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Banking
 

Banking

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If you are preparing for banking exams this will make things easier for you

If you are preparing for banking exams this will make things easier for you

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    Banking Banking Presentation Transcript

    • Banking and Financial awareness By R.N.D.Prasad (Asst Manager(po), SBI)
    • What is a Bank • Bank is a financial institution or financial intermediary that collects deposits and channels those deposits into lending activities • RBI is the central bank in India that regularizes all the banks in India • There are 19 public sector banks along with SBI and 5 associate banks of SBI
    • Banking Tools • Savings Deposit • Current Deposit • Fixed Deposit • Term Deposit • Letter of Credit • Line of Credit • Customs Guarantee • Bank Guarantee
    • • Demat account
    • Savings Deposit • Most common deposit that most of us see in our daily lives • Carries an insignificant interest that is decided by bank itself • Restricted number of withdrawals and restricted amount
    • Current Deposits • Mostly used by organizations or individuals who requires unlimited number of withdrawals or amount • Carries no interest • Unrestricted withdrawals and amount • Offers the feature overdue
    • Fixed deposits • Deposits cannot be withdrawn in the stipulated period • Carries higher interest rates • It can also be called term deposit or time deposit • You may get a loan on these certificates
    • Recurring Deposits • Investing tool for people who have constant and reliable income • Amount can be paid in installments • Carries interest rate greater than Savings deposit but lesser than FD • Post office deposits are general example for these deposits
    • Letter of Credit • It is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services provided certain documents have been presented to the bank • These are primarily used in international trade
    • Line of Credit • It is any credit source extended to a government, business or individual by a bank or other financial institution. • A line of credit may take several forms, such as overdraft protection, demand loan, special purpose, export packing credit, term loan, discounting, purchase of commercial bills, traditional revolving credit card account, etc.
    • Customs Guarantee • It is a function of the bank offered for importers • Banks assess customer’s financial stability and capability to offer this feature • An importer can get a customs guarantee from his bank and he can pay customs tax after he cashes the imported material • Banks may charge certain amount for this feature
    • Bank Guarantee • It is offered to prove the customer’s trustworthy or financial capability to a third party • If the person failed to achieve underlying contract the third party can invoke the B.G • Banks charge certain amount for this feature