Indian banking industry has been divided into parts, organised and unorganised sectors. The organised sector consists of Reserve Bank of India, Commercial Banks and Co-operative Banks and Specialised Financial Institutions (ICICI, IFC etc).
This is a financial institution providing services for businesses, organisations and individuals. Services include offering current, deposit and saving accounts as well as giving out loans to businesses. A Commercial bank is defined as a bank whose main business is deposit-taking and making loans. This contrasts with an investment bank whose main business is securities underwriting, mergers and acquisitions advisory, asset management and securities trading. Commercial bank may be Scheduled Commercial Bank and Non-Scheduled Commercial Bank.
Scheduled Commercial Banks:
Scheduled Bank is defined -by Section 5(1) (m) of the Banking Companies Act, 1949 as “a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934”. Scheduled banks are those banks whose minimum paid up capital and reserve and amount to Rs.25 lakh. These banks have to submit details of their activities to the Reserve Bank of India every week.
Non-Scheduled Commercial Banks:
Non-scheduled banks are depository or lending institutions that do not meet the Second Schedule of Reserve Bank of India Act. These banks may be legal entities, but they do not have procedural endorsement of the government. Non-scheduled banks are not just identified as banks that do not meet the criteria in the Second Schedule of the 1934 Act; they are defined in Section 5, Clause C of the Banking Regulation Act of 1949.
Functions of Commercial Banks:
The main functions of commercial banks are as follows –
- Received Deposits: The most important activity of a Commercial Bank is to mobilise deposits from the public. People who have surplus income and savings find it convenient to deposit the amounts with banks. Depending upon the nature of deposits, funds deposited with bank also earn interest. Thus, deposits with the bank grow along with the interest earned. If the rate of interest is higher, public are motivated to deposit more funds with the bank. There is also safety of funds deposited with the bank. Some important account, under which deposits are received, are –
- Current Account: It is a calculation of a countrys foreign transactions and along with the capital account is a component of a countrys balance of payment. The current account also includes net income, such as interest and dividends, as well as transfers, such as foreign aid, though these components tend to make up a smaller percentage of the current account than exports and imports.
- Saving Account: It is generally opened in bank by salaried persons or by the persons who have a fixed regular income. This facility is also given to students, senior citizens, pensioners and so on.
Saving accounts are opened to encourage the people to save money and collect their savings. The saving account holder is allowed to withdraw money from the account as and when required. The interest which is given on saving accounts is sometime attractive, but often nominal.
Difference between Saving Account and Current Account –
|Basis of Difference||Savings Account||Current Account|
|Purpose||To encourage saving||Many transaction|
|Ideal for||Salarised person||Business person|
|Minimum Amount||Less amount||Heigher amount (depending on the bank)|
|lnterest Rates||4%-6%||Normally, no interest is paid|
Fixed Account: A deposit of money that pays higher interest than a savings account, but imposes conditions on the amount, frequency, and/or period of withdrawals. Also called time deposit. All these accounts are secure and carry a government guarantee.
- Cash Credit Account: It will be opened as per terms and conditions of sanction of such credit limits. The rules prescribed for the current accounts will also apply to Cash Credit accounts, in addition to the sanctioned terms and conditions.
- Recurring Deposit Account: In banking terminology, the term recurring deposit refers to the periodic placement of a fixed sum of funds with a bank or financial institution into a special term account, with a specified tenure, generally between 1 and 5 years. At the end of the tenure, the funds are typically withdrawn by the depositor with accrued interest.
- To Lend Money: The second important function of a Commercial Bank is to grant loans and advances. Such loans and advances are given to members of the public and to the business community at a higher rate of interest than allowed by banks on various deposit accounts.
The rate of interest charged on loans and advances varies depending upon the purpose, period and the mode of repayment. The difference between the rate of interest allowed on deposits and the rate charged on the loans is the main source of a banks income.
Type of loan of commercial bank are given below –
• Debt and loan
• Retrenchment of exchange bills
• Cash credit
• Investment in public securities
Agency Functions: Agency functions include the following –
• Collection of cheques, dividends and interests
• Payment of rent, insurance premiums
• Dealing in foreign exchange
• Purchase and sale of securities
• Act as trustee, executor, attorney etc
• Act as correspondent
• Preparations of Income-Tax returns
Miscellaneous Functions: These are as follows –
• Issuing letters of credit, travellers’ cheques, circular notes etc.
