Article on Fire Safety and Security by Pratap Singh for Defence, CISF and BSF Aspirants

Article on Fire Safety and Security by Pratap Singh(IPS)

Fire Security and fire fighting is a complex and important service for the society. Actually, fire fighting is a highly competitive field. Initially, those, who aspire to join this service, have to go through rigorous training for 15 to 20 weeks. During this training, they are instructed the fundamental skills of a fireman, e.g., use of fire fighting weapons and equipments, ladder safety, use of respiratory equipments etc. A fireman is also trained in the skill of establishing fire security in the community. In fact, training is a continuous process imparted at relevant intervals, and it includes instructions related to handling of transportation problems and disaster mitigation measures executed by the fire fighting department, provided throughout the tenure of their service.

There are thousands of candidates who apply for the job of fireman, every year. They must pass three tests. A candidate must keep himself physically fir and agile for a long time. In other words, he must have alacrity and physical tenacity so that he is capable of undertaking prolonged rescue operations. If you have the right fire fighting equipments, your team would be safe for long durations. Apart from this, they are also trained in enhancing their efficiency in the profession. If firemen are provided proper fire fighting training facilities, especially, in a controlled environment they get a golden opportunity to hone up their skills. There are a few companies which provided equipments to the fire fighting department. This facilitates the efforts for dealing with precarious situation. Firemen, by engaging in mock-drills, may study the effectiveness of the equipments of the fire fighting department. There is also the need of devising techniques for convenient performance of their tasks.

In a controlled situation you can have the advantage of the training and possibly you may get hold of an advanced device which is popular these days. There are a variety of fire extinguishing devices available in a few shops where they demonstrate how the devices are to be used, so that your fire fighting team accomplishes its task without aggravating the injuries. You have the alternative of fixed or portable fire simulators. You have to decide which one is most suitable for you. If your fire fighting equipments are connected with the L.P.G. technique, fire fighting would become easier and the effectiveness of training will further increase.

If you find that fire fighting devices are not available on the market, then you have the option of procuring them on-line. Very often, the manufactures exhibit their fire fighting products and also explain their working. These exhibitions give you opportunities to assess the new technology and training ingredients available on the market. So far as maintenance is concerned, the fire fighting devices are not expensive. They are so manufactured that they are convenient to use. There are various training equipments related to fire fighting, such as, Raben system, Hawk system, Eagle system etc. You have to approach the right place where these new devices are available and also the training facilities are available. Fire fighting devices are so designed that their maintenance cost is very low.
                                                                                                                          by
                                                                                                                     Pratap Singh (IPS)
                                                                                                              Senior Fire safety Officer

General Awareness: Policy's of Navaratna, Miniratna and Maharatnas in India for UPSC, SSC Exams

Policy's of Navaratna, Miniratna and Maharatnas 

1) Policy of Navartnas:
Navaratna was the title given originally to nine Public Sector Enterprises (PSEs), identified by the Government of India in 1997, as its most prestigious, which allowed them greater autonomy to compete in the global market. Navaratna status empowers the PSUs to invest up to Rs. 1000 crore or 15% of their net worth on a single project without seeking government approval. The overall ceiling on such investments in all projects put together is 30%, of the net worth of the company.

Criteria for Navaratna Status for PSUs:

• It should have a composite score of 60 out of 100 marks based on these six criterias-Net Profit to Net Worth, manpower cost to cost of production or services, gross margin as capital employed, gross profit as turnover, earnings per share, inter-sectoral comparison based on Net Profit to Net Worth.
• The company should also have four independent directors on its board. Navaratna companies, subjects to certain guidelines have extra power to incur capital expenditure and decide upon joint ventures.It should have a schedule "A" and Miniratna category-1 status. 
• Set-Up subsidiaries/offices abroad.Enter into technological and strategic alliances.
• It should have at least three "excellent" or 'very good' Memorandum of Understanding (MoU) ratings during the last five years.
• Raise funds from capital markets (international and domestic) enjoy substantial operational and managerial autonomy.

2) Policy of Miniratnas:
The government has also accorded the status of Miniratna to some profit making Public Sector Enterprises (PSEs). There are two categories of Miniratnas.

1) Category I:
These are companies, which have made a profit in each of last three years and earned a profit of Rs. 30 crore in atleast one of the three years. They are allowed to incur capital expenditure without government approval upto 500 crore or equal to their net worth whichever is lower. There are 54 Miniratnas of this category at present.

