RuPay cards are gaining momentum as a domestic card payment network in India. The RuPay cards payment network is similar to international payment card networks like Visa International and MasterCard. The National Payment Corporation of India (NPCI), a Government of India undertaking, has launched RuPay cards in March 2012. Since its inception, this domestic network has started…
Latest update: RBI on thursday (06.06.2019) informed banks that it has decided to waive charges levied on NEFT & RTGS transactions and accordingly instructed the bank to pass on the benefit to their customers. Instruction on this regard will be issued within a week. Process of RTGS and NEFT RTGS& NEFT transactions are the fastest…
Gone are the days, when bank customers used to wait for a long spell at the banking hall, for their turn to complete banking transactions. The internet banking facility introduced in banks has largely reduced the physical entry of the customers to the banks, owing to following advantages. The utmost advantage of internet banking is…
Electronic Clearing Service (ECS) in bank transaction is a simple, faster and cost effective solution for repetitive bulk transactions. The system was first introduced by Reserve Bank of India in April 1995 to facilitate speedier bulk inter-bank transactions. It is most useful to facilitate repetitive payment transaction such as salary, pension, interest, commission, dividend etc. ECS…
Liquid fund is a type of mutual fund akin to a savings bank account of a bank. The liquid fund does not have lock-in period, so the investor can enter and exit at any point of time from the scheme. The fund is suitable for those who like to park short term surplus money with…
The functions of Mutual Fund Organizations (MFO) can be described as (a) Collection of funds from public (b) Investment of funds collected from public in capital market (c) Proper management of investment portfolio as a trustee to the investor’s money. The investment made by the public/investors in the AMC under a scheme is divided into…
Traditionally, banking was unknown to present day concept of priority sector lending. The commercial banks in India used to provide security oriented finance to trade and industry. Big industrial houses and traders were beneficiaries of security oriented lending concept and a large chunk of bank finance was enjoyed by them. The National Credit Council in…
The principles of lending revolve mainly around the concepts of safety, profitability and liquidity of advance. The criteria for lending get changed or modified from time to time in response to changing the state of the economy. Traditionally commercial banks in India used to provide security oriented finance to trade and industry. Big industrial houses…
(This post explains the essence of Mortgage of properties and several forms of mortgage of immovable properties in India viz. Equitable Mortgage, Simple Mortgage, English mortgage, Mortgage by conditional Sale, Usufructuary Mortgage, and Anomalous Mortgage which are major types of mortgage systems currently existent in India.) The essence of Mortgage of properties: The transfer of…
Various types of guarantees are issued by the banks on behalf of their customers. Bank Guarantees (BG) is also known as Letter of Guarantees which can be broadly classified as (i) Financial Guarantees and (ii) Performance guarantees. Earnest money Deposit guarantee or Bid Bond Guarantee, Guarantee for Payment of Customs duty (specific or continuing), Advance…