Properties of Money

1)         Money Serves as a Medium of Exchange:

-           A medium of exchange is the property of money that exchange is made through the use of money.

2)         Money Serves as a Unit of Account:

-           Unit of account is the property of money that prices are quoted in terms of money.

-           Money provides a convenient measuring rod when prices for all goods are quoted in money terms.

-           Money can be used to compare the relative value of goods, making it easier to carry out economic transactions.

3)         Money Serves as a Store of Value:

-           Store of value is the property of money that it preserves value until it is used in an exchange.

-           From the time you receive a payment until the time you make payment; you can use money to store value.

# What borrowers want?

-           Long term loan

-           Minimum Interest 

-           Minimum risk and transaction cost

# What lender wants?

-           Maximum liquidity

-           Maximum return

-           Maximum risk and transaction costs

# Money Market- The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit, federal funds, and short-lived mortgage-backed and asset-backed securities. It provides liquidity funding for the global financial system.

# Net worth - The amount by which assets exceed liabilities is called net worth. This term can be applied to companies and individuals or is the difference between assets and liabilities.

(Source-Internet)

Important Abbreviations

ABCP – Asset Backed Commercial Paper

ABS – Asset-Backed Securities

ACMA – Automobile Components Manufacturing Association of India

AD – Authorised Dealer

ADF – Augmented Dicky Fuller

ARM – Adjustable Rate Mortgages

BCBS – Basel Committee on Banking Supervision

BIS – Bank for International Settlements

BoP – Balance of Payments

BPO – Business Process Outsourcing

CAD – Current Account Deficit

CBRG – Cross-Border Bank Resolution Group

CBO – Congressional Budget Office

CDOs – Collateralised Debt Obligations

CDS – Credit Default Swaps

CESR – Committee of European Securities Regulators

CFPA – Consumer Financial Protection Agency

CMBS – Commercial Mortgage-Backed Securities

CP – Commercial Paper

CPI – Consumer Price Index

CPFF – Commercial Paper Funding Facility

CPSS – Committee on Payment and Settlement Systems

CRAs – Credit Rating Agencies

CRAR – Capital to Risk-Weighted Assets Ratio

CRR – Cash Reserve Ratio

CVD – Countervailing Duty

EC – European Commission

ECB – European Central Bank

Ecofin – Economic and Financial Affairs Council

EMEs – Emerging Market Economies

EMPI – Exchange Market Pressure Index

ESF – Exogenous Shock Facility

ERM – Exchange Rate Mechanism

ESFS – European System of Financial Supervisors

ESRC – European Systemic Risk Council

FASB – Financial Accounting Standards Board

FBT – Fringe Benefit Tax

FCL – Flexible Credit Line

FDI – Foreign Direct Investment

FDIC Federal Deposit Insurance Corporation

FHCs – Financial Holding Companies

FHLMC – Federal Home Loan Mortgage Corporation

FIIs – Foreign Institutional Investors

FIPB – Foreign Investment Promotion Board

FSI – Financial Stress Indicator

FNMA – Federal National Mortgage Association

FSA – Financial Services Authority

FSCS – Financial Services Compensation Scheme

FTC – Federal Trade Commission

GAAP – Generally Accepted Accounting Principles

GDP – Gross Domestic Product

GECC – Global Economic Co-ordination Council

GFD – Gross Fiscal Deficit

GFSR – Global Financial Stability Report

GIMF – Global Integrated Monetary and Fiscal

GPRF – Global Food Crisis Response Programme

GSDP – Gross State Domestic Product

DTA – Domestic Tariff Areas

HFCs – Housing Finance Companies

HP – Hodrick-Prescott

HKMA – Hong Kong Monetary Authority

IASB – International Accounting Standards Board

IFC – International Finance Corporation

IFRS – International Financial Reporting Standards

IIFCL – India Infrastructure Finance Company Limited

INFRA – Infrastructure Recovery and Assets

IMF – International Monetary Fund

IMFC – International Monetary and Financial Committee

IOSCO – International Organization of Securities Commissions

IPAs – Issuing and Paying Agents

IPOs – Initial Public Offerings

IRB – Internal Rating Based

IT – Information Technology

ITEs – Intra-Group Transactions and Exposures (ITEs)