• Undertaking safe custody of valuables, important documents and securities by providing safe deposit vaults or lockers
• Providing customers with facilities of foreign exchange.
• Transferring money from one .place to another and from one branch to another branch of the bank.
• Standing guarantee on behalf of its customers, for making payments for purchase of goods, machinery, vehicles etc.
• Collecting and supplying business information
• Issuing demand drafts and pay orders
• Providing reports on the credit worthiness of customers.
Non-Performing Asset (NPA):
A classification used by financial institutions that refers to loans that are in jeopardy of default. Once the borrower has failed to make interest or principal payments for 90 days the loan is considered to be a non-performing asset. It is also known as non-performing loan. Non-performing assets are problematic for financial institutions since, they depend on interest payments for income. Troublesome pressure from the economy can lead to a sharp increase in non-performing loans and often results in massive write-downs.
Value Added Services: Value added services provided by Commercial Bank are as follows –
• Safe deposit locker facility
• Traveller’s cheques
• Premium of insurance
• E-banking facilities
• Anywhere banking
• ATM facilities
• Credit card facilities
• ATM debit card facilities
Innovative Banking Factoring :
Following are the details of these activities –
Know Your Customer (KYC) Norms-
• The Reserve Bank of India advised banks to make the Know Your Customer (KYC) procedures mandatory while opening and operating the accounts. At the time of opening an account, bank has to ensure that the prospective customer is the person who he/she claims to be. This is to prevent fraudsters using the name, address and forged signature of others for doing fraudulent transactions, benami transactions, encashment of stolen cheques, drafts, dividend, warrants etc.
• Banking operations are susceptible to the risks of money laundering and terrorist financing. In order to arrest money laundering, where banks are mostly used in the process, it is imperative that they know their customers well.
• RBI has issued the KYC guidelines under Section 35 (A) of the Banking Regulation Act, 1949 and contravention of the same will attract penalties under the relevant provisions of the Act. Thus, banks have to be fully compliant with the provisions of the KYC procedures.
Relaxed KVC Procedure–
• The relaxation in KYC procedures is applicable for low income group customers. Individuals falling under the No Frill Accounts come under this produce.
• Low income group customers are those who keep balances not exceeding Rs 50000 in all their accounts (FDR/CNSB) taken together and total credit summation in all the accounts taken together is not exceed ` 1 lakh in a year.
Mutual Bank –
It is a financial institution chartered by a central or regional government, without capital stock, that is owned by its members who subscribe to a common fund. From this fund claims, loans etc are paid. Profits after deductions are shared between the members. The institution is intended to provide a safe place for individual members to save and to invest those savings in mortgages, loans, stocks, bonds and other securities and to share in any profits or losses that result. The members own the business.
It is a financial transaction in which a business sells its accounts receivable i.e., invoices) to a third party (called a factor) at a discount. Factoring is a process of fulfilling the credit requirement by lending of material or asset to another person. This process is very popular in manufacturing industries.
Venture Capital (VC):
It is financial capital provided to early-stage, high-potential, high risk, growth start-up companies. The venture capital fund earns money by owning equity in the companies it invests in, which usually has a novel technology or business model in high technology industries, such as biotechnology, IT and software.
It is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services. The two main mechanisms for the delivery of financial services to such clients are as follows –
1. Relationship-based banking for individual entrepreneurs and small businesses.
2. Group-based models, where several entrepreneurs come together to apply for loans and other services as a group.
It is a highly secure and convenient system for online, real-time inter branch transactions across the bank. Anywhere banking offers you greater flexibility, transaction power, convenience and ease in banking.
Leasing is an accepted and well-established form of equipment financing enabling many businesses to access equipment and technology, which may not have been available through more traditional forms of finance.
It is a banking system, which is based on the principles of Islamic law (also known as Shariah) and guided by Islamic economics. Two basic principles behind Islamic banking are the sharing of profit and loss and significantly, the prohibition of the collection and payment of interest. Collecting interest is not permitted under Islamic law.
The Islamic banking system uses methods of profit/loss sharing to facilitate financial transactions; for some types of loans, the borrower only needs to pay back the amount owed to the lender, but the borrower can choose to pay the lender a small amount of money to serve as a gratuity.
