commerce project on banking

7/31/2019 Commerce Project on Banking

1/17

BANKING

Banking in India

Banking in India originated in the last decades of the 18th century. The first banks were The General

Bank of India, which started in 1786, andBank of Hindustan, which started in 1790; both are now defunct.

The oldest bank in existence in India is the State Bank of India, which originated in theBank of Calcuttain

June 1806, which almost immediately became theBank of Bengal. This was one of the three presidency

banks, the other two being theBank of Bombayand theBank of Madras, all three of which were

established under charters from the British East India Company. For many years the Presidency banks

acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial

Bank of India, which, upon India's independence, became theState Bank of Indiain 1955.

History

Merchants in [Calcutta] established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of

1848-49. TheAllahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint

Stock Bank: A company that issues stock and requires shareholders to be held liable for the company's debt) It was not the

first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913,

when it failed, with some of its assets and liabilities being transferred to theAlliance Bank of Simla.

Foreign banks too started to app, particularly inCalcutta, in the 1860s. TheComptoire d'Escompte de Parisopened a branch in

Calcutta in 1860, and another inBombayin 1862; branches inMadrasandPondicherry, then a French colony,

followed.HSBCestablished itself inBengalin 1869. Calcutta was the most active trading port in India, mainly due to the trade

of theBritish Empire, and so became a banking center.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 inFaizabad. It failed in 1958. The

next was thePunjab National Bank, established inLahorein 1895, which has survived to the present and is now one of the

largest banks in India.

Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades

had elapsed since theIndian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established

small banks, most of which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and a number of Indianjoint

stockbanks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by

Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the

experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to

observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid

wooden bulkheads into separate and cumbersome compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by theSwadeshimovement. The Swadeshi

movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks

established then have survived to the present such asBank of India,Corporation Bank,Indian Bank,Bank of Baroda, Canara

BankandCentral Bank of India.

The fervour of Swadeshi movement lead to establishing of many private banks inDakshina KannadaandUdupi districtwhich

were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalised banks started in this

district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian

Banking".

During theFirst World War(19141918) through the end of theSecond World War(19391945), and two years thereafter until

theindependenceof India were challenging for Indian banking. The years of the First World War were turbulent, and it took its

toll with banks simply collapsing despite theIndian economygaining indirect boost due to war-related economic activities. At

least 94 banks in India failed between 1913 and 1918 as indicated in the following table:
http://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=1http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/Bengalhttp://en.wikipedia.org/wiki/Bengalhttp://en.wikipedia.org/wiki/Bengalhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Indian_rebellion_of_1857http://en.wikipedia.org/wiki/Indian_rebellion_of_1857http://en.wikipedia.org/wiki/Indian_rebellion_of_1857http://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Corporation_Bankhttp://en.wikipedia.org/wiki/Corporation_Bankhttp://en.wikipedia.org/wiki/Corporation_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Udupi_districthttp://en.wikipedia.org/wiki/Udupi_districthttp://en.wikipedia.org/wiki/Udupi_districthttp://en.wikipedia.org/wiki/First_World_Warhttp://en.wikipedia.org/wiki/First_World_Warhttp://en.wikipedia.org/wiki/First_World_Warhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Second_World_Warhttp://en.wikipedia.org/wiki/First_World_Warhttp://en.wikipedia.org/wiki/Udupi_districthttp://en.wikipedia.org/wiki/Dakshina_Kannadahttp://en.wikipedia.org/wiki/Central_Bank_of_Indiahttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Corporation_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Indian_rebellion_of_1857http://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Bengalhttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=1


2/17

BANKING

YearsNumber of banks

that failed

Authorised capital

(Rs. Lakhs)

Paid-up Capital

(Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

TYPES OF BANKS:-

Saving Banks

Saving banks are established to create saving habit among the people. These banks are helpful for

salaried people and low income groups. The deposits collected from customers are invested in

bonds, securities, etc. At present most of the commercial banks carry the functions of savings banks.

Postal department also performs the functions of saving bank.

Commercial Banks

Commercial banks are established with an objective to help businessmen. These banks collect

money from general public and give short-term loans to businessmen by way of cash credits,

overdrafts, etc. Commercial banks provide various services like collecting cheques, bill of exchange,

remittance money from one place to another place.

In India, commercial banks are established under Companies Act, 1956. In 1969, 14 commercial

banks were nationalised by Government of India. The policies regarding deposits, loans, rate of

interest, etc. of these banks are controlled by the Central Bank.


3/17

BANKINGIndustrial Banks / Development Banks

Industrial / Development banks collect cash by issuing shares & debentures and providing long-term

loans to industries. The main objective of these banks is to provide long-term loans for expansion

and modernisation of industries.

In India such banks are established on a large scale after independence. They are Industrial Finance

Corporation of India (IFCI), Industrial Credit and Investment Corporation of India (ICICI) and

Industrial Development Bank of India (IDBI).

Land Mortgage / Land Development Banks

Land Mortgage or Land Development banks are also known as Agricultural Banks because these are

formed to finance agricultural sector. They also help in land development.

