Main Banking

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A bank is afinancial institutionand afinancial intermediarythat acceptsdepositsand channels those

deposits intolendingactivities, either directly or throughcapital markets. A bank connects customers

that have capital deficits to customers with capital surpluses.

Due to their critical status within thefinancial systemand the economy generally, banks arehighly

regulatedin most countries. Most banks operate under a system known asfractional reservebankingwhere they hold only a smallreserveof the funds deposited and lend out the rest for profit.

They are generally subject tominimum capital requirementswhich are based on an international set

of capital standards, known as theBasel Accords.

The oldest bank still in existence isMonte dei Paschi di Siena, headquartered inSiena,Italy, which

has been operating continuously since 1472. the most famous Italian bank was theMedicibank, set

up by Giovanni Medici in 1397.[3]

The earliest known state deposit bank,Banco di San Giorgio(Bank

of St. George), was founded in 1407 atGenoa,Italy.[4]

Globalization in the Banking Industry

In modern time there has been huge reductions to the barriers of global competition in the banking

industry. Increases in telecommunications and other financial technologies, such as Bloomberg, have

allowed banks to extend their reach all over the world, since they no longer have to be near

customers to manage both their finances and their risk. The growth in cross-border activities has also

increased the demand for banks that can provide various services across borders to different

nationalities. However, despite these reductions in barriers and growth in cross-border activities, the

banking industry is nowhere near as globalized as some other industries. In the USA, for instance,

very few banks even worry about the Riegle-Neal Act, which promotes more efficient interstate

banking. In the vast majority of nations around globe the market share for foreign owned banks is

currently less than a tenth of all market shares for banks in a particular nation. One reason the

banking industry has not been fully globalized is that it is more convenient to have local banks provide

loans to small business and individuals. On the other hand for large corporations, it is not as important

in what nation the bank is in, since the corporation's financial information is available around the

globe.

India

Banking in India originated in the last decades of the 18th century. The first banks were The General

Bank of India, which started in 1786, andBank of Hindustan, which started in 1790; both are now

defunct. The oldest bank in existence in India is theState Bank of India, which originated in theBank

of Calcuttain June 1806, which almost immediately became theBank of Bengal. This was one of the

three presidency banks, the other two being theBank of Bombayand theBank of Madras, all three of

which were established under charters from the British East India Company. For many years the

Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in

1921 to form theImperial Bank of India, which, upon India's independence, became theState Bank of

Indiain 1955.

History
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Indian merchants inCalcuttaestablished the Union Bank in 1839, but it failed in 1848 as a

consequence of the economic crisis of 1848-49. TheAllahabad Bank, established in 1865 and still

functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues

stock and requires shareholders to be held liable for the company's debt) It was not the first though.

That honor belongs to the Bank of Upper India, which was established in 1863, and which survived

until 1913, when it failed, with some of its assets and liabilities being transferred to theAlliance Bank

of Simla.

When theAmerican Civil Warstopped the supply of cotton toLancashirefrom theConfederate

States, promoters opened banks to finance trading in Indian cotton. With large exposure to

speculative ventures, most of the banks opened in India during that period fey and lost interest in

keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of

Europeans for next several decades until the beginning of the 20th century.

Foreign banks too started to arrive, particularly inCalcutta, in the 1860s. TheComptoire d'Escompte

de Parisopened a branch in Calcutta in 1860, and another inBombayin 1862; branches

inMadrasandPondicherry, then a French colony, followed.HSBCestablished itself inBengalin 1869.Calcutta was the most active trading port in India, mainly due to the trade of theBritish Empire, and

so became a banking center.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881

inFaizabad. It failed in 1958. The next was thePunjab National Bank, established inLahorein 1895,

which has survived to the present and is now one of the largest banks in India.

Around the turn of the 20th Century, the Indian economy was passing through a relative period of

stability. Around five decades had elapsed since theIndian Mutiny, and the social, industrial and other

infrastructure had improved. Indians had established small banks, most of which served particular

ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and a

number of Indianjoint stockbanks. All these banks operated in different segments of the economy.