2) Category II:
These are companies, which have made profits for the last three years continuously and have a positive Net Worth. They can incur capital expenditure upto Rs. 300 crore or 50% of their Net Worth whichever is lower. There are presently 18 such Category-II Miniratnas.

3) Policy of Maharatnas:
Maharatnas Scheme was introduced for Central Public Sector Enterprises (CPSEs), with effect from 19th May, 2010, in order to empower mega CPSEs to expand their operations and emerge as global giants. The objective of the scheme is to delegate enhanced powers to the boards of identified large-sized Navaratna CPSEs, so as to facilitate expansion of their operations, both in domestic as well as global markets. The coveted status empowers the hoards of these firms to lake investment decisions up to Rs.5,000 crore as against the present Rs. 1,000 crore limits for Navaratna without seeking government approval. The Maharatna firms would now be free to decide oil investments up to 15% of their Net Worth in a project, limited to an absolute ceiling of Rs. 50,000 crore.

Geography Topic: Important Points about Earthquakes for Competitive Exams

Geography-Earthquakes

It refers to the vibration of the Earth's surface caused by the endogenetic forces of Earth. The magnitude or intensity of energy released by an earthquake is measured by the Richter Scale, whereas the damage caused is measured by modified Mercalli Intensity Scale. The place of origin of earthquake is called focus. The place on the ground surface, which is perpendicular to the focus or hypocentre is called epicentre. Seismology is the special branch of geology that deals with the study of earthquake.

The waves generated by earthquake are called seismic waves and they are classified into three types such as

• Primary Waves( P Waves): These are the waves of short wavelength and high frequency. They are longitudinal waves and can travel through solid liquid and gases.
• Secondary Wave( S Waves): These are the waves of short wave length and high frequency. They are transverse waves, which travel through all solid particles.
• Surface Waves or Long Waves ( L Waves): They are the waves of long wavelength, confined to the skin of the Earth's crust. It causes most of the earthquake's structural damage.

The Earthquake Zones, in India:

The Indian plate is moving from South to North at the speed of 5 cm/year and the Eurasian Plate is static on its own position, so there is a collision between Indian Plate and Eurasian Plates. Due to this collision, the earthquakes occurs in the Himalayan regions of India. The collision also results in the increase of the height of Himalayas at the speed of 1 cm/year. The second most important earthquake zone is Parallel to Punjab and Rann of Kutch. It occurs due to the movement between the transform boundaries of Eurasian and Indian Plates. Earthquakes occur in Asom, Arunachal Pradesh, Nagaland, Tripura, Mizoram, Andaman and Nicobar Islands, Jammu and Kashmir, the North-Western region of Uttar Pradesh and the Northern region of Bihar etc.

Distribution of Earthquakes:

Most of the world earthquake occur in

• The zones of young fold mountain
• The zones of folding and faulting
• The zones of junction of continental and oceanic margin
• The zone of active volcanoes
• Along different plate boundaries

The Traditional Zones of Earthquakes

• Circum Pacific belt
• Mid Continental belt
• Mid Atlantic belt

General Studies: Geography Topic Wind System for Competitive Exams

Wind System

The pressure difference is the major causes of the genesis of the wind system. The air moves from high pressure to low pressure. The slope of pressure from high to low is called pressure gradient, which is also called as barometric slope. The imaginary line joining the points having same pressure is called isobars. The direction of air movement should be perpendicular to the isobars because the direction of pressure gradient is perpendicular to the isobars, but the direction is deviated from the expected one due to Coriolis force caused by the rotation of the Earth.

Thus the factors that control the air motion are

• Pressure gradient
• Rotation of Earth and Coriolis force
• Friction force
• Centrifugal action of wind

The winds blowing parallel to the isobars generally at the height of 600 meters is called Geo-strophic wind.

Wind Directions

The Coriolis force generated due to the rotation of Earth acts as a deflective force to the wind direction. Because of the Coriolis force, all the winds are deflected to the left in the Southern hemisphere with respect to the rotating Earth.This is referred to as Farrel's Law. The Coriolis force is absent along the equator, but increases progressively towards the poles.

