Cards (Debit,Credit)

1. Banking C.I.A - 3
III-B com-B
Ashwin Sir
Manas,Daniel,Ajay,Prateek,Karthik,Shashank,Manikantan,Nitesh,Suhas,Sobhi.

2. Commercial Papers
• It's a money market instrument.
• It is unsecured and issued in the form of promissory note.
• Introduced in India in 1990.
• Issued by reputed companies.

3. Features of Commercial Papers
• Issued by banks , public utilities, insurance and
finance companies.
• Net worth of issuing company is rs. 4 crore.
• Must be in denomination must be in multiples of 5
lakh.
• Maturity period is 15 days to 1 year.

4. Credit Cards
THESE CARDS ARE ALSO KNOWN AS PLASTIC MONEY ISSUED
BY BANK TO AN INDIVIDUAL TO BORROW MONEY OR BUY
PRODUCT OR SERVICE ON CREDIT . THE HOLDER OF THE
CARD CAN REPEATEDLY USE THIS CARD UPTO CERTAIN
LIMIT.

5. Credit Cards Advantages
• CONVENIENCE
• RECORD KEEPING
• INTEREST FREE PERIOD

6. Credit Cards Disadvantages
• OVERUSE
• HIGH COST FEES
• TEASER INTEREST RATE

7. Debit Cards
• Also known as Bank Card or Check Card.
• A debit card is a plastic card that provides an alternative
payment method to cash when making purchases.
• It can be called an electronic cheque, as the funds are
withdrawn directly from either the bank account, or
from the remaining balance on the card.

8. Advantages of Debit Cards
• A consumer who is not credit worthy and may find it difficult or
impossible to obtain a credit card can more easily obtain a debit card.
• Use of a debit card is limited to the existing funds in the account to
which it is linked.
• A debit card may be used to obtain cash from an ATM or a PIN-based
transaction at no extra charge, other than a foreign ATM fee.

9. Disadvantages of Debit Cards
• Many banks are now charging non-sufficient funds fees based upon
pre-authorizations.
• Many merchants mistakenly believe that amounts owed can be
"taken" from a customer's account after a debit card (or number) has
been presented, without agreement as to date, payee name,
amount and currency, thus causing penalty fees for overdrafts.

10. Statement of Account
• At the end of each financial year (March) we are required by law
to produce a Statement of Accounts.
• This is essentially a technical publication which provides a true
and fair view of our financial position, and our income and
expenditure for the year.
• It includes all the financial statements and disclosure notes
required by law and these are reviewed by our external auditors.
• The key statements included are: - Movement in Reserves
Comprehensive Income and Expenditure Account Balance Sheet
Cash Flow Statement Key notes to the Core Financial Statements.

11. Statement of Accounts Specimen

12. Traveller's Cheque
• A traveller's cheque is a medium of exchange that can be used in
place of hard currency.
• Traveller's cheques are often used by individuals traveling on
vacation to foreign countries.
• Traveller's cheques can be denominated in one of a number of
major world currencies and are pre-printed, fixed-amount cheque
designed to allow the person signing it to make an unconditional
payment to someone else as a result of having paid the issuer for
that privilege.

13. Specimen Travellers Cheque

14. Thank You !
Copyright *Manas