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Banking Terms
1. E-Banking :
E-Banking or electronic banking is a form of banking where funds are transferred
through exchange of electronic signals between banks and financial institution and customers ATMs,
Credit Cards, Debit Cards, International Cards, Internet Banking and new fund transfer devices like
SWIFT, RTGS belong to this category.
2. EFT :
(Electronic Fund Transfer): EFT is a device to facilitate automatic transmission and processing of messages as well as funds from one bank branch to another bank branch and even from one branch of a bank to a branch of another bank. EFT allows transfer of funds electronically with debit and credit to relative accounts.
3. Either or Survivor:
Refers to operation of the account opened in two names with a bank. It means
that any one of the account holders have powers to withdraw money from the account, issue cheques,
give stop payment instructions etc. In the event of death of one of the account holder, the surviving
account holder gets all the powers of operation.
4. Electronic Commerce (E-Commerce):
E-Commerce is the paperless commerce where the exchange of business takes place by Electronic means.
5. Endorsement:
When a Negotiable Instrument contains, on the back of the instrument an
endorsement, signed by the holder or payee of an order instrument, transferring the title to the other
person, it is called endorsement.
6. Bouncing of a cheque:
Where the name of the endorsee or transferee is not mentioned on the
instrument.
7. Endorsement in Full:
Where the name of the endorsee or transferee appears on the instrument
while making endorsement.
8. Equity:
Ownership of the company in the form of shares of common stock.
9. Equity Call Warrants:
Warrants issued by a company which give the holder the right to acquire new
shares in that company at a specified price and for a specified period of time.
10. Ex-dividend (XD):
A security which no longer carries the right to the most recently declared dividend
or the period of time between the announcement of the dividend and the payment (usually two days
before the record date). For transactions during the ex-dividend period, the seller will receive the
dividend, not the buyer. Ex-dividend status is usually indicated in newspapers with an (x) next to the
stock’s or unit trust’s name.
11. Execution of Documents:
Execution of documents is done by putting signature of the person, or
affixing his thumb impression or putting signature with stamp or affixing common seal of the company
on the documents with or without signatures of directors as per articles of association of the company.
E-Banking or electronic banking is a form of banking where funds are transferred
through exchange of electronic signals between banks and financial institution and customers ATMs,
Credit Cards, Debit Cards, International Cards, Internet Banking and new fund transfer devices like
SWIFT, RTGS belong to this category.
2. EFT :
(Electronic Fund Transfer): EFT is a device to facilitate automatic transmission and processing of messages as well as funds from one bank branch to another bank branch and even from one branch of a bank to a branch of another bank. EFT allows transfer of funds electronically with debit and credit to relative accounts.
3. Either or Survivor:
Refers to operation of the account opened in two names with a bank. It means
that any one of the account holders have powers to withdraw money from the account, issue cheques,
give stop payment instructions etc. In the event of death of one of the account holder, the surviving
account holder gets all the powers of operation.
4. Electronic Commerce (E-Commerce):
E-Commerce is the paperless commerce where the exchange of business takes place by Electronic means.
5. Endorsement:
When a Negotiable Instrument contains, on the back of the instrument an
endorsement, signed by the holder or payee of an order instrument, transferring the title to the other
person, it is called endorsement.
6. Bouncing of a cheque:
Where the name of the endorsee or transferee is not mentioned on the
instrument.
7. Endorsement in Full:
Where the name of the endorsee or transferee appears on the instrument
while making endorsement.
8. Equity:
Ownership of the company in the form of shares of common stock.
9. Equity Call Warrants:
Warrants issued by a company which give the holder the right to acquire new
shares in that company at a specified price and for a specified period of time.
10. Ex-dividend (XD):
A security which no longer carries the right to the most recently declared dividend
or the period of time between the announcement of the dividend and the payment (usually two days
before the record date). For transactions during the ex-dividend period, the seller will receive the
dividend, not the buyer. Ex-dividend status is usually indicated in newspapers with an (x) next to the
stock’s or unit trust’s name.
11. Execution of Documents:
Execution of documents is done by putting signature of the person, or
affixing his thumb impression or putting signature with stamp or affixing common seal of the company
on the documents with or without signatures of directors as per articles of association of the company.
12. Face Value/ Nominal Value:
The value of a financial instrument as stated on the instrument.
Interest is calculated on face/nominal value.
13. Fixed-income Securities:
Investment vehicles that offer a fixed periodic return.
14. Fixed Rate Bonds:
Bonds bearing fixed interest payments until maturity date.
15. Floating Rate Bonds:
Bonds bearing interest payments that are tied to current interest rates.
16. Factoring:
Business of buying trade debts at a discount and making a profit when debt is realized
and also taking over collection of trade debts at agreed prices.
17. Foreign Banks:
Banks incorporated outside India but operating in India and regulated by the
Reserve Bank of India (RBI),. e..g., Barclays Bank, HSBC, Citibank, Standard Chartered Bank, etc.
18. Forfeiting:
In International Trade when an exporter finds it difficult to realize money from the
importer, he sells the right to receive money at a discount to a forfaiter, who undertakes inherent
political and commercial risks to finance the exporter, of course with assumption of a profit in the
venture.
19. Forgery:
when a material alteration is made on a document or a Negotiable Instrument like a
cheque, to change the mandate of the drawer, with intention to defraud.
20. Fundamental Analysis:
Research to predict stock value that focuses on such determinants as
earnings and dividends prospects, expectations for future interest rates and risk evaluation of the firm.
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