Classification of Winds:

Winds are classified into Three types by the direction of wind system, They are

• 1) Primary Movement:  Permanent Winds
• 2) Secondary Movement : These are classified into Three types

                ( i ) Cyclone : Tropical and Temperate, Thunderstorms and Tornadoes

                ( ii ) Anti Cyclone

                ( iii ) Seasonal Wind i.e., Monsoon

• 3) Tertiary Movement: Local Winds

1) Primary Wind Movement:

These winds are include trade wind, westerlies and polar winds.

i) Trade Wind: These are steady currents of air blowing form the sub tropical high pressure belt towards the equatorial low pressure belt. Under the influence of the Coriolis forces they flow from the North-East in the Northeren hemisphere and from South-East in the Southern hemisphere.

ii) Westerlies: The permanent winds blowing from the subtropical high pressure belt to the sub polar low pressure belt in both the hemisphere is called Westerlies. The general direction of the westerlies is South-West to North-West in the Northern hemisphere and North-West to South-East in the Southern hemisphere. The Westerlies become more rigorous in the Southern hemisphere because of the lack of land and dominance of oceans. Their velocity increases Sothward and they become stormy so they are called roaring forties between latitudes 40°. South latitudes, furious fifties at 50° South latitude and shrieking sixties at 60° South latitudes.

iii) Polar Winds: Polar winds blows from polar high pressure belt to sub-polar low pressure belt. They are North-Easterly in Northern hemisphere and South-Easterly in the Southern hemisphere.

2) Secondary Wind Movement: 

Seasonal Winds: The winds, which reverse its direction completely every 6 months is called Seasonal Winds. The best example is Monsoon winds.

i ) Cyclone: Cyclones are the centres of low pressure surrounded by closed isobars having increasing pressure outward and closed air circulation from outside towards the central low pressure in such a way that Air blows inwards in clockwise direction in the Southern hemisphere. Air blows inwards in clockwise direction in the Southern hemisphere.

Cyclones are mainly of two types;

• Tropical Cyclone
• Temperate Cyclone

ii ) Anticyclone: They are the wind system, which has the highest air pressure at the centre and lowest at the outer margins surrounded by circular isobars where wind blows. They are high pressure system and common in subtropical belts and practically absent in the equator region. They are generally associated with rainless fair weather and that's why they are called as weather less phenomena. 

3) Tertiary Movement 

Tertiary Movement is also called Local Winds. Some local winds are mentioned in the below table

Tertiary Movement (Local Winds)
Wind	Nature	Region
Land Breeze	Warm	Land breeze blows from land to sea
Sea Breeze	Cold	Sea breeze blows from sea to land
Chinook (snow eater)	Warm	Rockies (USA and Canada)
Sirocco	Hot	North Africa
Fohn	Warm	Alps/Europe
Khamsin	Hot	Egypt
Blizzard	Cold	Siberian, Canada, USA

General Studies: Indian Economy topic Poverty in India for Competitive Exams

Poverty in India

Poverty is a social phenomenon where in section of society is unable to fulfil even its basic necessities of life. Planning Commission is the authority, which publishes the poverty estimates based on various rounds of National Sample Survey Organisation (NSSO) on monthly per capital consumption expenditure. In India, the poverty line is defined on the basis of calorie intake. According to this, 2100 calories a day has been fixed for urban areas and 2400 calories in rural areas.

Alternatively, in monthly per capita consumption expenditure terms, the poverty line is fixed at Rs. 454.0 for rural areas and Rs. 540.0 for urban areas. Based on the definition poverty line given above the percentage of people below poverty line (or poverty ratio) is provided in the table.

Since, NSSO 55th Round(1999) Planning Commission gives two poverty estimates based on Mixed Recall Period (MRP) and Universal Recall Period (URP). Mixed Recall Period, gives consumer expenditure data for five non-food items, goods, education and institutional medical expenses for 365 days and consumption data for remaining items are collected for 30 days period. Universal Recall Period, consumption data for all items  are collected for a 30 days recall period.

Causes for Rural Poverty:

• ( i ) Rapid Population growth
• ( ii ) Lack of capital
• ( iii ) Lack of alternate employment opportunities other than aggriculture
• ( iv ) Excessive population pressure on agriculture
• ( v ) Illiteracy
• ( vi ) Regional disparities
• ( vii ) Joint family system
• ( viii ) Child marriage
• ( ix ) Lack of proper implementation of PDS (Public Distribution System)

Causes for Urban Poverty:

• ( i )  Migration from rural areas
• ( ii ) Lack of skilled labour
• ( iii ) Lack of housing facilities
• ( iv ) Limited job opportunities in cities
• ( v ) Lack of vocational education or training

Estimation of Poverty by Finance Commission:

The Seventh Finance Commission attempt to inclusive concept of poverty line. Since the NSS data cover only household Consumer expenditure. thus, to get a more inclusive measure of welfare or deprivation, an estimate of the benefit of public expenditure was added to Private Consumer Expenditure norm for calculating the augmented poverty line.

