BASICS OF BANKING at IOB

What is BASICS OF BANKING?

Basic banking services include a payment account with basic features and an instrument for using the account (e.g. a debit card and online banking ID), the possibility to withdraw cash, the execution of payment transactions and an electronic means of identification.

Overview

Functions of Commercial Banks: – Primary functions include accepting deposits, granting loans, advances, cash, credit, overdraft and discounting of bills. – Secondary functions include issuing letter of credit, undertaking safe custody of valuables, providing consumer finance, educational loans, etc.

Frequently Asked Questions

What is banking and types of banking?

Key Takeaways. A bank is a financial institution licensed to receive deposits and make loans. There are several types of banks including retail, commercial, and investment banks. In most countries, banks are regulated by the national government or central bank.

What is pin in banking?

Key Takeaways. A personal identification number (PIN) is a numerical code issued with a payment card that is required to be entered to complete various financial transactions. The core purpose of a personal identification number (PIN) is to provide an additional layer of security to the electronic transaction process.

What is cash credit?

In a liquidity crunch, small businesses can opt for a quick loan facility like cash credit, a type of short-term working capital loan extended by financial institutions, allowing borrowers to utilise money without holding a credit balance in an account.

What is Cheque facility?

Cheque Facility means a facility where you can issue cheques as the drawer of that cheque. Any request to alter the authorised signatories on a Cheque Facility must be received in writing and are subject to acceptance by Uniting Financial Services.

What is account number

?An account number is a unique string of numbers, letters, and other characters that identify a specific financial account. Almost all financial transactions make use of account numbers. Examples of account numbers include routing numbers and credit card numbers.

Which bank account number is 15 digit?

Due to Technology up-gradation, Corporation Bank has switched their traditional account numbers to 15 digit account numbers.

What is your bank number?

The first number listed on the bottom of your checks is a routing number, also called a bank number or transit number. A bank/transit number identifies your bank so when an institution receives a check it knows the institution to which it belongs.

Do bank numbers start with 0?

This check number is usually 4 digits, and may include a zero as the first digit. The numbers that remain (those that are neither the routing number nor the check number) are the account number.

How do you read a bank cheque?

This number contains your account’s information. The transit number is 5 digits. The institution number is 3 digits. The account number is 7 digits.

Where is bank code on cheque?

The first three digits are the city code; the next three digits reflect the bank code and the last three digits are for branch code. After the MICR code, the six digits mentioned on the cheque are the portion of the account number. The last two digits at the bottom of a cheque are the transaction ID.

How long is bank account number?

The routing number, account number, and check number are located at the bottom edge of your check. Routing numbers are always 9 digits long. Account numbers may be up to 17 digits long.

What is difference between check and cheque?

Cheque is the British English spelling for the document used for making a payment, whereas American English uses check. Check also has a number of other uses as a noun (e.g., a check mark, a hit in hockey, etc.) and as a verb (“to inspect,” “to limit,” etc.).

What is IFSC code of bank?

IFSC is short for Indian Financial System Code and represents the 11 digit character that you can usually see on your bank’s cheque leaves, or other bank sponsored material.

What is drawee bank?

A drawee is the person or other entity that pays the owner of a check or draft. The holder of the check is the payee and the check writer the drawer. Most often, if you deposit a check, your bank or check-cashing service is the drawee.

Who is a payee?

A payee is a party in an exchange of goods and services who receives payment. The payee provides goods and services to the payer who obtains them through the exchange of value (most often money). Payees may also be more than one party in a transaction and sometimes they are the same party.