Bearer cheques are the ones on which payment is made to the bearer, i.e. the holder of the cheque who presents it to the bank. But order cheques are just the opposite, as only that person whose name the drawer writes on the cheque as the payee can take the payment. Further, the payee can pass this cheque to another party by signing on the back of the cheque, who can take payment on the payee's behalf. The best way to identify whether a cheque is an order or bearer is to look for the words in … [Read more...]
Difference Between Retail Banking and Corporate Banking
Retail banking model is designed for the general public, with bank branches set up at different locations in a city which handles retail customers daily. In contrast, corporate banking is for businesses to help them in raising funds, providing credit, and offering advice. It offers customized finance specifically designed and personalized for corporate houses, as per their needs. Banking implies the business carried out or the services offered by the banking company. There are a number of … [Read more...]
Difference Between Commercial Bank and Development Bank
Commercial Bank is the bank organized to perform public utility banking services, such as accepting deposits, lending money, etc. On the other hand, development bank refers to a multi-purpose financial undertaking set up to provide financial aid to the industrial and agricultural sector, to encourage development. Banks play a very important role in the financial system of every country. If the banking system in the economy is effective, it adds to the economic development of the country. … [Read more...]
Difference Between Fiat Currency and Cryptocurrency
Fiat currency implies the money issued by the government of a country. It is a traditional medium of exchange, which is in the form of tangible currency, i.e. dollars, pounds or rupees, or it can be expressed electronically as bank credit. On the contrary, Cryptocurrency is a substitute for the traditional payment methods like cash, credit/debit card and cheques. It is based on cryptography technique which translates the basic text into unintelligible text. As the name itself signifies, … [Read more...]
Difference Between Stale Cheque and Post-Dated Cheque
Cheque refers to a bill of exchange, which contains an unconditional order to the bank to pay the specified sum from your bank account. There are two kinds of cheques which are commonly misunderstood are stale cheque and post-dated cheque. A stale cheque is one which cannot be honoured because the reasonable period is expired. As against, a post-dated cheque is a cheque which is drawn today but contains a future date for payment. Primarily, there three parties to a cheque, drawer - who draws … [Read more...]
Difference Between Unit Banking and Branch Banking
Banking refers to a business activity in which the entity accepting deposits from the customers, safeguards it and lends it to those who need it, and earns a profit. Different countries of the world adopt different types of the banking system . Basically there are two types of banking system prevalent in most of the countries, which are unit banking and branch banking. A unit banking is a banking system in which one bank, generally a small independent bank that renders banking services to its … [Read more...]
Difference Between Merchant Bank and Investment Bank
Commercial banks offer services to the general public, but there are some banks which offer services to the companies and investors but not to the public. They are investment bank and merchant bank. As the two banks offer similar services to the clients, they are comonly misconstrued, however they are different in the sense that an investment bank is a banking company that acts as an intermediary between the Client and the investing public, by helping them in raising funds. On the contrary, a … [Read more...]
Difference Between EFT and ACH
In the fast-paced world, with the change in information and communication technology, banks are also adopting e-banking culture that helps in providing better and flexible products and services to the customers. In this context, terms like ACH and EFT are commonly used. All the transactions that take place through the computer system or digital mode come under the ambit of Electronic Fund Transfer or EFT. On the other hand, ACH implies Automated Clearing House, is a huge network of banks and … [Read more...]
Difference Between Scheduled Banks and Non-Scheduled Banks
Banks implies the financial institution that takes public deposits and extends credit to those who need it. They are a substantial part of the financial system, which assists in the overall economic development. These are broadly classified as scheduled and non-scheduled banks in India regulated under the Banking Regulation Act, 1949, wherein scheduled banks include all the commercial banks like nationalised, foreign, development, cooperative and regional rural banks. On the other extreme, … [Read more...]
Difference Between Commercial Bank and Merchant Bank
Banks are termed as the financial institutions, which act as intermediaries between depositors and borrowers. Besides the usual function of accepting deposits and extending credit, many value added services are also provided by the banks. Indeed, there are different types of banks set up to perform different functions. Commercial banks are the banks that provide services to the general public and companies as well. On the other hand, merchant banks are similar to investment banks as they do … [Read more...]
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