General Studies: Important Geography Topic Atmosphere and Layers of Atmosphere for UPSC, SSC CGL, Postal Exams

Atmosphere

Atmosphere is thick gaseous envelope surrounding the Earth from all sides and attached to Earth through the force of gravitation. Atmosphere acts as filter because it absorbs the various unwanted radiation, source to various gases. It supports life forms in biosphere. The atmosphere is composed of gases, vapours and particulates. Gases such as Helium, Ozone and Hydrogen etc are present in traces. Ozone gas absorbs the ultraviolet radiations and save the biosphere from its adverse impact.


Layers of Atmosphere

1) Troposphere:

It extend up to 16 km from the Earth's surface. Thickness varies from 8 km at the pole to 16 km at the equator. At every  165 m, there is a drop of 1° (or 6.4°C per km). This is called Normal Lapse Rate of Temperature. Tropopause separates troposphere from stratosphere. This,layer accounts for practically the entire water vapour, all dust particles and most of the Carbon dioxide contained in the atmos-phere. Due to this all weather phenomena such as condensation, precipitation and storms, etc occur in the troposphere only.


2) Stratosphere :

The stratosphere extends up to about 50 km, where stratosphere separates it from the mesosphere. In this layer, the in hight. This phenomenon is known as temperature inversion. The temperature rises in this layer from about -60° C at the tropopause to 0°C at stratopause. The part of the stratosphere, in which there is a concentration of ozone is often called ozonosphere. It absorbs ultraviolet radiation, which is harmful for us. Stratosphere is free from dust particles and also from atmospheric turbulences. Hence, this this layer is considered ideal for flying of jet aircraft's.

3) Mesosphere:

Mesosphere extends above the stratopause up to a height of about 80 km. In this layer, the temperature decreases with height like in the troposphere and it falls from about 0°C at its base to about -100°C at 80 k height. It is considered the coldest layer of the atmosphere. The upper limit of the mesosphere is marked by the mesopause, a transitional layer separating it from the ionosphere.

4) Ionosphere :

Ionosphere is located above the mesosphere and extends up to about 600 km. This layer is also called as Ionosphere because it contains electrically charged ions that reflect the radio waves back to the Earth thus making radio communication possible. Absorption of solar radiation by ionised particles cause an increase in temperature with increasing height in the ionosphere. Due to large concentration of ionised particles in this layer the ionosphere. acts as a protective layers against meteorites, that are burnt in this layer.

5) Thermosphere:

The zone between the 85 km and 400 km above the surface is often called Thermosphere. In this layer, the temperature increases with increasing altitude. The upper limit of the thermosphere, the Thermopause is generally taken at an altitude of about 600 km. The day temperature at 600 km altitude exceed 1400°C while night temperature remains about 225°C. The upper part of the thermosphere contains only the lighter gases like helium and hydrogen.

6) Exosphere and Megnetosphere :

The outermost part of the atmosphere of the Earth is called Exosphere. This zone of the atmosphere extends up to a height of about 900 km. The upper limit of the exosphere is uncertain as this layer acts as a transitional layer between the Earth's atmosphere and the space. The outer part of the exosphere is called Megnetosphere.

Banking Awareness: Monetary Standards and Important Bank Terms for coming IBPS Exams and Interviews

Monetary Standards and Important Bank Terms

Monetary Standards:

It refers to the commodity that fixes the value of the standard money used in a country. Monetary standard, on the other hand, relates to the commodity by which the standard money unit is determined.

A sound monetary standard aims at the following.

• Stability in the internal value of the currency through internal price stability.
• Stability of the external value of the currency through exchange rate stability.

Monetary Standards in India

These are classified in to two parts

i) Gold Exchange Standards:

I year 1898, Fowler Committee 1898 was appointed and on their recommendations, gold standard was established in India. At that time, 15 Indian rupee were rural to 1 British sovereign. Gold standard was there till 1914-15, as after First World War was ended.

ii) Paper Currency in India:

Reserve Bank of India was established in 1935 as Central Bank of India and controller of credit. British Government had given right of issuing of currency notes to Bank of Bengal, but from 1st April, 1935, the only right of issue currency was given to India.

