1990 E&E, Kuwait, Stephen Monterio 1992 I&P, Subba Rao N, 1988 E&C, Sujith Shetty, 1999-civil, Dxb Si. OA, Sundresh, 1973 E&E, Ticky Thomas, 1992-Instru.Tech, Dubai, Titu Kurian, 1992-Instr-Tech, Gasco, AUH, Vasanth Pattar, 1996 E&C, Vaseem Ahmed, 1992, Instr.Tech, GE Sensing, AUH, Vinod Pais, 1995-CS, Vishanth Menezes, 2002-Mech., Viswanath Varma, 1992 Instr.Tech. ABB-AUH, VK Vinod Kumar, 1992-Instr.Tech, ADNOC-AUH, Ahmed Saeed Assadi-Qatar Aeronauticaal College 1999-I&P, Anser Anjum, Arun Seetharam, B. Dayanand Shenoy, Ganesh Bhat Mech 1987-91, Henry Miranda, MANJUNATH PRASAD K, Mujeeb Shariff, Nelson Almeida, IECC-Oman, Norman Corda, Oman, Rafath Bari, Rajesh Sheregar, Ramesh B.A., Riyaz Talkhani, Ruben D'Souza, Santosh Rodrigues, Seetharama KS, Subhash Sanubhogh, 1989-Mech, Jacobs Engg-Al Khobar, Sujay Suvarna, Suresh NN, Syed Munawer, 1992, Arch. Qatar, Ulhas Rao, Ullas Kamath, Umesh Rai – 1989 Mech, Sabic-Jubail, Vijay D'Silva – STS Oman, Vijaya Kumar Nanjappa, Vivian Rodrigues, Achuth Kini (MIT), Ajith Kumar M., Ajith Shetty-Videocon, MCE-1985 batch E&C, akshay bangera, Amogh shetty, Appu, Aravind Prakash, Aravinda Herle-Gmail, Architect Sharath Munivenkate Gowda, arun Shetty, Balipaguli Rajaram C.G., Barkur Gopalakrishana, Bhoopali, BR Shankar alias Shankar Bangalore, BS Somshekhar MCE 1980 Civil, Chandulal-alias- Chandrashekar GL, D. Keshava Kumar, Dayananda Shetty, MCE‘84 batch, Prop. Hotel Sagar, Vijayanagar, Dinesh Kamath, DINSHA BABU PALETI, Dr. Abdul Sharief, Haaji, Dr. DL Prabhakara, Dr. Gopalakrishna SG, Principal, Nagarjuna College of Engg, Devanahalli, B'lore, Dr. K.N. Balasubramanya Murthy, Dr. Karisiddappa, Principal, Govt. Engg. College, Hassan, Dr. N. Harischandra Hebbar [MU-MCIS], Dr. SR Shankapal, President, MSR School of Advanced Studies, B’lore, Dr. Sunderesh Heragu, DS Krishnachandra, Ganapathi Golla, Gerald Romel Mascarenhas, GP Manjunath, Gurupadaswamy Belur, H.A.Kiran, Mob. 9448885556, Harin Hattangady, Harish Baliga, Harsha Gurukar, Hemanth Kumar DB, Immi, Jagdish Singhal, Jayaram HS, JNH KUMAR, John D'Cunha, K. Raghuram Prabhu, KB Bhat, Keshava Prasanna-MCE 1976, kiddo, Kuldeep Kokeri, Kumaraswamy Tekkunja, Lakshminarayana H K, M K Venkatesh, Principal RNSIT, B'lore, M.K.G.Kumar- 9448468230, Mahesh Babu, Manjunath Prabhu Gurpur, MDS, Mohan Kumar, Moodbidri K. Karunakar Shetty, Mukul Tagore, NA Kalappa MCE 81 batch, Prop. Kiran Constructions, Civil Bldg Contractor & Developer, Nagaraj Uppunda, Nagesh NK, Nalina K. Shetty, Naveen Kannan, Palti Ramesha, Phalguna Jois, Prabhakara H S, Pradeep Abraham, Pradeep Kumar LS, Prakash Nayak, Prapanch Mandana, Premananda Kamath, Priyadarshi Kibballi, Prof.T Narayana Shanubhogue, Canara Engg.College, R. B. Subramanya, Rajendra Ullal, Ramakrishna Hegdekatte, Ramaprasad Srinivasachar, Rammohan Pai, Ratnaraj Jain, Ravi Kumar Bidare, Ravindranath Kadiwal, Jt. Dir., BBMP, B-lore, RAVISHANKAR MK, Roland Pinto, Sadan Kumar, Sadashiva Reddy Patil alias SB Patil,[MCE’82] Chief Engineer, PWD, GoK, B'lore, Sanath Kumar Shetty, Santhosh Kumar Shetty, Sathyan, Satish Kumar, Satyesh, Shashi, Hassan MCE, Shashidhar Rao, Shetty SPS, Shivaram Bhat, Negalaguli, Shivaram Bhat, Negalaguli, Simon Rodrigues, Siva Kumar, Sreenath K, MCE-1978, 9900096949, Sri Balaji, Sridhar DT, SS Rao, Subbayya Bhandary, MCE’84 Tata Power, Subhaschandra, Subramanya Udupa-Chief Manager-HAL B'lore, MCE-1986 batch E&C, Sudeeth hegde, Sudhakar Reddy Shimoga MCE-1979 Mech mobile # +91-9845296050, Sudhin Kumar, Sudhir Kumar, SuhasKumar Hegde, Sumanth Reddy, sunil igoor, Suresh A, Tradevision, Malleswaram, Suresh Babu Tarikere, Suresh Kumble, Sushil Chandra M, Syed Aleem, T SHAM BHAT, IAS, BDA Commissioner, B'lore, GoK, TANVEER, TM Nagaraja 1985 FYS civil, V. Bharatheesha Rao, Dy. Dir. (Projects), KPTCL, Kaveri Bhavan, B-lore, vijaykumar, Vijayshankar JS, Vijayshankar JS, Dir., Op's, vishwanath hebbar, Vishwanath Hegde, Yeshvanth Kumar MP
Bhattre Namaskara
You are right. Now this insurance amount is 1 lakh.
Not long ago, Global trust bank went belly up. Fortunately, another bank OBC bought it. There have been quite a few times, in recent years, there were rumors about ICICI Bank,there were long queues. But as you said no body has really lost money yet fortunately.
Regards
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