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Banking Terminology - Guide4BankExams

Banking Terminology - Guide4BankExams

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Published by: sampath on Dec 15, 2012
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Banking Terminology
A Complete list of Bank Related terms for Bank Exam
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Acceptance letter is the letter that a borrower or applicant gives tothe lender after reading the terms of the loan. This letter denotesthe borrower’s willingness to accept the loan offer within aparticular time frame.2
Account balance
Opening Account Balance / Beginning of the Day (BOD) Balance:The balance in an account at the beginning of each business day;includes all deposits and withdrawals that were posted from theprevious night, whether or not funds have been collected.Closing Account Balance / End of the Day (EOD) Balance: Theaccount balance computed at the end of the business day, and isthe adjusted balance of the credits and debits during the businessday in the account of the customer.3
Periodic statement of all the debit and credit transactions on anaccount for a given statement cycle.4
Acquirers are banks and financial institutions that collaborate withbusinesses to accept credit/debit card payments.5
Active account
A bank account in which there are regular transactions. A bank account that is not dormant or inoperative or under an attachmentorder of the court or enforcement authorities.6
 Another member added to an existing card thus extending its usageis called an additional cardholder. Thus by adding an additionalcardholder the existing cardholder allows him/ her to makepurchases and use the credit card. However, the responsibility torepay the monthly outstanding balance rests with the original(principal) cardholder.7
A one time non-refundable levy to bank's customers for meetingexpenses related to appraisal of loan proposals.8
Advance EMI
 Number of equated monthly installments, paid in advance at thetime of disbursal of loan.9
Affinity Card
Credit cards linked to special organizations like sports clubs,exclusive clubs and charities. Affinity credit cards can also helpraise funds, when a part of income from every transaction goestoward the benefit of relevant organization.
Amortization is the repayment of Principal and Interestcomponents of a Loan, over a period of time. Certain category of expenses or charges are also amortized over a period of time.11
Annual Fee
An annual amount charged by the credit card companies tomaintain the credit card.12
Annualpercentage yield(APY)
A percentage rate reflecting the total amount of interest paid on adeposit account (savings, CDs etc.), based on the interest rate andthe effect of interest compounding for one year.13
Customer can deposit/ withdraw cash at any branch other than thebranch in which he holds the account. Anywhere banking frees thecustomer from geographical boundaries and limitations and givesthe flexibility to the customer to use his account across the board.14
A form to be filled in and signed as per the Bank’s requirements toavail Banking facilities. Requirement of details to be filled in willvary for each facility. Applications may also require certainspecified documents also to be attached.15
The arrears outstanding comprises of the unpaid EMI’s and othercharges, if any, levied in the account.16
Cash or anything you own that can be turned into cash. Thisincludes property, goods, savings or investments.These are things that people own such as buildings, vehicles,shares and money in the bank. The opposite is liabilities. For abank, its assets are mainly the loans it makes17
Acronym for automated teller machine, a machine at a bank branch or other location, which enables a customer to performbasic banking activities (checking one's balance, withdrawing ortransferring funds) even when the bank is closed.18
Authentication of signatures of a customer of the branch requiredby the customer for any legal purposes.19
AutomaticFunds Transfer
An arrangement that moves funds from one account to anotherautomatically on a pre-arranged schedule; for example, everypayday or once a month.20
An arrangement that authorizes payments to be deductedautomatically from a bank account (usually a savings/currentaccount) to pay bills (such as insurance payments, rent, mortgageor loan payments). Payments are usually scheduled to be made ona certain day of the month.

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