Frequently Asking  Bank Terms in Interviews

Important Bank Terms
1) Money Market:	It refers to the market for short-term requirements and deployment of funds.
2) Call Money:	Money lent for 1 day
3) Notice Money:	Money sent for a period exceeding 1 day
4) Term Money:	Money lent for 15 days or more in inter-bank market.
5) Held Till Maturity:	Securities, which are not meant for sale and shall be kept till mature.
6) Yield to Maturity:	Expected rate of return on an existing security purchased from the market.
7) Coupon Rate:	Specified interest rate on a fixed maturity, security fixed at the time of issue.
8) Treasury Operations	Trading in government securities in the market. An investor bank can purchase these securities in the primary market. Tracking takes place in the secondary market.

Computer Knowledge:Classification of Computer Based on Size for Competitive Exams

Classification of Computer Based on Size

On the basis of size, computer are categorise as follows:

1) Microcomputer

Microcomputers are the least powerful, yet the most widely used and fastest growing type of computers and are also called portable computers. Microcomputer consists of three basic categories of physical equipment i.e system unit, input/output and memory. They are categorized into 5 types:

a) Desktop Computer or Personal Computer (PC): These are small, relatively inexpensive computers. These are based on the microprocessor technology (Integrated Circuit).

b) Notebook: Notebook computers, also known as ultra book or laptop, are portable lightweight and fit into most briefcases. They include rechargeable battery, so these can work any where, Laptops were developed by  Alan Kay.

c) Handheld Computer or Palmtops: These are the smallest and are designed to fit into the palm. So, these are also known as Palmtop/PDA. They are practical for certain functions such as phone books and calenders. They used the pen for input instead of keyboard.

d) Tablet Computer: They have key features of the notebook computer, but it can accept input from a pen instead of the keyboard or mouse.

e) Smart Phone: Smart Phones are cellular phones that works both as a phone ans as a small PC. They may use a pen or a small keyboard. They can be connected to the internet wirelessly. Apple, Blackberry, Nokia are some manufacturers of smart phones.

2) Mainframe Computer

Mainframe computers are those having large internal memory storage and comprehensive range of software. Mainframe computer serves as a backbone for the entire business world. It is considered as the heart of a network of computers or terminals that allows a large number of people to work at the same time. Mainframe computers are IBM-370, IBM-S/390, UNIVAC-1110.

3) Minicomputer

Minicomputer are smaller in size, faster, cost lower than mainframe computers. Initially, the minicomputer was designed to carry out some specific tasks, like engineering and Computer Aided Design (CAD) calculations. But now, they are being used as central computer which is called as sever. Mini computers are IBM-17, DECPDP-11, HP-9000,etc.

4) Supercomputer

Supercomputers are the fastest and the most expensive machines. They have high processing speed compared to other computers. The speed of supercomputers are measured in FLOPS (Floating Point Per Second). Super computers are used for highly calculation intensive tasks, such as weather forecasting, nuclear research, military agencies and scientific research laboratories. Supercomputers are most poweful, large in size and memory, compared to all other computers.

Banking Awareness: Importance of Co-Operative Marketing and Foreign Trade for Bank Interviews

Co-Operative Marketing and Foreign Trade

1) Co-operative Marketing Mechanism:

NAFED (National Agricultural Co-operative Marketing Federation India Limted):

It was established on 2nd October, 1958. It is registered under the Multistate Co-operative Societies Act. NAFED was set-up with objective marketing of agricultural produce to benefit farmers. It organise, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce.

TRIFED (Tribal Co-operative Marketing Development Federation of India Limited):

It come into existence on 6th August, 1987 and got registered under the multistate co-operatice societies Act, 1984, (How the Multistate Co-operative Societies Act, 2002). The main objectives of TRIFED is to serve the interest of its member in more than one state for the social and economic betterment of its member by conducting its affair in professional democratic and autonomous manner through self help and mutual co-operation for undertaking marketing development of the tribal products.

2) Meaning of Foreign Trade:

The Exchange of goods and services between the two countries is termed as foreign trade. The purpose of foreign trade lies in meeting the domestic demands for goods and services.

There are two components of foreign trade:

Exports: When goods and services are sold to the foreign country for the motive of earning more profit, it is called Exports.

Imports: When purchasing goods and services from a foreign country to meet the domestic needs in the country is known as imports.

