Our History

Credit Card
Credit Card is “post-paid” or “pay later” card that draws from a credit line-money made available by the card issuer (bank) and gives one a grace period to pay. If the amount is not paid full by the end of the period, one is charged interest. A credit card is nothing but a very small card containing a means of identification, such as a signature and a small photo. It authorizes the holder to change goods or services to his account, on which he is billed. The bank receives the bills from the merchants and pays on behalf of the card holder. These bills are assembled in the bank and the amount is paid to the bank by the card holder totally or by instalments. The bank charges the customer a small amount for these services. The card holder need not have to carry money/cash with him when he travels or goes for purchasing.

Debit Cards
Debit Cards is a “prepaid” or “pay now” card with some stored value. Debit Cards quickly debit or subtract money from one’s savings account, or if one were taking out cash. Every time a person uses the card, the merchant who in turn can get the money transferred to his account from the bank of the buyers, by debiting an exact amount of purchase from the card. To get a debit card along with a Personal Identification Number (PIN). When he makes a purchase, he enters this number on the shop’s PIN pad. When the card is swiped through the electronic terminal, it dials the acquiring bank system either Master Card or Visa that validates the PIN and finds out from the issuing bank whether to accept or decline the transaction.

Automated Teller Machine
The introduction of ATM’s has given the customers the facility of round the clock banking. The ATM’s are used by banks for making the customers dealing easier. ATM card is a device that allows customer who has an ATM card to perform routine banking transaction at any time without interacting with human teller. It provides exchange services. This service helps the customer to withdraw money even when the banks ate closed. This can be done by inserting the card in the ATM and entering the Personal Identification Number and secret Password.

Electronic Funds Transfer (EFT)
Many modern banks have computerized their cheque handling process with computer networks and other electronic equipment’s. These banks are dispensing with the use of paper cheques. The system called electronic fund transfer (EFT) automatically transfers money from one account to another. This system facilitates speedier transfer of funds electronically from any branch to any other branch. In this system the sender and the receiver of funds may be located in different cities and may even bank with different banks. Funds transfer within the same city is also permitted.

Mobile Banking
A new revolution in the realm of e-banking is the emergence of mobile banking. On-line banking is now moving to the mobile world, giving everybody with a mobile phone access to real-time banking services, regardless of their location.

Internet Banking
Internet banking involves use of internet for delivery of banking products and services. With internet banking is now no longer confirmed to the branches where one has to approach the branch in person, to withdraw cash or deposits a cheque or request a statement of accounts. In internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. The Internet Banking now is more of a normal rather than an exception due to the fact that it is the cheapest way of providing banking services.

ACH (Automated Clearing House)
Automated Clearing House: A computerized facility used by member depository institutions to electronically combine, sort, and distribute inter-bank credits and debits. ACHs process electronic transfers of government securities and provided customer services, such as direct deposit of customers’ salaries and government benefit payments (i.e., social security, welfare, and veterans’ entitlements), and preauthorized transfers.

ACP (Automated Cheque Processing)
Automated Cheque Processing: is another component of the ACH that allows for faster cheque clearing. Paper cheques used to be processed manually, a process that took up to seven days to clear. With ACP, deposited cheques are cleared by the end of the next day if deposited by 2:00p.m.

MICR (magnetic ink character recognition) Line
The magnetic ink character recognition technology uses a special ink to verify the cheques. Protect the MICR Line. This line serves to communicate information about your bank and bank account. These numbers are written with magnetic ink in a font that is easily read by computers. This makes cheque processing faster. It is important not to write in this area, as well as not to fold the cheques, which may interfere with the scanning of the cheques.
Collateral: Assets that are offered to secure a loan or other credit. For example, if you get a real estate mortgage, the bank’s collateral is typically your house. Collateral becomes subject to seizure on default.

Comaker
A person who signs a note to guarantee a loan made to another person and is jointly liable with the maker for repayment of the loan.

Debit
A debit may be an account entry representing money you owe a lender or money that has been taken from your deposit account.

Delinquency
A debt that was not paid when due.

Drawee
The person (or bank) who is expected to pay a check or draft when it is presented for payment.

Drawer
The person who writes a check or draft instructing the drawee to pay someone else.

Escrow
A financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions-or until obligations have been fulfilled. Securities, funds, and other assets can be held in escrow.

