Letter of Undertaking (LoUs),  Letter of Credit (LoC), Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, and Core Banking System (CBS). It is important for you to understand what these terms mean, not only to get a better insight in current affairs of the nation but also to prepare for upcoming exams as current affairs based banking terms and instruments are known to be seen in the general awareness section of banking examinations topics like LoU, SWIFT, CBS, Letter of Credit (LoC) are now very important from the point of upcoming competetive Examinations.

About 'Letter Of Credit'.

A letter of credit is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.

BREAKING DOWN 'Letter Of Credit'

Because a letter of credit is typically a negotiable instrument, the issuing bank pays the beneficiary or any bank nominated by the beneficiary. If a letter of credit is transferrable, the beneficiary may assign another entity, such as a corporate parent or a third party, the right to draw.

Funding a Letter of Credit

Banks typically require a pledge of securities or cash as collateral for issuing a letter of credit. Banks also collect a fee for service, typically a percentage of the size of the letter of credit. The International Chamber of Commerce Uniform Customs and Practice for Documentary Credits oversees letters of credit used in international transactions.

Example of a Letter of Credit

Citibank offers letters of credit for buyers in Latin America, Africa, Eastern Europe, Asia and the Middle East who may have difficulty obtaining international credit on their own. Citibank’s letters of credit help exporters minimize the importer’s country risk and the issuing bank’s commercial credit risk. Letters of credit are typically provided within two business days, guaranteeing payment by the confirming Citibank branch. This benefit is especially valuable when a client is located in a potentially unstable economic environment.

Types of Letters of Credit

A commercial letter of credit is a direct payment method in which the issuing bank makes the payments to the beneficiary. In contrast, a standby letter of credit is a secondary payment method in which the bank pays the beneficiary only when the holder cannot.

A revolving letter of credit lets the customer make any number of draws within a certain limit during a specific time period. A traveler’s letter of credit guarantees the issuing banks will honor drafts made at certain foreign banks.

A confirmed letter of credit involves a bank other than the issuing bank guaranteeing the letter of credit. The second bank is the confirming bank, typically the seller’s bank. The confirming bank ensures payment under the letter of credit if the holder and the issuing bank default. The issuing bank in international transactions typically requests this arrangement.

About SWIFT 

When an LoU is issued, the message of credit transfer is conveyed to overseas banks through the Society for Worldwide Interbank Financial Telecommunication (SWIFT)system. This is a significant information as it gives the bank's consent and guarantee. To issue SWIFT, an official has to log in and fill up confidential information such as the account number and SWIFT code. It generally has three layers of security - a maker, a checker and a verifier within the core banking system before it is issued.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutionsworldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. SWIFT also sells software and services to financial institutions, much of it for use on the SWIFTNet Network, and ISO 9362. Business Identifier Codes (BICs, previously Bank Identifier Codes) are popularly known as "SWIFT codes".

The majority of international interbank messages use the SWIFT network. As of 2015, SWIFT linked more than 11,000 financial institutions in more than 200 countries and territories, who were exchanging an average of over 15 million messages per day (compared to an average of 2.4 million daily messages in 1995). SWIFT transports financial messages in a highly secure way but does not hold accounts for its members and does not perform any form of clearing or settlement.

SWIFT does not facilitate funds transfer: rather, it sends payment orders, which must be settled by correspondent accounts that the institutions have with each other. Each financial institution, to exchange banking transactions, must have a banking relationship by either being a bank or affiliating itself with one (or more) so as to enjoy those particular business features.

SWIFT is a cooperative society under Belgian law owned by its member financial institutions with offices around the world. SWIFT headquarters, designed by Ricardo Bofill Taller de Arquitectura are in La Hulpe, Belgium, near Brussels. The chairman of SWIFT is Yawar Shah, originally from Pakistan, and its CEO is Gottfried Leibbrandt, originally from the Netherlands. SWIFT hosts an annual conference every year, called Sibos, specifically aimed at the financial services industry.

About CBS

CBS refers to Core Banking System where all branches are inter-connected to ensure that the bank customers - regardless of their home branch - are able to operate their account and transact in any of the member branch located anywhere in the world.

