BANK RATE :8.5%
The interested rate charged by central banks to commercial banks for very short term loans
CASH RESERVE RATIO(CRR) :4%
CRR is the amount of funds that the banks have to keep with RBI.
If RBI decides to increase the persent of this, the available amount with the banks comes down.
RBI is using this method to drain out the excessive money from the market.
REPO RATE :7.5%
Repo rate is the rate at which the commercial banks borrow money from RBI.
When the repo rate increases borrowing from RBI becomes more expensive.
REVERSE REPO RATE :6.5%
Reverse Repo rate is the rate at which RBI borrows money from commercial banks.
STATUTORY LIQUIDITY RATIO(SLR) :23%
SLR is the amount a commercial bank needs to maintain in the form of cash or gold or govt. approved securities before providing credit to customers.
It is maintained by RBI inorder to control the expansion of bank credit.
These rates are used by RBI to adjust the lending or investment rate of our banks to common man.
BANKING OMBUDSMAN
An independent dispute resolution authority provided by RBI to deal with dispute that bank customers have with their respective banks.
The authority is to be approached after the customer fails to get his grievance resolved from the concerned bank in term of the grievance redressed mechanism.
FINANCIAL INCLUSION
Financial inclusion or inclusive financing is the delivery of financial services, at affordable costs, to sections of disadvantaged and low income segments of society.(eg:No frill account)
As banking services are in the nature of public good, it is essential that availability of banking and payment services to the entire population without discrimination is the prime objective of the public policy.
INFLATION
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services.
DEFLATION
Deflation is a decrease in the general price level of goods and services.
Deflation occurs when the inflation rate falls below 0% (a negative inflation rate).
NO FRILL ACCOUNT
No frill account are accounts with NIL or very minimum balance.
PLASTIC MONEY
Credit Cards, Debit Cards, ATM Cards and International Cards are considered plastic money as like money they can enable us to get goods and services.
RTGS
Real time gross settlement systems (RTGS) are funds transfer systems where transfer of money or securities takes place from one bank to another on a "real time" and on "gross" basis.
Settlement in "real time" means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed.
"Gross settlement" means the transaction is settled on one to one basis without bunching or netting with any other transaction.Once processed, payments are final and irrevocable.
NEFT
The national electronic fund transfer (NEFT) system is a nation-wide system that facilitates individuals, firms and corporates to electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country
IFSC
IFSC or Indian financial system code is required to perform a transaction using NEFT or RTGS.
IFSC code identifies a specific branch of a bank. IFSC code can be found out on RBI website.
These codes are also known from your bank branch, and it is best to confirm the IFSC code, before going for any transaction.
MICR
Magnetic ink character recognition,(MICR) is a character recognition technology used primarily by the banking industry to facilitate the processing and clearance of cheques and other document.
The MICR encoding, called the MICR line, is located at the bottom of a cheque or other voucher and typically includes the document type indicator, bank code, bank account number, cheque number and the amount, plus some control indicator.
The technology allows MICR readers to scan and read the information directly into a data collection device. Unlike barcodes or similar technologies, MICR characters can be easily read by humans.
CTS
Cheque Truncation System eliminates the physical movement of cheques and provides a more secure and efficient method for clearing cheques.
Cheque Truncation effectively eliminates the associated cost of movement of the physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing.
KYC
The interested rate charged by central banks to commercial banks for very short term loans
CASH RESERVE RATIO(CRR) :4%
CRR is the amount of funds that the banks have to keep with RBI.
If RBI decides to increase the persent of this, the available amount with the banks comes down.
RBI is using this method to drain out the excessive money from the market.
REPO RATE :7.5%
Repo rate is the rate at which the commercial banks borrow money from RBI.
When the repo rate increases borrowing from RBI becomes more expensive.
REVERSE REPO RATE :6.5%
Reverse Repo rate is the rate at which RBI borrows money from commercial banks.
STATUTORY LIQUIDITY RATIO(SLR) :23%
SLR is the amount a commercial bank needs to maintain in the form of cash or gold or govt. approved securities before providing credit to customers.
It is maintained by RBI inorder to control the expansion of bank credit.
These rates are used by RBI to adjust the lending or investment rate of our banks to common man.
