Table of Contents
What are the terms in banking?
Glossary of Basic Banking Terms
- Account.
- ACH (Automated Clearing House).
- APR (Annual Percentage Rate).
- APY (Annual Percentage Yield).
- ATM (Automated Teller Machine).
- Available balance.
- Cash equivalents.
- Certificate of deposit (CD).
How does the banking system work in India?
The banking system of India consists of the central bank (Reserve Bank of India – RBI), commercial banks, cooperative banks and development banks (development finance institutions). These institutions, which provide a meeting ground for the savers and the investors, form the core of India’s financial sector.
What is banking and types of banking?
Key Takeaways. A bank is a financial institution licensed to receive deposits and make loans. There are several types of banks including retail, commercial, and investment banks. In most countries, banks are regulated by the national government or central bank.
Which term is used in Bank transfer?
Electronic Funds Transfer (EFT) The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash.
Which term is used for corporate banking?
Corporate banking, also known as business banking, typically serves a diverse clientele, ranging from small- to mid-sized local businesses with a few million in revenues to large conglomerates with billions in sales and offices across the country.
What is branch banking system?
Branch banking is a system of providing banking services through different offices of a bank that acts as the head branch. The idea is to expand the bank’s business to cater to different locations and provide services to all its customers. The main branch controls the operations of the branch office.
Why is banking important?
Commercial banks play an important role in the financial system and the economy. They provide specialized financial services, which reduce the cost of obtaining information about both savings and borrowing opportunities. These financial services help to make the overall economy more efficient.
What are activities of Bank?
Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide different payment services, and a bank account is considered indispensable by most businesses and individuals.
What is corporate banking in simple terms?
Corporate banking refers to the aspect of banking that deals with corporate customers. Commercial banks make loans that enable businesses to grow and hire people, contributing to the expansion of the economy. Both types of banks offer various products and services.