Type of Bank Accounts Personal Bank Accounts Saving Bank A/C= These accounts are maintained by individuals/salaried people. Such accounts offer interest on customer deposit. The internet on these accounts is de-regulated by RBI. No overdraft is allowed in such accounts. Habit of saving is developed, minimum Balance condition depends on Bank To Bank, Limit on transaction can be fixed. Fixed deposits Accounts= It is also known as term deposit, Fixed rate of interest or floating rate of Intt is offered on it. Rates are depends on money and maturities periods. Recurring Deposits Account = In this account money is fixed every months and rate of interest in the same as on fixed deposits accounts. Business Bank Accounts : Current Accounts = These accounts are used mainly by businessmen and are not generally used for the purpose of investment. These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of the transactions in a day. No interest is paid by banks on these accounts. One of the prominent advantage of such account is that overdraft is allowed. Cash Credit Accounts = In this account money is lent against the commodities or stock, a set limit or a credit facility is provided as per the value of commodities. Interest is taken as per the limit availed by the customers. Banking Terminology: IFSC Code : = Indian Financial System Code. The code consist of 11 characters for identifying the bank and branch where the account in actually held. The IFSC code is used both by the RTGS and NEFT transfer systems. RTGS: = Real Time Gross settlement system is funds transfer system where transfer of money or securities takes place from bank to another on a “real time”. (‘Real time’ means within a fraction of seconds.) The minimum amount to be transfer through RTGS is Rs 2 Lakh. Processing charges/service charges for RTGS transactions vary from bank to bank. NEFT: National Electronic Fund transfer. This is a method used for transferring funds across bank in a secure manner. It usually takes 1-2 working days for the transfer to happen. NEFT is an electronic fund transfer system that operates on a deferred Net Settlement (DNS) basis which settles transactions in batches.(Note : RTGS is much faster than NEFT.) UTR Number: unique transactions reference number. A Unique Number which is generated for every transaction in NEFT & RTGS system. UTR is a 16-digit alphanumeric code. The first Four digit are a bank code in alphabets, the 5th on is the message code, the 6th and 7th mention the year, the 8th to 10th mention the date and the last 6 digits mention the day’s serial number of the message. MICR: Magnetic Ink Character Recognition. A 9-digit code which actually shows whether the cheque is real or fake. IMPS: Interbank Mobile Payment Service is an instant interbank electronic fund transfer service through mobile phones. Both the customers must have MIMD (Mobile Money Identifier Number).
Posted on: Wed, 19 Jun 2013 07:24:38 +0000
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