Thursday 11 September 2014

                                      IMPORTANT BANKING RELATED TERMS


v  Exchange Rate: Rate at which the domestic currency can be converted into foreign currency and vice versa.

v  Cheque: Cheque is a negotiable instrument containing conditional order to pay sum of money to the person mentioned on it or to the bearer of the instrument.
v  Crossing: Two parallel lines drawn on the top left corner of the cheque

v  Account Payee Cheque: Account payee cheque can be routed only through accounts

v  Post dated Cheque: The date on the check beyond today’s date then cheque becomes post dated.

v  Stale Cheque: A cheque which has completed the stipulated validity period of the cheque is called as the stale cheque (The validity period of 6 months as at present)

v  Mutilated cheque: It is a damaged cheque

v  Bounced Cheque: It is nothing but an ordinary bank check that any bank can refuse to encash or pay because of the fact that there is no sufficient balance in the bank account of the originator

v  At Par cheque: It is payable anywhere in India

v  Multi city cheque: A cheque which is payable in any branch of a particular bank

v  Travellers Cheque: Cheques issued by a bank and function as cash but are protected against loss or theft when travelling.

v  Money Laundering: Conversion of money which is illegally obtained

v  Linked Account: Any account linked to another account in the same bank where funds can be transferred electronically between accounts and carry out other specified services as well

v  Consumer durables loans: Loan granted by banks for purchasing of whitegoods

v  Collateral: A borrower needs to provide some kind of security to the bank in case of high ticket loans, such security is called ‘collateral’
v  Floating Rate:An interest rate that is referenced to a market rate and is revised as per the change in the interest rates in the economy. When interest rates in the economy rise, floating rates rise and vice versa.



v  Inflation: Decreasing the value of money in this statemoney looses the value hence prices will go up.





                                                                                        
                                                    

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