ISSUE 02 / B & I

Newsletter Date: 25th Nov

‘‘‘‘SHRI SARASWATI NAMAHSTUBHYAM VARADE KAAMA RUUPINI
TWAAM AHAM PRAATTHANE DEEVI VIDYADAANAM CHA DEHI ME!!!’’’’ GREAT THOUGHTS
“Character, not brain, will count at the
MEANING: I BOW TO GODDESS SARASWATI WHO FULFILLS THE WISHES OF THE DEVOTEES. crucial moment.”
I PRAY TO YOU TO ENLIGHTEN ME WITH KNOWLEDGE. “The weak can never forgive.
Forgiveness is the attribute of the strong.”
-Rabindranath Tagore

NOKIA PLANS TO LAUNCH M-BANKING SERVICES EDITORS NOTE

Dear Readers,
Despite a tough regulatory environment for mobile banking in India, Nokia expects to soon roll out its The Banking and Insurance
financial and banking services in the country under the banner of 'Nokia Money'. The world's largest mobile phone department takes exceptional pride in
company has initiated talks with six banks in India who will be responsible for cash management and handling presenting before you the 2nd issue of our
banking regulatory issues. newsletter, handy yet comprehensive
‘Bankomania’. This issue would not have
As per Nokia's strategy, it plans to tap its huge network of 1.9 lakh phone retailers and dealers who will act as been possible without the support of
the consumer point and banking correspondents. Nokia will offer a universal platform where the mobile phone can Principal Sir, B & I faculties, other staff of
be a medium for banking, international remittance, payment of utility bills, pay merchants for goods and services the institution and you students at large.
and buying tickets.“India figures amongst the top 20 countries where we plan to roll out Nokia Money in the first Last but not the least it would be our
constant effort and indeed our
phase. While at present Indian banks may have a mobile banking platform, it is limited to a single bank and telecom
commitment to provide you quality
operator. What we plan to offer is a full-fledged service which will bring together all banks, operators and even information for your benefit. It would be
handsets of other brands,” said Teppo Paavola, global head of Nokia Money service. a matter of profound satisfaction for us, if
this issue finds a place on your shelf and
Talking about the regulatory challenges in India, Mr Paavola said the key issue will be to turn the Nokia in your heart.
retailers into Nokia Money agent. Nokia expects its service will be a huge success in India due to its vast dealer
network from where consumers can deposit money or withdraw cash. The success will lie in the fact that the UPCOMING EVENTS
service needs to work in all handsets, it should be as simple and convenient as making a voice call or sending SMS
and have a very low transaction fee. Nokia expects to globally debut its first Nokia Money service early next year. th th
SPORTS DAY - 16 and 18 Dec
“The potential is huge in India due to the high population of under-banked and unbanked people,” Mr Paavola said.
th
TRADITIONAL DAY - 24 Dec

PAGE NO. 1
 Want to find out what your bank thinks of you?
CIBIL (Credit Information Bureau of India Ltd) licensed by RBI under the Credit Information Companies
Regulation Act, 2005 (CICRA) has introduced a manual system to provide consumers with their own credit history on THE MYTHS AND FACTS OF MUTUAL
a test basis through an interim solution. In this interim solution, CIBIL will be handling consumers request for a copy FUNDS.
of their credit information report. CIBIL is also developing the infrastructure, system and process for an automated
solution that would enable an individual to directly access his credit information from CIBIL online. This automated THE MYTHS
phase is expected to be ready by the beginning of the next fiscal year.
·Equity mutual funds (MFs) are risk-free and will do well
Thus, when a customer approaches any bank for credit facility, CIBIL is in a position to go through its records
and provide details of the existing credit facilities enjoyed by the customer to the bank, as well as his repayment in any kind of market scenario.
history. This enables bank to take a more informed decision on customer's credit application. This is also beneficial for ·A quick entry and a quick exit is the way to go.
the customer if he has maintained a spotless repayment history, since he will be able to get the credit facility quickly ·One should have many well performing funds. The returns
and it will be cheaper based on his good record. will multiply.
A large number of consumers today feel helpless about erroneous repayment history being reported by the ·The lower the net asset value (NAV), the cheaper and
banks to CIBIL showing consumers in default. This is true in case of credit cards. But now, since consumers can have
better the fund.
an access to their own report, the consumers can point out any error in the report to CIBIL. The erroneous entry will
·One should quickly buy into sector which is hot at the
have to be deleted by CIBIL unless the concerned bank reverts within 30 days of the consumer filing his error report
with the bureau. If the consumer is not satisfied with the action of the bank then he can always file a grievance before moment. For example, the infrastructure sector will do
the banking ombudsman. Thus, by having access to their own credit report, good consumers can ensure that they do not well in the future, so one should go into it in a big way.
fall victim to erroneous reporting by the bank.
For your own credit report from CIBIL, you can download the form available on the Apna Paisa website at THE FACTS
http://www.apnapaisa.com/credit-card-india/CIBIL-credit information bureau-report-request-form.html. ·All market-related instruments, including MFs, will carry
- Manmeet & Group
a risk. The only advantage equity MFs have over direct
T.Y.B&I
investing is that the fund houses are experts in the field.
TIME ·Have at least a three-year horizon, even more if needed.
Imagine there is a bank which credits your account each morning with Rs. 86,400, Avoid equity MFs if your span is less than this.
carries over no balance from day to day, allows you to keep no cash balance, and every evening ·Keep it simple. Don't forget that MFs invest in scrips. Too