Since this system of banking is grounded in Islamic principles, all the undertakings of the banks follow Islamic morals. Therefore, it could be said that financial transactions within Islamic banking are a culturally distinct form of ethical in vesting e.g., investments involving alcohol, gambling, pork etc are prohibited). The Dubai Islamic Bank has the distinction of being the worlds first full-fledged Islamic bank formed in 1975.
Electronic banking, also known as Electronic Funds Transfer (EFT), is simply the use of electronic means to transfer funds directly from one account to another, rather than by check or cash.
Direct Deposit and Withdrawal Services: It allow consumers to authorize specific deposits, such as paychecks or social security checks, to their accounts on a regular basis.
Payment by Phone Systems – Let consumers phones their financial institutions with instructions to pay certain bills or to transfer funds between accounts.
Point-of-Sale Transfer Terminals – It allows consumers to pay for retail purchase with a check card, a new name for debit card. This card looks like a credit card, but with a significant difference the money for the purchase is transferred immediately from your account to the stores account.
Personal Computer Banking Services – It offer consumers the convenience of conducting many banking transactions electronically using a personal computer.
Internet Banking – It such system allows setting various access levels for specific user groups and controlling the authorization levels and transaction limits, as assigned to various employees of your company.
Home Banking – The practice of conducting banking transactions from home rather than at branch locations. Home banking generally refers to either banking over the telephone or on the internet.
Smart Cards – It sometimes called stored-value cards, have a specific amount of credit embedded electronically in the card.
Direct Deposit System – It also known as direct credit, is a banking term that describes a deposit of money straight from the source into a bank account, by electronic funds transfer or other means where the payment is initiated by the payer not the payee. The money is transferred directly to the recipient bank through a payment system.
Mobile Banking – It is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant.
The Indian Financial Network [INFINET] – It is the communication backbone for the Indian banking and Financial Sector. All banks in the public sector, private sector, co-operative etc. and the premier financial institutions in the country are eligible to become members of the INFINET.
Trends in Banking: These are as follows –
E-Banking/Online Banking/internet Banking: E-banking refers to electronic banking. It is like e-business in banking industry. E-banking is also called as Virtual Banking or Online Banking E-banking is result of the growing expectations of banks customers E-banking, involves information technology based banking.
Popular Services Covered Under E-Banking are
• Automated Teller Machine
• Credit Card
• Debit Card
• Smart Card
• Electronic Funds Transfer (EFT) System
• Cheque Truncation System
• Mobile Banking
• Internet Banking
• Telephone Banking
Virtual Banking: It is a bank with a very small or non-existent branch network. It offers its financial services by –
(i) Telephone banking;
(ii) Online banking;
(iii) Automated Teller machines;
(iv) Mail banking;
(v) Mobile banking;
By eliminating the costs associated with retail banking particularly bank branches, virtual banks may offer higher interest rates and lower service charges on their saving accounts than their competitors.
Automated Teller Machine (ATM): It is designed to perform the most important function of bank. It is operated by plastic card with its special features. The plastic card has replaced cheque, personal attendance of the customer, banking hours restrictions and paper based verification. These are debit cards. ATMs are used as spring board for Electronic Fund Transfer.
ATM itself can provide information about customers account and also receive instructions from customers ATM cardholders. An ATM is an Electronic Fund Transfer terminal capable of handling cash deposits, transfer between accounts, balance enquiries cash withdrawals and pay bills.
White Label ATM: Non-banking entities have entered the business of owning ATMs where customers of different banks can withdraw or deposit cash from their respective bank accounts. This model of ATM network where banks are not the owners is known as White Label ATMs. This reduces the cost of banks substantially as they do not incur any capital cost and hence, this model is becoming popular.
Credit Card/Debit Card: The credit cardholder is empowered to spend wherever and whenever he wants with his Credit Card within the limits fixed by his bank. Credit Card is a Post Paid Card. Debit Card, on the other hand, may be considered as a prepaid card with usage facility limited to the balance in the linked deposit, account of the card holder. An individual has to open an account with the issuing bank, which gives Debit Card with a Personal Identification Number (PIN).
Smart Card: Banks are adding chips to their current magnetic stripe cards in order to enhance security and offer new services that are called Smart Cards. Smart Cards allow/thousands of times of information storable on magnetic stripe cards.