In India, Government has come forward to assist these banks. The Government has guaranteed the

debentures issued by such banks. There is a great risk involved in the financing of agriculture and

generally commercial banks do not take much interest in financing agricultural sector.

Indigenous Banks

Indigenous banks means Money Lenders and Sahukars. They collect deposits from general public

and grant loans to the needy persons out of their own funds as well as from deposits. These

indigenous banks are popular in villages and small towns. They perform combined functions of

trading and banking activities. Certain well-known indian communities like Marwaries and Multani

even today run specialised indigenous banks.

Central / Federal / National Bank

Every country of the world has a central bank. In India, Reserve Bank of India, in U.S.A, Federal

Reserve and in U.K, Bank of England. These central banks are the bankers of the other banks. They

provide specialised functions i.e. issue of paper currency, working as bankers of government,

supervising and controlling foreign exchange. A central bank is a non-profit making institution. It

does not deal with the public but it deals with other banks. The principal responsibility of Central

Bank is thorough control on currency of a country.

Co-operative Banks

In India, Co-operative banks are registered under the Co-operative Societies Act, 1912. They

generally give credit facilities to small farmers, salaried employees, small-scale industries, etc. Co-

operative Banks are available in rural as well as in urban areas. The functions of these banks are just

similar to commercial banks.

Exchange Banks

Hong Kong Bank, Bank of Tokyo, Bank of America are the examples of Foreign Banks working in

India. These banks are mainly concerned with financing foreign trade.


4/17

BANKINGFollowing are the various functions of Exchange Banks :-

Remitting money from one country to another country,

Discounting of foreign bills,

Buying and Selling Gold and Silver, and

Helping Import and Export Trade.

Consumers Banks

Consumers bank is a new addition to the existing type of banks. Such banks are usually found only in

advanced countries like U.S.A. and Germany. The main objective of this bank is to give loans to

consumers for purchase of the durables like Motor car, television set, washing machine, furniture,

etc. The consumers have to repay the loans in easy installments.

FUNCTIONS OF COMMERCIAL BANKS:-

The functions of a commercial banks are divided into two categories:

i) Primary functions

ii) Secondary functions including agency functions.

i) Primary functions:

The primary functions of a commercial bank include:

a) Accepting deposits

The most important activity of a commercial bank is to mobilise

deposits from the public. People who have surplus income and

savings find it convenient to deposit the amounts with banks.

Depending upon the nature of deposits, funds deposited with

bank also earn interest. Thus, deposits with the bank grow along

with the interest earned. If the rate of interest is higher, public

are motivated to deposit more funds with the bank. There is also

safety of funds deposited with the bank.

b) Grant of loans and advances


5/17

BANKINGThe second important function of a commercial bank is to grant

loans and advances. Such loans and advances are given to

members of the public and to the business community at a higher

rate of interest than allowed by banks on various deposit accounts.

The rate of interest charged on loans and advances varies

depending upon the purpose, period and the mode of repayment.

The difference between the rate of interest allowed on deposits

and the rate charged on the Loans is the main source of a banks

income.i) Loans

A loan is granted for a specific time period. Generally,

commercial banks grant short-term loans. But term loans,Functions of Commercial Banks ::

23

that is, loan for more than a year, may also be granted.

The borrower may withdraw the entire amount in lumpsum

or in instalments. However, interest is charged on the full

amount of loan. Loans are generally granted against the

security of certain assets. A loan may be repaid either in

lumpsum or in instalments.

ii) Advances

An advance is a credit facility provided by the bank to its

customers. It differs from loan in the sense that loans may

be granted for longer period, but advances are normally

granted for a short period of time. Further the purpose of

granting advances is to meet the day to day requirements

of business. The rate of interest charged on advances varies


6/17

BANKINGfrom bank to bank. Interest is charged only on the amount

withdrawn and not on the sanctioned amount.

Modes of short-term financial assistance

Banks grant short-term financial assistance by way of cash credit,

overdraft and bill discounting.

a) Cash Credit

Cash credit is an arrangement whereby the bank allows the

borrower to draw amounts upto a specified limit. The amount is

credited to the account of the customer. The customer can

withdraw this amount as and when he requires. Interest is charged

on the amount actually withdrawn. Cash Credit is granted as per

agreed terms and conditions with the customers.

b) Overdraft

Overdraft is also a credit facility granted by bank. A customer

who has a current account with the bank is allowed to withdraw

more than the amount of credit balance in his account. It is a

temporary arrangement. Overdraft facility with a specified limit

is allowed either on the security of assets, or on personal security,

or both.

c) Discounting of Bills

Banks provide short-term finance by discounting bills, that is,

making payment of the amount before the due date of the bills

after deducting a certain rate of discount. The party gets the

funds without waiting for the date of maturity of the bills. In

case any bill is dishonoured on the due date, the bank can recover

the amount from the customer.