ITES – Information Technology-enabled Services

LAF – Liquidity Adjustment Facility

LCBGs – Large and Complex Banking Groups

LCD – Liquid Crystal Display

LIBOR – London Inter-Bank Offer Rate

LOLR – Lender of Last Resort

MAS – Monetary Authority of Singapore

MBS – Mortgage Backed Securities

MFIs – Micro-Finance Institutions

MIBOR – Mumbai Inter-Bank Offer Rate

MIGA – Multilateral Investment Guarantee Agency

MSMEs – Micro, Small and Medium Enterprises

MSS – Market Stabilisation Scheme

MTM – Mark-to-Market

M&As – Mergers and Acquisitions

NAB – New Arrangements to Borrow

NBFCs – Non-Banking Financial Companies

NBS – National Bank Supervisor

NCBP – Non-Concessional Borrowing Policy

NDA – Net Domestic Asset

NDTL – Net Demand and Time Liability

NFA – Net Foreign Assets

NFC – Non-Food Credit

NMF – Investment by Mutual Funds

NPLs – Non-Performing Loans

NRSROs – Nationally Recognised Securities Rating Organisations

OBSVs – Off-Balance Sheet Vehicles

OCR – Ordinary Capital Resources

OECD – Organisation for Economic Cooperation and Development

OIS – Overnight Indexed Swap

OLS – Ordinary Least Squares

OMO – Open Market Operation

ONI – Office of National Insurance

OTC – Over-the-Counter

OTD – Originate-to-Distribute

OTH – Originate-to-Hold

OTS – Office of Thrift Supervision

OBSEs – Off-Balance Sheet Entities

PDIC – Philippine Deposit Insurance Corporation

PDs – Primary Dealers

PPAC – Petroleum Planning Analysis Cell

PPP – Public Private Partnership

PRGF – Poverty Reduction and Growth Facility

PVAR – Panel Vector Auto-Regression

REER – Real Effective Exchange Rate

RMBS – Residential Mortgage-Backed Securities

RWA – Risk-Weighted Assets

SEBI – Securities and Exchange Board of India

SEC – Securities and Exchange Commission

SEP – Supervisory Enhancement Programme

SEZs – Special Economic Zones

SHGs – Self-Help Groups

SIDBI – Small Industries Development Bank of India

SDL – State Development Loan

SIVs – Structured Investment Vehicles

SLR – Statutory Liquidity Ratio

SMEs – Small and Medium Enterprises

SMO – Special Market Operation

SSMB – Standard Setting and Monitoring Body

SSIs – Small-Scale Industries

StAR – Stolen Asset Recovery

S&L – Savings and Loan Associations

TAF – Term Auction Facility

TARP – Troubled Asset Relief Program

TFFP – Trade Facilitation Programme

TUF – Technology Upgradation Fund

UNWTO – United Nations World Tourism Organization

VAR – Vector Autoregression

WADR – Weighted Average Discount Rate

WEO – World Economic Outlook

WTO – World Trade Organisation

This Report can also be accessed on Internet URL : www.rbi.org.in

UCO Two-Wheeler Loan Scheme

1. What is the maximum amount of loan under UCO Two-wheeler scheme?

A: Rs0.60lac or 90% of the cost of the new two-wheeler of well known brand, whichever is less.

Zonal Manager may authorize sanction up to Rs1lac for purchase of feature-rich two-wheeler in deserving cases.

2. What is the minimum margin to be contributed by the borrower in case of loan under UCO Two- wheeler scheme?

A: 10% of the total cost on road.

3. What is the income criterion for salaried person for availing loan under UCO Two-wheeler scheme?

A: Minimum gross salary of Rs8000/- per month.

4. What is the income criterion for non-salaried person for availing loan under UCO Two- wheeler scheme?

A: i) Minimum income of Rs1lac p.a. as per Income tax return /Assessment order in the preceding Year. Or,

ii) Minimum income of Rs1.5lac p.a. for purchase of feature rich vehicles.

5. What is the repayment period in case of loan under UCO Two-wheeler scheme?

A: Maximum 48 EMIs commencing from one month after disbursement.

6. What is the processing charge for loan under UCO Two-wheeler scheme?

A: 1%, minimum Rs500/-

7. What is the rate of interest for loan under UCO Two-wheeler scheme?

A: 12.25% p.a. (fixed)

8. Whether there is concession in rate of interest for loan under UCO Two-wheeler scheme?

A: i) 1% if loan account is backed by full liquid collateral.

ii) 0.50% if loan account is backed by 50% liquid collateral.

9. What is the guarantee requirement in case of loan under UCO Two-wheeler scheme?

A: For salaried person, compulsory guarantee: Personal guarantee of spouse or nominee of PF/Gratuity of the borrower.

For non-salaried person, compulsory guarantee: Personal guarantee of the spouse of the married borrower or, Personal guarantee of the mother/surviving parent in case of unmarried borrower, or where spouse guarantee is not available for obvious reasons.

For non-salaried person, additional guarantee:

By one more guarantors having income equal to that of the borrower or having means at least equal to the loan amount.

10. What is the age criterion for loan under UCO Two-wheeler scheme?

A: For salaried borrower: 21 to 55 years.

For non-salaried borrower: 21 to 60 years.

UCO Doctor Loan Scheme (Revised)

1. What credit facilities are provided under the UCO Doctor scheme?

A: Both term loan & Cash credit.

2. What should be the minimum DSCR for term loan under the UCO Doctor scheme?

A: 1.50

3. What is the maximum term loan in rural/semi-urban areas under the UCO Doctor scheme?

A: Rs 50lac

4. What is the maximum term loan in Urban/Metro areas under the UCO Doctor Scheme?

A: Rs300lac

5. What is the maximum cash credit limit that can be sanctioned under UCO Doctor Scheme?

A: a) Maximum 10% of the loan amount up to Rs100lac

b) Maximum 5% of the loan amount above Rs100lac

6. What amount of collateral security is to be taken for loans & advances up to Rs100lac under the UCO Doctor Scheme?

A: No collateral security and third party guarantee. To be compulsorily covered under CGSMSE.

7. What is the margin to be contributed by the borrower in case of UCO Doctor Scheme?

A:i) Term loan: Loans up to Rs10lac: 15%, others: 20% of the cost of the project/equipment.

ii) Working capital: 10%

8. What is the term loan repayment period under UCO Doctor Scheme?

A: 60 months (including moratorium of 6 months). The loan shall be repayable in EMIs commencing after one month of completion of the project or moratorium of 6 months, whichever is earlier. Repayment period may be extended to 84 months by ZLCAC, where the project cash flow justifies the same.

9. Whether the repayment period may be extended from 60 months under UCO Doctor Scheme?

A: Repayment period may be extended to 84 months by ZLCAC, where the project cash flow justifies the same.

10. What is the processing charge under UCO Doctor Scheme?

A: 1% plus applicable service tax and education cess (minimum Rs1000/-)