CBS is required :

1. To meet the dynamically changing market & customer needs.

2. To improve & simplify  banking processes so that bank staff can focus on sales & marketing stuff.

3. Convenience to customer as well as bank.

4. To  Speed up the banking transactions.

5. To expand presence in rural & remote areas.

About Letter of Undertaking (LoU)
 

An LoU is an assurance given by one bank to another to meet a liability on behalf of a customer. The LoU is akin to a letter of credit or a guarantee. LoUs are used in international banking transactions. An LoU is issued for overseas import remittances and involves four parties — an issuing bank, a receiving bank, an importer and a beneficiary entity overseas. According to norms, the term of an LoU is 180 days, and can be rolled over once for six months. Since LoUs are a form of lending, they are typically backed by security.

A Letter of Understanding or LOU is a formal text that sums up the terms and understanding of a contract which mostly has been negotiated up to this point only in spoken form. It reviews the terms of an agreement for a service, a project or a deal and is often written as a step before a more detailed contract is issued.

The LOU may provide for example:

1. Detailed summary of the work to be performed
2. Tasks of the service provider and the receiver
3. Milestones for the work to be done
4. Work steps that have been accomplished already

In international banking system, Letter of Undertaking (LOU) is a provision of bank guarantee, under which a bank allows its customer to raise money from another Indian bank's foreign branch in the form of a short term credit. The LOU serves the purpose of a bank guarantee. However, to be able to raise the LOU, the customer is supposed to pay margin money to the bank issuing the LOU and accordingly, he is granted a credit limit.

Under PMKVY (2015-16)

1. 13,000 training centers opened across India Training in 375 trades.
2. 19.85 Lakh youth trained part of PMKVY (2015-2016) (updated)

Placement was not a feature of PMKVY 1, neither was it tracked. The number mentioned is record of voluntary information shared by TPs and thus shouldn’t be counted as an achievement.

Under PMKVY -2 (2016-20)

1. More than 5,700 training centres opened across India
2. More than 16 lakh candidates trained
3. Model training centres known as Pradhan Mantri Kaushal Kendras (PMKK) are being opened in every district across India 
4. Physical target of 20.5 lakh approved for 35 states/UT costing to INR 3000 crore till 2020
5. 6.01 lakh training to be implemented through state/UTs by March’18
6. Additional target of 20 lakh allocated for enrolment and training by training providers
7. Women constitute approx. 50% of all enrolled candidates under PMKVY

Startup India Movement launched on 16th January 2016 for promotion of Entrepreneurship among youth.

1. Action plan unveiled for encouraging startups.
2. Tax relief for three consecutive years out of a block of seven year for startups.
3. Start-up Fund of Rs. 10,000 Crore to be released over two Finance Commission cycles, that is, by 2025.
4. Startups are allowed to issue ESOPs to promoters working as employees

Startups approved

1. 4536 Startup applications have been recognized as Startups by DIPP as on 12th October, 2017
2. 74 Startups have been approved by IMB for availing tax benefit
3. 450+ Startups have been mentored for incubation and funding support by Startup India Hub

Start-up India, a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Start-ups in the country that will drive sustainable economic growth and generate large scale employment opportunities.

In order to meet the objectives of the scheme, the corporation has taken following initiatives:

1. Nurturing Creativity and Innovation by institutionalizing Meritorious Innovation Awards
2. Transferred about 120 technologies to various entrepreneurs/ Start-ups, contributing significantly to Start up India
3. NRDC is assisting DIPP in evaluating the innovation content in the start-up applications for recognizing start-ups and recommending the eligible start-ups for tax exemption and other benefits.
4. Designated by DIPP as Government Facilitator for IP filings for Start-Ups
5. Partnered with MoMSME-UNIDO (GCIP) for evaluating the award proposals for innovativeness
6. Managing and Monitoring Indian Oil and GAIL Start-up Scheme
7. NRDC organized a Contest for Demonstrating Innovative Prototypes for Start-Ups during the two-day NRDC annual conference on “Leveraging Innovation Ecosystem for Accelerating Start-ups”.

