Here you van get the most popular banking terms…
Repo Rate
Repo rate is a rate at which commercial bank take borrow from central bank (i.e Reserve bank of India) in the shortage of money.
Repo rate can be used as a inflation control and it is higher than reverse repo rate.
It is also called as Repurchase agreement in which government securities is repurchase in future.
Reverse Repo Rate
Reverse repo rate is opposite process of Repo Rate. In reverse repo rate, central bank (RBI) takes borrow from commercial bank. This rate is lower than repo rate.
When a commercial bank got excess amount of funds, they lends their profit to RBI. It is used to manage the cash flow.
Mortgage
Mortgage is the legal agreement between the debtor’s and the lenders ( bank, building society etc.) for taking owner’s property title or right. Debtor (or original owner) can take their property back after the payment of debt. It can also be used as a security for taking loan from bank or other services.
Demat Account
Demat Account is the acronym for Dematrialized account. Demat Account provides the facilities of holding the shares and securities in the form of digital format or electronically. It provides the security to your investment. If you want to trade or invest in share market ot other securities, demat account is needed.
Money Laundering
Money Laundering is the process of hiding the original source of money illegally and actually show off that the money is coming in a legitimate manner . The banking or commercial transaction passes through a complex sequences which is indirect or obscure.
In the process of money laundering, the original money is generated from criminal activities like smuggling , terrorist funding, drugs trafficking, tax evasion, bribe etc.
Non-Performing Assets
Non-Performing Assets is the loan or advances or credit system over the tenure of 90 days contract. Non-Performing Assets are classified as:
- Substandard Assets: NPA’s due for a period of less than or equal to 12 months.
- Doubtful Assets: For a period of 12 months existing in a substandard Assets
- Loss Assets: This is not collectible
Bitcoin
Bitcoin is a decentralized system of digital currency (Cryptocurrency) which is directly sent from user-to-user on peer to peer network. Bitcoin does not need any centralized system or intermediaries. It is a fast, instant, private and free from bank fees. It is a world’s first cryptocurrency which securely exchanged over the internet. It can be exchanged with other services, currency or products.
Bitcoin is invented in 2008 and its transaction is verified using cryptographic system over the network nodes.
Retail Banking
The services provide by bank to individual customer or general public, is known as Retail banking. It is also called as Consumer banking. This type of services only focus on general public (excludes companies, corporation bank etc.).
The services are :
- Debit card
- Credit card
- ATM services
- Accounts
- Mortgages
- Home Equity Loans
- Certificate of Deposits
- Term Deposits etc.
We should be aware of banking terms to get facilitate about banking.
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