Banking- latest trends

Question 1

What is RTGS

Answer 1

REAL TIME GROSS SETTLEMENT. It is a fund transfer system where the transfer of funds takes place from one bank to another in real time and gross basis

Question 2

What is the meaning of Real time and gross basis

Answer 2

Real time -> There is no waiting period and the transfer is made immediately after it is processed

Gross basis -> The transactions are made on one to one basis without bunching with any other transactions

Question 3

Time service for RTGS

On weekdays
On saturdays

Answer 3

Weekdays : 9am-3pm
Saturday : 9am - 12pm

Question 4

What are the features of RTGS

Answer 4

1- RTGS is not available in all banks in india. It is available in only CBS facility enabled banks
2- RTGS transactions are made individually and continuously in the banking hours rather than in batches
3 - The minimum requirement for RTGS is rs 2,00,000. There is no upper limit
4- The receiving bank must credit the customer’s account within 30 minutes of receiving the fund transfer message
5-The transactions are final and irrecovable

Question 5

What is NEFT(give abbreviation as well)

Answer 5

National electronic fund transfer is a country wide system where an individual or firm or a company transfers fund from any bank to another individual, firm or a company having an account with any other bank in the country.

Question 6

Time service and limitations in number of transaction for NEFT

Answer 6

weekdays - 7 times( From 8am to 7pm)
Saturday - 6 times( From 8am to 1pm)

Question 7

What are the main features of NEFT?

Answer 7

1 - A bank must be NEFT enabled in order to become a part of NEFT transfer system
2 - A firm or individual is not required to have an bank account in order to transfer funds through NEFT. He can deposit the cash at NEFT enabled bank
3 - There is no minimum or maximum limit amount of fund transferred through NEFT
4 - The limit of amount that can be transferred is 49999 for the firm/individual who does not have a bank account
5 - NEFT cannot be used to receive foreign remittances

+ The receiver need not pay any charges

Question 8

What is the following charges the SENDER involved in NEFT has to pay

Answer 8

for amount upto one lakh -> 5rs + service tax
for amount above 1,00,000 upto 2,00,000 - 15rs + service tax
for amount above 2,00,000 - 25rs + service tax

Question 9

What is IMPS

Answer 9

immediate payment service is an instant money transfer system facilitated by NPCI(national payment corporation of India). It allows people to send and receive money in real time. It is available 24/7 for 365 days

Question 10

What are the features of IMPS

Answer 10

1 - Fast transfer of money - Transfer of funds through IMPS does not take more than 30 minutes and is, therefore, an efficient way to transfer funds
2 - flexible - Payment through IMPS can be done anywhere and anytime
3 - multi platform support - IMPS is typically designed for mobile banking, but it also supports in web platforms for net banking and such
4 - Inexpensive - The charges for IMPS transfer goes from a minimum of 2.50 to 25rs. Though the charges are similar to NEFT, IMPS is real time transfer

Question 11

What is E banking

Answer 11

Electronic banking means banking transactions carried out with the help of computer systems.

Question 12

Features of E banking

Answer 12

1 - there is no face to face contact between the bank and client

2 - Both the bank and client require a computer

3 - Customers get 24/7 service for 365 days

Question 13

Advantages of e banking

Answer 13

1 - no risk of carrying money
2 - can be done from anywhere and anytimne
3 - recording of each and every transactions infuses a sense of financial discipline
4 - Customers feel a sense of security
5 - unlimited access to transactions increases customer satisfaction

Question 14

What are the forms of electronic banking

Answer 14

1 - EFTS(electronic fund transfer system)
2 - ATM(Automatic teller machine)
3 - Debit card
4 - Credit card
5 - tele banking
6 - CBS( core banking solution)
7 - mobile banking
8 - SMS alert`

Question 15

What is EFTS?

Answer 15

Electronic fund transfer system is a system where money is transferred from one account to another. For example, the salary to paid to the employees can be transferred from the company’s bank account directly to their account

i] Direct credit : salary, pension, interest on debentures, dividend on shares, royalty etc..

ii]Direct debits : loan installments, school fees, insurance premium, electricity bills, water bills

Question 16

What are the advantages of EFTS

Answer 16

1 - There is no loss in the transit
2 - The payments are made on the due dates
3 - There is no mishandling of cash
4 - Transactions are effortless

Question 17

What is ATM

Answer 17

Automatic teller machine is a machine from which the customer can withdraw or deposit money with the help of his ATM card and entering his PIN number

characteristics :
1 - ATM is available 24/7
2 - It is less costly and less time consuming than human teller(bank employee)

Question 18

What is the name of the machine where we can deposit loose cash?

Answer 18

Cash depositing machine

Question 19

What is debit card?

Answer 19

Debit card is a tool which can be used in place of money for payments, if the user is having enough bank balance to complete the payment. When the buyer presents his debit card, the terminal automatically transfers money from the buyer’s bank account to the seller’s account

Question 20

What are the features of debit card

Answer 20

1 - The cardholder has to deposit money with the issuer of card

2 - The cardholder does not get credit facility

3 - The cardholder need not carry cash everytime for his payments, instead, he can use his debit card

4 - The cardholder has to pay some charges for the card

5 - The cardholder may get some incentives as discounts

Question 21

What is a credit card?

Answer 21

Credit card is a tool to make credit payments, where the user doesn’t need to have money balance in his account at that time. Anybody having a good reputation can get a credit card. He deposits the money later on to the bank as agreed by him

Question 22

What are the main features of credit card

Answer 22

1 - the cardholder must have a good reputation

2 - There is no need to deposit money in advance with the issuer of the card

3 - Credit card allows credit facility to the cardholder

4 - The cardholder pays some charges for the card

5 - Some incentives/gifts may be available to the cardholder

Question 23

What is CBS

Answer 23

Core banking solution is a system of banking networks where the customer can operate the same account from all the branches of CBS enabled bank anywhere across the country

The bank gives him a unique ID to a CBS customer which gives him the privilege of opening an account with any of the CBS branches

Question 24

What is Mobile banking

Answer 24

Mobile banking means banking transactions through mobile phones.

Question 25

What are SMS alerts

Answer 25

Under this service, the customer gives his mobile number to the bank which records the transactions through sending them message of amount that’s credited/debited

Question 26

What is a bank draft?

Answer 26

Bank draft is a type of cheque drawn by a bank either on its own branch or on another bank in favour of a third party. It is Payable to the person named in it or to his order.

The form duly filled in along with the amount of the draft plus commission is paid to the bank, who issues the draft. He then sends the draft to the reciever by post courier. The receiver can get the amount of the draft from the concened bank. There is NO RISK OF DISHONOUR

Question 27

Main features of bank draft?

Answer 27

1 - Money can be remitted easily and safely from one place to another
2 - there is no risk of dishonour
3 - the issuing bank charges some commission for bank draft