Banking

Definition: The Mutual Benefit Finance Companies also called as "Nidhis", are the non-banking finance companies that enable its members to pool their money with a predetermined investment objective. The main sources of funds are share capital, deposits from its members, deposits from the general public. In other words, any company which has been notified by the Central … [Read more...] about Mutual Benefit Finance Companies

Definition: The Non-Banking Financial Companies (NBFCs) are the financial institutions that offer the banking services, but does not comply with the legal definition of a bank, i.e. it does not hold a bank license. The non-banking financial companies are registered under the Companies Act, 1956 and deals in the business of loans and advances, investments in … [Read more...] about Non-Banking Financial Companies (NBFCs)

Definition: The Kiosk Banking is the initiative taken by the RBI for those living in villages or other remote areas who are deprived of banking services due to the non-availability of a bank branch in their locality. In such arrangement, the person is not required to go the bank to avail the banking services. Instead, the bank comes to the village where the person can make the … [Read more...] about Kiosk Banking

Definition: The Traveler's cheque is an exchange medium that can be used as a substitute for the hard currency. As the name suggests, these cheques are issued to the individuals who travel on vacations to overseas. The Traveler's cheque provides a lot of convenience to those who travel to foreign countries, as they are not required to carry excess cash along with them and … [Read more...] about Traveler’s Cheque

Definition: The Cheque Truncation System or CTS is the cheque clearance system introduced by RBI to fasten up the clearing of cheques. In this system, instead of producing the physical cheques to the payee bank, just the electronic image of the cheque along with the MICR code and other cheque credentials are transmitted to the drawee bank for the payment through a clearing … [Read more...] about Cheque Truncation System

Definition: The Microfinance is the cluster of banking services, relatively of lower monetary amounts, designed specifically to meet the banking requirements of an unemployed or low-income people. In other words, Microfinance is the arrangement of financial services including loans, savings, insurance, money transfers and remittances offered to the lower income groups or … [Read more...] about Microfinance

Definition: The Virtual Banking is the provision of accessing the banking and related services online without actually going to the bank branch/office in person. Simply, availing the banking services through an extensive use of information technology without any requirement for the physical walk-in premises is called as virtual banking. Any financial institution that offers … [Read more...] about Virtual Banking

Definition: The Concentration Banking is the arrangement used by the firms, wherein the funds from all the regional banks in different locations gets concentrated or collected into the single bank account. In other words, a firm has its operations in several parts of the country and in order to ease the complexity of handling multiple bank accounts at different locations, … [Read more...] about Concentration Banking

Definition: The National Financial Switch is the largest interconnected network of automated teller machines (ATMs) in India. This system was developed by Institute of development and research in Banking Technology (IDRBT), Hyderabad. The national financial switch enabled the interconnectivity between the bank’s switches such that the transactions made at any ATM could be … [Read more...] about National Financial Switch