Banking

Definition: RTGS, is a short form for Real-Time Gross Settlement. It is a facility provided by the banks, that allows instant and complete settlement of funds from one bank to another and from one place to another, on an individual order basis. This means that the transactions are settled at the same time when they take place and so there is no waiting period. Payments made … [Read more...] about Real-Time Gross Settlement (RTGS)

Definition: E-banking is a blanket term used to indicate a process through which a customer is allowed to carry out, personal or commercial banking transactions using electronic and telecommunication network. It is a product offered by banks which facilitates online banking, with the help of which the customer can have access to the bank account in just one … [Read more...] about E-banking

Definition: Crossing of a cheque is nothing but instructing the banker to pay the specified sum through the banker only, i.e. the amount on the cheque has to be deposited directly to the bank account of the payee. Hence, it is not instantly encashed by the holder presenting the cheque at the bank counter. If any cheque contains such an instruction, it is called a crossed … [Read more...] about Crossing of Cheque

Definition: Cheque refers to a negotiable instrument that contains an unconditional order to the bank to pay a certain sum mentioned in the instrument, from the drawer's account, to the person to whom it is issued, or to the order of the specified person or the bearer. Parties to Cheque Basically, there are three parties to a cheque: Drawer: The person who draws the … [Read more...] about Cheque

Definition: Commercial Bank can be described as a financial institution, that offers basic investment products like a savings account, current account, etc to the individuals and corporates. Along with that, it provides a range of financial services to the general public such as accepting deposits, granting loans and advances to the customers. It is a profit making company, … [Read more...] about Commercial Bank

Definition: Central Bank is the apex financial institution of the country, that administers the operations of the banking system. The bank manages and controls the expansion and contraction of the supply of money in the economy. A central bank has no direct interaction with the general public. Indeed, it functions as a banker to the other banks of the country such as … [Read more...] about Central Bank

Definition: Merchant banking can be defined as a skill-oriented professional service provided by merchant banks to their clients, concerning their financial needs, for adequate consideration, in the form of fee. Merchant banks are a specialist in international trade and thus, excel in transacting with large enterprises. Services offered by Merchant Banks Merchant Banks … [Read more...] about Merchant Banking

Definition: The Residuary Non-Banking Company is yet another form of a financial institution engaged in the principal business of accepting deposits, under any scheme or arrangement or in any other form and not being asset financing, investment, loan company. Simply, the Residuary Non-Banking Company primarily deal in accepting deposits in any form and investing these in the … [Read more...] about Residuary Non-Banking Company

Definition: The Chit Fund Company is a financial institution engaged in the principal business of managing, conducting and supervising the chit scheme. The “Chit” is the financial arrangement wherein a certain number of persons/subscribers enter into an agreement that subscribes to a certain sum of money by way of installments over a definite period of time. Each subscriber … [Read more...] about Chit Fund Company

Definition: The Housing Finance Company is yet another form of non-banking financial company which is engaged in the principal business of financing of acquisition or construction of houses that includes the development of plots of lands for the construction of new houses. The Housing Finance Company is regulated by the National Housing Bank. Any non-banking finance company … [Read more...] about Housing Finance Company