The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian

joint stock banks were generally under capitalized and lacked the experience and maturity to compete

with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect

of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by

solid wooden bulkheads into separate and cumbersome compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by

theSwadeshimovement. The Swadeshi movement inspired local businessmen and political figures tofound banks of and for the Indian community. A number of banks established then have survived to

the present such asBank of India,Corporation Bank,Indian Bank,Bank of Baroda,Canara

BankandCentral Bank of India.

The fervour of Swadeshi movement lead to establishing of many private banks inDakshina

KannadaandUdupi districtwhich were unified earlier and known by the name South Canara ( South

Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank.

Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

During theFirst World War(19141918) through the end of theSecond World War(19391945), and

two years thereafter until theindependenceof India were challenging for Indian banking. The years of

the First World War were turbulent, and it took its toll with banks simply collapsing despite theIndian
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economygaining indirect boost due to war-related economic activities. At least 94 banks in India

failed between 1913 and 1918

Post-Independence

Thepartition of Indiain 1947 adversely impacted the economies ofPunjabandWest Bengal,

paralyzing banking activities for months. India'sindependencemarked the end of a regime of

theLaissez-fairefor the Indian banking. TheGovernment of Indiainitiated measures to play an active

role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government

in 1948 envisaged amixed economy. This resulted into greater involvement of the state in different

segments of the economy including banking and finance. The major steps to regulate banking

included:

TheReserve Bank of India, India's central banking authority, was established in April 1934, but

was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to

Public Ownership) Act, 1948 (RBI, 2005b).[Reference www.rbi.org.in]

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India

(RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank could

be opened without a license from the RBI, and no two banks could have common directors.

Nationalisation

Banks Nationalisation in India: Newspaper Clipping,Times of India, July 20, 1969

Despite the provisions, control and regulations ofReserve Bank of India, banks in India except

theState Bank of Indiaor SBI, continued to be owned and operated by private persons. By the 1960s,

the Indian banking industry had become an important tool to facilitate the development of theIndian

economy. At the same time, it had emerged as a large employer, and a debate had ensued about the

nationalization of the banking industry.Indira Gandhi, thenPrime Minister of India, expressed the

intention of theGovernment of Indiain the annual conference of the All India Congress Meeting in a

paper entitled "Stray thoughts on Bank Nationalisation."The meeting received the paper with

enthusiasm.
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Thereafter, her move was swift and sudden. The Government of India issued an ordinance

andnationalisedthe 14 largest commercial banks with effect from the midnight of July 19,

1969.Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of

political sagacity."Within two weeks of the issue of the ordinance, theParliamentpassed the Banking

Companies (Acquisition and Transfer of Undertaking) Bill, and it received thepresidentialapproval on

9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for

the nationalization was to give the government more control of credit delivery. With the second dose

of nationalization, the Government of India controlled around 91% of the banking business of India.

Later on, in the year 1993, the government mergedNew Bank of IndiawithPunjab National Bank. It

was the only merger between nationalized banks and resulted in the reduction of the number of

nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of

around 4%, closer to the average growth rate of the Indian economy.

Liberalisation

In the early 1990s, the thenNarasimha Raogovernment embarked on a policy ofliberalization,

licensing a small number of private banks. These came to be known as New Generation tech-savvy

banks, and included Global Trust Bank (the first of such new generation banks to be set up), which

later amalgamated with Oriental Bank of Commerce,Axis Bank(earlier asUTI Bank),ICICI

BankandHDFC Bank. This move, along with the rapid growth in theeconomy of India, revitalized the

banking sector in India, which has seen rapid growth with strong contribution from all the three sectors

of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in the norms for

Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which

could exceed the present cap of 10%,at present it has gone up to 74% with some restrictions.