7/17

BANKING

ii) Secondary functions

Besides the primary functions of accepting deposits and lending money,

banks perform a number of other functions which are called secondary

functions. These are as follows -

a) Issuing letters of credit, travellers cheques, circular notes etc.

b) Undertaking safe custody of valuables, important documents, and

securities by providing safe deposit vaults or lockers;

c) Providing customers with facilities of foreign exchange.

d) Transferring money from one place to another; and from one

branch to another branch of the bank.

e) Standing guarantee on behalf of its customers, for making

payments for purchase of goods, machinery, vehicles etc.

f) Collecting and supplying business information;

g) Issuing demand drafts and pay orders; and,

h) Providing reports on the credit worthiness of customers

TYPES OF ACCOUNTS :-

Transactional account

A transactional account is adeposit accountheld at abankor otherfinancial institution, for the purpose of securely and

quickly providing frequent access to funds on demand, through a variety of different channels.

Transactional accounts are meant neither for the purpose of earning interest nor for the purpose of savings, but for

convenience of the business or personal client; hence they tend not to bear interest. Instead, a customer can deposit or

withdraw any amount of money any number of times, subject to availability of funds.

- Deposit account

-Checking account

-Current account

-Personal account
http://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Deposit_account


8/17

BANKING-Transaction deposit

Savings Account-

Savings accounts are accounts maintained by retailfinancial institutionsthat payinterestbut cannot be used directly

asmoneyin the narrow sense of amedium of exchange(for example, by writing acheck). These accounts let customers set

aside a portion of their liquid assets while earning a monetary return. For the bank, money in a savings account may not be

callable immediately and therefore often does not incur areserve requirementfreeing up cash from the bank's vault to be lent

out with interest.

-Individual Savings Account

-Time deposit / certificate of deposit

-Tax-Exempt Special Savings Account

-Tax-Free Savings Account

-Money market account

Other accounts-

-Loan account

-Joint account

-Low-cost account

-Nostro and vostro accounts

-Numbered bank account

-Negotiable Order of Withdrawal account

Deposit account

A deposit account is acurrent account,savings account, or other type ofbank account, at

abankinginstitution that allowsmoneyto be deposited and withdrawn by the account holder. These

transactions are recorded on the bank's books, and the resulting balance is recorded as a liabilityfor the

bank, and represent the amount owed by the bank to the customer. Some banks charge a fee for this

service, while others may pay the customerintereston the funds deposited.

Major types

Checking accounts: A deposit account held at a bank or other financial institution, for the purpose of

securely and quickly providing frequent access to funds on demand, through a variety of different

channels. Because money is available on demand these accounts are also referred to as demand

accounts ordemand depositaccounts.
http://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Checkhttp://en.wikipedia.org/wiki/Checkhttp://en.wikipedia.org/wiki/Checkhttp://en.wikipedia.org/wiki/Reserve_requirementhttp://en.wikipedia.org/wiki/Reserve_requirementhttp://en.wikipedia.org/wiki/Reserve_requirementhttp://en.wikipedia.org/wiki/Current_account_(banking)http://en.wikipedia.org/wiki/Current_account_(banking)http://en.wikipedia.org/wiki/Current_account_(banking)http://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Liability_(accounting)http://en.wikipedia.org/wiki/Liability_(accounting)http://en.wikipedia.org/wiki/Liability_(accounting)http://en.wikipedia.org/wiki/Interest_(finance)http://en.wikipedia.org/wiki/Interest_(finance)http://en.wikipedia.org/wiki/Interest_(finance)http://en.wikipedia.org/wiki/Checking_accountshttp://en.wikipedia.org/wiki/Checking_accountshttp://en.wikipedia.org/wiki/Demand_deposithttp://en.wikipedia.org/wiki/Demand_deposithttp://en.wikipedia.org/wiki/Demand_deposithttp://en.wikipedia.org/wiki/Demand_deposithttp://en.wikipedia.org/wiki/Checking_accountshttp://en.wikipedia.org/wiki/Interest_(finance)http://en.wikipedia.org/wiki/Liability_(accounting)http://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Current_account_(banking)http://en.wikipedia.org/wiki/Reserve_requirementhttp://en.wikipedia.org/wiki/Checkhttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Financial_institution


9/17

BANKING

Money market account: A deposit account with a relatively high rate of interest, and short notice (or no

notice) required for withdrawals. In the United States, it is a style of instant access deposit subject to

federal savings account regulations, such as a monthly transaction limit.

Savings accounts: Accounts maintained by retail banks that payinterestbut can not be used directly

as money (for example, by writing a cheque). Although not as convenient to use as checking accounts,

these accounts let customers keep liquid assets while still earning a monetary return.

Time deposit: A money deposit at a banking institution that cannot be withdrawn for a preset fixed

'term' or period of time. When the term is over it can be withdrawn or it can be rolled over for another

term. Generally speaking, the longer the term the better the yield on the money.

call deposit: A deposit account which allows to withdraw the money without penalty, mostly without

notification to the bank. Often it bears favourable interest rate, but also a minimum balance to take

advantage of the benefits[1]

ONLINE BANKING:-

Online banking (orInternet banking orE-banking) allows customers of afinancial institutionto conduct

financial transactions on a secure website operated by the institution, which can be

aretailorvirtualbank,credit unionorbuilding society.

