INDIAN CURRENCY (A) Some Basics History of Coins / currency: I. Coins II. Currency: What is the Indian currency called? What are the present denominations of banknotes in India? Can banknotes and coins be issued only in these denominations? Demonetization of higher denomination banknotes. What are the present available denominations of coins in India?… Read More »
US DOLLAR CHEQUE COLLECTION One of the services rendered by banks as part of their normal banking operations is collection of cheques deposited by their customers, some of which could also be drawn or payable on banks that are outside the country. Such cheques are called foreign currency cheques and, presently, a significant part of… Read More »
SPEED CLEARING (UPDATED AS ON 5-2-2013) Question 1. What is Speed Clearing ? Answer Speed Clearing refers to collection of outstation cheques (a cheque drawn on non-local bank branch) through the local clearing. It facilitates collection of cheques drawn on outstation core-banking-enabled branches of banks, if they have a net-worked branch locally. Question 2. Why… Read More »
INDO NEPAL REMITTANCE FACILITY SCHEME Q.1. What are the salient features of Indo Nepal Remittance Facility Scheme? Ans : Indo-Nepal Remittance Facility is a cross-border remittance scheme to transfer funds from India to Nepal, enabled under the NEFT Scheme. The scheme was launched to provide a safe and cost-efficient avenue to migrant Nepalese workers in… Read More »
ELECTRONIC CLEARING SERVICE (ECS) (UPDATED AS ON 12-11-2012) Q.1. What is Electronic Clearing Service (ECS)? Ans : ECS is an electronic mode of payment/receipt for transactions that are repetitive and periodic in nature. ECS is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk… Read More »
COLLECTION OF INSTRUMENTS 1. What happens if there are delays in cheque clearing? Local Cheques Local cheques are payable within the jurisdiction of the clearing house and will be presented through the clearing system prevailing at the centre. Credit arising out of local cheques shall be given to the customer’s account at the next day… Read More »
CHEQUE TRUNCATION SYSTEM (Updated as on 30-4-2012) 1. What is Cheque Truncation ? Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point with the presenting bank en-route to the drawee bank branch. In its place an electronic image of the cheque is transmitted to the… Read More »
NEFT SYSTEMS Q.1. What is NEFT? Ans: National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in… Read More »
RTGS SYSTEM Q1. What is RTGS System? Ans. The acronym ‘ RTGS ‘ stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting). ‘Real Time’ means the processing of instructions at the time they are received rather than… Read More »
ATM’S Q. 1. What is an Automated Teller Machine ( ATM )? Ans1. Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch. Q.2. What… Read More »