HOW TO PREPARE FOR INTERVIEW?

Perhaps,this is a regular question asked by candidates selected in written tests conducted by banks & government organizations. Interview sessions are considered tough by many,as it involves speaking out.Here are somecommonly asked questions in Interview & methods to answer them. Question : Tell /Describe about yourself ( you will be asked this 90% ) Answer : Don't recite yourresume.Tell about your education, experience, projects worked ,passion etc.,Make sure you complete this within 2-3mins. Q: Why should we hire you into our organization A : This would be perfect time to tell about your strengths,achievements & assets. Compare your profile with the job role & justify that you will be a best fit for the job. Answers like This is a best company , I want a job in this field wont impress the interviewer. Q : What are your strengths & weakness ? A: Again this is also a commonly asked question to test how much you know of yourself.Make sure the Strengths you say have some relation to the job you applied. I am very good in english can be said as I have good communication skills . WEAKNESS - I don't have any weakness means you are not ready to talk about it.Similarly don't say something like, Im short tempered & get angry very soon It gives an impression that you are not fit to work in group.Say something which does not affect the working & also describe about the steps taken to overcome that. Q: Where do you see yourself after 5 years ? A: This question would be asked to check how much you know about the career path. After 5 years,I want to be in your seat wont work in any case.Think realistically, understand the growth opportunities of that job & put it across to them. Thanks for your encouraging replies & emails for our previous post Commonly asked Interview questions Our special focus on Interview continues with tips onhow to behave inside the interview hall,before the panel.Candidates must understand that every single movement before the interviewer will have an impact on the result. 1. Remember to wish the interviewer/panel good morning or good afternoon once you enter the room.Once you are offered a seat,sit down calmly. 2. Sit straight with your back against the chair & arms on the armrest. Leaning on the table or pushing yourself forward are not good signs.

3. Wait until the interviewer goes through your profile.Don't start talking before you are asked anything it shows you are nervous.Answer the questions in a clear & bold manner,once your turn comes. 4. While answering any question,do not look at the ceiling or around the room.Look at the interviewer ,it shows that you are interested in the conversation. 5. If you don't know the answer,say it to the panel.Do not try to fill the gap by giving unwanted or wrong answers.Incase of such situations,DON`T scratch your head, bite your nails, close your eyes or put your fingers on your face. 6. Do not repeat the same answers again.It clearly shows that you are unprepared & have no proper understanding of the subject.Also,remember to start answering after the question has been asked.Rushing to answer shows that you want to complete the interview process as soon as possible. There has been lot of activity on our Orkut group ,ever since the SBI resultsfor recruitment of 11000 clerks were released. State bank of India has started the interview process for those selected candidates & many members of our group were kind enough to share theirinterview questions with others. So, we have decided to re-publish their experiences here so that all candidates including non members of our Orkut group can benefit. THE PANEL : For most candidates the interview lasted between 10-25 mins.The topics were related to India, banking, economy, current affairs & from your resume. Many candidates informed us that the Interview panel(senior officials) were cool & the session was full of fun.Now, let us move to the questions Bhawana sharma says ,she was asked about * Family background. * Willing to relocate/ work in rural areas or not? * Reason for doing MBA after B.Tech (candidate is B.Tech,MBA graduate) * My MBA was in HR & Finance so they asked abt HR and Subjects in Finance * About Financial Institutions, Share market, Mutual Funds,Nifty, BSE etc. * My SWOT analysis (Strength,Weakness,Opportunity,Threats) * About my hobbies (in resume) * Names of RBI Governor, President, VP & Deputy chairman of Planning commission * Asked how will i judge a candidate if he/she is suitable for a job? * Few questions on RBI,SBI, Recession, Subprime crisis etc., * What is written on a 100 rupee note and whose signature are there on it?

barun shares his experience as, * Tell something about SBI * Questions related to hobbies * What are monetary policies * Repo rate, SLR ,Addhar (The new name of UID Project) * Why did you apply for clerk job in bank? * Five years down the line u will be like to be at? * Will the IPL controversy put a bad image to IPL? * About Cut motion (recent issue in parliament) soumya:Xpectin d says, * Asked about SBI. * Importance of March 8 & what happened on that day in Indian parliament.(answer is Women's day & 33% women`s reservation bill) * Questions from resume/ biodata. priya details her turn * Asked about SBI & SBI associate banks * Kinds of loan that SBI provides * About savings bank account & rate of interest for them * Difference between Private & Public sector banks * What are the foreign banks in India * About my hobby (Reading), I was asked who is the author of Discovery of India * Headlines of today's newspaper ~Pritha~ says that one of her friend was posed these questions * Selection procedure for Rajyasabha members * IPL results along with best batsman, best bowler etc... * Family background. * 5 questions from subject of study in college We hope the part 1 of SBI Interview Questions would have helped candidates preparing for State bank of India recruitment & other jobs to get a feel of what happens inside the hall.As said earlier, here is the Part 2 ofInterview experiences shared by members on our Orkut community describing the questions asked. sree describes her questions * Define Indian economy & how it emerges from recession * What is a bank & who operates it * What is SLR,PLR,CRR, Bank rate etc.

* A situation was given & was asked how would i react to it * Authors of any novels * They also questions from UG & PG degree & why i chose banking * News in today's paper * Chairman of SBI * Why would u like to join SBI * What is nationalization act? * 3-4 questions were asked from degree subjects. * Why studied B.E and choosing bank jobs * Some questions about my hobbies. * Why airlines were stopped in European countries recently? * Who won the IPL trophy & who is the chairman of IPL v shares his friend`s experience , * What are the financial institution in India * India`s finance minister * Asked about RBI & their services * How to reduce inflation * What new services are provided by RBI * Why choose banking after engineering * Some questions about hobbies & personal i nevr thk futur recollects that, the panel consisted of 4 members & the questions * Some questions from resume (about me, family background, hobbies etc) * Since I'm an IT graduate ,some questions on computers * What is networking & how many types of topologies * Asked about conditions of women in our society

SBI CLERK INTERVIEW QUESTIONS | STATE BANK OF INDIA CLERK INTERVIEW QUESTIONS | SBI CLERK INTERVIEW PREPARATION TIPS Why do you want to enter banking? * You need to talk about Banking what the interviewer seeks for is a person who is flexible to be along with the given timings, someone who can cope up with writing bits and bobs or a person who can benefit them with more development .Your answer can have following bulleted points. Banking is a fast changing environment Retail banking is now very competitive from telephone banking, retailers and etc Banking is thus now largely sales driven.