Fiduciary
Undertaking to act as executor, administrator, guardian, conservator, or trustee for a family trust, authorized trust, or testamentary trust, or receiver or trustee in bankruptcy
Forgery: The fraudulent signing or alteration of another’s name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud

Frozen Account
An account on which funds may not be withdrawn until a lien is satisfied and a court order or other legal process makes the account available for withdrawal (e.g., the account of a deceased person is frozen pending a court order distributing the funds to the new lawful owners).

Guarantor
A party who agrees to be responsible for the payment of another party’s debts should that party default.

Lien
Legal claim against a property. Once the property is sold, the lien holder is then paid the amount that is owed.

Overdraft
When the amount of money withdrawn from a bank account is greater than the amount actually available in the account, the excess is known as an overdraft, and the account is said to be overdrawn.

Payee:
The person or organization to whom a check, draft, or note is made payable
Phishing: The activity of defrauding an online account holder of financial information by posing as a legitimate entity

Point of Sale (POS)
1) The location at which a transaction takes place.
2) Systems that allow bank customers to effect transfers of funds from their deposit accounts and other financial transactions at retail establishments.

Bounced Cheque
A bounced cheque is a normal cheque which a bank refuses to pay. The reasons for refusing it include insufficient funds, signature mismatch, or some other valid reason.

Cheque
A cheque is a negotiable instrument. By definition, a negotiable instrument is a document that includes a promise to pay a certain amount of money to the intended beneficiary. A cheque instructs the bank to pay a certain amount of money from the issuer’s bank to the receiver of the cheque.

Inflation
It is an increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in the price level

APY
Annual percentage yield. The amount of interest you gain from keeping money in an account in a year, including compound interest.

What is a Cheque? A cheque is a piece of document/paper which orders the bank to transfer money from the bank account of an individual or an organisation to another bank account. The person who writes the cheque is called the “drawer” and the person in whose name the cheque has been issued is called the “payee”. The amount of money that needs to be transferred, payee’s name, date and signature of the drawer are all mentioned in a cheque.

There are certain points to remember regarding cheques which are mentioned below:
A cheque can only be issued against a current or savings bank account
A cheque without date shall be considered invalid
Only the payee, in whose name the cheque has been issued, can encash it
A cheque is only valid 3 months from the date it has been issued
A 9-digit MICR (Magnetic Ink Character Recognition) code is mentioned at the bottom of the
cheque. This makes the clearance of cheques easier for the banks.

Bearer Cheque
The bearer cheque is a type of cheque in which the bearer is authorised to get the cheque encashed. This means the person who carries the cheque to the bank has the authority to ask the bank for encashment.

Crossed Cheque
In this type of cheque, no cash withdrawal can be done. The amount can only be transferred from the drawer’s account to the payee’s account. Any third party can visit the bank to submit the cheque. In case of a crossed cheque, the drawer must draw two lines at the left top corner of the cheque.

Stale Cheque
In India, any cheque is valid only until 3 months from the date of issue. So if a payee moves to the bank to get withdrawal for a cheque which was signed 3 months ago, the cheque shall be declared a stale cheque. For example: If a cheque is dated January 1, 2021, and the payee visits the bank for withdrawal on May 1, 2021, his/her request shall be denied and the cheque is declared stale.

Post Dated Cheque
If a drawer wants the payee to apply for withdrawal or transfer of money after the present date, then he/she can fill a post-dated cheque. For example: If the date on which the drawer is filling the cheque is May 10, 2021, but he wants the payment to be done later, he/she can fill the cheque dates as May 30, 2021. It shall be called a post-dated cheque.

Number of Parties involved with a Cheque

There are three parties involved with a cheque.
Drawer or Maker – Drawer of the cheque is the customer or account holder who issues the
cheque.
Drawee – Drawee is basically the bank on which the cheque is drawn. Remember that a
cheque is always drawn on a particular banker.
Payee – This is the person who is named in the cheque and gets the payment for the amount
mentioned in the cheque. In particular cases (when the drawer writes a self-cheque), the
drawer and the payee can be the same individual.

Essentials of a Cheque

There are certain extremely important pointers or features of a cheque which should be known and understood before using this payment mode for money transfer. Some of the important pointers related to a cheque are:

A cheque is an unconditional order.
A cheque’s payment is always in cash.
A cheque is always drawn on a particular Bank.
A cheque is always payable on demand.
Signature on the exchequer is mandatory and should be only by the maker.
The amount is always a certain sum of money from one’s account.
This cash amount is to be paid to the person mentioned therein, or order, or the bearer.