BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
How many module/modules have Negotiated Dealing System (NDS)?
A
Five
B
One
C
Three
D
Two
Explanation: 

Detailed explanation-1: -The Negotiated Dealing System consists of two modules, which are designed for different types of member institutions.

Detailed explanation-2: -The NDS comes in two modules that are designed for different types of institutions. The modules are: Primary market module. Secondary market module.

Detailed explanation-3: -The Negotiated Dealing System (NDS) has two modules – one for the primary market and the other for the secondary market. The Reserve Bank uses the primary auction platform (NDS Auction) for auction of both, dated securities of the Government of India and the State Governments as also, treasury bills.

Detailed explanation-4: -NDS-OM is a screen based electronic anonymous order matching system for secondary market trading in Government securities owned by RBI. Presently the membership of the system is open to entities like Banks, Primary Dealers, Insurance Companies, Mutual Funds etc.

Detailed explanation-5: -NDS provides an interface to the securities settlement system. All outright and repo transactions in Treasury Bills and government-dated securities (Central and state governments) are settled through NDS, though corporate bonds are not traded on the NDS. ]

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