Banking Terms
Bancassurance: Bancassurance mentions to
the distribution of insurance products and the insurance policies of insurance
companies which may be life policies or non-life policies like home insurance,
car insurance, medi policies and others, by bank as corporate agents through
their branches located in different parts of the country by charging fee.
Bank Rate: it is the rate at which
the RBI allows finance to commercial banks. Bank Rate is a instrument which
central bank uses for Short-term purposes.
Bouncing of
Cheque:
Where an account does not have sufficient balance to honour the cheque issued
by the customer (Account holder), the cheque is returned by the bank with the
reason that “Funds insufficient” or “Exceeds arrangements’. This is termed as “Bouncing
of Cheque””.
Cash Reserve
Ratio: Banks
in India are required to hold a certain proportion of their deposits in the
form of cash. However, actually Banks do not hold these as cash with them, but
deposit such cash with RBI/Currency Chests, which is consider as equivalent to
holding cash with themselves. This minimum ratio as stipulated by the RBI is
known as CRR or cash Reserve Ratio.
Core Banking
Solutions (CBS): Core Banking is a buzz word in Indian Banking at present, where
branches of the Bank are connected to a central host and the customers of
connected branches can do banking at any breach with core banking facility.
Creditworthiness: It is the capacity of the
borrower to repay the loan/advance in time along with interest as per agreed
terms.
Current
Account:
Current account with a bank can opened generally for the purpose of business.
There are no limitations on withdrawals in this type of account. No interest is
paid for amount deposited in Current account.
Demand Drafts: Deposits which are withdrawn
on demand by customers. Example: Savings bank and current account deposits.
NPA Account: In interest and installments
and other bank dues are not paid in any loan account within a specified time
limit, it is being treated as Non-performing assets of a bank.
Plastic Money: Credit cards and Debit
cards and ATM cards and International cards are considered plastic money as like
money they can able us to get goods and services.
Post-Dated
Cheque: A
cheque which bears the date, which is subsequent to the date of issue. For
Example a cheque drawn on 12th of May, 2013 bears the date of 18th
of May 2013.
Prime Lending
Rate (PLR):
The rate at which banks lend to their best (prime) customers.
Promissory
Note:
Promissory note is a promise / undertaking given by one person in writing to another
person, to pay to that person, a certain sum of money on demand or on a future
date.
Public Sector
Bank: A
bank entirely or partly owned by the Government.
Repo (Repurchase): Repo rate is the rate at which the RBI lends
short-term money to the banks. When the repo rate is increased borrowing from
RBI becomes more expensive.
Reverse Repo Rate: It is the rate at which banks park their short-term excess
liquidity with the Reserve Bank of India. The Reserve Bank of India uses this instrument
when it feels there is too much money floating in the banking system.
Statutory Liquidity Ratio: Every bank is required to maintain at the close of trade
every day, a minimum percentage of their Net Demand and Time Liabilities as
liquid assets in the form of cash, golden and unencumbered approved
securities.
Teller:Teller is a staff of a bank; he receives deposits, Cash, Cheque and does other banking services for the public.
Teller:Teller is a staff of a bank; he receives deposits, Cash, Cheque and does other banking services for the public.
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