What is Mobile Money?

Mobile payment is completely a different domain and generally refers to payment of services operated under financial regulation and performed from or via a mobile device. It is also referred to as mobile money, mobile banking, mobile money transfer and mobile wallet. Mobile payment is an alternative payment method. Instead of paying with cash, check, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods such...
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Understanding Priority Sector Lending – Classification and Targets

It is important to understand about the priority sector for all bank aspirants as you can always expect some questions in the exams and interview. Here is a small FAQ on lending in priority sector. 1. What is meant by Priority Sector? Priority sector refers to those sectors of the economy which may not get timely and adequate credit in the absence of this special dispensation. Typically, these are small value loans to farmers for agriculture and allied activities,...
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What are Mutual Funds & Fixed Deposits?

A MUTUAL FUND is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets whereas a FIXED DEPOSIT (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. It is known as a term deposit or time...
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What are Asset Reconstruction Companies?

Introduction Asset reconstruction is the handling of distressed assets to attempt to recover their value and clear them from the books. The problem of non performing loan/assets is a global one and has been receiving attention of banks, economist, regulators and public, alike. Internationally Asset Reconstruction Companies (ARCs) have been created to bring about a system for cleaning up Non Performing Assets (NPAs) from the books of secured lenders and bring the locked assets in circulation into the economy. The word asset...
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Inflation Indexed Bonds – What and Why?

Reserve Bank of India recently launched Inflation Index Bond also known as Inflation-linked bonds or Inflation Indexed National Savings Securities. These bonds are launched in the backdrop of announcement made in the Union Budget 2013-14 to introduce instruments that will protect savings from inflation and also with increasing preference of investors for diversified instruments and to further improve the depth and width of G-Sec Market, it has been felt that Inflation Indexed bonds could be issued at the current juncture....
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BCSBI – Banking Codes And Standards Board Of India

What is BCSBI ? It is an independent and autonomous watch dog to monitor and ensure that the Banking Codes and Standards adopted by the banks are adhered to in true spirit while delivering their services. Definition:-  In these Rules, unless the context requires otherwise: “Act” means the Societies Registration Act, 1860  in its application to the State of Maharashtra. “Chairman” means the Chairman of the Governing Council referred to in Rule 6 or 7. “Chief Executive Officer” means...
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What Is Core Banking System ?

The word Core Banking is used to describe the various services being offered by the banking system to its customers and this is done by the whole banking core branches. This facility makes it possible for the banks to get transfer their funds and other transactions to other core branch offices in a very easy and quick manner. Now, there is no need to get deposit and withdrawal of your cash in the same branch. You can deposit from...
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IFSC Codes

IFSC means Indian Financial System Code. The Indian online payment systems like NEFT and RTGS requires IFSC code to locate the branch in which transaction is to be done. These code are directly used by RBI (Reserve Bank of India) to facilitate various interbank transactions. A IFSC Code contains 11 characters – for example – ICIC0001245 Explanation of various elements of IFSC Code The first 4 characters represent the bank or entity (ICIC0001245) – In this case it is...
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