cancels whatever part of the amount you had failed to use during the day. many schemes of the same type may mean duplication of
sectors and scrips.
What would you do?
·It is the increase and decrease in an NAV that counts, not
Draw out every Rupee, of course!
the NAV itself. So whether the NAV is Rs.10 or Rs.1000
Well, everyone has such a bank. It’s name is TIME.
doesn't really matter. What matters is how much gain or
Every morning, it credits you with 86,400 seconds.
loss the scheme makes.
Every night, it writes off, as lost, whatever of this you have failed to invest for a good purpose.
·Various sectors behave differently. Some are less volatile
It carries no balance. It allows no overdraft. and give stable, if not high, returns, while others can go up
Each day, it opens a new account for you. and down a lot. Go by your risk endurance.
Each night, it burns the records of the day. ·Invest in sectors or thematic funds if you understand how
If you fail to use the day’s deposits, the loss is yours. they work and what their returns can be. Ideally, these
There is no going back. There is no drawing against tomorrow. should be peripheral schemes, and not at the core of your
You must live in the present on today’s deposits. portfolio.
Invest it so as to get from it the utmost in health, happiness and success!
The clock is running. Make the most of today.

PAGE NO. 2
 GOT NO CASH FROM ATM, BUT STILL A DEBIT?
NEVER UNDERESTIMATE YOUR CLIENTS' COMPLAINT, One fine day, Mr. Chatterjee went to an ATM of a reputed bank to
NO MATTER HOW FUNNY IT MIGHT SEEM! withdraw some cash. He entered an amount of Rs. 15,000 on the screen and was
This is a real story that happened between the customer of General Motors and its Customer- waiting for his money to be dispensed by the ATM. To his horror, the money
Care Executive. Please read on..... never came out of the machine. He immediately checked his account balance at
A complaint was received by the Pontiac Division of General Motors: the same ATM and saw that the amount that was not delivered to him had been
'This is the second time I have written to you, and I don't blame you for not answering me, debited from the account. There are many people who face this situation.
because I sounded crazy, but it is a fact that we have a tradition in our family of ice cream for Here are few things to keep in mind:
dessert after dinner each night, but the kind of ice cream varies so, every night, after we've eaten,
1) How do you complain to the bank?
the whole family votes on which kind of ice cream we should have and I drive down to the store to
Complain to the branch manager of the particular bank where the account
get it. It's also a fact that I recently purchased a new Pontiac and since then my trips to the store
is linked to the card or the closest bank to the ATM. The complaint should be
have created a problem.....
resolved within 12 days of receiving the complaint, as per RBI circular.
You see, every time I buy a vanilla ice-cream, when I start back from the store my car won't
start. If I get any other kind of ice cream, the car starts just fine. I want you to know I'm serious 2) Who are the higher authorities you can approach?
about this question, no matter how silly it sounds "What is there about a Pontiac that does not RBI and Banking Ombudsman. It can be done by writing a letter or online
make it start when I get vanilla ice cream, and easy to start whenever I get any other kind?” via the RBI website.
The Pontiac President was understandably skeptical about the letter, but sent an Engineer to 3) How do you prove that notes were not dispensed by the ATM?
check it out anyway. The latter was surprised to be greeted by a successful, obviously well The number of the notes put in the ATM and the amount dispensed is
educated man in a fine neighborhood. He had arranged to meet the man just after dinner time, so tallied at the end of the day with each ATM. Also, there are cameras that are
the two hopped into the car and drove to the ice cream store. It was vanilla ice cream that night placed in ATMs and the recordings can be checked.
and, sure enough, after they came back to the car, it wouldn't start. The Engineer returned for three 4) What if the banks do not respond within 12 days?
more nights. The first night, he got chocolate. The car started. The second night, he got strawberry. Non-adherence to the time discipline shall attract penalties prescribed
The car started. The third night, he ordered vanilla. The car failed to start. under the Payment and Settlement Systems Act, 2007.
Now the engineer, being a logical man, refused to believe that this man's car was allergic to 5) What precautions should we take?
vanilla ice cream. He arranged, therefore, to continue his visits for as long as it took to solve the 1) Ask for a receipt.
problem. And now, he began to take notes. He jotted down all sorts of data: time of day, type of gas 2) Details of the transaction.
used, time to drive back and forth etc. 3) If not, at least note down the details manually.
In a short time, he had a clue: the man took less time to buy vanilla than any other flavor. 4) Incase the money has not popped out; make sure you have an eye witness
Why? The answer was in the layout of the store. Vanilla, being the most popular flavor, was in a
to that incident.
separate case at the front of the store for quick pickup. All the other flavors were kept in the back
of the store at a different counter where it took considerably longer to check out the flavor. Now,
the question for the Engineer was why the car wouldn't start when it took less time.
PLASTIC Rs.10 NOTES
Eureka - Time was now the problem - not the vanilla ice cream!!!! The engineer quickly
Soon you won't have to worry about currency notes getting soiled or
came up with the answer: "Vapor lock". It was happening every night; but the extra time taken to
soggy. RBI plans to introduce plastic Rs.10 notes worth Rs.100 crore. The
get the other flavors allowed the engine to cool down sufficiently to start. When the man got polymer banker notes, with a life cycle four times that of the usual paper
vanilla, the engine was still too hot for the vapor lock to dissipate. currency notes, would be complicated to replicate. A senior official at RBI
Even crazy looking problems are sometimes real and all problems seem to be simple only said, “Plastic notes would last longer. They would be waterproof and, most
when we find the solution, with cool thinking. importantly, they would be difficult to replicate. Work on plastic notes is still
on and details will be announced soon”.