To access a financial institution's online banking facility, a customer having personal Internet access must

register with the institution for the service, and set up some password (under various names) for customer

verification. The password for online banking is normally not the same as fortelephone banking. Financial

institutions now routinely allocate customer numbers (also under various names), whether or not customers

intend to access their online banking facility. Customer numbers are normally not the same as account

numbers, because a number of accounts can be linked to the one customer number. The customer will link

to the customer number any of those accounts which the customer controls, which may be cheque,

savings, loan, credit card and other accounts.

To access online banking, the customer would go to the financial institution's website, and enter the online

banking facility using the customer number and password. Some financial institutions have set up

additional security steps for access, but there is no consistency to the approach adopted.

Features

Online banking facilities offered by various financial institutions have many features and capabilities in common, but also have

some that are application specific.

The common features fall broadly into several categories

A bank customer can perform some non-transactional tasks through online banking, including -

viewing account balances

viewing recent transactions
http://en.wikipedia.org/wiki/Money_market_accounthttp://en.wikipedia.org/wiki/Money_market_accounthttp://en.wikipedia.org/wiki/Savings_accountshttp://en.wikipedia.org/wiki/Savings_accountshttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Time_deposithttp://en.wikipedia.org/wiki/Time_deposithttp://en.wikipedia.org/wiki/Deposit_account#cite_note-0http://en.wikipedia.org/wiki/Deposit_account#cite_note-0http://en.wikipedia.org/wiki/Deposit_account#cite_note-0http://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Retail_bankhttp://en.wikipedia.org/wiki/Retail_bankhttp://en.wikipedia.org/wiki/Retail_bankhttp://en.wikipedia.org/wiki/Virtual_bankhttp://en.wikipedia.org/wiki/Virtual_bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Virtual_bankhttp://en.wikipedia.org/wiki/Retail_bankhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Deposit_account#cite_note-0http://en.wikipedia.org/wiki/Time_deposithttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Savings_accountshttp://en.wikipedia.org/wiki/Money_market_account


10/17

BANKING

downloadingbank statements, for example inPDFformat

viewing images of paidcheques

ordering cheque books

Bank customers can transact banking tasks through online banking, including -

Funds transfersbetween the customer's linked accounts

Paying third parties, includingbill payments(see, e.g.,BPAY) and telegraphic/wire transfers

Investmentpurchase or sale

Loanapplications and transactions, such as repayments of enrollments

Financial institution administration

Management of multiple users having varying levels of authority

Transaction approval process

Some financial institutions offer unique Internet banking services, for example

Personal financial management support, such as importing data into personalaccounting software. Some online banking

platforms supportaccount aggregationto allow the customers to monitor all of their accounts in one place whether they

are with their main bank or with other institutions.

Procedure to open a Current Account or a Saving Bank

Account

The following procedure is followed in opening a current account or a saving bank account.

Application in the Prescribed Form:

The person desiring to open a current account or a saving bank account has to apply to the bank concerned in theprescribed form. The application forms are printed and are available in the bank free of cost. Banks provide differentapplication forms for opening a saving or current account. The application form contains the information regarding thename of applicant, his occupation, full address, and specimen signatures. The bank may also call for reference from theapplicant.

Introduction of the Applicant:

By opening an account in the bank, the customer enters into a relationship with the banker. The bank undertakes tohonor the cheque drawn by the customer as long as his account shows a credit balance. This involves risk. Though any

person may apply for opening an account in his name but the bank reserves the right to do so on being satisfied aboutthe identity of the customer. The banks usually insist on such person or business enterprise being introduced to thebank by an existing customer of the bank or a reputed businessman. The person introducing the account sings on theapplication form itself along with his full address. The bank may also call for references that would be consulted aboutthe integrity, honesty, financial standing and respectability of the applicant. Introduction and references reduce thescope for fraud.

Specimen Signature:

When the bank is satisfied with the introductory references it proceeds with the opening of the account. The applicant isasked to give his two or three specimen signatures on a prescribed form, generally a card, for the purpose of banksrecord. These signature cards are preserved by the bank and are alphabetically filled for ready reference to verity thesignatures whenever the need arises. The specimen signatures are compared with the signatures on the cheques of thecustomers. If the two signatures differ, the bank can refuse to honor the cheque.