# You can even talk about IT getting changes and clearing banks offers a wide range of career opportunities for graduates not just in branch banking but also in financial services, consultancy and corporate banking. Have you applied to any other areas apart from banking? Here off course your answer will hold some other finance or sales and marketing careers insurance or accountancy, altogether these careers should have skills related to banking. How do you feel about committing yourself to another three years of exams? The professional examinations that you will almost certainly be required to take as part of your training are not always difficult in themselves, but do require determination and focus- especially as much of your study will be done in the evenings after a hard days work. You should also be aware of the range of qualifications open to you many of the large clearing banks offer the opportunity to gain qualifications in marketing, personnel or accountancy not just banking. Tell me about an experience in which you had to use tact? Tact and diplomacy are important qualities in retail banking the customer is (almost!) always right. You may have to tell an account holder diplomatically why they cant have a loan for example, without provoking them into moving their account elsewhere. To answer this type of question, think through everything you have done in the last five years school, university, sports, clubs, societies, travel, vacation jobs etc. and try to think of situations where you had to demonstrate this and other qualities do this before your interview. If you have completed a number of employer application forms, then you should already have done this as this type of question is now common on application forms. Who are our major competitors and what differences do you notice in our products? The company will be expecting that you have done your research on the industry generally. You should be familiar with the banks products and services literature on these can be picked up at any branch. Read the banks brochures and annual reports these may be in the careers information room. Be aware of current trends in the market and try to find out what each bank is doing in these areas. What is SLR? Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR). Present SLR is 24%. (reduced w.e.f. 8/11/208, from earlier 25%) RBI is empowered to increase this ratio up to 40%. An increase in SLR also restrict the banks leverage position to pump more money into the economy. What is SLR ? (For Non Bankers) SLR stands for Statutory Liquidity Ratio. This term is used by bankers and indicates the

minimum percentage of deposits that the bank has to maintain in form of gold, cash or other approved securities. Thus, we can say that it is ratio of cash and some other approved to liabilities (deposits) It regulates the credit growth in India. What are Repo rate and Reverse Repo rate? Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks. When the repo rate increases borrowing from RBI becomes more expensive. Therefore, we can say that in case, RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate What are Repo rate and Reverse Repo rate? Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks. When the repo rate increases borrowing from RBI becomes more expensive. Therefore, we can say that in case, RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate Thus, we can conclude that Repo Rate signifies the rate at which liquidity is injected in the banking system by RBI, whereas Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks. What is the difference between Bank Rate and Repo Rate? Bank Rate vs Repo Rate Bank Rate is the rate at which RBI allows finance to commercial banks in India. There are difference types of refinance that can be availed by banks and these are linked to Bank Rate. Thus, banks can borrow at this rate only to the extent of their eligibility for refinance. On the other hand, Repo is a money market instrument, which enables collateralised short term borrowing and lending through sale/purchase operations in debt instruments. Under a repo transaction, a holder of securities sells them to an investor with an agreement to repurchase at a predetermined date and rate. In the case of a repo, the forward clean price of the bonds is set in advance at a level which is different from the spot clean price by adjusting the difference between repo interest and coupon earned on the security. In the money market, this transaction is nothing but collateralised lending as the terms of the transaction are structured to compensate for the funds lent and the cost of the transaction is the repo rate. Thus, a bank can borrow under repo provided he has the extra securities which it can lend temporarily to RBI for borrowing short term funds. What is relation between Inflation and Bank interest Rates? Now a days, you might have heard lot of these terms and usage on inflation and the bank interest rates. Bank interest rate depends on many other factors, out of that the major one is inflation. Whenever you see an increase on inflation, there will be an increase of interest rate also What is a bank? A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money What is the activity of Banks?

Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, EFTPOS, and ATM. Banks borrow money by accepting funds deposited on current account, accepting term deposits and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current account, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account. Banks borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings to. What is Banking Business? Banking Business means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act. What is Accounting for Bank Accounts? Bank statements are accounting records produced by banks under the various accounting standards of the world. Under GAAP and IFRS there are two kinds of accounts: debit and credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and Expenses. This means you credit credit accounts to increase their balances and you debit debit accounts to increase their balances. This also means you debit your savings account every time you deposit money into it (and the account is normally in deficit) and you credit your credit card account every time you spend money from it (and the account is normally in credit). However, if you read your bank statement, it will say the opposite- that you have credited your account when you deposit money, and you debit when you withdraw it. If you have cash in your account you have a positive or credit balance and if you are overdrawn it will say you have a negative or a deficit balance. The reason for this is because the bank, and not you, has produced the bank statement. Your savings might be your assets, but it is the banks liability, so your savings account is a liability account which is a credit account and should have a positive credit balance. Your loans are your liabilities but the banks assets so they are debit accounts which should have a negative balance. Below where bank transactions, balances, credits and debits are discussed, they are done so from the viewpoint of the account holder which is traditionally what most people are used to seeing. What are the commercial roles of the Banks ? However the commercial role of banks is wider than banking, and includes:

However the commercial role of banks is wider than banking, and includes: issue of banknotes (promissory notes issued by a banker and payable to bearer on demand) processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means issuing bank drafts and bank cheques accepting money on term deposit lending money by way of overdraft, installment loan or otherwise providing documentary and standby letters of credit (trade finance), guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures safekeeping of documents and other items in safe deposit boxes currency exchange sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products as a financial supermarket WHAT ARE THE ECONOMIC FUNCTIONS OF BANKS? THE ECONOMIC FUNCTIONS OF BANKS INCLUDE: 1. ISSUE OF MONEY, in the form of banknotes and current accounts subject to cheque or payment at the customers order. These claims on banks can act as money because they are negotiable and/or repayable on demand, and hence valued at par and effectively transferable by mere delivery in the case of banknotes, or by drawing a cheque, delivering it to the payee to bank or cash. 2. NETTING AND SETTLEMENT OF PAYMENTS banks act both as collection agent and paying agents for customers, and participate in inter-bank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economise on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables payment flows between geographical areas to offset, reducing the cost of settling payments between geographical areas. 3. CREDIT INTERMEDIATION banks borrow and lend back-to-back on their own account as middle men 4. CREDIT QUALITY IMPROVEMENT banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the banks assets and the banks own capital which provides a buffer to absorb losses without defaulting on its own obligations. However, since banknotes and deposits are generally unsecured, if the bank gets into difficulty and pledges assets as security to try to get the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position. 5. MATURITY TRANSFORMATION banks borrow more on demand debt and short term debt, but provide more long term loans. In other words; banks borrow short and lend long. Bank can do this because they can aggregate issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemptions of banknotes), maintain reserves of cash, invest in marketable securities that can be readily converted to cash if needed, and raise replacement funding as needed from

various sources (e.g. wholesale cash markets and securities markets) because they have a high and more well known credit quality than most other borrowers.