The new policy shook the Banking sector inIndiacompletely. Bankers, till this time, were used to the

4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a

modern outlook and tech-savvy methods of working for traditional banks.All this led to the retail boom

in India. People not just demanded more from their banks but also received more.

Currently (2010), banking in India is generally fairly mature in terms of supply, product range and

reach-even though reach in rural India still remains a challenge for the private sector and foreign

banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean,

strong and transparent balance sheets relative to other banks in comparable economies in its region.

The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The

stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchangerate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in its

services sector-the demand for banking services, especiallyretail banking, mortgages and investment

services are expected to be strong. One may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak

Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to

hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake

exceeding 5% in the private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too aggressive in their

loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports

that the banks' loan recovery efforts have driven defaulting borrowers to suicide
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Types of banks

Banks' activities can be divided intoretail 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 tohigh net

worth individualsand families; andinvestment banking, relating to activities on thefinancial markets.Most banks are profit-making, private enterprises. However, some are owned by government, or

arenon-profit organizations.

Types of retail banks

National Bank of the Republic,Salt Lake City1908

ATMAl-Rajhi Bank
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National Copper Bank,Salt Lake City1911

Commercial bank: the term used for a normal bank to distinguish it from an investment bank.

After theGreat Depression, the U.S. Congress required that banks only engage in banking

activities, whereas investment banks were limited tocapital marketactivities. 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.

Credit unions: not-for-profitcooperativesowned by the depositors and often offering rates more

favorable than for-profit banks. Typically, membership is restricted to employees of a particular

company, residents of a defined neighborhood, members of a certain labor union or religious

organizations, and their immediate families.

Postal savings banks: savings banks associated with national postal systems.

Private banks: banks that manage the assets of high net worth individuals. Historically a minimum

of USD 1 million was required to open an account, however, over the last years many private

banks have lowered their entry hurdles to USD 250,000 for private investors.[citation needed]

Offshore banks: banks located in jurisdictions with low taxation and regulation. Many offshore

banks are essentially private banks.

Savings bank: in Europe, savings banks took their roots in the 19th or sometimes even in the

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; in

others, socially committed individuals created foundations to put in place the necessaryinfrastructure. 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

decentralized distribution network, providing local and regional outreachand by their socially

responsible approach to business and society.

Building societiesandLandesbanks: institutions that conduct retail banking.

Ethical banks: banks that prioritize the transparency of all operations and make only what they

consider to be socially-responsible investments.

ADirect or Internet-Only bankis a banking operation without any physical bank branches,

conceived and implemented wholly with networked computers.Types of investment banks

Investment banks"underwrite" (guarantee the sale of) stock and bond issues, trade for their own

accounts, make markets, and advise corporations oncapital marketactivities such as mergers

and acquisitions.

Merchant bankswere traditionally banks which engaged intrade finance. The modern definition,

however, refers to banks which provide capital to firms in the form of shares rather than loans.

Unlikeventure capital firms, they tend not to invest in new companies.
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Both combined

Universal banks, more commonly known asfinancial servicescompanies, engage in several of

these activities. These big banks are very diversified groups that, among other services, also

distribute insurance hence the termbancassurance, aportmanteau wordcombining "banque or

bank" and "assurance", signifying that both banking and insurance are provided by the same

corporate entity.

Other types of banks

Central banksare normally government-owned and charged with quasi-regulatory

responsibilities, such as supervising commercial banks, or controlling the cash interest rate. They

generally provide liquidity to the banking system and act as thelender of last resortin event of a

crisis.

Islamic banksadhere to the concepts ofIslamic law. This form of banking revolves around

several well-established principles based on Islamic canons. All banking activities must avoid

interest, a concept that is forbidden in Islam. Instead, the bank earns profit (markup) and fees onthe financing facilities that it extends to customers.