The New Development Bank BRICS (NDB BRICS), formerly referred to as the BRICS Development Bank, is multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa) as an alternative to the existing US-dominated World Bank and International Monetary Fund. It has headquarters in Shanghai, China.
The Bank is set up to boost infrastructure funding in the emerging economies and offer them tailor-made services.

Making of BRICS Bank:

The BRICS countries in the 4th BRICS summit held in Delhi in 2012 came up with the idea of setting up the bank. It was then proposed by India.

Then at the 5th BRICS summit held in Durban, South Africa in 2013, all BRICS countries agreed to set up a Development bank.

Then at the 6th BRICS summit held in Fortaleza, Brazil, the BRICS countries signed the Agreement on the New Development Bank, which makes provisions for the legal basis of the bank.

The 7th BRICS summit in July 2015 held in Ufa, Russia marked the entry into force of the Agreement.

In July 2015, the bank was launched with K. V. Kamath from India as the first President of the Bank for the first five years.

Some facts about NDB BRICS:

The founding members of the Bank are the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China and the Republic of South Africa.

The membership shall be open to members of the United Nations, in accordance with the provisions of the Articles of Agreement of the New Development Bank.

The New Development Bank shall have an initial subscribed capital of US$ 50 billion and an initial authorized capital of US$ 100 billion.

Each BRICS member will contribute an equal share in establishing a startup capital.

All BRICS countries hold equal number of shares and have equal voting rights.

The Bank will have its Headquarters in Shanghai. The Bank may establish offices necessary for the performance of its functions. The first regional office shall be in Johannesburg.

The Bank shall have a Board of Governors, a Board of Directors, a President and Vice-Presidents. The President of the Bank shall be elected from one of the founding members on a rotational basis, and there shall be at least one Vice President from each of the other founding members.

National symbols of a country represent a host of objects that paint a unique identity about the country’s sensibilities. Representatives are chosen carefully and each depicts a certain virtue that is distinctive characteristic of the country. The rich heritage of India is a result of assimilation of cultural influences from its invaders through the generations. Ours is a multi-faceted culture and the various facets of our heritage require appropriate representation. India has many national symbols with which it identifies itself and takes pride in them. These symbols have been chosen from India’s unique flora and fauna, and its culture and civilization. In a nutshell, these symbols say a lot about India. These symbols are intrinsic to the Indian identity and heritage. Indians of all demographics backgrounds across the world are proud of these National Symbols as they instill a sense of pride and patriotism in every Indian’s heart.

Here is some more information about the national symbols of India:

National Emblem: The National Emblem of India is an adaptation of the Buddhist Lion capital of Ashoka at Sarnath, near Varanasi in Uttar Pradesh.

National Animal: The Tiger is the National Animal of India. It is the symbol of India’s wealth of wildlife. The magnificent tiger, Panthera tigris is a striped animal.

National Bird: The Peacock (Pavo Cristatus), is the National Bird of India. It is the symbol of qualities like beauty and grace.

National Flag: The National Flag is a horizontal tricolour of deep saffron (Kesari) at the top, white in the middle and the dark green at the bottom and a blue wheel (chakra) with 24 sticks at the centre.

National Fruit: The Mango (Mangiferra Indica) is the National Fruit. It has been cultivated in India since time immemorial.

National Tree: The National Tree of India is the Banyan (Ficus bengalensis) Tree. This huge tree towers over its neighbors and has the widest trunk.

National Sport: Sport Field Hockey, in which India has an impressive record with eight Olympic medals, is considered as the National Sport. However, Home Ministry has said that officially, no sport has been accorded, the status of national Sport.

National Anthem: Jana-Gana-Mana. . the song was composed originally in Bengali by Rabindranath Tagore, adopted in its Hindi version is our National Anthem.

National Song: The song Vande Mataram, composed in Sanskrit by Bankimchandra Chatterji, is our National song.

National Calender: The National Calender based on the Saka Era with Chaitra as its first month and a normal year of 365 days was adopted from 22nd March, 1957.

National Flower: Lotus, scientifically known as Nelumbo nucifera is the National Flower of India.