BANKING INTERVIEW QUESTIONS Why do you want to enter banking? o You need to talk about Banking what the interviewer seeks for is a person who is flexible to be along with the given timings, someone who can cope up with writing bits and bobs or a person who can benefit them with more development .Your answer can have following bulleted points. Banking is a fast changing environment Retail banking is now very competitive from telephone banking, retailers and etc Banking is thus now largely sales driven. You can even talk about IT getting changes and clearing banks offers a wide range of career opportunities for graduates not just in branch banking but also in financial services, consultancy and corporate banking. Have you applied to any other areas apart from banking? o Here off course your answer will hold some other finance or sales and marketing careers insurance or accountancy, altogether these careers should have skills related to banking. How do you feel about committing yourself to another three years of exams? o The professional examinations that you will almost certainly be required to take as part of your training are not always difficult in themselves, but do require determination and focus- especially as much of your study will be done in the evenings after a hard days work. o You should also be aware of the range of qualifications open to you many of the large clearing banks offer the opportunity to gain qualifications in marketing, personnel or accountancy not just banking. Tell me about an experience in which you had to use tact? o Tact and diplomacy are important qualities in retail banking the customer is (almost!) always right. You may have to tell an account holder diplomatically why they cant have a loan for example, without provoking them into moving their account elsewhere. o To answer this type of question, think through everything you have done in the last five years school, university, sports, clubs, societies, travel, vacation jobs etc. and try to think of situations where you had to demonstrate this and other qualities do this before your interview. o If you have completed a number of employer application forms, then you should already have done this as this type of question is now common on application forms. Who are our major competitors and what differences do you notice in our products? o The company will be expecting that you have done your research on the industry generally. You should be familiar with the banks products and services

literature on these can be picked up at any branch. Read the banks brochures and annual reports these may be in the careers information room. o Be aware of current trends in the market and try to find out what each bank is doing in these areas. What significant trends do you see in the future for our industry? o This is your chance to shine. You will be fully familiar with the economic situation as it relates to banking or how recent legislation affects it. How will you be familiar? Because you will have done your research and preparation properly. o You will have talked to people about the employer, you will have been reading trade magazines, journals and newspapers, and you will have poured over company brochures, annual reports or anything else you can get your hands on direct from the employer. o You could talk about tele-banking, the limited range of services now being offered by the supermarket banks, the effects of technology and competition and much more. o The Employment Files in the Careers Service library are an obvious first place to look. The Internet is also an excellent source of information. Be ready to have more than one significant trend to discuss! PREPARE WELL FOR BANK EMPLOYMENT INTERVIEW QUESTIONS AND You may well be intimidated by the question and answer section of any job employment interviews that you attend. This need not be so. Just like political leaders like Barak Obama and Sarah Palin come off well in interviews you can as well. It comes down to preparation, anticipation and even practice. It is no secret in the H.R. human resources trade as well with experienced managers and interviewees that in the end there are only so many questions that can be asked. The same questions get asked and answered again and again in job interviews so why not prepare for the eventuality of these probing questions so that you come off looking assured , confident and ahead of the rest of the pack. You will become a real find, a real gem for most employers to hire. It is true that the core of an interview comes down to a question and answer period. Generally this includes questions and answers from both the interviewer and you as well. Not that you want to be in control of the interview. Such tactics early on often indicate trouble already for the employer with their candidate even before being hired and often lead to an early ending for the specific interview. Just answer the questions easier if you are prepared and be prepared to ask a few or several thoughtful and relevant questions. Generally its expected if the interview is serious about the job in question they will have a few questions to ask. Generally it can be said that the standard questions that you will be asked in a job employment interview fall into three general categories. General information questions, behavioral questions and lastly character or character values questions.

Firstly in terms of general information and general information questions to test the waters initially and start initial conversation you may well be asked standard questions to be expected for example Why do you want the job ? , What type of work do you most enjoy or excel at? , What are your strongest skills? And the classic You look like a person who knows what they want and where they want to go. Where do you see yourself in 2 or 5 years? These questions may well go along hand in hand with questions of your long term goals. Lastly in terms of general information the current trend is teams rather than lone wolves. You invariably may be asked Are you a team player. Next in line you can expect a slew of behavioral questions. The basic premise of these questions is that youre past behavior and actions are the best indicator and guess of your future behavior. Expect questions on how you reacted to past situations you found difficult and moist difficult. What did you learn from these situations? Have you improved as a result? In addition you may well be asked your actions and reactions to hypothetical situations and perhaps even role playing. Lastly you may well be gauged by character questions. Some firms even employ tests and exams whose score is judged to be highly accurate in gauging the character and integrity of candidates. It is a well known , but seldom mentioned fact , that the biggest source of loss and theft in most commercial businesses and enterprises are not from outside agencies or customers in say a retail store , but rather the most major source of loss and pilferage in businesses is internal by employees themselves. Thus companies try to weed out and reduce the chances of this occurring from the onset by hiring employees who have great personal honor and integrity. You may well ask hypothetical questions on paper or directly on your views of customer and staff theft. A customer does not pay for a chocolate bar, you catch an employee paying back the firm for a loan etc etc. You may even get hypothetical questions of whether to declare a small item at the border to the nice customs people when you have only been gone a day and its a small item. Along with these character questions you expect of how well you work under stress. All in all it can be said that there are only so many questions in life and in a job interview. Further these questions can only be asked so many different ways. If you want to do well and excel in job employment interviews in the end it all comes down to preparation, anticipation and practice. BANK PO INTERVIEW QUESTION AND ANSWERS Posted 1 July, 2010 - 21:23 What are the DIFFERENT CHANNELS OF BANKING you use in your daily life ? Banks offer many different channels to access their banking and other services: * A branch, banking centre or financial centre is a retail location where a bank or financial institution OFFERS A WIDE ARRAY OF FACE-TO-FACE SERVICE TO ITS CUSTOMERS. * ATM is a computerized telecommunications device that provides a financial institution's customers a method of financial transactions in a public space without the