-

DENA BANK___________________________________________________________________________

Dena Bank, in July 1969 along with 13 other major banks was nationalized and

is now a Public Sector Bank constituted under the Banking Companies(Acquisition & Transfer of Undertakings) Act, 1970. Under the provisions of the

Banking Regulations Act 1949, in addition to the business of banking, the Bank

can undertake other business as specified in Section 6 of the Banking

Regulations Act, 1949.

History Dena Bank was founded on 26th May, 1938 by the family ofDevkaranNanjeeunder the name Devkaran Nanjee Banking Company Ltd

It became a Public Ltd. Company in December 1939 and later the name was changedto Dena Bank Ltd.

Dena Bank has been the first Bank to introduce:

Minor Savings Scheme.

Credit card in rural India known as "DENA KRISHI SAKH PATRA" (DKSP).

Drive-in ATM counter of Juhu, Mumbai.

Smart card at selected branches in Mumbai.

Customer rating system for rating the Bank Services.

Mission
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DENA BANK will provide its Customers - premier financial services of great value,

Staff - positive work environment and opportunity forgrowth and achievement,Shareholders - superior financial returns,Community - economic growth

Vision

DENA BANK will emerge as themost preferred Bank of customer choice

in its area of operations, by itsreputation and performance

logo

The logo ofDena Bank depicts Goddess Lakshmi, the Goddess of Wealth,according to Hindu mythology.

It was the desire of the founding fathers of the Bank that the Bank should be asymbol of prosperity for all its clients, and the logo represents this promise.

The contemporary 'D' in the logo reflects the dynamism, dedication andthedrive towards customer satisfaction.

Accounting for bank accounts

Suburban bank branch
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Bank statements are accounting records produced by banks under the various accounting standards

of the world. UnderGAAPand MAIC 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 a credit accountto increase its balance, and you debit a credit accountto decrease its

balance.[12]

This also means you credit your savings account every time you deposit money into it (and the

account is normally in credit), while you debit your credit card account every time you spend money

from it (and the account is normally in debit). However, if you read your bank statement, it will say the

oppositethat you credit your account when you deposit money, and you debit it when you withdraw

funds. If you have cash in your account, you have a positive (or credit) balance; if you are overdrawn,

you have a negative (or deficit) balance.

Where bank transactions, balances, credits and debits are discussed below, they are done so from

the viewpoint of the account holderwhich is traditionally what most people are used to seeing.

Types account

A transactional account is adeposit accountheld at abankor otherfinancial institution, for the

purpose of securely and quickly providing frequent access to funds on demand, through a variety of

different channels. Transactional accounts are meant neither for the purpose of earning interest

nor for the purpose of savings, but for convenience of the business or personal client; hence they tend

not to bear interest. Instead, a customer can deposit or withdraw any amount of money any number of

times, subject to availability of funds.

Savings accounts are accounts maintained by retailfinancial institutionsthat payinterestbut cannot

be used directly asmoney(for example, by writing acheck). These accounts let customers set aside aportion of their liquid assets while earning a monetary return. For the bank, money in a savings

account may not be callable immediately and therefore often does not incur areserve

requirementfreeing up cash from the bank's vault to be lent out with interest.

The other major types ofdeposit accountaretransactional (checking) account,money market

account, andtime deposit.

A money market account (MMA) or money market deposit account (MMDA) is a financial account

that pays interest based on current interest rates in themoney markets.[1]

Money market accounts typically have a relatively high rate ofinterestand require a higher minimum

balance (anywhere from $1,000 to $10,000 to $25,000) to earn interest or avoid monthly fees. The

resulting investment strategy is therefore similar to, and meant to compete with, amoney market

fundoffered by abrokerage. The two account types are otherwise unrelated.

A certificate of Deposit (CD) is atime deposit, a financial product commonly offered to consumers in

the United States by banks,thrift institutions, andcredit unions.

