BANKING EXAM PREPARATION

Accommodation Bill- Bill of exchange (Hundi) which is issued without consideration is an accommodation bill and such hundies are not acceptable by banks for discount purpose.   Account Payee- This is a type of crossing, restricting the payment of a cheques or a demand draft to payee through a bank account only. Alongee- This is a white piece of paper attached to a cheque at the lower end of its backside, for the use of further endorsements. Ante Dated Cheque- The instrument bearing a date prior to the date of presentation, are ante dated cheques. Collecting Banker- A banker who collects the cheques and drafts from other banks on behalf of their customers, is a collecting banker. Crossed Cheques- The cheques bearing the two transverse parallel lines across the face of it, with or without words are crossed cheques. Forged Cheques- A cheque which does not bear the genuine signature of account holder or contains unauthenticated misleading alterations in the cheques. Order Che...

Average Daily Balances- The sum of the daily balances held in an account during a particular month, divided by the total number of days in that month, is known as average daily balance of that month. Call Deposits-  These are the deposits received by a bank from other fellow banks and are payable on demand. Call Money- Banks can borrow funds and park their excess fund in the open market (Call money market), where demand of funds is met by financial institutions, just like in share market. Certificate of Deposit- A term deposit certificate issued by a bank duly signed by its office to the depositor in printed format as a proof of deposit, stating the amount of deposit, name of depositor, period and maturity date, face value of the deposit, frequency and rate of interest payable and maturity value of the deposit. Core Deposits- Deposits typically made by regular customers of the bank. Current Accounts- These are the operative demand deposit accounts and can be opened by an in...

Bancassurance-  Bancassurance means, Bank + assurance and it refers to banks selling the insurance products of both Life and Non life type in any form. Bank Note or Currency Note-  This is a demand promissory notes issued by Reserve Bank of India and Government of India and it is payable to Bearer. Bank Rate (BR)-  Rate of interest at which Reserve Bank of India is prepared to rediscount, bill of exchange and other eligible securities of the banks. This is also known as discount rate of RBI. Bank run(Run on Banks)-  Due to some misinformation, with regard to the failure of a bank, If large number of customers if reaches to that bank for payment of their deposits, then the situation will be called as Run on Bank. Bankers book of Evidence-  A Banker is bound to declare the affairs of a customer, under the order of a competetive court and Income Tax Officer. Camels Rating-  Ratings awarded to the commercial banks by Reserve Bank of India, with res...

The history started, when the Bank of Calcutta was established on 2nd june, 1806; which later renamed as Bank of Bengal on 2nd january,1909. The Bank of Bengal was one among three Presidency Banks and the other two being the Bank of Bombay, incorporated on 15th April,1840 and The Bank of Madras, incorporated on 1st july 1843. These three banks were having the exclusive right to issue paper currency till 1861. All the Presidency Banks were amalgamated on 27th january,1921, and formed a new bank namely Imperial Bank of India . The Imperial Bank of India remained a joint stock copany. On 1st july,1955, The Imperial Bank of India become the State Bank of India with new logo (Blue Circle). Mr. John Mathai was appointed as its first chairman. SBI has acquired following state owned and private banks during October 1959 to May 1960 The Bank of Bikaner Ltd. The Bank of Indore Ltd. The Bank of Mysore Ltd. The Bank of Patiala Ltd. The Travancore Bank Ltd. The Hyderabad Stat...

The East India Company had established three presidency banks as " The Bank of Bengal " in calcutta on 2nd june,1806; " Bank of Bombay " on 15th April,1840 and " Bank of Madras " on 1st july 1843. In 1921, all the presidency banks were merged to form The Imperial Bank of India,  which was run by European Shareholders. It was working as a comercial bank vis-n-vis as a central bank of the country. With the establishment of Reserve Bank of India under RBI Act-1934 on 1st April,1935, the status of Central bank of the country was shifted to RBI from Imperial Bank of India. After this, the Imperial Bank was appointedas the principal agent of Reserve Bank of India. Paper money has come in circulation in the late eighteenth century with the issue of bank notes by private banks and later by semi-government banks (Presidency Banks). Out of Four currency printing presses in india, two presses are owned by the Government of India as at Nasik (Western India) a...

The term Bank is derived from the french word "BANCO", which means a Bench or Money exchange table. A bank is an "establishment for custody of money", who makes the payments from it on a customer's order. It also brings back money in circulation. A banking company means a company registered under the Indian Companies Act 1956 and which is conducting the business of banking. All the deposits accepted by banks from public are classified as liabilities and the loans & advances along with the investments are classified as assets of the bank. Bank always prepares an Assets & liability statement (ALM), any mismatch in ALM may drag a bank in payment crisis which may result into failure of the bank.