Foreign Trade Policy:

It is set of guidelines and instructions established by the Director General of Foreign Trade (DGFT) in matter related to the import and export of goods in India. 

Foreign Trade Policy 2009-2014

In India, at central level the foreign trade policies are administered by the Ministry of Commerce and Industry. In post liberalisation era the condition of foreign trade and India's share in global trade is improving significantly. Commerce Minister Mr. Anand Sharma on 27/08/2009 released the Foreign Trade Policy for the period of 2009-2014. This policy aims at achieving an annual export growth  of 15 percent with an annual target of 200 billion dollars. In new trade policy government extended two schemes for exporters, the Export Promotion Capital Goods Scheme (EPCGS) and the Duty Entitlement Passbook Scheme (DEPS). 

    

Banking Awareness: Important Topic Base Rate System and Basel Norms for Coming IBPS Tests and Interviews

Major Efforts of International Banking

Base Rate System

• Base Rate System introduced in banking sector by the RBI with effect 1st July, 2010. 
• Base Rate System will replace Benchmark Prime Lending Rate (BPLR) introduced in 2013.
• Base Rate System introduced on the recommendation of Deepak Mohanty Committee aims at enhancing transparency in lending rate of banks and enabling better transmission of monetary policy.

Basel Norms:

Basel norms are set by Bank of International Settlement (BIS) in Basel, Switzerland. 55 countries Central Bank's are members to the BIS.

Basel II Norms:

It is guide to capital adequacy standards for lenders. The aim of Basel II is to better align the minimum capital required by Regulators with risk.

Basel III Norms:

• It will become operational from 1st January, 2013 in a phased manner.
• Banks to increase their core tier-one capital ratio to 4.5%.
• Provision for a counter-cyclical capital conservation buffer of 2.5% by 2019.
• The total CRAR required Basel III is proposed at 10.5%.

Rules for Basel III :

Reserve Bank of India released its guidelines on Basel III capital regulation on 2nd May, 2012.

Guidelines for Basel III :

• Indian bank have to maintain. Tier-I capital or core capital at least 7% of their risk weighted assets or ongoing basis.
• The total capital ratio including tier-I and tier-II must be at least 9%.
• For tousle year ending 31st March, 2013 bank will have to disclose capital ratio computed under existing guidelines.

Banking Awareness: All about State Bank of India and its Associate Banks for Coming Bank Tests and Interviews

State Bank of India and its Associate Banks

On the recommendation of All India Rural Credit Survey Committee, Imperial Bank was nationalised to become State Bank of India on 1st July, 1955. Its 92% capital is owned by the Reserve Bank and 8% by the old shareholders of Imperial Bank and others. This bank is thus, not totally a Government Bank, but it is almost fully under the control of the government. On 1st January, 1997 on the direction of government of India and Reserve Bank.

     Kashinath Seth Bank Ltd has been amalgamated with the State Bank in 2008 the government took over the stake held by the Reserve Bank of India. State Bank of India (SBI) was previously called Imperial Bank of India in 1921 which was created by amalgamation of 3 Presidency Banks viz, Bank of Bengal, Bank of Bombay and Bank of Madras. It was nationalised in 1955. SBI is ranked 292 in the fortune 500 companies.

State Bank of India Associate Banks:

• State Bank of Hyderabad
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Bikaner and Jaipur
• State Bank of Travencore

Share Holding in State Bank of India:

Government of India held around 62% equity shares in SBI. Over 800000 individual shareholders hold approx 5.7% of its shares. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 10.9% shareholding.

Share Holders in State Bank of India
S.No	Shareholders	Shareholding
1	Promoters Government of India	62.31%
2	Insurance Companies	11.90%
3	Foreign Institutional Investors	09.79%

Functions of State Bank of India:

The function of State Bank of India can be grouped under two categories, viz., the Central Banking functions and ordinary banking functions. Central Banking Functions The SBI acts as agent of Reserve Bank of India at the places where the Reserve Bank has no branch.

General Banking Functions:

Based the specialised functions, the SBI renders the following functions under Section 33 of the Act

• Accepting deposits from the public under current, savings, fixed and recurring deposit accounts.
• Advancing, lending money and opening cash credits on the security of stocks.
• Investing funds on special type of securities.
• Discounting, Buying, accepting, drawing and selling of bills and other negotiable articles.