CDs are similar to savings accounts in that they are insured and thus virtually riskfree; they are

"money in the bank". CDs are insured by theFederal Deposit Insurance Corporation(FDIC) for banks

and by theNational Credit Union Administration(NCUA) for credit unions. They are different

fromsavings accountsin that the CD has a specific, fixed term (often monthly, three months, six
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months, or one to five years), and, usually, a fixedinterest rate. It is intended that the CD be held

untilmaturity, at which time the money may be withdrawn together with the accruedinterest.

In exchange for keeping the money on deposit for the agreed-on term, institutions usually grant higher

interest rates than they do on accounts from which money may be withdrawn on demand, although

this may not be the case in an invertedyield curvesituation. Fixed rates are common, but someinstitutions offer CDs with various forms ofvariable rates. For example, in mid-2004, interest rates

were expected to rise, many banks and credit unions began to offer CDs with a "bump-up" feature.

These allow for a single readjustment of the interest rate, at a time of the consumer's choosing, during

the term of the CD. Sometimes, CDs that are indexed to thestock market, thebond market, or other

indices are introduced.

A few general guidelines for interest rates are:

A largerprincipalshould receive a higher interest rate, but may not.

A longer term will usually receive a higher interest rate, except in the case of an inverted yield

curve (i.e. preceding a recession) Smaller institutions tend to offer higher interest rates than larger ones.

Personal CD accounts generally receive higher interest rates than business CD accounts.

Banks and credit unions that are not insured by the FDIC or NCUA generally offer higher interest

rates.

An Individual Retirement Arrangement (IRA) is a form ofretirement planthat providestax

advantagesforretirementsavings in the United States. The term encompasses an individual

retirement account a trust or custodial account set up for the exclusive benefit of taxpayers or their

beneficiaries and an individual retirementannuity, by which the taxpayers purchase an annuity

contract or an endowment contract from a life insurance company.

Credit facilities to Minority Communities - 121 Minority Concentrated DistrictsRoad map for

lending to Minority CommunitiesData on Credit Assistance Provided to Specified

Minority CommunitiesCredit Counselling Centres - Dena MitraFinancial inclusionDena

Laxmi Shiksha Protsahan YojanaMSME Innovative clusters -

GujaratAgricultureRegional Rural BanksSMEData of Agriculture Debt Waiver and

Debt Relief Scheme, 2008Parameters of Recommendations of Sachar CommitteeNodal

Officers of Regional MSME Care CentresNodal Officers appointed at Lead Bank

LevelDena ShaktiDena Swachchh Gram YojanaDena Paryavaran Suraksha

YojanaGold Card Scheme for the ExportersCode of Banks Commitment to Micro andSmall EnterprisesPrime Ministers Employment Generation ProgrammeDena Surya Urja

Scheme

International Banking

Dena Bank offers wide range of International Banking Services. Having more than 1130

branches spread over the country we are your ideal banking partner for all yourrequirements related to Foreign Exchange.

Our Trade Finance Services include various products to facilitate your international

business. We have 37 Authorised Dealing Branches to handle import/ export business.
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viewsection.jsp?lang=0&id=0,135,279http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,199http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,379http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,379http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,378http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,378http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,372http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,371http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,371http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,181http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,142http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,138http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,442http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,442http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,441http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,441http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,390http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,367http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,344,354http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,344,354http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,344,353http://www.denabank.com/viewsection.jsp?lang=0&id=0,135,344,353http://en.wikipedia.org/wiki/Annuity_(US_financial_products)http://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Tax_advantagehttp://en.wikipedia.org/wiki/Tax_advantagehttp://en.wikipedia.org/wiki/Retirement_planhttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Bond_markethttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Variable_ratehttp://en.wikipedia.org/wiki/Yield_curvehttp://en.wikipedia.org/wiki/Interest_(finance)http://en.wikipedia.org/wiki/Maturity_(finance)http://en.wikipedia.org/wiki/Interest_rate


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We offer all kind of deposit accounts and remittance facilities to NRI customers. We havespecial NRI Cells at select branches to cater to all requirements of NRIs / PIOs (Personsof Indian Origin) under one roof.

