Banking Term of the day
Automated Teller Machine (ATM):
============
▪️A machine, activated by a magnetically encoded card or other medium that can process a variety of banking transactions. These include accepting deposits and loan payments, providing withdrawals,...
Banking Term of the day
Bancassurance:
=================
▪Bancassurance refers to the distribution of insurance products and the insurance policies of insurance companies which may be life policies or non-life policies like home insurance - car insurance, medi-policies and...
Banking Term of the day
Anytime Banking
===================
▪️With introduction of ATMs, Tele-Banking and internet banking,
customers can conduct their business anytime of the day and night.
▪The 'Banking Hours' is not a constraint for transacting banking business.
Banking Term of the day
Annual Percentage Rate (APR)
=============
▪️ The cost of credit on a yearly basis, expressed as a
percentage.
Annual Percentage Yield (APY)
========
▪A percentage rate reflecting the total amount of interest paid on a deposit account...
Banking Term of the day
Amortisation
Amortisation is the process of spreading the repayment of a loan, or the cost of an intangible asset, over a specific timeframe. This is usually a set number of months or...
Banking term of the day
SLR, Statutory Liquidity Ratio
==============
▪SLR is the amount of money that is invested in certain specified securities predominantly central government and state government securities. Once again this percentage is of the percentage...
Banking Term of the day
‘On tap' authorisation of payment systems
RBI has issued guidelines on ‘on tap' authorisation of payment systems on 15th October 2019. The aim is to encourage innovation and competition.
Accordingly, it has been...
Banking Term of the day
Asset/Liability Committee (ALCO)
A risk management committee in a bank that evaluates the risk associated with the bank's assets and liabilities. It manages interest rate risk while ensuring adequate returns and liquidity.
Functions...
Banking Term of the day
'=> Account Agreement
==================
->An account agreement is a set of conditions that outline both your rights and responsibilities and those of the bank concerning your bank account. This agreement must be read,...
Banking term of the day
Arbitrage
==========
▪Buying a financial instrument in one market in order to sell the same instrument at a higher price in another market.
-> Adverse Action
=================
▪Under the Equal Credit Opportunity Act, a creditor's refusal...
