Banking Terms for IBPS, RRB, SBI Bank PO, Clerk Interview Download Hindi pdf, Types of Bank Account, Types of Cheque, Bank Organization, Types of Electronic Payment Systems in Banks, banking terms for interview pdf, basic banking concepts, banking awareness questions and answers
Most important Banking Terms for IBPS, RRB, SBI Bank PO, Clerk Interview
- Deflation: It is a decrease in the general price level of goods and services.
- Monetary Policies: It refers to the use of instruments by Reserve Bank of India to regulate the availability, cost and use of money and credits.
- Plastic Money: It is a term used in reference to the hard plastic cards we use every day in place of actual bank notes.
- Inflation: Inflation can be defined as a sustained increase in the general level of prices for goods and services.
- Liquidity: It describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price.
- Merchant Banking: Merchant Banking is a combination of Banking and consultancy services.
- Cash Reserve Ratio (CRR): The CRR is the amount of funds that the banks have to keep with the RBI.
- Statutory liquidity ratio (SLR): It is the minimum proportion of their Net Demand and Time Liabilities, which every bank maintains in the form of cash, gold and securities, at the close of business every day.
- Bank rate: The rate of interest which the RBI charges on the loans and advances to a commercial bank.
- Repo rate: The rate at which the Reserve Bank of India lends money to commercial banks in the event of any shortfall of funds.
- Reverse Repo Rate: The rate at which the Reserve Bank of India borrows money from commercial banks within the country.
- Term Repo: A repurchase agreement with a term of more than one day.
Money Market Instruments:-
- Bonds: It is an instrument of indebtedness of the bond issuer to the holders.
- Call Money: Money loaned by a bank or other institution which is repayable on demand.
- Certificates of deposits (CD): A savings certificate entitling the bearer to receive interest.
- Dated government securities: These are long-term securities and a fixed or floating coupon/interest rate which is paid on the face value, payable at fixed time periods.
- Commercial Bills: A bill of exchange issued by a commercial organization to raise money for short-term needs.
- Commercial Papers: An unsecured, short-term debt instrument issued by a corporation for the financing of accounts receivable, inventories and meeting short-term liabilities.
- Mutual Funds: It is a professionally managed investment fund that pools money from many investors to purchase securities
Types of Accounts:-
- Current Account: An active account catering for frequent deposits and withdrawals by cheque.
- Saving Account: A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
- DeMat Account: This account is opened by the investor while registering with an investment broker (or sub-broker).
- Fixed deposit account: It is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date.
- NOSTRO Account: A bank account held by a UK bank with a foreign bank, usually in the currency of that country.
- Recurring Deposit Account: It is opened by those who want to save regularly for a certain period of time and earn a higher interest rate.
Cheques
- Ante Dated Cheque: Cheques which have been written by the maker, and dated at some point in the past.
- Stale Cheque: A cheque which a bank will not accept and exchange for money or payment because it was written more than a certain number of months ago.
- Cheque Truncation: It is the conversion of a physical cheque into a substitute electronic form for transmission to the paying bank.
- Bounced Cheque: Check that cannot be processed because the writer has insufficient funds.
- Crossed Cheque: These cheques can only be deposited directly into a bank account and cannot be immediately cashed by a bank or any other credit institution.
- Post Dated Cheque: Cheque that is written by the drawer (payer) for a date in the future.
Electronic Payment Systems in Banks:-
- National Payments Corporation of India (NPCI): This is an umbrella organization for all retail payments system in India.
- Clearing Corporation of India Limited (CCIL): It is a joint stock company with share capital contribution by major banks and financial institutions.
- Electronic Clearing Service (ECS): ECS is an electronic mode of funds transfer from one bank account to another and can be used for both
- Electronic Funds Transfer (EFT): It is a system of transferring credit and debit purposes.money from one bank account directly to another without any paper money changing hands.
- National Electronic Funds Transfer (NEFT): It is an Indian system of electronic transfer of money from one bank or bank branch to another.
- Real Time Gross Settlement (RTGS): These are specialist funds transfer systems where the transfer of money or securities takes place from one bank to another on a “real time” and on “gross” basis
Important Banking Organizations:-
- Industrial Development Bank of India (IDBI)
- Institute of Banking Personnel Selection (IBPS)
- Asian Development Bank (ADB)
- EXIM Bank
- Reserve Bank of India (RBI)
- Indian Banks’ Association (IBA)
- Securities Exchange Board of India (SEBI)
- International Bank for Reconstruction and Development
- International Monetary Fund (IMF)
- Bank for International Settlements (BIS)
- National Bank for Agriculture and Rural Development (NABARD)
- National Housing Bank (NHB)
- Small Industries Development Bank of India (SIDBI)
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