Dena Bank, your trusted family bank, now is proud to offer a range of sophisticated

banking services by way of Any-branch banking, Multi City cheque, Dena ATM's, Dena

Cards, online remittance, Internet Banking, Mobile banking, Tele banking, Online utility

Bill Payment, Value added Service through ATM, Kiosks and many more.

With over 1100 branches across the country, we are always ready to serve our

customers, and to offer them the best of the technology-enabled banking products and

services.

Core Banking SolutionDena ATM ServicesVerified by Visa ServicesInternet

BankingDena e-Tax PayMobile BankingPhone BankingDena Alert ServicesDena

BillPayRTGS / NEFTDena IndiaRemitInbound RemittancesDirect Tax

CollectionIndirect TaxBancassuranceDistribution of Mutual FundsDemat

ServicesASBA

A passbook or bankbook is a paper book used to record bank transactions on adeposit

account. Depending on the country or thefinancial institution, it can be of the dimensions of

achequebookor apassport.

Traditionally, a passbook is used for accounts with a low transaction volume, such as

asavings account. Thebank tellerorpostmasterwrites, by hand, the date and amount of the

transaction, the updated balance, and enter his or her initials. In the late 20th century,

smalldot matrixorinkjet printerswere introduced to update the passbook at the account

holder's convenience, either at anautomated teller machineor a passbook printer, either in a

self-serve mode, by post, or in abranch.

A cheque is a document/instrument that orders a payment of money from a bank account.

The person writing the cheque, the drawer, usually has acurrent accountwhere their money

was previously deposited. The drawer writes the various details including the money amount,

date, and a payee on the cheque, and signs it, ordering theirbank, known as the drawee, to

pay that person or company the amount of money stated.

Cheques are a type ofbill of exchangeand were developed as a way to make payments

without the need to carry large amounts ofgoldandsilver. Whilepaper moneyevolved

frompromissory notes, another form of negotiable instrument, similar to cheques in that they

were originally a written order to pay the given amount to whomever had it in their possession

(the "bearer").

A paycheck is traditionally a paper document (acheque) issued by

anemployertopayanemployeefor services rendered. In recent times, the physical

paycheck has been increasingly replaced by electronicdirect depositto bank accounts. Such

employees may still receive a pay slip, but any attached cheque is marked asnon-

negotiableand cannot be cashed.
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g/wiki/Incomehttp://en.wikipedia.org/wiki/Incomehttp://en.wikipedia.org/wiki/Incomehttp://en.wikipedia.org/wiki/Employment#Employeehttp://en.wikipedia.org/wiki/Employment#Employeehttp://en.wikipedia.org/wiki/Employment#Employeehttp://en.wikipedia.org/wiki/Direct_deposithttp://en.wikipedia.org/wiki/Direct_deposithttp://en.wikipedia.org/wiki/Direct_deposithttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Direct_deposithttp://en.wikipedia.org/wiki/Employment#Employeehttp://en.wikipedia.org/wiki/Incomehttp://en.wikipedia.org/wiki/Employment#Employerhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Bearer_instrumenthttp://en.wikipedia.org/wiki/Promissory_notehttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Negotiable_instrument#Bill_of_exchangehttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Inkjet_printerhttp://en.wikipedia.org/wiki/Dot_matrix_printerhttp://en.wikipedia.org/wiki/Postmasterhttp://en.wikipedia.org/wiki/Bank_tellerhttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Passporthttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://www.denabank.com/viewsection.jsp?lang=0&id=0,9,443http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,356http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,356http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,271http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,246http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,317http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,42http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,42http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,156http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,218http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,276http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,145http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,145http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,408http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,429http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,424http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,297http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,347http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,347http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,405http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,120http://www.denabank.com/viewsection.jsp?lang=0&id=0,9,318


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A pay stub, paystub, payslip, pay advice, or sometimes paycheck stub, is a document an

employee receives either as a notice that the direct deposit transaction has gone through, or

is attached to their paycheck. It will typically detail the gross income and alltaxesand any

otherdeductionssuch as retirement plan orpensioncontributions,insurances,garnishments,

or charitable contributions taken out of the gross amount to arrive at the final net amount of

the pay, also including the year to date totals in some circumstances. Pay slips are labor

analogs ofremittance adviceletters (which are used forinvoices).