BANKING OMBUDSMAN
An independent dispute resolution authority provided by RBI to deal with dispute that bank customers have with their respective banks.
The authority is to be approached after the customer fails to get his grievance resolved from the concerned bank in term of the grievance redressed mechanism.
FINANCIAL INCLUSION
Financial inclusion or inclusive financing is the delivery of financial services, at affordable costs, to sections of disadvantaged and low income segments of society.(eg:No frill account)
As banking services are in the nature of public good, it is essential that availability of banking and payment services to the entire population without discrimination is the prime objective of the public policy.
INFLATION
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services.
DEFLATION
Deflation is a decrease in the general price level of goods and services.
Deflation occurs when the inflation rate falls below 0% (a negative inflation rate).
NO FRILL ACCOUNT
No frill account are accounts with NIL or very minimum balance.
PLASTIC MONEY
Credit Cards, Debit Cards, ATM Cards and International Cards are considered plastic money as like money they can enable us to get goods and services.
RTGS
Real time gross settlement systems (RTGS) are funds transfer systems where transfer of money or securities takes place from one bank to another on a "real time" and on "gross" basis.
Settlement in "real time" means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed.
"Gross settlement" means the transaction is settled on one to one basis without bunching or netting with any other transaction.Once processed, payments are final and irrevocable.
NEFT
The national electronic fund transfer (NEFT) system is a nation-wide system that facilitates individuals, firms and corporates to electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country
IFSC
IFSC or Indian financial system code is required to perform a transaction using NEFT or RTGS.
IFSC code identifies a specific branch of a bank. IFSC code can be found out on RBI website.
These codes are also known from your bank branch, and it is best to confirm the IFSC code, before going for any transaction.
MICR
Magnetic ink character recognition,(MICR) is a character recognition technology used primarily by the banking industry to facilitate the processing and clearance of cheques and other document.
The MICR encoding, called the MICR line, is located at the bottom of a cheque or other voucher and typically includes the document type indicator, bank code, bank account number, cheque number and the amount, plus some control indicator.
The technology allows MICR readers to scan and read the information directly into a data collection device. Unlike barcodes or similar technologies, MICR characters can be easily read by humans.
CTS
Cheque Truncation System eliminates the physical movement of cheques and provides a more secure and efficient method for clearing cheques.
Cheque Truncation effectively eliminates the associated cost of movement of the physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing.
KYC
KYC is an acronym for "Know your Customer", a term
used for customer identification process.
It involves making reasonable
efforts to determine true identity and beneficial ownership of
accounts,source of funds,the nature of customer’s business,reasonableness of operations in the account in relation to the
customer’s business,etc which in turn helps the banks to manage their
risks prudently.
The objective of the KYC guidelines is to prevent
banks being used, intentionally or unintentionally by criminal elements
for money laundering.
KYC has two components - Identity and Address.
While identity remains the same, the address may change and hence the
banks are required to periodically update their records.
FDI
FDI means "Foreign Direct Investment".It is generly a long term investment a foreign company makes in India in the primary market.
It also involves the purchase of the “physical assets or a significant amount of ownership (stock) of a company by a foreign firm in order to gain a measure of management control” Adequate FDI flow ensures healthy growth of the economy.
FII
FII means "Foreign Institutional Investor".They are investors, mostly in the form of institutions established outside India, who invest in Indian stock market.
FII's generally buy in large volumes which has an impact on the stock markets.
They invest and withdraw money at their will.So their investment is always considers short term investment. Institutional Investors includes pension funds, mutual funds, Insurance Companies, Banks, etc.
FDI
FDI means "Foreign Direct Investment".It is generly a long term investment a foreign company makes in India in the primary market.
It also involves the purchase of the “physical assets or a significant amount of ownership (stock) of a company by a foreign firm in order to gain a measure of management control” Adequate FDI flow ensures healthy growth of the economy.
FII
FII means "Foreign Institutional Investor".They are investors, mostly in the form of institutions established outside India, who invest in Indian stock market.
FII's generally buy in large volumes which has an impact on the stock markets.
They invest and withdraw money at their will.So their investment is always considers short term investment. Institutional Investors includes pension funds, mutual funds, Insurance Companies, Banks, etc.
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