Banking Terms Essay

1489 words - 6 pages

RBI – The Reserve Bank of India is the apex bank of the country, which was constituted under the RBI Act, 1934 to regulate the other banks, issue of bank notes and maintenance of reserves with a view to securing the monetary stability in India.

Demand Deposit – A Demand deposit is the one which can be withdrawn at any time, without any notice or penalty; e.g. money deposited in a checking account or savings account in a bank.

Time Deposit – Time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for another term.

Fixed Deposits – FDs are the deposits that are ...view middle of the document...

The accounts can be in the form of current, saving, FDs, recurring deposits. The interest rates and other terms of these accounts are as per the RBI directives.

Cheque Book - A small, bound booklet of cheques. A cheque is a piece of paper produced by your bank with your account number, sort-code and cheque number printed on it. The account number distinguishes your account from other accounts; the sort-code is your bank's special code which distinguishes it from any other bank.

Cheque Clearing - This is the process of getting the money from the cheque-writer's account into the cheque receiver's account.

Clearing Bank - This is a bank that can clear funds between banks. For general purposes, this is any institution which we know of as a bank or as a provider of banking services.

Bounced Cheque - when the bank has not enough funds in the relevant account or the account
holder requests that the cheque is bounced (under exceptional circumstances) then the bank will return the cheque to the account holder.

Credit Rating - This is the rating which an individual (or company) gets from the credit industry. This is obtained by the individual's credit history, the details of which are available from specialist organisations like CRISIL in India.

Credit-Worthiness - This is the judgement of an organization which is assessing whether or not to take a particular individual on as a customer. An individual might be considered credit-worthy by one organisation but not by another. Much depends on whether an organization is involved with high risk customers or not.

Interest - The amount paid or charged on money over time. If you borrow money interest will be charged on the loan. If you invest money, interest will be paid (where appropriate to the investment).

Overdraft - This is when a person has a minus figure in their account. It can be authorized (agreed to in advance or retrospect) or unauthorized (where the bank has not agreed to the overdraft either because the account holder represents too great a risk to lend to in this way or because the account holder has not asked for an overdraft facility).

Payee - The person who receives a payment. This often applies to cheques. If you receive a cheque you are the payee and the person or company who wrote the cheque is the payer.

Payer - The person who makes a payment. This often applies to cheques. If you write a cheque you are the payer and the recipient of the cheque is the payee.

Security for Loans - Where large loans are required the lending institution often needs to have a guarantee that the loan will be paid back. This takes the form of a large item of capital outlay (typically a house) which is owned or partly owned and the amount owned is at least equivalent to the loan required.

Internet Banking - Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by the bank.

Credit Card - A credit card is one of the...

Other Papers Like Banking Terms

Kfc V/S Mcd Essay

3964 words - 16 pages customer through bank website. From the above tables it is clear that the score of ICICI bank is more than SBI bank, however the difference of scores is not too large. Therefore it can be concluded that customers of ICICI bank are comparatively more satisfied, but the SBI bank is not far behind in terms of providing reliable online banking services in Pune city. Table 3 (A) - Satisfaction Level towards Efficiency in SBI Bank Quality Dimension Statements

Islamic Banking System in Bangladesh Essay

3190 words - 13 pages deposit-25%, Current-15%, Savings-60%. 4. System used for transaction: A: 100% of them use Islamic banking for their transaction and 0% of them use traditional transaction system. 5. Who influenced you to follow the islami banking system? A: 50% Family, 30% Myself, 20% Friends. 6. Why do you prefer the islami banking system? A: 65% Religious View, 25% Mental Satisfaction, 10% Others. 7. Do you know all the terms and conditions

Growth of Telecom Sector in India

1584 words - 7 pages limited presence of the private sector, high entry barriers for foreign banks and cartelisation of sorts among banks in setting interest rates. 7 | P a g e CHAPTER-2 BANKING REFORMS IN INDIA: NARSIMHAN COMMITTEE REPORT2 The Narsimhan Committee on Banking Sector Reform was set up in December, 1997. This Committee ’s terms of reference include; review of progress in reforms in the banking sector, to make banking

India Has Potential to Lead the World

957 words - 4 pages Corporate and its users will be subject to the maximum permissible by the Bank Declaration: [for both Retail & Corporate]: I/we have read the Terms and Conditions applicable to Union e-Banking Retail/Corporate services and agree to them. I/we are aware that the usage of Union e-banking Corporate is governed by the Terms and Conditions which are displayed on http://www.unionbankonline.co.in the site maintained by Union Bank of India and I/we have

