Category Archives: Banking Awareness

Advantages of Payments Banks

Payments Bank operate, they have following advantages for the customers: ⇒ Individuals can use the payment bank account to make daily or monthly cash transactions, either through debit card or through…

What is Insurance ?

Insurance can be defined as a contract between two parties, where one promises the other to indemnify or make good any financial loss suffered by the latter (the insured) in…

What is Wholesale Banking ?

Wholesale Banking refers to doing banking business with industrial and business entities – mostly corporates and trading houses, including multinationals, domestic business houses and prime public sector companies. Banks in…

What is a Bond ?

A bond is a negotiable certificate evidencing indebtedness. It is normally unsecured. A Bond (debt security) security is generally issued by a company, municipality or a government agency. A bond…

Different Types Of Mutual Fund Schemes

A mutual fund scheme can be classified into an open-ended fund or close-ended fund depending on its maturity period. A scheme can also be classified as a Growth Fund, Income…

What is Repo/Reverse Repo Rate ?

These rates under the Liquidity Adjustment Facility (LAF) determine the corridor for short-term money market interest rates. In turn, this is expected to trigger movement in rates in other segments…

Liquidity Adjustment Facility (LAF)

It consists of daily infusion or absorption of liquidity on a repurchase basis, through repo (liquidity injection) and reverse repo (liquidity absorption) auction operations, using government securities over and above…

What is Retail Banking ?

Retail Banking can be defined as doing business with individual customers. Retail banking is, however, quite broad in nature – it refers to the dealing of commercial banks with individual…

What is Statutory Liquidity Ratio (SLR) ?

It is share of net demand and time liabilities that banks must maintain in safe and liquid assets, such as government securities, cash and gold. SLR prescribes the amount of…

What is Cash Reserve Ratio (CRR) ?

The Reserve Bank traditionally relied on direct instruments of monetary control such as Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).  Cash Reserve Ration indicates the quantum of cash…