BANKING

Cost of Funds The cost of funds is a fundamental concept in finance that refers to the cost of borrowing money or the rate of return required on an investment. It is a key factor in determining the overall cost of a project, investment, or loan. Factors Affecting Cost of Funds: Interest Rate: The prevailing […]

Definition: Unbanked refers to individuals who do not have access to mainstream banking services or do not use them. They typically have low credit scores or are excluded from traditional banking systems due to factors such as lack of documentation, income instability, or a history of financial mismanagement. Characteristics: Lack of access to traditional banking […]

Priority Sector Lending (PSL) Priority sector lending (PSL) is a type of lending targeted at borrowers from specific sectors that are considered to have high potential for default. The objective of PSL is to provide financial assistance to these sectors by offering loans at lower interest rates and with more flexible repayment terms. Eligibility Criteria: […]

Real-time gross settlement (RTGS) is a payment system that allows for the transfer of funds between banks in real time, typically within a few seconds. This means that payments are processed immediately, rather than waiting for the next settlement cycle, which can take place daily or several times a week. Here are the key features […]

Credit Default Swap (CDS) A credit default swap (CDS) is a type of credit derivative that protects against the risk of default on a loan. How CDSs Work: CDS Buyer: Pays a premium to the CDS seller. CDS Seller: Guarantees to pay the buyer if the loan borrower defaults. Reference Loan: The CDS is linked […]

Merchant Banking Merchant banking is a type of banking service that provides financial services to corporations, rather than individuals. It involves advising businesses on a variety of financial matters, such as mergers and acquisitions, capital raising, and international trade. Key Features of Merchant Banking: Corporate focus: Merchant banks primarily focus on providing services to corporations, […]

Deposit Slip Company Name: [Company Name]Branch Number: [Branch Number]Account Number: [Account Number]Date: [Date] Customer Information:* Name: [Customer Name]* Address: [Customer Address]* City, State, ZIP: [City, State, ZIP]* Account Type: [Account Type] Deposit Information:* Deposit Amount: [Deposit Amount]* Currency: [Currency]* Cheque Number: [Cheque Number] (if applicable)* Deposit Slip Number: [Deposit Slip Number] Signature: [Customer Signature] Authorized […]

CIF number stands for Clearing and Interbank Identification Number. It is a unique 9-digit number used to identify banks and other financial institutions in India.

Telegraphic Transfer (TT) Telegraphic transfer (TT) is a type of money transfer initiated through a telegraphic message. It is a fast and secure way to transfer funds between banks worldwide. Process: Initiation: The sender initiates the transfer by providing the recipient’s bank details, the amount to be transferred, and any optional instructions. Message Transmission: A […]

Definition: A cheque is a written order to a bank to pay a sum of money to the bearer or to a specified person. Components: Drawer: The account holder’s name and address written on the top left corner of the cheque. Payee: The name of the person or organization to whom the cheque is payable. […]