If a company wants to open a current account with a bank, the following documents have also been admitted:

1. A certified copy of the resolution of the Board of Directors for opening of the account.
http://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/BPAYhttp://en.wikipedia.org/wiki/BPAYhttp://en.wikipedia.org/wiki/BPAYhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Account_aggregationhttp://en.wikipedia.org/wiki/Account_aggregationhttp://en.wikipedia.org/wiki/Account_aggregationhttp://www.publishyourarticles.org/eng/articles/procedure-to-open-a-current-account-or-a-saving-bank-account.htmlhttp://www.publishyourarticles.org/eng/articles/procedure-to-open-a-current-account-or-a-saving-bank-account.htmlhttp://www.publishyourarticles.org/eng/articles/procedure-to-open-a-current-account-or-a-saving-bank-account.htmlhttp://www.publishyourarticles.org/eng/articles/procedure-to-open-a-current-account-or-a-saving-bank-account.htmlhttp://www.publishyourarticles.org/eng/articles/procedure-to-open-a-current-account-or-a-saving-bank-account.htmlhttp://en.wikipedia.org/wiki/Account_aggregationhttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/BPAYhttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/Bank_statement


11/17

BANKING2. A copy of the Memorandum and Articles of Association of the Company.3. A copy of the Certificate of Incorporation and Certificate of Commencement of business.4. Specimen signatures of the persons authorized to operate the account.

In the same manner, if a society or club wants to open an account with a bank, it should admit a copy of the certificate ofregistration, a copy of the resolution of its managing committee for opening of the account, a copy of its bye-laws andspecimen signatures of persons authorized to operate the account. In case of partnership, a copy of the partnership deedis also to be submitted while opening a current account.

To make the Initial Deposit:

After the above formalities are over, the applicant deposits the initial amount and the banker opens an account in thename of the applicant. Generally, the minimum amount to be deposited varies from bank to bank. At present many

banks accept an initial deposit of Rs. 500/- for opening a new account.

How to open a fixed deposit

Fixed deposits have never seemed as alluring, with equity markets seemingly keen on discovering how far they can fall.What's more, interest rates on deposits are rather attractive at present. Opening a fixed deposit may not be as quick asbuying stocks, but it isn't a hassling process either. Here's detailing how you can open a bank fixed deposit and acorporate fixed deposit.

BANK DEPOSITS

The minimum amount to be deposited varies with banks, but is usually around Rs 10,000. If the foremost question onyour mind regarding deposits is if you need a savings account with the bank, rest assured.

Most banks don't require you to be a savings account holder first, though there are some benefits. For instance, if youhave internet banking enabled with your bank, opening a fixed deposit may only require you to log on and open a fixeddeposit. You can choose the kind of deposit you want to make, the time period, and the amount.

Other benefits include overdraft facilities and linking the deposit to your bank account and enabling the sweep-in andsweep-out facilities.

However, online or not, opening a deposit in other banks is hardly a taxing process.

It simply involves filling out a form, putting together a set of documents and your photographs and submitting them.The bank will issue a fixed deposit receipt which you need to hold on to.

While all banks have the required forms at their branches, a good many, such as Kotak Mahindra Bank or Axis Bank,have them available on their Web site. Download, print and fill these out.

Still others such as HDFC Bank, ING Vysya, Axis Bank and ICICI Bank allow you to submit details online, post which

the bank sends a representative to collect the form and necessary documents.

You can also opt to submit them at the closest bank branch itself, but in such a case, you have to go in person. Forms areeither available under the Accounts and Deposits' tab on the Web site or in the Downloads' section.

DOCUMENTATION

Documents required are for proof of identity, address, signature, and in case of senior citizenship, age. There are avariety of documents you can produce for proof of identity and address, such as your passport, driving license, voter'sidentity card, PAN card, ration card, recent utility bills, credit card bills and so on.

Signature proofs can take the form of passport, PAN card or a signed cheque. Apart from this, some banks, such as AxisBank, also demand an introduction letter from an account holder.


12/17

BANKINGCOMPANY DEPOSITS

The process for opening company deposits is similar to that of a bank deposit. Forms can be downloaded from thecompany Web site or taken from the manager of the deposit scheme.

Submission of the filled-out form, along with the cheque for the deposit amount, should be done at the bank branchesspecified by the company or to the manger of the issue. Note that only bank deposits up to Rs 100,000 are insured.

ATM card

An ATM card (also known as a bank card, client card, key card, orcash card) is a card issued by

abank,credit union, orbuilding societythat can be used in anAutomated Teller Machine(ATM) for

transactions such as: deposits, withdrawals, account information, and other types of transactions, often

throughinterbank networks.

It can also be used on improvised ATMs, such as merchants' card terminals that deliver ATM features

without any cash drawer (commonly referred to as mini ATMs).[1][2]

These terminals can also be used as

Cashless scrip ATMs by cashing the fund transfer receipt at the merchant's Cashier.[3]

The dimensions of an ATM card

ATM cards are typically about 86 54 mm, i.e.ISO/IEC 7810 ID-1size.

Similar to the size of an Credit Card, Debit Card, and so on.