PAGE NO. 3
DIFFICULT QUESTIONS AND INTELLIGENT ANSWERS! SOME INTERESTING FACTS A SMALL STORY
Question and the Answer given by Candidates. Oh sorry!! They are 1. Coca-Cola was originally green. A boy and a girl were playing
IAS Officers now. together. The boy had a collection of
2. The names of all the continents end with the
Q. How can you drop a raw egg onto a concrete floor without marbles. The girl had some sweets with
cracking it? same letter that they start with. her. The boy told the girl that he will
A: Concrete floors are very hard to crack!! 3. You can't kill yourself by holding your breath. give her all his marbles in exchange for
4. It is impossible to lick your elbow. her sweets. The girl agreed.
Q. If it took eight men, ten hours to build a wall, how long would it 5. People say "Bless you" when you sneeze The boy kept the biggest and the
take four men to build it? most beautiful marble aside and gave
because when you sneeze, your heart stops for a the rest to the girl. The girl gave him all
A: No time at all. It is already built.
millisecond. her sweets as she had promised.

Q. How can you lift an elephant with one hand? 6. The "sixth sick sheikh’s sixth sheep's sick" is That night, the girl s lept
said to be the toughest tongue twister in the peacefully. But the boy couldn't sleep as
A: It is not a problem, since you will never find an elephant with he kept wondering if the girl had hidden
one hand. English language. some sweets from him, the way he had
7. Honey - This is the only food that doesn't spoil. hidden his best marble.
Q. If you throw a red stone into the blue sea what will it become?
8. A snail can sleep for three years.
A: It will get wet or will sink, as simple as that. Moral of the story: If you don't give
9. All polar bears are left handed.
your hundred percent in a relationship,
Q. What looks like half an apple? 10. American Airlines saved $40,000 in 1987 by
you'll always keep doubting if the other
A: The other half. eliminating one olive from each salad served in
person has given his/her hundred
first-class.
percent. This is applicable for any
Q. Bay of Bengal is in which state? 11. Wearing headphones for just an hour will
A: Liquid. relationship like employer-employee
increase the bacteria in your ear by 700 times. relationship, friendship, love etc. Give
GOOD THINKING 12. Like fingerprints, everyone's tongue print is your hundred percent to everything you
Interviewer said, "I shall either ask you ten easy questions or one really different. do and sleep peacefully.
difficult question. Think well before you make up your mind!"
The boy thought for a while and said, "My choice is one really difficult
question." OUR GROUP OF EDITORS
"Well, good luck to you, you have made your own choice! Now tell me this.
CHIEF EDITOR: Preeti Agarwal (T.Y.B&I) / Sakina Chevelwalla (S.Y.B&I)
What comes first, Day or Night?”
The boy was jolted into reality as his admission depended on his answer, but EDITING TEAM: Pooja Modi (S.Y.B&I), Harshal Gaikwad (S.Y.B&I),
he thought for a while and said, "It's the DAY sir!" Ankur (F.Y.B&I), Siddharth (F.Y.B&I), Sneha B. (T.Y.B&I),
"How?" the interviewer asked. Nidal Farooqui (T.Y.B&I), Darshnil Patel (T.Y.B&I).
"Sorry sir, you promised me that you will not ask me a SECOND difficult
question!"
He was selected for IIM!!
Please give your suggestions at: bankomania@gmail.com

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