Immoduletext

4319 words - 18 pages customers with minimal time lag when problems occur, to make available mechanisms for handling returns, and to provide guarantees to meet popular requests (Zeithaml, et al., 2002). As applied to service quality in e-banking, responsiveness can be measured in terms of speed or promptness (Yang&Jun, 2002), timeliness and convenience of access (Jun&Cai, 2001; Davis et al., 1989). Security Recent research has suggested that the majority of Internet

Pestel Analysis

829 words - 4 pages services. The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. The use of ATM and Internet banking has allowed ‘anytime, anywhere banking’ facilities. Automatic voice recorders now answer simple queries, currency accounting machines makes the job easier and self-service counters are now encouraged. Credit card facility has encouraged

Islamic Banking

1714 words - 7 pages Contents 1 2 10 12 What is Islamic banking? Islamic banking in Malaysia Observing Shariah principles Shariah concepts in Islamic banking Frequently asked questions Glossary This booklet tells you about the basic concepts and principles of Islamic banking. What is Islamic banking? Islamic banking is banking based on Islamic law (Shariah). It follows the Shariah, called fiqh muamalat (Islamic rules on transactions). The rules and

Shadow Banking

1249 words - 5 pages rates. The shadow banking industry allowed Americans better access to cheap credit. Indeed, according to Standard and Poor’s, “the aggregate shadow-banking sector … accounted for almost 40% of total financial assets” at the peak of the financial crisis in 2008. (5) In terms of accounting practices, money lent out by the traditional banks is also kept on their books. Shadow banks, on the other hand, do not keep the loans on their books

Retail Marketing

1158 words - 5 pages ever service that provides the next generation online banking tools and services to any SME business, regardless of their size, thus enabling business owners to do less banking and focus more on accelerating their business. (Refryoutube) The significance of this positioning strategy is high for the target market as SME businesses will require more time to develop their business and they are scarce in terms of man-power and resources therefore

Investment Banking

1557 words - 7 pages Difference Between Investment Banking and Merchant Banking Investment vs. Merchant Banking Bank is an organization that provides a range of financial and some non financial services to its customers. The main source of income, that makes the bank survive is the interest charged from those to whom the bank has given loan. A bank accepts deposits from its customers and pay interest to that deposited money, while it lends money to those who

Seven-Eleven Japan

2444 words - 10 pages disparities, and an influx of Syrian refugees. At the same time, however, Jordan is well positioned to address these challenges due to several opportunities, including a young workforce, a government that is forward leaning in terms of policy reform, and improving health and education indicators. Technological: Banking today is undergoing a radical transformation. The symptoms are obvious; new products, new players, new channels are appearing

Related Essays

Adoption Of Internet Banking And Customer Behaviour

608 words - 3 pages technological background and utilisation of bank services section solicited responses in relation to the familiarity and usage of the computer and the internet as well as frequency and type of banking services typically done by the individual. The final block of the questionnaire collected responses in terms of the awareness of internet banking services, usage, motivating factors and future utilisation of these services.

E Banking Essay

3905 words - 16 pages Financial Institutions in Bangladesh in terms of cost efficiency. To be one of the top five Financial Institutions in Bangladesh in terms of market share in all significant market segments we serve. Financial objectives To achieve 20% return on shareholders' equity or more, on average. Core values of Mercantile Bank Limited  For the customers: providing with caring services by being innovative in the development of new banking products and

Agency Banking Essay

1565 words - 7 pages the cost of financial services and to foster financial inclusion, reach and depth. Commercial Banks worldwide offer similar kinds of services, but they could provide differences in terms of service quality. This paper analyzes past studies regarding service quality improvement in the agency banking sector. The continuing trend to a model of service quality improvement, from personnel counter services to electronic services, will be demonstrated

Universal Banking Essay

1505 words - 7 pages network was felt. Private banking in that context was viewed a brand new approach, to bypass the structural and other shortcomings of the public sector. In India Development financial institutions (DFIs) and refinancing institutions (RFIs) were meeting specific sectoral needs and also providing long-term resources at concessional terms, while the commercial banks in general, by and large, confined themselves to the core banking functions of accepting