need for a human clerk or bank teller. Most banks now have more ATMs than branches, and ATMs are providing a wider range of services to a wider range of users. For example in Hong Kong, most ATMs enable anyone to deposit cash to any customer of the bank's account by feeding in the notes and entering the account number to be credited. Also, most ATMs enable card holders from other banks to get their account balance and withdraw cash, even if the card is issued by a foreign bank. * MAIL is part of the postal system which itself is a system wherein written documents typically enclosed in envelopes, and also small packages containing other matter, are delivered to destinations around the world. This can be used to deposit cheques and to send orders to the bank to pay money to third parties. Banks also normally use mail to deliver periodic account statements to customers. * TELEPHONE BANKING is a service provided by a financial institution which allows its customers to perform transactions over the telephone. This normally includes bill payments for bills from major billers (e.g. for electricity). * ONLINE BANKING is a term used for performing transactions, payments etc. over the Internet through a bank, credit union or building society's secure website. How many type of banks there are ? Banks' activities can be divided into retail banking, dealing directly with individuals and small businesses; business banking, providing services to mid-market business; corporate banking, directed at large business entities; private banking, providing wealth management services to high net worth individuals and families; and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profits. CENTRAL BANKS are normally government owned banks, often charged with quasiregulatory responsibilities, e.g. supervising commercial banks, or controlling the cash interest rate. They generally provide liquidity to the banking system and act as the lender of last resort in event of a crisis.

TYPE OF RETAIL BANKS

* COMMERCIAL BANK: the term used for a normal bank to distinguish it from an investment bank. After the Great Depression, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital market activities. Since the two no longer have to be under separate ownership, some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses. * COMMUNITY BANKS: locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners * COMMUNITY DEVELOPMENT BANKS: regulated banks that provide financial services and credit to under-served markets or populations. * POSTAL SAVINGS BANKS: savings banks associated with national postal systems. * PRIVATE BANKS: manage the assets of high net worth individuals.

* OFFSHORE BANKS: banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks. * SAVINGS BANK: in Europe, savings banks take their roots in the 19th or sometimes even 18th century. Their original objective was to provide easily accessible savings products to all strata of the population. In some countries, savings banks were created on public initiative, while in others socially committed individuals created foundations to put in place the necessary infrastructure. Nowadays, European savings banks have kept their focus on retail banking: payments, savings products, credits and insurances for individuals or small and medium-sized enterprises. Apart from this retail focus, they also differ from commercial banks by their broadly decentralised distribution network, providing local and regional outreach and by their socially responsible approach to business and society. * BUILDING SOCIETIES AND LANDESBANKS: conduct retail banking. * ETHICAL BANKS: banks that prioritize the transparency of all operations and make only what they consider to be socially-responsible investments. BANKING TERMINOLOGY Banking terms beginning with S SARFESI ACT The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfesi) Act was introduced to offer an organized platform to the banking industry so that it can manage its increasing NPA stocks and also match the pace of foreign financial institutions. This act enables financial institutions as well as banks to acquire securities and deal in them. With the help of this act, the financial institutions as well as the banks can actualize the long-term assets and deal with the issues of liquidity. They can look for the mismatch in asset-liability and also get hold of their securities to better recovery. This act enables them to sell securities and bring down the number of Non Performing Assets (NPAs). SAVINGS BANK ACCOUNT A savings account holder of a particular bank can carry out his/her banking transactions on daily basis. Mostly, these accounts are accessed for non-commercial purposes. Savings account helps is money withdrawal and cash or cheque deposits. A savings account user gets an easy access to ATM, mobile banking as well as internet banking. SECURED LOAN A secured loan is that against which the lender receives some sort of security from the borrower. Home loan is considered to be the simplest form of this type of loan. The interest rate on secured loans is less than the ones charged in case of unsecured loans. STATUTORY LIQUIDITY RATIO

The Statutory Liquidity Ratio (SLR) is a metric which enables the banks to know the minimum deposit percentage such as of cash, gold or any other form of security they need to maintain. It helps in controlling the credit growth in nation. Banking terms beginning with C CASH-RESERVER RATIO The part of the total deposits that is maintained in cash by the banks is referred to as CRR or Cash-Reserve Ratio. The banks in India do not keep this part of their deposits with themselves. They need to submit this amount to RBI or currency chests. RBI has the right to decide on the minimum ratio of the deposits that need to be maintained by the banks. CASHBACK The term 'cashback' is used in case of credit cards. Some of the banks that issue credit cards give back some money to the card holder, if he/she uses the credit card to make payments at some particular retailers or merchandise stores. In the credit card statement, the user would get to know about the amount of cash back offered to him/her. The final amount, that is due on the credit card, is calculated by subtracting the payments that have been made during the billing cycle along with the cash back amount. CO-BRANDED CARD These credit cards are just like any other credit cards and can be availed from retailers or airlines apart from banks. These cards have some user benefits. A co-branded card user can gain travel points or avail attractive discounts related to the product. These cards are available in the sectors like telecom, travel, petrol pump, entertainment and retail. Nowadays, banks are offering co-branded debit cards also. CLEARING HOUSE When a cheque is deposited in the bank, the receiving bank has to actualize the amount from the drawee bank before it is transferred to the concerned person's account. The drawee bank is presented with the cheque in the clearing house by the receiving bank. The clearing house is a main collection area for the banks to deal in financial securities including drafts, cheques and others. This activity is carried out during working days on daily basis. COLLATERAL A loan seeker needs to provide collateral or the security to the lending institution. For example, in case of education loans, the seeker needs to furnish the lender with the collateral beyond a fixed amount. A collateral security can be referred to as the security that falls outside the limit of the loan. CREDIT APPRAISAL If a person applies for a particular loan, the lending institution runs a complete check on his/her credit profile to gather information on residence, age, occupation, service experience and the years of service as applicable to present job. Among these, the institution will also check if the person has taken any other loan. This entire process is referred to as credit appraisal.