A credit card is a smallplasticcard issued to users as a system ofpayment. It allows its

holder to buy goods and services based on the holder's promise to pay for these goods and

services.[1]

The issuer of the card creates arevolving accountand grants aline of creditto

theconsumer(or the user) from which the user can borrow money for payment to

amerchantor as acash advanceto the user.

A credit card is different from acharge card: a charge card requires the balance to be paid in

full each month.[2]

In contrast, credit cards allow the consumers a continuing balance of debt,

subject tointerestbeing charged. A credit card also differs from acash card, which can beused like currency by the owner of the card. Most credit cards are issued bybanksorcredit

unions, and are the shape and size specified by theISO/IEC 7810standard as ID-1.

A debit card (also known as a bank card or check card) is a plastic card that provides the

cardholder electronic access to his or herbank account(s) at a financial institution. Some

cards have astored valuewith which a payment is made, while most relay a message to the

cardholder's bank to withdraw funds from a designated account in favor of the payee's

designated bank account. The card can be used as an alternative payment method

tocashwhen making purchases. In some cases, theprimary account numberis assigned

exclusively for use on the Internet and there is no physical card.[1][2]

In many countries the use of debit cards has become so widespread that their volume hasovertaken or entirely replacedchecksand, in some instances, cash transactions. The

development of debit cards, unlikecredit cards, has generally been country specific resulting

in a number of different systems around the world, which were often incompatible. Since the

mid 2000s, a number of initiatives have allowed debit cards issued in one country to be used

in other countries and allowed their use for internet and phone purchases.

However, unlike credit cards, the funds paid using a debit card are transferred from the

bearer's bank account, instead of having the bearer pay back the money at a later date.

Debit cards usually also allow for instant withdrawal of cash, acting as theATM cardfor

withdrawing cash. Merchants may also offercashbackfacilities to customers, where a

customer can withdraw cash along with their purchase.
http://en.wikipedia.org/wiki/Withholding_taxhttp://en.wikipedia.org/wiki/Withholding_taxhttp://en.wikipedia.org/wiki/Withholding_taxhttp://en.wikipedia.org/wiki/Itemized_deductionhttp://en.wikipedia.org/wiki/Itemized_deductionhttp://en.wikipedia.org/wiki/Itemized_deductionhttp://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Garnishmenthttp://en.wikipedia.org/wiki/Garnishmenthttp://en.wikipedia.org/wiki/Garnishmenthttp://en.wikipedia.org/wiki/Remittance_advicehttp://en.wikipedia.org/wiki/Remittance_advicehttp://en.wikipedia.org/wiki/Remittance_advicehttp://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Credit_card#cite_note-0http://en.wikipedia.org/wiki/Credit_card#cite_note-0http://en.wikipedia.org/wiki/Credit_card#cite_note-0http://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Credit_card#cite_note-1http://en.wikipedia.org/wiki/Credit_card#cite_note-1http://en.wikipedia.org/wiki/Credit_card#cite_note-1http://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/Cash_cardhttp://en.wikipedia.org/wiki/Cash_cardhttp://en.wikipedia.org/wiki/Cash_cardhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Primary_account_numberhttp://en.wikipedia.org/wiki/Primary_account_numberhttp://en.wikipedia.org/wiki/Debit_card#cite_note-0http://en.wikipedia.org/wiki/Debit_card#cite_note-0http://en.wikipedia.org/wiki/Debit_card#cite_note-0http://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Debit_card_cashbackhttp://en.wikipedia.org/wiki/Debit_card_cashbackhttp://en.wikipedia.org/wiki/Debit_card_cashbackhttp://en.wikipedia.org/wiki/Debit_card_cashbackhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Debit_card#cite_note-0http://en.wikipedia.org/wiki/Debit_card#cite_note-0http://en.wikipedia.org/wiki/Primary_account_numberhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Cash_cardhttp://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/Credit_card#cite_note-1http://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Credit_card#cite_note-0http://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/Remittance_advicehttp://en.wikipedia.org/wiki/Garnishmenthttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Itemized_deductionhttp://en.wikipedia.org/wiki/Withholding_tax


