Weekly Banking Awareness Capsule 1
In this article you will get, information about different topics of Banking Awareness in the form of Weekly Banking Awareness Capsule.
Banking Awareness section has become an essential section of majority of banking/recruitment examination conducted in India. Essentially it checks how much is the candidate keeping up with the knowledge of banking and financial sector,with special reference to the banking industry
In this article, we are providing the list of Important Banking Terminologies (A to Z of Banking)
ATM (Automatic Teller Machines):
Machines that dispense cash and give balance details and mini statements to the customers through Computer network
Distribution of insurance products and policies of insurance companies by banks as agents through their branches.
Bouncing of a cheque:
When an account has insufficient funds, cheque is not payable and is thus returned by the bank with a reason “funds insufficient”.
Rate of interest charged by the central bank to the commercial banks on the advances and the loans they extend.
Loan made for a very short period of only a few days.
Written by an individual to withdraw or transfer amount between two accounts of the same or different bank and the money is withdrawn from the account.
Core Banking Solutions (CBS):
All the branches of the bank are connected together so that the customer can access his/her funds or transactions from any branch.
CRR (Cash Reserve Ratio):
The amount of funds that a bank keeps with RBI. If the percentage of CRR increases then the amount with the bank comes down.
Account opened generally for business purposes with no restrictions on withdrawals and no interest paid
Card issued by the bank so the customers can withdraw their money from their account electronically.
Banking in which we can conduct financial transactions electronically. NEFT, RTGS, Online Banking etc come under this category.
Amount of Funds borrowed by the government to meet the expenditures.
Increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in the price level
Ability of converting an investment quickly into cash with no loss in value.
The product of the share price and number of the company’s outstanding ordinary shares.
Security which one offers for taking an advance or loan from someone.
Investment scheme that pools money from various investors in order to purchase securities.
Central Government policy with respect to the quantity of money in the economy, the rate of interest and the exchange rate
Non-performing Assets (NPAs):
NPA or non-performing loans are loans given by a bank on which repayments or interest payments are not being made on time
Permanent Account Number (PAN):
PAN is a number issued by the Income Tax Department to their tax payers.
Name given to Credit cards, Debit cards, and Other Such Cards issued by banks
Point of Sale (PoS):
PoS refers to a location at which a payment of a card transaction occurs.
Prime Lending Rate (PLR):
Rate of interest at which a bank gives loan to its most reliable customer (customer with ‘zero risk’ )
Book given to customers, where all the bank transactions are recorded.
Commercial banks borrow funds by the RBI if there is any shortage in the form of rupees. If this rate increases it becomes expensive to borrow money from RBI and vice versa.
Reverse Repo Rate:
Exact opposite of repo rate. It is the rate at which RBI borrows money from banks when it feels there is too much money floating in the banking system
SLR (Statutory Liquidity Ratio):
Amount that a commercial bank should have before giving credits to its customers which should be either in the form of gold, money or bonds.
Staff member of the bank who cashes cheques, accepts deposits and perform different banking services for the customers.
Internet banking is sometimes known as virtual banking (as it has no bricks and boundaries )
White labeled ATM:
An ATM or cash machine that does not prominently display a bank’s name or logo. A fee will be charged for cash withdrawals in these ATMs and they don’t accept deposits
Banking that mainly focuses on the financial needs of the institutional clients and the industry.
Zero Coupon Bond:
Bond that is sold at good discount as it has no coupon.
Friends this is it regarding Weekly Banking Awareness capsule. We will update Weekly Banking Awareness Capsule like this every week.If you have any suggestion or query, kindly post it in the comments section.