Banking

What is Branch Banking? Branch Banking refers to a bank providing services through a vast network of branch offices across any city or country. For instance, If a bank has twenty branches in a city, then the account holders can choose a nearby branch to make deposits and withdrawals and can avail of other services […]

What is Accounting Profit? Accounting is the recording and reporting of financial transactions for a business, organization, or individual. It is used to analyze and report financial information and to make informed financial decisions. Any successful firm needs accounting to function. Accounting involves recording financial transactions, such as an individual or organization’s purchases, sales, receipts,

What is Checking Account? A checking account is a type of bank account that allows you to deposit and withdraw money and make payments and transfers. Checking accounts are used for bill payments, money transfers, and purchase transactions. they are the most typical kind of bank account. Checking accounts offer a range of features, including

What is a Mortgage? A mortgage, also known as a mortgage loan or hypothec loan, is a type of loan that real estate purchasers use to raise funds to purchase real estate or used by the property owners to get a loan and raise funds for some purpose by putting a type of security on

What are Scheduled Banks? People are confused about the operations of scheduled banks in India. Scheduled banks in India refer to banks that are regulated by the Second Schedule of the RBI Act of 1934. This means that a scheduled bank’s distinctiveness is determined by how it is regulated. Scheduled banks are required by the

What is Public Sector Bank? Public sector banks are the banks run by the government of India. They are the largest category of banks in India.  There are various acts passed by the Parliament of India, like the State Bank of India (Subsidiary Banks) Act, 1959 & Bank nationalization Act (1970, 1980). These acts run

What is Simple Interest? Simple interest is calculated based on a loan’s principal or the initial deposit into a savings account. Simple interest doesn’t compound, therefore a creditor will only charge interest on the original amount, and a borrower will never be required to pay further interest on the interest that has already accrued. It

What is Cash? Money other than checks or cash equivalents, such securities, commercial paper, government bonds, etc. A physical form of currency approved by the government for use in the exchange of goods or services, such as coins cash bills. In business, it is known as the most liquid asset because it can quickly pay off all expenses using cash. Cash is the most important record of a company. Cash is

What is Accounting Profit? Accounting profit is defined as the total earnings of a business after deductions of explicit costs. Explicit costs are expenses that directly affect the profitability of a business. In other words, accounting profit is the profit left over after deducting expenses from revenues, following the Generally Accepted Accounting Principles (GAAP). The

What is a Merchant Bank? A merchant bank is a financial institution that offers banking services and consultancy for corporations and high-value clients. Merchant banks offer loan services, financial advice, underwriting, and fundraising for their clients. Unlike commercial or retail banks, merchant banks do not offer their services to the general public. The main target

When it comes to managing my finances, understanding the differences between charge cards and credit cards is crucial. With a charge card, I know that I must pay off the entire balance each month, without the option to carry a balance over time. This can be both a blessing and a curse – it ensures

When it comes to choosing between a credit card and a debit card, there are a few key differences to consider. With a credit card, I can make purchases on credit, essentially borrowing money from the card issuer up to a certain limit. This can be handy for managing cash flow and building credit history,

A Letter of Credit (LC) is like a financial safety net in the business world. It’s a promise from a bank that if you can’t pay, they’ve got your back. It’s handy for international deals, ensuring that both parties feel secure in the transaction. On the other hand, a Bank Guarantee is a bit like

Commercial banks and merchant banks play distinct roles in the financial landscape. Commercial banks, seen as the financial backbone of everyday life, cater to the general public by offering services like savings and checking accounts, loans, and mortgages. On the other hand, merchant banks are the sophisticated players in the financial arena, focusing on providing

The Bank Rate and the Marginal Standing Facility (MSF) Rate are like two siblings in the vast financial landscape, each with its unique role in the central banking family. Think of the Bank Rate as the older, wiser sibling, setting the tone for interest rates in the economy. It’s the benchmark rate at which the