13/14

Competition for loanable funds

To be able to provide home buyers and builders with the funds needed, banks must compete for

deposits. The phenomenon ofdisintermediationhad to dollars moving from savings accounts and into

direct market instruments such asU.S. Treasuryobligations, agency securities, and corporate debt.

One of the greatest factors in recent years in the movement of deposits was the tremendous growthof money market funds whose higher interest rates attracted consumer deposits.[11]

To compete for deposits, US savings institutions offer many different types of plans:[11]

Passbookor ordinarydeposit accounts permit any amount to be added to or withdrawn from

the account at any time.

NOW and Super NOW accounts function like checking accounts but earn interest. A minimum

balance may be required on Super NOW accounts.

Money market accounts carry a monthly limit of preauthorized transfers to other accounts or

persons and may require a minimum or average balance.

Certificate accounts

subject to loss of some or all interest on withdrawals before maturity. Notice accounts the equivalent of certificate accounts with an indefinite term. Savers agree to

notify the institution a specified time before withdrawal.

Individual retirement accounts(IRAs) andKeogh plans a form of retirement savings in which

the funds deposited and interest earned are exempt from income tax until after withdrawal.

Checking accounts offered by some institutions under definite restrictions.

All withdrawals and deposits are completely the sole decision and responsibility of the account

owner unless the parent or guardian is required to do otherwise for legal reasons.

Club accounts and othersavings accounts designed to help people save regularly to meet

certain goals.

Transactional account

deposit account

checking account

current account

Personal account

deposit

Savings Account

Individual

Savings

Account

Time

deposit/certifi

cate of deposit

Tax-Exempt

Special

Savings

Account

Tax-Free

Savings

Account

Money market

account

Other accounts

loan account

Joint account

Low-cost

account

Nostro and

vostro accounts

Numbered bank

account

Negotiable

Order of

Withdrawal

account
http://en.wikipedia.org/wiki/Disintermediationhttp://en.wikipedia.org/wiki/Disintermediationhttp://en.wikipedia.org/wiki/Disintermediationhttp://en.wikipedia.org/wiki/U.S._Treasuryhttp://en.wikipedia.org/wiki/U.S._Treasuryhttp://en.wikipedia.org/wiki/U.S._Treasuryhttp://en.wikipedia.org/wiki/Banking#cite_note-multiple3-10http://en.wikipedia.org/wiki/Banking#cite_note-multiple3-10http://en.wikipedia.org/wiki/Banking#cite_note-multiple3-10http://en.wikipedia.org/wiki/Banking#cite_note-multiple3-10http://en.wikipedia.org/wiki/Banking#cite_note-multiple3-10http://en.wikipedia.org/wiki/Banking#cite_note-multiple3-10http://en.wikipedia.org/wiki/Passbookhttp://en.wikipedia.org/wiki/Passbookhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Money_market_accounthttp://en.wikipedia.org/wiki/Money_market_accounthttp://en.wikipedia.org/wiki/Individual_retirement_accounthttp://en.wikipedia.org/wiki/Individual_retirement_accounthttp://en.wikipedia.org/wiki/Keogh_planhttp://en.wikipedia.org/wiki/Keogh_planhttp://en.wikipedia.org/wiki/Keogh_planhttp://en.wikipedia.org/wiki/Checking_accounthttp://en.wikipedia.org/wiki/Checking_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wik

Main Banking

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