Questions ******Common Banking Terms**** (Important for IBPS Exams) Safe Custody: When articles of value like jewellery, boxes, shares, debentures, Government bonds, Wills or other documents or articles are given to a bank for safe keeping in its safe vault, it is called safe custody.. Bank charges a fee from its clients for such safe custody. Virtual Banking: Virtual banking is also called internet banking, through which financial and banking services are accessed via internets World Wide Web. It is called virtual banking because an internet bank has no boundaries of brick and mortar and it exists only on the internet. Demand Deposit – A Demand deposit is the one which can be withdrawn at any time, without any notice or penalty; e.g. money deposited in a checking account or savings account in a bank. Time Deposit – Time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain term or period of time. When the term is over it can be withdrawn or it can be held for another term. Fixed Deposits – FDs are the deposits that are repayable on fixed maturity date along with the principal and agreed interest rate for the period. Banks pay higher interest rates on FDs than the savings bank account. Recurring Deposits – These are also called cumulative deposits and in recurring deposit accounts, a certain amounts of savings are required to be compulsorily deposited at specific intervals for a specified period. Credit Rating - This is the rating which an individual (or company) gets from the credit industry. This is obtained by the individuals credit history, the details of which are available from specialist organizations like CRISIL in India. Credit-Worthiness - This is the judgment of an organization which is assessing whether or not to take a particular individual on as a customer. An individual might be considered credit-worthy by one organization but not by another. Much depends on whether an organization is involved with high risk customers or not. OVERDRAFT:- It is the loan facility on customer current account at a bank permitting him to overdraw up to a certain agreed limit for a agreed period ,interest is payable only on the amount of loan taken up. Lease Financing: Financing for the business of renting houses or lands for a specified period of time and also hiring out of an asset for the duration of its economic life. Leasing of a car or heavy machinery for a specific period at specific price is an example. MUST SHARE...... # Supari Bhai
Posted on: Thu, 21 Nov 2013 02:07:57 +0000
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