Devaluation
Devaluation means official lowering of the value of a
country's currency within a fixed exchange rate system, by which the monetary
authority formally sets a new fixed rate with respect to a foreign reference currency.
Depreciation
It is used to describe a
decrease in a currency's value (relative to other major currency benchmarks)
due to market forces, not government or central bank policy actions.
Account
statement
Account
statement is a periodic statement of all the debit and credit transactions on
an account.
Anywhere
Banking
Customer
can deposit/ withdraw cash at any branch other than the branch in which he
holds the account. It is made possible by core banking solutions.
Bankruptcy
A
legal action, in which a person who is not able to repay his loans
satisfactorily, is declared bankrupt by a court order. The collateral or
security in this case becomes liable to be attached by administration to
satisfy creditors.
Bounced
cheque
A
cheque, which a bank returns unpaid because there is no enough balance in the
account or for other reasons.
Draft
A
written, signed and dated order from one Branch of a Bank to another , to pay a
sum of money to a specific party.
Drawee
The
person or entity on whom a draft/bill is drawn by the drawer.
Electronic
Funds Transfer (EFT)
Any
transfer of funds initiated by electronic means, such as an electronic
terminal, telephone, computer, ATM or magnetic tape.
Over
limit Fees
Whenever
a credit card holder crosses his credit limits an overlimit fees is charged on
his account.
Fiscal
Year
A
fiscal year is a 12-month accounting period used by any company and it does not
necessarily follow the calendar year. India fiscal year is April to March.
Fixed
Deposit
A
deposit of funds in a bank under an agreement stipulating that the funds must
be kept on deposit for a stated period of time at a predefined interest rate.
MICR
Code
A
unique 9-digit code assigned to each Bank branch by Reserve Bank of India to
facilitate sorting in clearing of instruments using the Magnetic Ink Character
Recognition Technology.
National
Electronic Funds Transfer (NEFT)
An
Electronic Payment System in which payment instructions between banks are
processed and settled on deferred net settlement (DNS) basis, which settles
transactions in batches at fixed times during the day.
White
label ATMs
These
are the ATMs owned by non-banking finance companies. For e.g., TATA is having
an ATM network brand named as IndiCash.
Brown
label ATMs
These
are the ATMs owned by companies, but operated by banks
Outstanding
Cheque
Outstanding
cheque is issued by the company which is not yet cleared by the bank. In
preparing the bank reconciliation, it is deducted from the bank balance.
Overdraft
An
overdraft occurs when you do not have enough available funds in your account to
cover a cheque or other withdrawal, but the bank pays the items and overdraws
your account.
Payee
The
person who receives a payment is known as payee. This often applies to cheque.
If you receive a cheque you are the payee and the person or company who wrote
the cheque is the payer or drawer
Payer
The
person who makes a payment is known as payer. This often applies to cheque. If
you write a cheque you are the payer and the recipient of the cheque is the
payee.
Real
Time Gross Settlement (RTGS)
RTGS
is a system through which electronic instructions can be given by banks to
transfer funds from their account to the account of another bank. The RTGS
system is maintained and operated by the RBI and provides a means of efficient
and faster funds transfer among banks facilitating their financial operations.
As the name suggests, funds transfer between banks takes place on a ‘real time’
basis. Therefore, money can reach the beneficiary instantaneously and the
beneficiary’s bank has the responsibility to credit the beneficiary’s account
within two hours.
No
frill Account
No frill account is Zero
Balance account. Zero balance is when the total outstanding balance is paid and
there are no new charges or cash advances during a billing cycle.
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