Archive | Banking

Difference between Bill of Exchange and Cheque | Credit Instruments | Banking

This article will help you to differentiate between bill of exchange and cheque. Difference # Bill of Exchange: 1. Drawn On: It is usually drawn on any person. 2. Acceptance: Acceptance of bill of exchange is necessary before its payment can be claimed. 3. Days of Grace: Three days of grace are allowed from the […]

Difference between Bill of Exchange and Promissory Note | Instruments | Banking

This article will help you to differentiate between bill of exchange and promissory note. Difference # Bill of Exchange: 1. Drawer: It is drawn by a creditor. 2. Parties: There are three parties: (i) Drawer, (ii) Drawee and (iii) Payee. 3. Acceptance: A bill of exchange requires acceptance of the drawee before it is presented […]

Top 7 Credit Instruments of a Bank | Banking

This article throws light upon the top seven credit instruments of a bank. The instruments are: 1. Cheque 2. Hundi 3. Bank Draft 4. Bill of Exchange 5. Promissory Note 6. Trade Bills 7. Accommodation Bills. Credit Instrument # 1. Cheque: According to Section 6 of the Negotiable Instrument Act, 1881, “A cheque is a […]

Essay on Bank: Origin, Meaning and Functions | Banking

After reading this article you will learn about:- 1. Origin and Development of Bank 2. Meaning and Definition of Bank 3. Classification 4. Functions 5. Advantages or Importance. Origin and Development of Bank: There is no unanimity of opinions about the origin of the word ‘Bank’. According to some monetary experts, the word ‘Bank’ is […]

Deposit Accounts Provided by a Bank: 3 Types | Services | Banking

Banks attract money from the public by accepting deposits in the following accounts: 1. Current Account 2. Savings Bank Deposit Account 3. Fixed or Time Deposit Account. Type # 1. Current Account: It is also called ‘Open Account’ or ‘Demand Deposit Account’. A businessman can open a current account with the bank. Customers can deposit […]

Banks: Meaning, Functions and Types | India |Banking

After reading this article you will learn about:- 1. Meaning of Banks 2. Functions of a Bank 3. Types. Meaning of Banks: A bank (German word) means a joint stock fund. A bank denotes a financial institution dealing in money. A bank is an institution that is prepared to accept deposits of money and repay […]

Advances that can be Availed from a Bank: 4 Types

This article throws light upon the four main types of advances that can be availed from a bank. The types are: 1. Secured Loans 2. Cash Credit 3. Over Draft 4. Clean Advances. Type # 1. Secured Loans: These types of advances are granted against the collateral securities of different kinds, such as bullion, government […]

Credit Instruments of a Bank: 6 Forms | Banking

The common forms of credit instruments are: 1. Cheque 2. Bill of Exchange 3. Draft 4. Letter of Credit 5. Hundi 6. Promissory Note. Form # 1. Cheque: A cheque is written order addressed to a banker, signed by the person who has deposited money with the banker to pay an amount of money specified […]

Commonly asked Questions on Cheque Truncation (With Answers)

List of nineteen commonly asked questions on cheque truncation with answers. Q. 1. What Is Cheque Truncation? Ans. Truncation is the process of stopping the flow of the physical cheque issued by a drawer to the drawee branch. The physical instrument will be truncated at some point en-route to the drawee branch and an electronic […]

Commonly asked Questions on Micro Credit

List of ten commonly asked question of micro credit with answers. Q. 1. What is Micro Credit? Ans. Micro Credit is defined as provision of thrift, credit and other financial services and products of very small amount to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and […]

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