Debit card

A debit card (also known as a bank card orcheck card) is aplasticcard that provides the cardholder

electronic access to his or herbank account(s) at a financial institution. Some cards have astored

valuewith which a payment is made, while most relay a message to the cardholder's bank to withdraw

funds from a designated account in favor of the payee's designated bank account. The card can be used as

an alternative payment method tocashwhen making purchases. In some cases, theprimary account

numberis assigned exclusively for use on the Internet and there is no physical card.[1][2]

In many countries, the use of debit cards has become so widespread that their volume has overtaken or

entirely replacedchequesand, in some instances, cash transactions. The development of debit cards,

unlikecredit cardsandcharge cards, has generally been country specific resulting in a number of different

systems around the world, which were often incompatible. Since the mid 2000s, a number of initiatives

have allowed debit cards issued in one country to be used in other countries and allowed their use for

internet and phone purchases.
http://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Automated_Teller_Machinehttp://en.wikipedia.org/wiki/Automated_Teller_Machinehttp://en.wikipedia.org/wiki/Automated_Teller_Machinehttp://en.wikipedia.org/wiki/Interbank_networkhttp://en.wikipedia.org/wiki/Interbank_networkhttp://en.wikipedia.org/wiki/Interbank_networkhttp://en.wikipedia.org/wiki/ATM_card#cite_note-0http://en.wikipedia.org/wiki/ATM_card#cite_note-0http://en.wikipedia.org/wiki/ATM_card#cite_note-0http://en.wikipedia.org/wiki/Cashierhttp://en.wikipedia.org/wiki/Cashierhttp://en.wikipedia.org/wiki/ATM_card#cite_note-2http://en.wikipedia.org/wiki/ATM_card#cite_note-2http://en.wikipedia.org/wiki/ATM_card#cite_note-2http://en.wikipedia.org/wiki/ISO/IEC_7810#ID-1http://en.wikipedia.org/wiki/ISO/IEC_7810#ID-1http://en.wikipedia.org/wiki/ISO/IEC_7810#ID-1http://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Primary_account_numberhttp://en.wikipedia.org/wiki/Primary_account_numberhttp://en.wikipedia.org/wiki/Primary_account_numberhttp://en.wikipedia.org/wiki/Primary_account_numberhttp://en.wikipedia.org/wiki/Debit_card#cite_note-0http://en.wikipedia.org/wiki/Debit_card#cite_note-0http://en.wikipedia.org/wiki/Debit_card#cite_note-0http://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Debit_card#cite_note-0http://en.wikipedia.org/wiki/Debit_card#cite_note-0http://en.wikipedia.org/wiki/Primary_account_numberhttp://en.wikipedia.org/wiki/Primary_account_numberhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Bank_accounthttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/ISO/IEC_7810#ID-1http://en.wikipedia.org/wiki/ATM_card#cite_note-2http://en.wikipedia.org/wiki/Cashierhttp://en.wikipedia.org/wiki/ATM_card#cite_note-0http://en.wikipedia.org/wiki/ATM_card#cite_note-0http://en.wikipedia.org/wiki/Interbank_networkhttp://en.wikipedia.org/wiki/Automated_Teller_Machinehttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/Credit_unionhttp://en.wikipedia.org/wiki/Bank


13/17

BANKING

Unlike credit and charge cards, payments using a debit card are immediately transferred from the

cardholder's designated bank account, instead of the them paying the money back at a later date.

Debit cards usually also allow for instant withdrawal of cash, acting as theATM cardfor withdrawing cash.

Merchants may also offercashbackfacilities to customers, where a customer can withdraw cash along withtheir purchase.

How Does a Debit Card Work?

When you use a debit card, the transaction debits (withdraws) theamount of the transaction from your checking account, usually on thesame day. You can use a debit card to get cash fromATM machinesorhave it swiped like a credit card at shops or restaurants or swipe it

through a pay phone to make a call.

Advantages of debit cards

A consumer who is not credit worthy and may find it difficult or impossible to obtain acredit card can more easily obtain a debit card, allowing him/her to make plastictransactions. For example, legislation often prevents minors from taking out debt, whichincludes the use of a credit card, but not online debit card transactions.

For most transactions, a check card can be used to avoid check writing altogether.Check cards debit funds from the users account on the spot, thereby finalizing the

transaction at the time of purchase, and bypassing the requirement to pay a credit cardbill at a later date, or to write an insecure check, containing the account holderspersonal information.

Like credit cards, debit cards are accepted by merchants with less identification andscrutiny than personal checks, thereby making transactions quicker and less intrusive.Unlike personal checks, merchants generally do not believe that a payment via a debitcard may be later dishonored.

Unlike a credit card, which charges higher fees and interest rates when a cash advanceis obtained, a debit card may be used to obtain cash from an ATM or a PIN-basedtransaction at no extra charge, other than a foreign ATM fee.

Disadvantages of debit cards

Use of a debit card is not usually limited to the existing funds in the account to which it islinked, most banks allow a certain threshold over the available bank balance which cancauseoverdraftfees if the user's transaction does not reflect available balance. Thisdisadvantage has lessened in the United States with the requirement that an issuerobtain opt-in permission in advance to allow an overdraft on a debit card. Lacking thisopt-in, overdrafts are not permitted for electronic transactions.

