Banking Terms
Banking Terms
Banking Terms
RuPay is the Indian domestic card payment network set up by National Payments Corporation of India (NPCI)
at the behest of banks in India. The RuPay project had been conceived by Indian Banks Association (IBA) and
had the approval of Reserve Bank of India (RBI).
RuPay LogoNational Payments Corporation of India (NPCI) has a plan to provide a full range of card payment
services including the RuPay ATM, RuPay MicroATM, Debit, Prepaid and Credit Cards which will be accepted
in India and abroad, across various channels like POS, Internet, IVR and mobile etc.
The initial focus of NPCI would be to approach those banks who have not been issuing any payment card at
all more specifically Regional Rural Banks (RRBs) and urban co-operative banks.
All Public Sector Undertakings (PSU) banks set to join RuPay system by the end of year 2012. RuPay-based
debit cards can be used by the consumers on the Internet from September, 2012.
The government of India had launched Indias first domestic payment card network, RuPay, to compete with
Visa Inc and Mastercard Inc.
Job description
The bank clerk is the employee of a bank who is in charge of dealing with the clients' money. He receives and pays them, as he
is making thousands of transactions every day. He is that smiling face that you can see standing behind a desk, which you are
paying your bills, your debts and the one who is giving you any type of information regarding the bank's services.
Each bank clerk is responsible of one area of the bank, making sure that the activity runs smoothly inside it. Thus, new account
clerks are responsible for opening new accounts for clients who need them, both companies and individuals. The interest clerks
are busy with monitoring interests, which correspond to different savings accounts or to the different loan offers and clarify any
doubt or question that the client may be having regarding these interests, which usually are a neuralgic point.
Exchange clerks have to operate with currency, and they usually help clients turn one currency into another, having a
predetermined exchange rate as a landmark. Bookkeeping clerks take care of the records, which contain important data about
the bank's clients, and about the operations, they have made with their accounts. Then, there are clerks who take care of the
machinery, which is vital to some bank operations. We see the diversity of clerks that we can find in a bank, and how every one
of them has their specific working area.
Handle customers and their financial transactions through bank clerical functions.
Serve as primary point of contact to bank customers.
Answer and respond to bank customers' inquiries on financial transactions.
Process and accept deposits and loan payments from bank customers.
Make payments to bank customers after checking and validating customers' signatures on checks.
Check the availability of funds before making payments to customers.
Prepare and record all deposits and payments into the bank's computer systems.
Educate customers on bank products and services.
Assist administrative department in their tasks.
Perform physical verification of cash at the end of the day and reconcile with banking records.
Banking is one of the fastest growing sectors in India with more stable and high
growth and more over providing wide range of career opportunities for graduates.
So I want to take an opportunity to join in a bank.
2. What is the difference between Cheque and Demand Draft?
Cheque: Cheuqe is a negotiable instrument instructing a bank to pay a specific amount from a specific
account held in the maker/depositor name with that Bank.
Demand Draft: A demand draft is an instrument used for effecting transfer of money. It is a negotiable
instrument.
3. What is a Non-Banking Financial Company (NBFC)?
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged
in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by
Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance
business, chit business but does not include any institution whose principal business is that of agriculture
activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and
sale/purchase/construction of immovable property. A non-banking institution which is a company and has
principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments
by way of contributions or in any other manner, is also a non-banking financial company (Residuary nonbanking company).
4. NBFCs are doing functions similar to banks. What is difference between banks & NBFCs ?
NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a
few differences as given below:
NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on
itself;
deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to
depositors of NBFCs, unlike in case of banks.
The aim of introducing 'Basic Savings Bank Deposit Account' is very much part of the efforts of RBI for
furthering Financial Inclusion objectives.
7. What is BPS (Basis Points)?
BPS (Basis point) : - BPS is an acronym for basic points is used to indicate changes in rate of interest and
other financial instrument.
1 BASIC POINT IS EQUAL TO 0.01%
So when we say that repo rate has been increased by 25 bps, it means that the rate has been increased by
0.25%
8. What is KYC?
The Reserve Bank of India (RBI) has advised banks to follow KYC guidelines, wherein certain personal
information of the account-opening prospect or the customer is obtained. The objective of doing so is to
enable the Bank to have positive identification of its customers. This is also in the interest of customers to
safeguard their hard earned money.
The KYC guidelines of RBI mandate banks to collect three proofs from their customers. They are
Photograph
Proof of identity
Proof of address
SWIFT Code is a standard format of bank Identifier code. This code is used particularly in
International transfer of money between banks.
A majority of FOREX related message are sent to correspondent banks abroad through SWIFT.
SWIFT Code consist 8 or 11 character when code is 8 digit, It is referred to primary office 4 bank
code
2 country code
2 location code
3 branch code (optional).
12. What is Swabhimaan Yojana?
Swabhimaan is a financial inclusion plan of bank to take banking to the door steps of the remote village where
banking facility are not available.
13. What is NOSTRO and VOSTRO account?
NOSTRO Account: A NOSTRO account is maintained by an Indian bank in the foreign countries.
VOSTRO Account: a vostro a/c is maintained by a foreign bank in India with their corresponding bank.
14. What is a DeMat Account?
DeMat is nothing but a dematerialized account. If one has to save money or make cheque payments, then
he/she needs to open a bank account. Similarly, one needs to open a DeMat account if he/she wants to buy
or sell stocks. Thus, DeMat account is similar to a bank account wherein the actual money is being replaced
by shares. In order to open a DeMat account, one needs to approach the Depository Participants [DPs].
In India, a DeMat account is a type of banking account that dematerializes paper-based physical stock shares.
The DeMat account is used to avoid holding of physical shares: the shares are bought as well as sold through
a stock broker. In this case, the advantage is that one does not need any physical evidence for possessing
these shares. All the things are taken care of by the DPs.
This account is very popular in India. Physically only 500 shares can be traded as per the provision given by
SEBI. From April 2006, it has become mandatory for any person holding a DeMat account to possess a
Permanent Account Number (PAN).