The major uses of cash counting machines are the accuracy and speed in counting that they provide. Note-counting machines can count stacks of money quickly and more accurately. These machines also detect counterfeit notes. Currency counters are commonly used in vending machines to determine what amount of money has been deposited by customers. In some…
Signature Storage and Retrieval System (SSRS) is a technology used by banks and financial institutions to store, manage, and retrieve customers’ signatures electronically. SSRS comprises an arrangement where a signature is optically scanned and digitally coded. The signature of the customer is captured electronically using specialized signature capture devices. The captured signature is converted into…
LAN stands for the acronym for local area network, and WAN stands for wide area network. LANs and WANs are both computer networks made up of nodes and links. Both the LAN and WAN networks require two or more nodes to create a computer network. LANs connect devices that are physically close to each other…
Core Banking Solution (CBS) is centralized Banking Application software. The Customers can access their accounts and perform certain transactions from any of the bank’s branches through the network. It has several components that support a database, application server, web server, and firewall to protect the system from outside attacks. Core banking systems are used by…
Information and Communication Technology (ICT) includes a wide variety of technologies in many areas, including business, education, and economic growth. ICT can also be used in health, tourism, agriculture, culture, banking, and entrepreneurship. ICT can help improve the quality of teaching and learning, and make education more accessible and equitable. It can also help teachers…
Corporate Debt Restructuring (“CDR”) is typically a voluntary framework, under which financial institutions and banks restructure the debt of companies facing financial difficulties due to various factors, to provide support at the right time for such businesses. It helps a company in financial distress realign its obligations and restore liquidity, avoid bankruptcy, and stay in…
Banks may lend up to 80 to 85 percent of the face value of NSCs or KVPs in the form of a loan or overdraft facility. Process To get a loan, the NSC or KVP holder must pledge the certificates to the lender. On application, the concerned post office where the certificates were purchased will…
Banks offer loans against securities for customers’ short-term funding needs. Loans against shares, government bonds, insurance policies, NSCs, and other investments come under this category. For loans against shares, debenture banks are required to strictly observe regulatory restrictions on ‘Exposure Norms’ as explained below. Restrictions on Holding Shares in Companies In terms of Section 19(2)…
The concept of compound interest or compounding interest is the interest is added back to the principal sum while charging interest for the next period so that interest is earned on that added interest. That is as a result of reinvesting interest, compound Interest (CI) / Cumulative Interest are calculated both on the principal amount…
Book debts are typically made up of sums owed for goods or services supplied or work carried out on credit. Any sum due under a loan may also be treated as a book debt. Book debts in the balance sheet are classified as current assets (Trade Receivables). However, it is important to know that all…
