Common Banking Terms

Mandate
Written authority issued by a customer to another person to act on his behalf, to sign cheques or to operate a bank account.

Material Alteration
Alteration in an instrument so as to alter the character of an instrument for example when date, amount, name of the payee are altered or making a cheque payable to bearer from an order one or opening the crossing on a cheque.

Merchant Banking
When a bank provides to a customer various types of financial services like accepting bills arising out of trade, arranging and providing underwriting, new issues, providing advice, information or assistance on starting new business, acquisitions, mergers and foreign exchange.

Micro Finance
Micro Finance aims at alleviation of poverty and empowerment of weaker sections in India. In micro finance, very small amounts are given as credit to poor in rural, semi-urban and urban areas to enable them to raise their income levels and improve living standards.

Minor Accounts
A minor is a person who has not attained legal age of 18 years. As per Contract Act a minor cannot enter into a contract but as per Negotiable Instrument Act, a minor can draw, negotiate, endorse, receive payment on a Negotiable Instrument so as to bind all the persons, except himself. In order to boost their deposits many banks open minor accounts with some restrictions.

Mobile Banking
With the help of M-Banking or mobile banking customer can check his bank balance, order a demand draft, stop payment of a cheque, request for a cheque book and have information about latest interest rates.

Mobile banking

Money Laundering
When a customer uses banking channels to cover up his suspicious and unlawful financial activities, it is called money laundering.

Money Market
Money market is not an organized market like Bombay Stock Exchange but is an informal network of banks, financial institutions who deal in money market instruments of short term like CP, CD and Treasury bills of Government.

Moratorium
R.B.I. imposes moratorium on operations of a bank; if the affairs of the bank are not conducted as per banking norms. After moratorium R.B.I. and Government explore the options of safeguarding the interests of depositors by way of change in management, amalgamation or take over or by other means.

Mortgage
Transfer of an interest in specific immovable property for the purpose of offering a security for taking a loan or advance from another. It may be existing or future debt or performance of an agreement which may create monetary obligation for the transferor (mortgagor).

NABARD
National Bank for Agriculture & Rural Development was setup in 1982 under the Act of 1981. NABARD finances and regulates rural financing and also is responsible for development agriculture and rural industries.

Negotiation
In the context of banking, negotiation means an act of transferring or assigning a money instrument from one person to another person in the course of business.

Non-Fund Based Limits
Non-Fund Based Limits are those type of limits where banker does not part with the funds but may have to part with funds in case of default by the borrowers, like guarantees, letter of credit and acceptance facility.

Non-Resident
A person who is not a resident of India is a non-resident.

Non-Resident Accounts
Accounts of non-resident Indian citizens opened and maintained as per R.B.I. Rules.

Notary Public
A Lawyer who is authorized by Government to certify copies of documents .

NPA Account
If interest and instalments and other bank dues are not paid in any loan account within a specified time limit, it is being treated as non-performing assets of a bank.

Latest Jobs

  1. Type
    Job Notification
    Job
    Indian Institute of Technology Hyderabad Recruitment of 152 JE, Engineer, Library Assistant, MTS - Last Date 17-02-2020
    Location
    HyderabadTelangana, India
    Date Posted
    6 Feb 2020
  2. Type
    Job Notification
    Job
    SBI Recruitment of 100 Specialist Officers - Last Date 12-02-2020
    Location
    Anywhere
    Date Posted
    4 Feb 2020
  3. Type
    Job Notification
    Job
    INDIAN Bank Recruitment 138 Specialist Officers - Last Date - 10-02-2020
    Location
    Anywhere
    Date Posted
    3 Feb 2020
  4. Type
    Job Notification
    Job
    KVIC Recruitment of 108 Group-B and Group-C categories - Last Date 19-01-2020
    Location
    MumbaiMaharashtra, India
    Date Posted
    7 Jan 2020
  5. Type
    Job Notification
    Job
    SAIL Durgapur Steel Plant Recruitment of Manager, Technician, Medical Service Provider - 27-01-2020
    Location
    DurgapurWest Bengal, India
    Date Posted
    7 Jan 2020
  6. Type
    Job Notification
    Job
    Indian Coast Guard Recruitment 260 Navik - Last Date 02-02-2020
    Location
    Anywhere
    Date Posted
    7 Jan 2020
  7. Type
    Job Notification
    Job
    IOCL hiring 312 Apprentices - Last Date 22-01-2020
    Location
    Anywhere
    Date Posted
    7 Jan 2020
  8. Type
    Job Notification
    Job
    RBI Recruitment NEWS for 926 Assistants - Last Date 16-01-2020
    Location
    Anywhere
    Date Posted
    7 Jan 2020
  9. Type
    Job Notification
    Job
    Janki Devi Memorial College Recruitment 71 Assistant Professor - Last Date 04-01-2020
    Location
    DelhiDelhi, India
    Date Posted
    2 Jan 2020
  10. Type
    Job Notification
    Job
    NPCIL Recruitment of Trainee, Electrician, Fitter, Machinist, Welder, Driver - Last Date 21-01-2020
    Location
    RawatbhataRajasthan, India
    Date Posted
    2 Jan 2020

Jobs by Category

Syllabus and Previous Papers

Leave a Reply

Your email address will not be published. Required fields are marked *