Archive | Banking Service

Bank Customer: Meaning, Definition and Kinds

After reading this article you will learn about the meaning and kinds of customers. Meaning and Definition of a Customer: There is no statutory definition of a customer, but banks appear to rely upon to recognize a customer: 1. For a person a person to be known as a customer of the bank there must […]

Nature of Accounts Opened in a Bank

After reading this article you will learn about the nature of account opened in a bank. Joint Accounts: A joint account is a banking account maintained by two or more people. All must sign on any relevant documents unless the mandate provides otherwise. All are jointly liable for any overdraft unless mandate establishes joint and […]

Top 5 Instruments Used for Making and Receiving Payments

This article throws light upon the top five instruments used for making and receiving payments. The instruments are: 1. Cheques 2. Demand Draft 3. Banker Cheque 4. Pay Orders/Payment Orders 5. Transfer Pay Orders. Instrument # 1. Cheques: A cheque is a bill of exchange payable on demand and is drawn on a banker. A […]

Electronics Based Payment Systems in Banks: 6 Types

This article throws light upon the six main types of electronic based payment systems used in India. The types are: 1. Retail Payment Systems 2. Electronic Retail Payment Instruments 3. Card Based Payment System 4. Real Time Gross Settlement System 5. High Value Clearing Systems 6. NEFT. Type # 1. Retail Payment Systems: Retail payments […]

Difference among EFT, NEFT and RTGS | Fund Transfer

This article will help you to differentiate among EFT, NEFT and RTGS. EFT and NEFT are electronic fund transfer modes that operate on a deferred net settlement (DNS) basis, which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. For […]

Notes on Cheque: Meaning, Importance and Its Format

After reading this article you will learn about:- 1. Meaning of a Cheque 2. Parties to a Cheque 3. Format 4. Importance in Payment System. Meaning of a Cheque: A cheque is a negotiable instrument instructing a financial Institution to pay a specific amount of specific currency from a specific demand account held in the […]

Notes on Crossing of a Cheque: 4 Types

This article throws light upon the four types of crossing of a cheque. The types are: 1. Cheques Crossed Generally 2. Crossing after Issue 3. Antedated Cheque 4. Post Dated Cheque. Type # 1. Cheques Crossed Generally: The cheque bearing across its face an addition of the words ‘and company’ or any abbreviations thereof between […]