Many banks are now charging over-limit fees or non-sufficient funds fees based upon

pre-authorizations, and even attempted but refused transactions by the merchant (someof which may be unknown until later discovery by account holder).
http://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Debit_card_cashbackhttp://en.wikipedia.org/wiki/Debit_card_cashbackhttp://en.wikipedia.org/wiki/Debit_card_cashbackhttp://studenttravel.about.com/b/2008/03/17/atm-travel-solutions.htmhttp://studenttravel.about.com/b/2008/03/17/atm-travel-solutions.htmhttp://studenttravel.about.com/b/2008/03/17/atm-travel-solutions.htmhttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Overdrafthttp://studenttravel.about.com/b/2008/03/17/atm-travel-solutions.htmhttp://en.wikipedia.org/wiki/Debit_card_cashbackhttp://en.wikipedia.org/wiki/ATM_card


14/17

BANKING Many merchants mistakenly believe that amounts owed can be "taken" from a

customer's account after a debit card (or number) has been presented, withoutagreement as to date, payee name, amount and currency, thus causing penalty fees foroverdrafts, over-the-limit, amounts not available causing further rejections or overdrafts,and rejected transactions by some banks.

In some countries debit cards offer lower levels of security protection than creditcards.[7]Theft of the users PIN using skimming devices can be accomplished mucheasier with a PIN input than with a signature-based credit transaction. However, theft ofusers' PIN codes using skimming devices can be equally easily accomplished with adebit transaction PIN input, as with a credit transaction PIN input, and theft using asignature-based credit transaction is equally easy as theft using a signature-based debittransaction.

In many places, laws protect the consumer from fraud much less than with a credit card.While the holder of a credit card is legally responsible for only a minimal amount of afraudulent transaction made with a credit card, which is often waived by the bank, theconsumer may be held liable for hundreds of dollars, or even the entire value offraudulent debit transactions. Because debit cards allow funds to be immediately

transferred from an account when making a purchase, the consumer also has a shortertime (usually just two days) to report such fraud to the bank in order to be eligible forsuch a waiver with a debit card and recover the lost funds,[7]whereas with a credit card,this time may be up to 60 days, and the transactions are removed without losing anycredit. A thief who obtains or clones a debit card along with its PIN may be able to cleanout the consumer's bank account, and the consumer will have no recourse.

Credit card

A credit card is a smallplasticcard issued to users as a system ofpayment. It allows its holder to buy

goods and services based on the holder's promise to pay for these goods and services .[1]The issuer of the

card creates arevolving accountand grants aline of creditto theconsumer(or the user) from which the

user can borrow money for payment to amerchantor as acash advanceto the user.

A credit card is different from acharge card: a charge card requires the balance to be paid in full each

month.[2]

In contrast, credit cards allow the consumers a continuing balance of debt, subject

tointerestbeing charged. A credit card also differs from a cash card, which can be used like currency by

the owner of the card.

The size of most credit cards is 85.60 53.98 mm (33/8

21/8

in),[3]

and conform to theISO/IEC 7810ID-1

standard. Credit cards have an embossedbank card numbercomplying with theISO/IEC 7812numbering

standard.

Advantages

1. Offer free use of funds, provided you always pay yourbalance in full, on time.2. Be more convenient to carry than cash.3. Help you establish a good credit history.4. Provide a convenient payment method for purchases made on the Internet and over the telephone.5. Give you incentives, such as reward points, that you can redeem.
http://en.wikipedia.org/wiki/Debit_card#cite_note-autogenerated1-6http://en.wikipedia.org/wiki/Debit_card#cite_note-autogenerated1-6http://en.wikipedia.org/wiki/Debit_card#cite_note-autogenerated1-6http://en.wikipedia.org/wiki/Debit_card#cite_note-autogenerated1-6http://en.wikipedia.org/wiki/Debit_card#cite_note-autogenerated1-6http://en.wikipedia.org/wiki/Debit_card#cite_note-autogenerated1-6http://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Credit_card#cite_note-0http://en.wikipedia.org/wiki/Credit_card#cite_note-0http://en.wikipedia.org/wiki/Credit_card#cite_note-0http://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Credit_card#cite_note-1http://en.wikipedia.org/wiki/Credit_card#cite_note-1http://en.wikipedia.org/wiki/Credit_card#cite_note-1http://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/Cash_cardhttp://en.wikipedia.org/wiki/Cash_cardhttp://en.wikipedia.org/wiki/Cash_cardhttp://en.wikipedia.org/wiki/Credit_card#cite_note-2http://en.wikipedia.org/wiki/Credit_card#cite_note-2http://en.wikipedia.org/wiki/Credit_card#cite_note-2http://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/Bank_card_numberhttp://en.wikipedia.org/wiki/Bank_card_numberhttp://en.wikipedia.org/wiki/Bank_card_numberhttp://en.wikipedia.org/wiki/ISO/IEC_7812http://en.wikipedia.org/wiki/ISO/IEC_7812http://en.wikipedia.org/wiki/ISO/IEC_7812http://en.wikipedia.org/wiki/ISO/IEC_7812http://en.wikipedia.org/wiki/Bank_card_numberhttp://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/Credit_card#cite_note-2http://en.wikipedia.org/wiki/Cash_cardhttp://en.wikipedia.org/wiki/Credit_card_interesthttp://en.wikipedia.org/wiki/Credit_card#cite_note-1http://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Credit_card#cite_note-0http://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Debit_card#cite_note-autogenerated1-6http://en.wikipedia.org/wiki/Debit_card#cite_note-autogenerated1-6


