General Banking Terminology

• 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 respect to, their capital adequacy, health of loan accounts and profitability and management of bank. the rating are from 

1. A (Good)
2. B (Satisfactory)
3. C (Unsatisfactory)
4. D (Poor)
5. E (Very poor)

• Central Bank- A Central Bank is an institution that manages nation's currency, Money supply, an interest rates.
• Closed Economy- When a country do not export its products and also don't requires to import goods from other countries, is said to be a closed economy country.
• Commercial Bank- A commercial Bank is a profit making financial institution, which borrows money from public in the form of Deposits and utilises these funds to provide loans to public.
• Correspondent Bank- The Correspondent Bank performs the duty of a business associate of a particular bank, where that particular bank does not have any branch.
• Corporate Banking- It refers to the banking needs of big firms, companies, business entities.
• Credit (CR)- When in a customer account, amount is deposited, the account is termed as Credited and entry is called as Credit Entry.
• Debit (DR)- When from a customer account, amount is withdrawn, the account is termed as debited and entry is called as debit entry.
• Expenditure Accounts- This is an account from where the expenditures of any nature, related to bank are made.
• Frozen or Freezed Accounts- The accounts where due to some reasons, operations are stopped by the Bank, is termed as Frozen or Freezed Account.
• Green Banking- This is the paperless banking and uses of paper is minimized in this system to save forest.
• Gross Domestic Product(GDP)- The sum total of market value of the finished goods and services produced in a country in a given year.
• Gross National Product (GNP)- The sum total market value of finished goods and services produced in a country in a given year, plus the income of domestic residents from investments made abroad, minus the income earned by foreign nationals from the domestic market.
• Islamic Banking- This type of banking is based on the principals of SHARIAT, a basic part of muslim law. Under this principal, no interest is to be paid as well as no interest is to be accepted.
• Merchant Banker- A Merchant Banker provide advises to their corporate customers in the financial matters.
• Money Laundering- When money gained from crimes is put into a bank from outer sources (foreign countries) or internal sources (within India) so that it can be accessed safely by the criminals or terrorists for drug trafficking activities, is Money Laundering.
• Mutilated Currency- This includes the paper currency notes, which are torn, defaced or are in bad condition and the coins which are not fit for circulation.
• Unit Banking- A bank which is not having any other branch and is operating with the single branch, is a unit banker or it is unit banking system.
• Virtual Banking- This is the banking facility which is availed by the customer without visiting the bank branches.