CREDIT HISTORY Credit History is a record of an individual's credit payment including borrowing and refunding of any kind of loans, credit cards, mortgages and any kind of debt that needs to be repaid. The credit history contains records on open accounts, status of loans and credit card accounts. From credit history, a lender can know if the borrower had any late payment, bankruptcy or loan default issues. The Credit Information Bureau India ltd (Cibil) maintains these records and a lender can gain access to these details from Cibil as credit information report (CIR). A person needs to pay fee for this. CREDIT RISK When a lending institution grants loan to a customer, it assumes this risk. The banks ask for collaterals from the borrowers because of this risk factor. This risk factor is high in case of personal loans or any other form of unsecured loans. In addition, in case of secured loans such as home loans, the lender asks the borrower to share some portion of the risk, giving margin money. The interest rates are decided depending on credit risk. Interest rates are kept high, if loan involves high risk factor. Banking terms beginning with D DEBIT CARD/ CREDIT CARD An ATM-cum-debit card allows an individual to purchase anything for the cash available in his/her account that is joined with the card e.g. if a person has Rs 5000 in his/her bank account, he/she can use his card to the maximum limit of Rs 5000 only. On the contrary, credit card helps the user to do shopping till the assigned credit limit on that particular card. DEBT-EQUITY RATIO It helps in calculating the financial leverage of any bank or organization. To measure this, one needs to divide the total liabilities of the banks by stakeholders' equity. This in turn gives an idea of the ratio of equity and the debt used by the bank in financing the assets. DEFAULT If a person wants to continue his/her credit account, he/she either needs to give equated monthly installments (EMIS) or pay the due amount on credit account each month within a fixed date. If the person fails to make payment before the specified date, it is considered as default. It can mar the credit record of that person. DOWNPAYMENT/MARGIN MONEY When a bank asks the borrower to share a part of the credit risk and the payment that is received from him/her on this account, is referred to as downpayment/ margin money. DIRECT DEBIT Also referred to as Electronic Clearing Facility (ECS), direct debit option proves beneficial in case of servicing of various lines of credit. This is a facility whereby the person empowers his/her bank to take off a particular amount from his/her account on a particular date every month. This facility enables a person to make his payments without visiting the lending institution or bank personally on a frequent basis. However, the

person has to be aware of the fund availability in his account, as the bank is not responsible for intimating its customer when the amount is debited from his/her account. DOCUMENTATION CHARGES The banks or lending institutions require certain documents from the person, who has applied for a loan, to look into his/ her creditworthiness. The lending institution levies some charges for this purpose. These charges are known as documentation charges. The documentation charges are separate from registration charge, stamp duty and lawyers fee. DORMANT/INOPERATIVE ACCOUNT If an individual has not made any transactions from his/her account for more than 2 years, a savings/current account is declared as inoperative or dormant. Banking terms beginning with P PIN NUMBER A person needs to have pin number in order to gain an access to the ATM. This number is required, if the person is using credit card, ATM card or ATM-cum-debit card for the purpose of withdrawing money. Pin number is a set of digits that is sent by the bank to its customer separately after he/she receives the card. The pin number needs to be kept secret. According to the experts in banking sector, it is wise to change this number so that any other person apart from the card holder cannot get access to the holder's account. Some customer service counters of the institutions ask for pin number. In fact, some retailers also need this number to enable cash transactions. PLR/BPLR PLR stands for Prime Lending Rate and BPLR for Benchmark Prime Lending Rate. PLR/BPLR is given to the main customers of the lending institution. Mostly, the rates of interest for all retail loans are connected with PLR/BPLR. However, in some cases, interest rates are dependent on the floating reference Rate (FRR). PRE-PAYMENT PENALTY A person has to bear pre-payment penalty if he/she decides to close the loan amount ahead of time of its specified expiry date. This penalty is levied on the principal that a person owes to a lending institution. This penalty saves the lending institution from facing a loss of income generated through interest rates. Previously, many lending institutions used to levy a pre-penalty, if the person closed his home loan before the loan tenure. Nowadays, in case of home loans, if a person has a proof that the money he is using for foreclosure belongs to his own resources, he can get rid of the pre-payment penalty. However, any other loan apart from home loan is subject to pre-payment penalty. PROCESSING FEE A lending institution levies this fee in order to process the loan application of a person. This fee can be waived off during festive offers, if the lending institution so decides.

Banking terms beginning with C CASH-RESERVER RATIO The part of the total deposits that is maintained in cash by the banks is referred to as CRR or Cash-Reserve Ratio. The banks in India do not keep this part of their deposits with themselves. They need to submit this amount to RBI or currency chests. RBI has the right to decide on the minimum ratio of the deposits that need to be maintained by the banks. CASHBACK The term 'cashback' is used in case of credit cards. Some of the banks that issue credit cards give back some money to the card holder, if he/she uses the credit card to make payments at some particular retailers or merchandise stores. In the credit card statement, the user would get to know about the amount of cash back offered to him/her. The final amount, that is due on the credit card, is calculated by subtracting the payments that have been made during the billing cycle along with the cash back amount. CO-BRANDED CARD These credit cards are just like any other credit cards and can be availed from retailers or airlines apart from banks. These cards have some user benefits. A co-branded card user can gain travel points or avail attractive discounts related to the product. These cards are available in the sectors like telecom, travel, petrol pump, entertainment and retail. Nowadays, banks are offering co-branded debit cards also. CLEARING HOUSE When a cheque is deposited in the bank, the receiving bank has to actualize the amount from the drawee bank before it is transferred to the concerned person's account. The drawee bank is presented with the cheque in the clearing house by the receiving bank. The clearing house is a main collection area for the banks to deal in financial securities including drafts, cheques and others. This activity is carried out during working days on daily basis. COLLATERAL A loan seeker needs to provide collateral or the security to the lending institution. For example, in case of education loans, the seeker needs to furnish the lender with the collateral beyond a fixed amount. A collateral security can be referred to as the security that falls outside the limit of the loan. CREDIT APPRAISAL If a person applies for a particular loan, the lending institution runs a complete check on his/her credit profile to gather information on residence, age, occupation, service experience and the years of service as applicable to present job. Among these, the institution will also check if the person has taken any other loan. This entire process is referred to as credit appraisal. CREDIT HISTORY Credit History is a record of an individual's credit payment including borrowing and refunding of any kind of loans, credit cards, mortgages and any kind of debt that needs to be repaid. The credit history contains records on open accounts, status of loans and credit card accounts. From credit history, a lender can know if the borrower had any late

