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...]

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...]

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...]

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...]

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...]

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...]

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...]

Internet Banking or otherwise known as online banking is among the convenient e-banking modes, which caused the change in banking operations and provides virtual banking facilities to its customers continuously. In this method, the clients can access their bank account details, no matter where they are located, with the help of bank's website. Internet Banking is not similar to mobile banking, which implies a wireless, internet-based facility provided by the banks to their customers, to … [Read more...]

Charge denotes an impediment over the title of the property, i.e. when the charge is created on an asset, the asset is not allowed to be sold or transferred. Basically, there are three ways through which charge is created on the property, that are classified according to the movability of the asset, i.e. On movable property, the charge is created by way of pledge or hypothecation, whereas when the charge is created on an immovable asset, then it is known as Mortgage. The basic purpose of … [Read more...]

To fulfil the financial requirement of the enterprise, the business person should identify the purpose and term for availing credit, i.e. nothing is better than a loan if the amount is required to fulfil the long-term financial requirement and if the funds are needed to fulfil the working capital requirement, then overdraft is the best option. Finance is the spine of every business because in the absence of sufficient funds the business cannot function properly. From the day, the decision to … [Read more...]