Other National Symbols of India

National Sentence: Satyamev Jayate
Father of the Nation: Mahatma Gandhi
National Foreign Policy: Non-Alignment
National Information Letter: White Letter
National Currency: Rupee

National Festivals:

Republic Day (26th January)
Independence Day (15th August)
Gandhi Jayanti (2nd October)
National River: Ganga
National Aquatic Animal: Dolphin (Platanista gangetica) 
National Heritage Animal: Elephant

Name of all the approved stock exchange in India is given below:-
1. U.P. Stock Exchange, Kanpur
2. Vadodara Stock Exchange, Vadodara 
3. Koyambtour Stock Exchange, Coimbatore 
4. Meerut Stock Exchange, Meerut
5. Mumbai Stock Exchange, Mumbai
6. Over the Counter Exchange of India, Mumbai
7. National Stock Exchange, Mumbai 
8. Ahmedabad Stock Exchange, Ahmedabad 
9. Bangalore Stock Exchange, Bangalore 
10. Bhubaneshwar Stock Exchange, Bhubaneshwar 
11. Calcutta Stock Exchange, Kolkata
12. Cochin Stock Exchange, Cochin 
13. Delhi Stock Exchange, Delhi 
14. Guwahati Stock Exchange, Guwahati 
15. Hyderabad Stock Exchange, Hyderabad 
16. Jaipur Stock Exchange, Jaipur 
17. Canara Stock Exchange, Mangalore 
18. Ludhiana Stock Exchange, Ludhiana 
19. Chennai Stock Exchange, Chennai 
20. M. P. Stock Exchange, Indore 
21. Magadh Stock Exchange, Patna
22. Pune Stock Exchange, Pune 
23. Capital Stock Exchange Kerala Ltd.,Thiruvananthapuram, Kerala

On July 9, 2007 SEBI has withdrawn its approval from Saurashtra Stock Exchange, Rajkot due to its passive working. Hence the number of approved stock exchanges have come down to 23.

Important Lines and Boundaries

Marginal Line : 320 km line of fortification on the Russia-Finland border

Line of Actual Control : India  & China on the Northern Border

Line of Control : India and Pakistan

Durand Line : Afghanistan and Pakistan

Radcliffe Line : India and Pakistan (its includes Bangladesh Line)

Blue Line : Isreal & Lebanon

Purple Line : Israel and Syria

Green Line : Israel and its neighbours (Egypt, Jordan, Lebanon and Syria)

Mason–Dixon line : Maryland and Pennsylvania/Delaware in Colonial America

Curzon Line : Poland & Russia

Military Demarcation Line (MDL) or Armistice Line : North Korea and South Korea

McMohan Line : India & China

Maginot Line : France & Germany

Mannar haime line : Russia & Finland

Order Neisse Line : Germany & Poland (aftermath of World War II)

Hindenburg Line : Poland & Germany (at the time of First World War)

 Sigfried Line East : France & Germany (at the time of second world war)

16 Parallel North : Angola and Namibia

17th Parallel Line : North & South Vietnam

20 Parallel North : Libya & Sudan

22 Parallel North : Egypt & Sudan

25 Parallel North : Mauritania & Mali

26 Parallel North : Western Sahara & Mauritania

31 Parallel North : Iraq & Iran

35 Parallel North : US it serves as border b/w Tennessee/Mississippi, Tennnessee/Alabama, Tennesse/Georgia, North Carolina/Georgia

36 Parallel North : In the US it Forms forms the southernmost boundary of the state of Missouri with the state of Arkansas

38 Parallel North Line : North  & South Korea

40 Parallel North : US it serves as border b/w Nebraska & Kansas

41 Parallel North : US it forms the border b/w wyoming/utah border, Wyoming/colorado, Nebraska/Colorado.

42 Parallel North : US it serves as border of new york & Pennsylvania Border

43 Parallel North : US it serves as border of b/w State Nebraska & state of south Dakota

45 Parallel North : US it forms the boundary b/w Montana & wyoming

49 Parallel North (Medicine Line) : USA & Canada

Census 2011

Census is nothing but a process of collecting, compiling, analyzing, evaluating, publishing and disseminating statistical data regarding the population. It covers demographic, social and economic data and are provided as of a particular date. Census is useful for formulation of development policies and plans and demarcating constituencies for elections. The Census of India has been conducted 15 times, As of 2011. It has been conducted every 10 years, beginning in 1871.