General Awareness: Inflation and Classification of Inflation for Civils, UPSC, SSC Exams

Inflation and Classification of Inflation

It is defined as a continuous increase in the general level of prices for goods and services. It is measured as an yearly percentage increase. Inflation is the percentage change in the value of the Wholesale Price Index (WPI) on a year basis.

Classification of Inflation:

Inflation is classified on the basis of increase in price. In some countries, inflation occurs even in the state of peace while in some countries, inflation occur during the time of war.


i ) Creeping Inflation:

This inflation is a slow inflation. In this type of inflation, price increases about at the rate of 2% per year, so, slow increase in price is not taken as bad.


ii ) Moderate Inflation:

This can be differently defined around the world, given the different inflation histories. As an indication only, one could consider an inflation as moderate when it rages from 5% to 25 or 30%. For some countries, the higher part of this range is also called as a  "High Inflation".

iii ) Demand Pull Inflation:

It is asserted to arise when accumulated demand in an economy outpaces cumulative supply. It involves inflation rising as real gross domestic product rises and unemployment also falls.

Main causes of demand pull inflation are:

• Quick increase in consumption and investment.
• Sudden increase in exports.
• A lot of government spending.
• Excessive monetary growth.

iv ) Galloping Inflation:

When inflation rise to 10% or more, it wreaks absolute havoc on the economy. Money  value loses very  fast that business and employee income does not  keep up with costs and prices. Foreign investors also avoid the country. The economy becomes unstable and government will lose credibility.Galloping inflation must be prevented.

v )Suppressed Inflation:

Existing inflation by government price controls or other interferences in the economy such as subsidies. Such suppression, can only be temporary because no government  measure can completely contain accelerating inflation in the long-run. Also called repressed inflation.

vi ) Hyper Inflation:

Hyper inflation is when the prices skyrocket more than 50% a month. It is fortunately very rare. In fact, most examples of hyper inflation have occurred when the government printed money recklessly to pay for war. 

Banking Awareness: Money and Characteristics of Money for Bank Tests and Interviews

Money and Characteristics of Money

It is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given socio-economic context of country. Any kind of object or secure variable record that fulfils these functions can be considered as money.

Credit Money:

Any future monetary claim against an individual or nor that can be used to buy goods and services.

Legal Money:

It is a type of payment that can lawfully be used to meet financial obligations. Money, as legal tender, is a commodity or asset or an officially issued currency or coin that can be legally exchange for something of equal value such as a good or service,or that can be used in payment of a debt.

Adjacent Money:

It is not exact money, but near to money. Because it's nature of liquidity is more in comparison to others like bond, government debenture and more.

Different Types of Money:

Now, we will discuss the different types of money. Broadly speaking, there exist three main types of money in a modern economy days  they are Metallic Money, Paper Money and Credit Money. Economists, however, further classify money into many.

The important types of money are explained below

1) Metallic Money:

Money made-up of any metal is called metallic money. It refers to coins that are made-up of various metals like Gold, Silver, Nickel, Copper etc. The right of minting coins, is the monopoly of the state.

Metallic Money is further classified into two types. They are:

i ) Standard Money:

Standard Money or full bodied money is that money whose face value is equal to the intrinsic value. Standard Money/ Coins are generally made up of Gold ans Silver.

ii ) Token Money:

Token Money is that money whose face value is greater that its intrinsic value. Token money / coins are generally made up of cheaper metals like copper, nickel etc.

2) Paper Money:

Money made-up of paper is called Paper Money. Paper Money consists of currency notes issued by the government or the Central Bank of a country.

Paper Money is further classified into four types they are:

• i ) Representative Paper Money: The Paper Money which is fully backed by gold and silver reserves is called representative paper money.

• ii ) Convertible Paper Money: It is that paper money which is convertible into standard coins.

• iii ) Inconvertible Paper Money: It is that paper money which is not convertible into standard coins or valuable metals

• iv ) Fiat Money: Paper money which circulates on the authority of the government is fiat money. Fiat money is created and issued by the state. It is only a variety of inconvertible paper money.

3) Acceptable Money:

On the basis of general acceptability, money can be categorised into legal tender money and non-legal tender money.

i ) Legal Tender Money: It refers to that money which the state and the people accept as the means of payment in discharge of debts. It is classified in to two sub parts they are:
                    

                    a) Limited Legal Tender Money  and   b)Unlimited Legal Tender Money

ii ) Non-Legal Tender Money: It is also known as optional money. It refers to that money which may or may not be accepted as a means of payment. Optional money has no legal sanction.