Plastic Money: With the increasing use of credit, debit cards for withdrawal of cash from ATMs. The use of the term plastic money is common. These cards being of plastic facilitating availability of cash or money to the card holder have come to be referred commonly as plastic money.
Other New Trends in Banking: These are as follows –
Mobile Banking Transactions: Some banks have started offering mobile banking and tele-banking to customers. The operative guidelines for banks on Mobile Banking Transactions in India were issued on 8th October, 2008. Only banks who have received one-time approval from the RBI are permitted to provide this facility to customers.
Point of Sale (POS) Terminals: To use Smart Cards/Debit Cards/Credit Cards for the purchase of an item or for payment of a service at a merchants store, the card has to be swiped in a terminal known as Point of Sale or POS terminal kept at the merchants store.
A Point of Sale (POS) Terminal is an integrated PC based device, with a monitor (CRT), POS keyboard, POS printer. Customer Display, Magnetic Swipe Reader and an electronic cash drawer all rolled into one. More generally, the POS terminal refers to the hardware and software used for checkouts.
Outsourcing of Non-Core Activities: Outsourcing can enable banks to stay ahead of competition. The key driving force behind outsourcing activities by any firm, irrespective of the nature of its business, is cost saving. Initially, Foreign Banks were involved in outsourcing their activities in order to leverage Indias significant cost advantages.
Outsourcing Activities of Indian Banks: During the recent years, Indian banks also have started outsourcing their non-core activities. The two main reasons for Indian banks outsourcing non-core activities are similar to the Overseas Banks, i.e., cost consideration and lack of expertise in certain areas.
Banking Ombudsman Scheme: The Banking Ombudsman Scheme, 1995 was notified by RBI on 14th June, 1995, in terms of powers conferred on the Bank by Section 35A of the Banking Regulation Act, 1949 (10 of 1949) to provide for a system of redressal of grievances against banks.
Board of Financial Supervision: It was constituted in November 1994, as a committee of the Central Board of Directors of the Reserve Bank of India with an objective to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies.
Central Board of Banking Fraudulence: It was established by Finance Minister in year 1997. It was established to inquiry about the CBI cases pertaining to the officers of rank of chief managers.
Money and Money Market
It is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given socio-economic context of country. Any kind of object or secure variable record that fulfills these functions can be considered as money.
Any future monetary claim against an individual that can be used to buy goods and services is called Credit Money.
It is a type of payment that can lawfully be used to meet financial obligations. Money, as legal tender, is a commodity or asset or an officially issued currency or coin that can be legally exchanged for something of equal value such as a good or service, or that can be used in payment of a debt.
It is not exact money, but near to money. Because its nature of liquidity is more in comparison to others like bond, government debenture etc.
Different Types of Money:
Now, we will discuss the different types of money. Broadly speaking, there exist three main types (forms) of money in a modern economy: metallic money, paper money and credit money. Economists, however, further classify money into many other forms.
The important types of money are explained below-
1. Metallic Money:
Money made-up of any metal is called metallic money. It refers to coins that are made-up of various metals like gold, silver, nickel, copper etc. The right of minting coins is the monopoly of the state.
Metallic money is further classified into –
• Standard Money – Standard money or full bodied money is that money whose face value (value as money) is equal to the intrinsic value (value as commodity). Standard money/coins are generally made up of gold and silver.
• Token Money – Token money is that money whose face value (value as money) is greater than its intrinsic value (value as commodity). Token money/coins are generally made up of cheaper metals like copper, nickel etc (Indian 1 coin is token money).
2. Paper Money:
Money made-up of paper is called paper money. Paper money consists of currency notes issued by the government or the Central Bank of a country.
Paper money is of following types-
• Representative Paper Money – The paper money which is fully backed by gold and silver reserves is called representative paper money.
• Convertible PaperMoney – It is that paper money which is convertible into standard coins.
• Inconvertible PaperMoney – It is that paper money which is not convertible into standard coins or valuable metals.
• Fiat Money – Paper money which circulates on the authority i.e., fiat) of the government is fiat money. Fiat money is created and issued by the state. It is only a variety of inconvertible paper money
3. Acceptable Money:
On the basis of general acceptability, money can be categorised into legal tender money and non-legal tender money (optional money).