payment, bankruptcy or loan default issues. The Credit Information Bureau India ltd (Cibil) maintains these records and a lender can gain access to these details from Cibil as credit information report (CIR). A person needs to pay fee for this. CREDIT RISK When a lending institution grants loan to a customer, it assumes this risk. The banks ask for collaterals from the borrowers because of this risk factor. This risk factor is high in case of personal loans or any other form of unsecured loans. In addition, in case of secured loans such as home loans, the lender asks the borrower to share some portion of the risk, giving margin money. The interest rates are decided depending on credit risk. Interest rates are kept high, if loan involves high risk factor. Banking terms beginning with B BAD DEBT If a particular bank or creditor fails to recover money from a borrower or a debtor, it is termed as bad debt. The bad debt is considered as an expense on the part of the bank. Nevertheless, the bank, in concern, can always opt for legal proceedings to recover the amount that has been declared as 'bad debt'. BALANCE TRANSFER Balance transfer is an option included in the application form of credit card. This option can be selected afterwards as well. This facility is very useful for the person, who is holding more than one card. On availing this facility, the user can transfer the balance payable amount to the other card, if he/she is not able to make full payment that is due on a particular card. Nevertheless, the person has to make payment of the transferred amount on a scheduled time as stated by the bank that gave him/her the other card. One needs to pay fee for the balance amount that has been transferred. The balance transfer facility is useful in reducing interest outgo. BANK STATEMENT The savings account holders receive passbook mostly. The passbook helps the account holder to keep a track over his/her transactions. If the user has not been given a passbook, he/she is sent an account statement by the bank on regular intervals at the mailing address. The account statement is nothing but like a passbook features all the transaction details on the person's account for a particular time period. In order to apply for a loan, one needs to produce a bank statement of the last 6 months to the concerned lending institution. BANKING OMBUDSMAN The banking ombudsman scheme is an efficient and cost-effective forum, which has been formed to resolve complaints registered by the customers in case of any services provided by the bank. The central bank of India namely Reserve Bank of India (RBI) has introduced this scheme under Section 35A of banking regulation Act, 1949. The scheme came into effect in the year 1995. RBI appoints the banking ombudsman, a senior official, to look into customer complaints in case of a particular banking service and resolve them. Presently, we have 15 banking ombudsmen. The offices are mostly found

in the state capitals. One can find the address of a particular banking ombudsman at the bank branch. BOUNCED CHEQUE CHARGES A cheque can bounce on several accounts including inadequate cash in the account, signature mismatch and mismatch between the numerals and words. And if a cheque has bounced or has been dishonored, the person who had drawn it needs to pay bounced cheque charges in that case. The charges for the bounced cheque can be compensated by seeking court's assistance. However, this is allowed only when the cheque has been returned due to insufficient fund in the account. Banking terms beginning with L LATE CHARGE: A payment evaluated by the lender for a borrower and obtains it after a premeditated date is termed as Late Charge. Fine is implied for aberrant payments on a credit after a Grace Period of ten to fifteen days has passed. Late charge is computed as a proportion of the unpaid balance and is generally eliminated from the outstanding interest of the loan. LEVERAGE: The utilization of different fiscal tools or loaned capital to elevate the capability of potential profits from an investment is termed as Leverage. In other word, Leverage is an amount of debit utilized to fund a company's assets. A highly leveraged company comprises more obligations than equity. Leverage triggers investments on part of both investor and company. LEVERAGE BUY-OUT (LBO): The acquirement of a business entity by utilizing considerable sum of borrowed capital, through bonds or loans, to fulfill the expenses met during acquisition. Generally, the properties of the company being obtained are utilized as loan securities incorporating the properties of the obtained firm. The intention of leveraged buyouts is to permit firms to indulge in money-spinning acquisitions without entrusting a huge amount of money. LIABILITY: The legal responsibility of the firm that occurs during commercial operations is termed as liability. These liabilities are met through relocation of fiscal advantages which incorporates capital, products and services. LIBOR: The LIBOR is an extensively used yardstick for interim interest rates. It is the rate at which privileged borrowers from all over the world are competent enough for borrowing money. LIBOR are also referred to the interest rates allotted for the less favored world's borrowers. LIFE OF LOAN: A loan borrowed from a bank for a certain capital with a precise reimbursement agenda and a balanced interest rate. Life of a loan is between 1 to 10 years. LIFFE:

London International Financial Futures and Options Exchange (LIFFE) was formed after the initiation of Chicago Board of Trade and the Chicago Mercantile Exchange. It dealt with futures, alternatives and products agreements. In the year 2002, it was obtained by Euronext in order to elevate its existence as a derivatives seller. After the acquisition LIFFE was rechristened as Euronext.liffe. LINE OF CREDIT: An understanding between a bank and a consumer ascertaining an utmost loan equilibrium that the financial institution can allow the borrower to retain is known as Line of Credit. The benefit of Line of Credit in case of ordinary loan is that the borrower is not entitled to forfeit on behalf of the portion of line of credit that he generally doesn't utilize. LIQUEDATION: When the operation of a company come to an end or when the company is considered as bankrupt, then its properties are sold, advance amount is paid to the creditors and surpluses are circulated to shareholders. In other words Liquidation is referred to any kind of business deal that equalizes or terminates a short-term or long-term arrangement. LIQUIDITY RISK: The risks arising from the absence of profitability of an investment or deposit that can neither be purchased nor traded promptly to avert or reduce any kind of loss is termed as Liquidity risk. LONDON CLEARING HOUSE: London Clearing House is an association related with an exchange to deal with the verification, payment and release of contracts along with satisfying the key responsibility of ascertaining that the dealings are done in a speedy and well-organized way. Banking terms beginning with M MICR CODE MICR stands for Magnetic Ink Character Recognition. MICR Code comprises nine digits given on the white strip in the lower part of the cheque on the right side of the cheque number. This is a unique code and no two bank branches can have the same set of this code in the nation. It facilitates the process of cheque clearance. The MICR Code is different from the IFCS code, that is mentioned on every cheque. This code number is needed in case of RTGS / NEFT transaction. MINIMUM QUARTERLY BALANCE/QUARTERLY AVERAGE BALANCE A savings account holder needs to keep a minimum balance in his/her account on monthly or quarterly basis, as specified by the banks. In case of private banks, the person may have to maintain higher balance than that of any public sector bank. The public sector banks can ask a person to maintain a balance of Rs. 500 to Rs. 1000. However, in private sector banks, the minimum limit for the quarterly balance begins from Rs 5,000. MORATORIUM PERIOD

