Operational Aspects of Accounting Entries
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 95 rapid-fire Q&A cards.
What is the primary commercial function of banks?
Lending deposits to earn interest spread that drives profitability.
Define funded credit facilities.
Actual outflow of bank funds at sanction/drawal; includes term loans, working capital, demand loans.
What are non-fund based credit facilities?
Contingent liabilities invoked only on customer default; LCs, guarantees, co-acceptances.
Distinguish fixed charge from floating charge.
Fixed: specific identified asset, borrower cannot sell without consent. Floating: class of assets, borrower can deal freely until crystallisation.
What is pari-passu charge?
Multiple lenders share charge over same security, ranking equally proportional to exposure; common in consortium lending.
What is margin on security?
Borrower's own stake; protects bank against price fall, sale costs, adverse selection.
Define Priority Sector Lending (PSL).
Mandatory bank credit allocation to under-served sectors critical for inclusive growth per RBI Master Directions.
What is PSL target for domestic banks?
40% of ANBC or CEOBSE; Agriculture 18% (NCF 14%, SMF 10%); Micro 7.5%; Weaker 12%.
Video classes for this chapter
MCQ practice tests
Chapter-wise mock tests with instant scoring.
PDF study notes
More chapters in Module A - Accounting Principles and Processes
Master the full AFM syllabus
Every chapter of Accounting and Financial Management for Bankers — videos, tests, notes and one-liner decks in one place.