(a) Legal Tender Money – It refers to that money which the state and the people accept as the means of payment in discharge of debts. Legal tender money is enforced by law. No one can refuse to accept it as a means of payment.
Legal tender money may be of two types –
(i) Limited legal tender
(ii) Unlimited legal tender
Limited Legal Tender Money – It is accepted only upto a certain limit. e.g., in India, the small coins of 50 paise is legal tender money only upto a sum of Rs.10.
Unlimited Legal Tender Money – It is that money which has to be accepted as a medium of payment upto any amount. In India, 50 paise coins, Rs.1 coins and currency notes of all denominations are unlimited legal tender money.
(b) Non-Legal Tender Money – It is also known as optional money. It refers to that money which may or may not be accepted as a means of payment. Optional money has no legal sanction. No one can be forced to accept optional money. Different credit instruments like cheques, bankdrafts, bill of exchange, treasury bills, insurance policies, bonds etc are examples of optional money.
Functions of Money:
The functions of money can be divided into three main categories-
1. Primary Functions:
Two primary functions of money are as follows –
Medium of Exchange – Money serves as a medium of exchange. It is used to make payments for goods and services. Different goods can be sold in terms of money and this money can be used to purchase other goods. So, it acts as a medium of exchange between the buyers and the sellers.
Measure of Value – Money is used to measure the value. As we can measure weight in kg and distance in km. It acts as a standard of value. Goods and services are priced and valued in terms of money.
2. Secondary Functions:
• Monetary and Fiscal Management
• Income and Consumption
• Deferred Payments/Future Payments
• Parameter of Market Structure
3. Contingent Functions:
• Distribution of National Income
• Basis of Credit System
• Liquidity of wealth
• Relative comparison of National Income
Continuing financial relationship between a bank and a customer, in which deposits and debts are held and processed within a framework of established rules and procedures.
Automatic Transaction Machine
(Automatic Transaction Machine or Automatic Teller Machine) enables the customers of a bank to perform financial transactions (cash withdrawal / deposit) without going to the bank.
A bank is a financial institution, which acts as an intermediary in transactions, and offer services like safekeeping and lending of money.
It is a retail location where a bank offers a wide range of face-to-face and automated services to its customers. A bank has its branches at various locations across the city or state so that customer can go there and avail its services.
Includes Term Loans, Cash Credit, Over-drafts, Bills purchased & discounted, Bank Guarantees, Letters of Guarantee, Letters of credit.
The sum of the value of all cheques and other instruments charged against the deposited funds of a bank/Es customer.
An instrument issued by one branch of a bank on another branch of the bank containing an order to pay a certain sum on demand to the person named on the draft. It is used to transfer funds and to settle outstanding balances between banks, or to provide a customer with funds payable at a bank in a different location. Bank drafts are valid for certain period, generally, for 6 months, as indicated over face of draft.
Bank Mitra are those individuals, who act as an agent of bank at those places where it is not possible to open a branch of bank. They provide all kind of assistance required in opening an account.
Bank on Mobile
Bank on Mobile means you can access bank from anywhere, anytime from your mobile and it has become simple to see your account, transfer funds, pay bills. It provides a convenient way to get connected with the bank.
A cheque issued by a branch of a bank against consideration received. Bankers cheque are valid for a certain period as indicated on the face of the cheque.
A coding structure in which characters are represented by means of a series of parallel bars.
A cheque, which a bank returns unpaid because there is not enough available balance in the account or for other reasons.
A cheque that has been not paid and cancelled by the drawer û Account holder.
Cardholder is a person who owns a debit or credit card issued by a credit card company, financial institution or bank.
A bank, financial institution, credit union, or agency that issues a credit card to public or its members is called a card issuer.
The exchange of cash for electronic value (e-money).
The exchange of electronic value (e-money) for cash.
A cash deposit is money placed in a financial institution for protective custody.
Cheque is an important negotiable instrument, which can be transferred by mere hand delivery.
Cheque for Collection
An instrument drawn on another Bank or Branch tendered by a customer of a Bank or by his representative, at the branch or in the drop box provided for the purpose for collecting the amount of the cheque.
Chit implies a transaction under which a person goes into an agreement with a predefined number of persons.
A plastic card issued by a Bank for cash withdrawal from a/c(s) through ATMs and payments at point of sale for purchases made. Debit Card denotes immediate debit to the customers account.
