BANKING TERMS WITH EXPLANATION Bank Rate It is the rate of interest charged by a central bank to commercial banks on the advances and the loans it extends. Base Rate It is the minimum rate a bank charges its most credit worthy customer. The bank cannot lend below this rate (with an exception to banks
Types of Banking Para banking– When Bank provide added banking services/facilities except the general banking facilities. Narrow Banking– When banks invest its money in government securities instead investing in market to avoid risk. Overseas Banking- Banks having branches in other countries besides its origin country. Ex: Bank of Baroda Offshore Banking– Bank which accept currency
Banking Ombudsman Scheme, 2006 1. What is the Banking Ombudsman Scheme? Ans: The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with
RTGS Q1. What is RTGS System? Ans. The acronym ‘RTGS’ stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting). ‘Real Time’ means the processing of instructions at the time they are received rather than at some later
NEFT Q.1. What is NEFT? Ans: National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the