The moratorium period can be called a repayment holiday for loan. If an individual wants to secure disbursement of loan, but he doesn't have EMI or Pre-EMI provision, he is provided with an option to dish out some amount, as stated in the bank policy. The moratorium period is contained in the maximum repayment period. An individual has to pay interest rates during this period. Banking terms beginning with U UMBRELLA FUND: It is an investment phrase which is used to explain a combined investment policy presented in a form of one legal entity but incorporates many discrete sub-subsidizes which are sold as personal investment funds. UNDERWRITER: A legal entity which governs the unrestricted issuance and allocation of securities from a conglomerate or other issuing entity is known as an Underwriter. Such kind of entity works in association with the issuing entity to verify the submission cost of the securities. It purchases securities from the issuing entity and trades them to depositors through the underwriter's allocation channel. UNINSURED DEPOSIT: Uninsured Deposits are not covered against losses. They generate greater interest rate due to absence of cover and the buyer undertakes all risks. UNIT OF TRADING: It refers to the usual quantity of shares, debentures, goods, equities that incorporates the lowest unit of buying and selling on an exchange. UNIT OF TRUSTS: A non-integrated mutual fund organization that permits accounts to possess assets and exceed gains via the account holders, other than investing them again into the account. UNIVERSAL STOCK FUTURES: An assortment of consistent futures agreements on the shares of respective firms is known as Universal Stock Futures. The futures agreement is an accord between the purchaser and the vendor to purchase or trade an allocated number of shares during any time in the future at a pre-decided cost. The agreement is signed with a cash payment, which indicates that the stocks are not entitled to be distributed. Banking terms beginning with O OBLIGATION: The legal liabilities on a firm or individual to satisfy the conditions of an agreement. If the liability is not paid, the other party can resort to suitable measures as per the ones mentioned in the agreement. OFFER PRICE: Offer Price is referred to the price which a purchaser is eager to acknowledge for a security. Besides the cost, the offer price usually specifies the sum of the security that the purchaser is willing to sell it for. OFEX: OFEX or PLUS Markets Group PLC is a London-based stock exchange which emerged as a Recognized Investment Exchange in the year 2007. OPEX firms have greater tentative investments than Alternative Investment Market (AIM) firms.

OPEN-END CREDIT: A loan which was agreed previously and can be utilized frequently up to a definite limit is called an Open-end credit. Also known as line of credit, it offers investors and firms an available amount of cash whenever required. OPEN-END FUND: Open-End Fund is a kind of mutual fund which includes no constraints on the number of shares the fund will allocate. In case of escalating demands, the fund will carry on allocating shares regardless of the number of investors. They can also be procured back and can be sold as per the desire of the investor. OPEN-END LEASE: A contract that compels the leaseholder, who make intermittent rent payments, to buy the rented property at the closing contents of the contract. It is also known as a "finance lease". OUT-OF THE MONEY: Out of the Money is a term which is used when the strike value of an option is greater than the market cost of the principal asset. OUTSTANDING CHECK: Checks or demand drafts that have not been delivered to the forfeiting bank for compensation or the checks which are still waiting to be collected are known as Outstanding Checks. OUTSTANDING DEBT: Outstanding Debt refers to the due portion of a liability that may incorporate interest accumulated on the amount held. OVER THE COUNTER (OTC): A security dealt in a different perspective other than the recognized stock exchange like NYSE, AMEX, etc. The term is associated with the stocks that are sold through a trader, the channel which is different from a federal exchange. It also indicates to the protection of the obligation and other fiscal tools such as derivatives, which are sold by merchants. OVERBOUGHT: It is referred to certain kind of condition in which the requirement of a specific asset excessively elevates the cost of the price of a principal asset to such an extent that does not assist the essentials. OVERDRAFT: Overdraft is regarded as an immediate expansion of credit from a loan providing organization. If the borrower has an overdraft bank account, his checks would be covered by the banks in case if they bounce. OVERDUE: Overdue refers to outstanding and more than outstanding amount which is postponed further ahead the premeditated time of arrival or imbursement. OVERSOLD: It is a situation in which the cost of the principal property declines rapidly to an extent of its original value. This situation is generally an outcome of panic selling of goods in the market. Banking terms beginning with T TIME DECAY: The changing ratio in an option's cost from the decline in duration to the time of its termination. In short, it is the process in which the cost of an option premium is worn as termination advances. It is also known as theta and time-value decay. TIME DEPOSIT: Time Deposit is a saving account or certificate deposit which is possessed for an

allocated duration with the perceptive that the investor can extract it by providing written application only. TIME VALUE OF MONEY: Also known as present discounted value, it refers to the concept that the capital available at a specific duration values much more than the similar cost in the future because of its prospective income ability. This basic theory of investment states similar concept provided capital can generate interest and any kind of capital values much more the faster it is attained. TOTAL EXPENSE RATIO: A computation of the total value related to controlling and functioning of an investment organization such as mutual fund is Total Expense Ratio. These values mainly incorporate organization charges and supplementary expenditures for instance transaction charges, official charges, assessor fees and other functional expenditures. TOTAL RETURN: The profit or loss on an investment that is accrued on two elements: earnings accrued from interest on dividends and capital expansion in the share value or bond value. Total Return is generally expressed as a yearly proportion in context of the sum invested. TOWNHOUSE: It refers to a residential unit that encompasses two or more stories and is linked to other associated units through party hedges. They are generally used in designed unit improvement which offers grouped or combined lodging. TRANSACTION: A pact signed between the purchaser and the vendor for the trading of commodities and services for compensation. The parties taking part in a business deal has a compulsion to execute their part. TREASURY BILLS: Treasury Bills are an interim debt responsibility supported by the government with a maturity period of below a year. They are subscribed via an aggressive bidding method at a concession. It indicates that the bond offers income to the holder rather than forfeiting of pre-set interest payments by the holder. TREASURY BOND: It is a profitable bond with a pre-set interest rate and a maturity period of more than ten years. The holder is entitled to make interest imbursements after every six months and the earnings accrued by the holders is only charged at the national level. TREASURY NOTE: Treasury notes are profitable investments with preset interest rate with a maturity period between one to ten years. They are widely preferred investments because they offer great derivative markets that trigger their liquidity. Interest fees on the notes are transacted after every six months till the investment matures. TREASURY SECURITY: They are bonds which have a maturity level of more than ten years. Also known as 'the long bond', they uphold capital on a long term basis and pays greater yields to the depositors.