A demand draft is a negotiable instrument similar to a bill of exchange.
Funds placed into an account at a depository institution to increase the credit balance of the account.
Digital Financial Services
Digital financial services (DFS) can expand the delivery of basic financial services to the poor through new technologies like mobile phones, electronic money and new channels such as retail agents.
The return of part of the policys premium for a policy issued on a participating basis by either a mutual or stock insurer. A portion of the surplus paid to the stockholders of a corporation.
A written, signed and dated order from one Branch of a Bank to another, to pay a sum of money to, a specific party.
The party who draws or issues the draft / bill. In a Letter of Credit it is the Beneficiary. The person who makes or draws a bill of exchange or cheque is called drawer.
Electronic Clearing Service (ECS)
Electronic Clearing Facility: An inter bank arrangement where by a customer can give instructions to his bank where he holds a current or savings account to pay the monthly installments of payments due on loans / credit cards held with another bank.
Electronic funds transfer (EFT)
Any transfer of funds initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer AEs bank or e-money account.
Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock broker-ages, investment funds and some government-sponsored enterprises.
A deposit of funds in a bank under an agreement stipulating that the funds must be kept on deposit for a stated period of time at a predefined interest rate.
It is the official currency of the Republic of India, issued by Reserve Bank of India (RBI) and guaranteed by the Central government.
An agreement in which a person makes regular payments to a company and the company promises to pay money up to the insured amount if the person is injured or dies, or to pay money equal to the value of something (such as a house or car) if it is damaged, lost, or stolen.
Internet banking is an electronic system which enables the customers to conduct transactions on banks Website and perform activities, such as maintaining his account, transferring money, paying bills etc.
A booth or display area where an on-screen computer presentation may be set up for use by those visiting the area. An example of a kiosk would be an information counter in a shopping small or booth at a trade show.
An insurance policy that allows an individuals relatives to receive a preset sum of money upon the end of the insured persons life.
A loan is a debt provided by an entity (organization or individual) to another entity at an interest rate, and evidenced by a promissory note, which specifies, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment.
Service provided by a bank, due to which customers can conduct transactions remotely by using a mobile device. By using this, you can access your account on your mobile.
Mobile Financial Services (MFS)
The use of a mobile phone to access financial services and execute financial transactions. This includes both transactional and non-transactional services, such as viewing financial information on a user AEs mobile phone.
It is a payment service, which are operated under financial regulation and performed via a mobile device.
A payments transaction that moves money from one person or business to another. Money transfers allow individuals or businesses to make payments from one account to another (in order to pay a bill, pay taxes, or purchase a good or service). Money transfers also allow government to distribute money to households (in the form of tax rebates or welfare vouchers). Money transfers facilitate payments, which are one of the four basic financial services in the full suite of financial services.
National Electronic Funds Transfer (NEFF)
National Electronic Funds Transfer is the most prominent inter-bank electronic funds transfer systems of India, which provides a facility to bank customers to transfer the funds easily and securely on a one-to-one basis, which saves the time and is done via electronic messages. It is a ‘‘net’’ transfer facility, executed in hourly batches.
A service that allows the account holder to access their account information and conduct a set of pre defined banking transactions, such as bill payment, fund transfer using the Internet facility. However, a customer needs to have Customer ID and a unique Net Banking Password in order to undertake this facility.
Book issued by a bank or financial institutions to record deposits, withdrawals, and interest earned in a savings account.
A plan for setting aside money to be spent after retirement.
Pradhan Mantri Jan-Dhan Yojana
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking / Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
RuPay Debit Card
Rupay Debit Card is an indigenous domestic debit card introduced by National Payment Corporation of India (NPCI). This card is accepted at all ATMs (for cash withdrawal) and at most of the PoS machines (for making cashless payment for purchases) in the country.
Saving accounts is meant for saving purposes. The benefit of having savings account is Banks pay interest on the money in the account.
When you ask a bank not to pay a cheque or payment you have written or authorized. Stop payments are generally placed on lost or stolen cheques or on cheques related to disputed purchases. Banks usually levy charges for registering stop payment instructions.
Action in a bank account. Could be a deposit, withdrawal, debit card payment, service charge or interest payment.
A file in which the current data are stored for subsequent processing usually in combination with a master file.