Non – Scheduled Banks

Here are 10 banking terms you should know to manage your money better.

• Routing number. A nine-digit number that identifies your financial institution.
• FDIC. The Federal Deposit Insurance Corp.
• Certificate of deposit.
• APY.
• APR.
• Compound interest.
• Savings account.
• Returned item fee.

All the transactions put through by a bank, either on outright basis or ready forward basis and whether through the mechanism of Subsidiary General Ledger (SGL) Account or Bank Receipt (BR), should be reflected on the same day in its investment account and, accordingly, for SLR purpose wherever applicable.

Probability of default (PD) is a financial term describing the likelihood of a default over a particular time horizon. It provides an estimate of the likelihood that a borrower will be unable to meet its debt obligations.

Balance transfer of loan is the process where a customer transfers his outstanding principal amount to another bank or financial institute primarily for a better rate of interest and also better features.

• Commercial Banks. Such banks operate under the Banking Companies Act of 1956.
• Regional Rural Banks. Operating under the Regional Rural Bank Act of 1976, these banks started in 1975.
• Local Area Banks.
• Specialized Banks.
• Small Finance Banks.
• Payments Banks.

Here is a list of some of the types of bank accounts in India.

• Current account. A current account is a deposit account for traders, business owners, and entrepreneurs, who need to make and receive payments more often than others.
• Savings account.
• Salary account.
• Fixed deposit account.
• Recurring deposit account.
• NRI accounts.

A bank receipt contains detailed information about a financial transaction conducted at a bank. The transaction receipt generally includes the amount of the transaction, the date it occurred, and the employee number of the bank employee who conducted the transaction.

With a view to facilitating entities having Subsidiary General Ledger (SGL) accounts with RBI acting as custodians on behalf of their constituents for holding Government securities in scripless form, Reserve Bank has been allowing SGL Accountholders to have a second (SGL) Account in the books of Public Debt Office …

Definition. Through-the-cycle (TTC) is a technical characterization ( design choice) of a Credit Rating System. Through-the-cycle ratings aim to evaluate the Credit Risk of a borrower by taking into account only permanent (static, slowly varying) characteristics.

The distance to default provides a measure of the distance – in asset value standard deviations – of the current market value of assets in a company from a specified default point. If the obligation is not met, then the bondholders take over the company and the shareholders receive nothing.

Apply Now. A Top up loan meaning an extra loan is a financing option that is offered over and above the existing loan amount for products such as home loan and personal loan. The top-up loan is offered to customers who have an existing relationship with the lender, have a good credit score and have repayment ability.

Banks and finance companies are trying to gain business by offering lower interest rates. But you, as a borrower, need to look at other aspects as well, before moving your loan from one bank to another. Here are the six things you must consider.