What are the basic banking terms?

What are the basic banking terms?

10 Basic terminologies that you should know about Indian banking

  • Base rate. Want to take a personal or home loan from your bank?
  • Cashback. Owning a credit card issued by your bank?
  • Credit History.
  • Collateral.
  • Compound interest.
  • Demat account.
  • Electronic Fund Transfer.
  • Fixed and Floating rate.

What is operational in banking?

Banking operations are bank-specific economic activities listed in the Banking Law which involve provision of certain financial services to their recipients (clients of a bank or third parties) against payment and under an agreement concluded with the client.

Is SFMS mandatory?

It was mentioned that Department of Financial Services had issued guidelines making it mandatory with effect from 151 August, 2012 for all Public Sector Banks for sending and receiving Letter of Credit or Bank Guarantee through SFMS system only.

What is Swift system in banking?

SWIFT is a huge messaging network used by financial institutions such as banks to send and receive money transfer orders or information quickly, securely, and accurately. SWIFT assigns a unique code of eight or 11 characters to each financial institution.

What is Sfms in bank guarantee?

Structured Financial Messaging System (SFMS) is a secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications. SFMS can be used for secure communication within the bank and between banks. The SFMS was launched on December 14, 2001 at IDRBT.

What is Sfms confirmation?

Sub.: Modalities for acceptance & confirmation of Bank Guarantees through Structured Financial Messaging System(SFMS). The confirmation of issuance of BG through SFMS from advising Bank shall be obtained through electronically as well as print out of the said message from advising Bank with seal and signature.

What is SWIFT money transfer?

SWIFT is a vast messaging network used by banks and other financial institutions to quickly, accurately, and securely send and receive information, such as money transfer instructions. More than 11,000 SWIFT member institutions sent over 35 million transactions per day through the network in 2020.