Explore topic-wise InterviewSolutions in Banking.

INFO: Full form for ISMS is Information Security Management System in Banking category
ISMS also has other full forms in other categories mentioned below.

INFO: Full form for PCM is Payments and Cash Management in Banking category
PCM also has other full forms in other categories mentioned below.

INFO: Full form for SLM is Straight Line Method in Banking category
SLM also has other full forms in other categories mentioned below.

In commerce, supply chain management (SCM), the management of the flow of goods and services, between businesses and locations, and includes the movement and storage of raw materials, of work-in-process inventory, and of finished goods as well as end to end order fulfillment from point of origin to point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.

Supply-chain management has been defined as the "design, planning, execution, control, and monitoring of supply-chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally".SCM practice draws heavily on industrial engineering, systems engineering, operations management, logistics, procurement, information technology and marketing, and strives for an integrated approach. Marketing channels play an important role in supply-chain management. Current research in supply-chain management is concerned with topics related to sustainability and risk management, among others. An important concept discussed in SCM is supply chain resilience. Some suggest that the “people dimension” of SCM, ethical issues, internal integration, transparency/visibility, and human capital/talent management are topics that have, so far, been underrepresented on the research agenda. Supply chain management (SCM) is the broad range of activities required to plan, control and execute a product's flow from materials to production to distribution in the most economical way possible. SCM encompasses the integrated planning and execution of processes required to optimize the flow of materials, information and capital in functions that broadly include demand planning, sourcing, production, inventory management and logistics -- or storage and transportation.

Although it has the same goals as supply chain engineering, supply chain management is focused on a more traditional management and business based approach, whereas supply chain engineering is focused on a mathematical model based one.

INFO: Full form for DM is German Mark (deutsche Mark) in Banking category
DM also has other full forms in other categories mentioned below.

Ways and means advances (WMA) is a mechanism used by Reserve Bank of India (RBI) under its credit policy to provide to States, banking with it, to help them tide over temporary mismatches in the cash flow of their receipts and payments. This is guided under Section 17(5) of RBI Act, 1934, and are '..repayable in each case not later than three months from the date of making that advance'.

There are two types of WMA – normal and special. While Normal WMA are clean advances, Special WMA are secured advances provided against the pledge of government of India–dated securities. The operative limit for special WMA for a state is subject to its holdings of central government dated securities up to a maximum of limit sanctioned. In addition, the RBI has determined limits for normal and special WMA for each state as multiples of the prescribed minimum balance required to be maintained with the RBI by that state. These limits have been revised periodically.

These are temporary advances (overdrafts) extended by RBI to the govt. Section 17(5) of RBI Act allows RBI to make WMA both to the Central and State Govt.Objective – to bridge the interval between expenditure and receipts. They are not a sources of finance but are meant to provide support, for purely temporary difficulties that arise on account of mismatch/shortfall in revenue or other receipts for meeting the govt. liabilities. They have to be periodically adjusted to enable use of such financing for future mismatches.On 26 March 1997, Govt. of India and RBI signed an agreement putting the ad hoc T-bills system to end w.e.f 1 April 1997.

INFO: Full form for APS is Annual Policy Statement in Banking category
APS also has other full forms in other categories mentioned below.

INFO: Full form for AML is Anti-Money Laundering in Banking category
AML also has other full forms in other categories mentioned below.

Advanced measurement approach (AMA) is one of three possible operational risk methods that can be used under Basel II by a bank or other financial institution. The other two are the Basic Indicator Approach and the Standardised Approach. The methods (or approaches) increase in sophistication and risk sensitivity with AMA being the most advanced of the three.

Under AMA the banks are allowed to develop their own empirical model to quantify required capital for operational risk. Banks can use this approach only subject to approval from their local regulators. Once a bank has been approved to adopt AMA, it cannot revert to a simpler approach without supervisory approval.

Also, according to section 664 of original Basel Accord, in order to qualify for use of the AMA a bank must satisfy its supervisor that, at a minimum:

INFO: Full form for ALM is Asset Liability Management in Banking category
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INFO: Full form for SAP is State Agricultural Plan in Banking category
SAP also has other full forms in other categories mentioned below.

INFO: Full form for IOS is Inspection Operation System in Banking category
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INFO: Full form for IAS is Integrated Accounting Systems in Banking category
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INFO: Full form for CV is Collateral Value in Banking category
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An equated monthly installment (EMI) is defined by Investopedia as "A fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month, so that over a specified number of years, the loan is fully paid off along with interest."

It further explains that, with most common types of loans, such as real estate mortgages, the borrower makes fixed periodic payments to the lender over the course of several years with the goal of retiring the loan. EMIs differ from variable payment plans, in which the borrower is able to pay higher payment amounts at his or her discretion. In EMI plans, borrowers are mostly only allowed one fixed payment amount each month.

The benefit of an EMI for borrowers is that they know precisely how much money they will need to pay toward their loan each month, making the personal budgeting process easier.

The formula for EMI (in arrears) is:

or, equivalently,

where: P is the principal amount borrowed, A is the periodic amortization payment, r is the annual interest rate divided by 100 (annual interest rate also divided by 12 in case of monthly installments), and n is the total number of payments (for a 30-year loan with monthly payments n = 30 × 12 = 360).

For example, if you borrow 10,000,000 units of a currency from the bank at 10.5% annual interest for a period of 10 years (i.e., 120 months), then EMI = units of currency 10,000,000 × 0.00875 × (1 + 0.00875)120/((1 + 0.00875)120 – 1) = units of currency 134,935. i.e., you will have to pay total currency units 134,935 for 120 months to repay the entire loan amount. The total amount payable will be 134,935 × 120 = 16,192,200 currency units that includes currency units 6,192,200 as interest toward the loan.

INFO: Full form for SOS is Save, Organize, and Share in Banking category
SOS also has other full forms in other categories mentioned below.