Important Banking Terms

Important Banking Terms

Banking Terms is Important for

IBPO PO

IBPS Clerk

IBPS RRB

SBI PO

RBI Exams

LIC Exams

The Benefits of Learning Banking Terms

Very Scoring Topic

Easy To Learn

Easy To Remember

It is Also Useful for Daily Life

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Plastic Money

Banking TermsPLASTIC MONEY

Plastic Cards used instead actual Bank Notes.

Ex. - Cash Cards, Credit Cards, Debit Cards, Pre-paid Cash Cards &

Store Cards.

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DEBIT CARD (Gift Card)

Type of Plastic Money

Alternative payment method for cash withdrawals

Prepaid ATM card

Transfer money electronically when making a purchase

CREDIT CARD

To borrow money when you purchases

Sent a bill every month of your total purchase.

Post Paid Money Card

Allowing the holder to purchase services on credit

SMART CARD

Chip Card or Integrated Circuit Card

Can Process Information

Plastic Card with a built-in microprocessor

Used for Financial Transactions.

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Bank Accounts

SAVING ACCOUNT

Save money & Earn interest.

Least profitable type of short-term investment

Interest Rate ranges between 4% - 6% per annum.

The Number & amount of deposits - no restriction

CURRENT ACCOUNT

Useful for Businessmen

Not used for investment or saving

No limit for transaction numbers or Amount

No interest is paid

Frequent deposits and withdrawals by cheque

RECURRING DEPOSIT ACCOUNT (RD)

Save small Fixed amount every month.

Earn interest at the rate applicable to Fixed Deposits.

Minimum Period of RD is 6 months and maximum is 10 years.

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FIXED DEPOSIT

ACCOUNT

Money is deposited for a stated period of time and a fixed interest rate is

paid at the end of that period.

Period - 7 days to 10 Years

Also known as Term Deposits or Bond.

Important Rates

BANK RATE

Bank Rate is a tool, which central bank uses for short-term purpose

Bank rate is the rate charged by the central bank for lending funds to commercial banks.

The rate at which the RBI lends money to commercial banks in the

event of any shortfall of funds.

REPO RATE

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The rate at which the RBI borrows money from commercial banks

within the country.

REVERSE REPO RATE

STATUTORY LIQUIDITY RATIO (SLR)

The ratio of banks total deposits for which banks are required to keep with themselves

It might be in form of cash, gold, government securities and deposits in other banks as current account.

CASH RESERVE RATIO (CRR)

Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI.

Important Links

IBPS PO Recruitment

IBPS Clerk Recruitment

IBPS RRB Recruitment

IBPS SO Recruitment

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