Sources of Working Capital & its Estimation Operating Cycle
Working capital is the operating capital of a business that is used in its day-to-day operations, calculated as the current assets minus the current liabilities. The positive working capital commonly indicates that a company can pay off its short-term liabilities almost immediately. Source of working capital: Sources of working capital are Share Capital, retained profits,…
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Cardinal principles of lending
Three cardinal principles of bank lending have been followed by commercial banks in the employment of their funds. These are the principles of safety, liquidity, and profitability. Safety The important principle of lending is safety which refers to the important fact that the borrower should be able to repay the loan based on character, capacity…
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Bank Retirees Group Medical Insurance Policy premium payable details for 2024-25
According to news in circulations, Bank Employees Union AIBEA issued a circular on 30.09.2024 about Medical Insurance Policy premium details for joint and single life, and for the Top-up payable by Bank Retirees and family pensioners. From the circular, it is unclear whether a retiree can opt for a lower limit for base or top-up…
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Interest rates unchanged on small savings instruments for Oct–Dec 2024
Govt. keeps interest rates unchanged on small savings schemes for the third quarter starting October 1 The rate of Interest chart: Scheme Interest rate for October-December 2024 Interest rate for July – September 2024 Interest compounded Savings account 4.00% 4.00% Annual rest 1-year time deposit 6.90% 6.90% Quarterly rest 2-years’ time deposit 7.00% 7.00% Quarterly…
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Opening accounts of various types of customers and Operational aspects of Bank accounts
Banks are opening various types of customer accounts. These customer accounts may be individual’s sole accounts, joint accounts, partnership accounts, club accounts, accounts of associations, companies, Government departments, etc. While opening and maintaining accounts for different types of customers, a bank has to comply with the law application to each of them. For opening any…
Role and duties of Paying & Collecting Banks
A bank is a financial institution that deals with money and money-related services, such as accepting deposits and providing loans. The term “banking” as defined in Section 5 means “the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawal by cheque, order…
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