TRENDLINE: A line on the cost diagram of a security illustrating the general course of the development of a security in its business operations. Trendlines are used to investigate the cost of individual securities, like goods, mutual fund, etc. TREYNOR RATIO: Treynor Ratio was formed by Jack Treynor which computes surplus income accrued in comparison to the income which could have been accrued on safe investments for each unit of market instability. Banking terms beginning with R REPO RATE If any bank faces fund shortage and seeks to borrow some amount from the central bank of India i.e. RBI, it is charged the Repo rate. If repo rate is reduced, the banks get to avail funds at low rates. REVERSE REPO RATE When Reserve bank of India takes fund from banks, it is charged the Reverse Repo Rate. If reverse repo rate is raised, it becomes attractive for the banks to lend more money to RBI, as it accounts for higher interest rates. RTGS, NEFT AND IFSC CODE The National Electronic Fund Transfer (NEFT) system was started to facilitate the process of fund transfer from one bank to the other. RTGS or Real Time Gross Settlement, on the other hand, is a process which helps in money transfer from one bank to the other on gross basis and on a real time. This system makes money transfer fast and smooth. Settlement in real time implies that there is no waiting period for the fund transfer. Gross settlement, on the other hand, stands for settlement done on one-to-one basis. This is considered to be the full and final payment and cannot be revoked, as it is registered with RBI. In order to ascertain the unique identity of the different branches of the banks, the Indian Financial System Code (IFSC) was devised. This code is a combination of letters and numbers. The first 4 characters of this code represent the banks code and next character includes the control character. Presently, 0 is used in the 5th position. The last 6 characters stand for the branch identity. In MICR code, one can refer to the nine numbers to locate a particular branch of the bank. Banking terms beginning with A ABSOLUTE ADVANTAGE: The capability of a nation, entity, corporation, or state to generate a product or service at a lesser price per unit than the price at which any other unit generates that product or service. For instance: The generation capacity of Japan in producing television sets is more as compared to other nations and is considered to have an absolute advantage in this aspect.

ACCRUED INTEREST: The interest amount collected on purchase of an equity share/ bond or debenture since the preceding coupon imbursement, excluding the completion date. Accrued interest is included to the indenture price of a bond contract. There are two ways for computing accrued interest:

(a) On the basis of 360-day a year, employed for commercial and public shares (b) On the basis of 365-day a year, employed for government shares.

ADVANCE PAYMENT: Compensation made to the indemnified person by the insurance firm prior to the completion date is called the advance payment. For instance, if the maturity dates of the claim is premeditated on July 1, 2002 and the insurance firm forfeits the petitioner before the settlement date, the payment is considered as an advance payment. ALLOTMENT: Distribution of shares or bonds in support of new concerns is termed as Allotment. In other words securities allocated to associates of a countersigning consortium for the reselling to shareholders/investors. ALTERNATIVE INVESTMENTS: A phrase indicating to any kind of nonconventional property with hidden fiscal value that cannot be discovered in an ordinary investment portfolio. Because of the exceptional features of these investment properties, assessment may arise as an issue. AMALGAMATION: Amalgamation or consolidation is the procedure of merging or joining of two business entities into one new entity. The permutation can be an outcome of one business entity obtaining the other, uniting of two or more business entities, or either by suspension of obtainable firms and creation of a new firm to control the merged entities. AMORTIZATION: Also known as diminution, liquidation, or approval of an obligation, Amortization refers to the amount utilized for meeting that need. In short, it is the distribution of an approximate amount during various durations, especially for mortgages and other type of investment which incorporates associated interest or other monetary charges. Amortization is generally used in determining the investment cost of securities. AUTHORIZED SIGNER: An individual employed by the account holder to sign and deliver cheques, demand drafts, receipts or any other form of payment in cash or kind is known as an Authorized Signer. AUTOMATED CLEARING HOUSE (ACH): An online money-transfer method established by the National Automated Clearing House Association is known as Automated Clearing House. This compensation method transacts in context of payroll, undeviating investment, tariff reimbursements, customer invoices, tax fee and other payment facilities. The usage of online payment houses is to assist online fund-transfers and accelerate competence and suitability of government and commercial dealings.

DD Demand draft in the Indian context is essentially a written order, where a buyer predeposits an amount of money in a bank and hands over the written order to the seller, so that the seller can demand the deposited money from the bank where it way deposited (May not be in the same branch though). Suppose Mr.A wants to buy a product from a company xyz which costs Rs.600 Instead of giving the money to xyz, Mr.A draws a Demand draft (DD in short) for Rs.600 in favour of xyz by paying Rs.600 (plus an additional commission that goes to the bank utilized) and then hands over the DD to xyz. In India, DDs are more frequently used for employment purposes where a company ask its applicants to draw a DD of required amount in its favour. Most DDs will have a validity period of 6 months. If the beneficiary didnt produce the DD with in 6 months from the drawn date, then it may be void. Many Demand draft, essentially consist of 3 variables:

DD number MICR number and Transaction code

Some DDs may also have the extra 6 digit numbers between MICR and transaction code. The first variable is the DD number which will of 6 digits, followed by 9 digit MICR code, then followed by the next 6 digits (may not exists in some banks) and lastly the 2 digit transaction code. As far as the DD CHARGES go, the countries largest bank SBI charges are as follows: For DD Amount up to Rs.10000, the charge is Rs.30 Above Rs.10000, the charge is Rs.2.50 multiplied by number of thousands.