In Exam point of view, Questions related to Census is very common in all kinds of competitive exams. In every exam, we can expect a minimum of one or two questions from Census. Here is the simple and perfectly categorized 2011 Census of India.

1. Census 2011 were released in New Delhi on 31st March 2011 by Union Home Secretary GK Pillai and RGI C Chandramouli.
2. Census 2011 was the 15th census of india & 7th census after Independece
3. The motto of census 2011 was “Our Census, Our future”.
4. Total estimated cost of the Census was INR2200 crore (US$350 million).
5. First census in 1872.
6. Present Registrar General & Census Commissioner – C.Chandra Mouli
7. Total Population – 1,210,569,573 (1.21 Billion)
8. India in 2nd rank in population with 17.64%. decadal growth & China is 1st rank with decadal growth 19% (over 1.35 billion)
9. World Population is 7 Billions
10. Increase in population during 2001 – 2011 is 181 Million

Population – 1210.19 million [Males – 623.7 million (51.54%) Females – 586.46 million (48.46%)]

Population Highlight

Sex Ratio (Females per 1000 Males)

Literacy Rate in India

1. World Trade Organization (WTO) –

• Headquarters – Geneva, Switzerland
• Head – Roberto Azevedo
• Founded on – 1 January, 1995

2. World Health Organization (WHO) –

• Headquarters – Geneva, Switzerland
• Head – Dr Margaret Chan
• Founded on – 7 April, 1948

3. World Economic Forum (WEF) –

• Headquarters – Geneva, Switzerland
• Head – Klaus Schwab
• Founded on – 1971

4. International Labour Organisation (ILO) – 

• Headquarters – Geneva, Switzerland
• Head – Guy Ryder
• Founded on – 1919

5. United Nations Conference on Trade & Development (UNCTAD) –

• Headquarters – Geneva, Switzerland
• Head – MukhisaKituyi
• Founded on – 1964

6. World Meteorological Organisation (WMO) –

• Headquarters – Geneva, Switzerland
• Head – Michel Jarraud
• Founded on – 1950

7. International Monetary Fund (IMF) –

• Headquarters – Washington DC, US
• Head – Christine Lagarde
• Founded on – 27 December, 1945

8. The World Bank –

• Headquarters – Washington DC, US
• Founded on – July, 1944
• President- Jim Young Kim

9. United Nations Organization (UN) –

• Headquarters – New York, US
• Secretary general– Ban Ki-moon
• Founded on – 1945

10. United Nations Children’s Fund (UNICEF) –

• Headquarters – New York, US
• Head – Anthony Lake
• Founded on – December, 1946

11. United Nations Education Scientific & Cultural Organisation (UNESCO) –

• Headquarters – Paris, France
• Head – Irina Bokova
• Founded on – 16 November, 1945

12. Organisation for Economic Cooperation & Development (OECD) –

• Headquarters – Paris, France
• Head – Jose Angel Gurria
• Founded on – 30 September, 1961

13. North Atlantic Treaty Organisation (NATO) –

• Headquarters – Brussels, Belgium
• Head – Philip M. Breedlove
• Founded on – 4 April, 1949

14. International Maritime Organisation (IMO) –

• Headquarters – London, UK
• Head – Ki Tack Lim
• Founded on – 1959

15. International Atomic Energy Agency (IAEA) –

• Headquarters – Vienna, Austria
• Head – Yukiya Amano
• Founded on – July 29, 1957

16. Organisation of Petroleum Exporting Countries (OPEC) –

• Headquarters – Vienna, Austria
• Head – Diezani Alison-Madueke
• Founded on – 1961-62

17. International Olympic Committee (IOC) –

• Headquarters – Lausanne, Switzerland 
• Head – Thomas Bach
• Founded on – 23 June, 1894

18. Food & Agricultural Organisation (FAO) –

• Headquarters – Rome, Italy
• Head – Jose Graziano da Silva
• Founded on -16 October, 1945

National Parks in India