15/17

BANKINGDisadvantages

1. Cost much more than other forms of credit, such as a line of credit or a personal loan, if you don't pay on time.2. Damage your credit rating if your payments are late;3. Allow you to build up more debt than you can handle;

4. Have complicated terms and conditions;

Cheque

A cheque (orcheck inAmerican English) is a document[nb 1]

that orders a payment of money from a bank

account. The person writing the cheque, the drawer, usually has acurrent account(most English speakingcountries) orchecking account(US) where their money was previously deposited. The drawer writes the

various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering

theirbank, known as the drawee, to pay that person or company the amount of money stated.

Cheques are a type ofbill of exchangeand were developed as a way to make payments without the need

to carry large amounts of money. Whilepaper moneyevolved frompromissory notes, another form of

negotiable instrument, similar to cheques in that they were originally a written order to pay the given

amount to whoever had it in their possession (the "bearer").

Technically, a cheque is anegotiable instrument[nb 2]instructing afinancial institutionto pay a specific

amount of a specificcurrencyfrom a specifiedtransactional accountheld in the drawer's name with that

institution. Both the drawer and payee may benatural personsorlegal entities. Specifically, cheques

are order instruments, and are not in general payable simply to the bearer (asbearer instrumentsare) but

must be paid to the payee. In some countries, such as the US, the payee may endorse the cheque,

allowing them to specify a third party to whom it should be paid.

Although forms of cheques have been in use since ancient times and at least since the 9th century, it was

during the 20th century that cheques became a highly popular non-cashmethod for makingpaymentsand

the usage of cheques peaked. By the second half of the 20th century, as cheque processing became

automated, billions of cheques were issued annually; these volumes peaked in or around the early

1990s.[1]

Since then cheque usage has fallen, being partly replaced by electronic payment systems. In some

countries cheques have become a marginalpayment systemor have been phased out completely.

Definition of 'Bank Draft'
http://en.wikipedia.org/wiki/American_Englishhttp://en.wikipedia.org/wiki/American_Englishhttp://en.wikipedia.org/wiki/American_Englishhttp://en.wikipedia.org/wiki/Cheque#cite_note-0http://en.wikipedia.org/wiki/Cheque#cite_note-0http://en.wikipedia.org/wiki/Cheque#cite_note-0http://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Negotiable_instrument#Bill_of_exchangehttp://en.wikipedia.org/wiki/Negotiable_instrument#Bill_of_exchangehttp://en.wikipedia.org/wiki/Negotiable_instrument#Bill_of_exchangehttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Promissory_notehttp://en.wikipedia.org/wiki/Promissory_notehttp://en.wikipedia.org/wiki/Promissory_notehttp://en.wikipedia.org/wiki/Bearer_instrumenthttp://en.wikipedia.org/wiki/Bearer_instrumenthttp://en.wikipedia.org/wiki/Bearer_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Natural_personhttp://en.wikipedia.org/wiki/Natural_personhttp://en.wikipedia.org/wiki/Natural_personhttp://en.wikipedia.org/wiki/Juristic_personhttp://en.wikipedia.org/wiki/Juristic_personhttp://en.wikipedia.org/wiki/Juristic_personhttp://en.wikipedia.org/wiki/Bearer_instrumenthttp://en.wikipedia.org/wiki/Bearer_instrumenthttp://en.wikipedia.org/wiki/Bearer_instrumenthttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Cheque#cite_note-2http://en.wikipedia.org/wiki/Cheque#cite_note-2http://en.wikipedia.org/wiki/Payment_systemhttp://en.wikipedia.org/wiki/Payment_systemhttp://en.wikipedia.org/wiki/Payment_systemhttp://en.wikipedia.org/wiki/Payment_systemhttp://en.wikipedia.org/wiki/Cheque#cite_note-2http://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Bearer_instrumenthttp://en.wikipedia.org/wiki/Juristic_personhttp://en.wikipedia.org/wiki/Natural_personhttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Negotiable_instrumenthttp://en.wikipedia.org/wiki/Bearer_instrumenthttp://en.wikipedia.org/wiki/Promissory_notehttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Negotiable_instrument#Bill_of_exchangehttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Cheque#cite_note-0http://en.wikipedia.org/wiki/American_English


16/17

BANKINGA type of check where the payment is guaranteed to be available by issuing bank. Typically,

banks will review the bank draft requester's account to see if sufficient funds are available for

the check to clear. Once it has been confirmed that sufficient funds are available, the bank

effectively sets aside the funds from the person's account to be given out when the bank draft

is used.

Traveler's cheque

A traveler's cheque (also traveller's cheque, travellers cheque, traveller's check ortraveler's check)

is a preprinted, fixed-amountchequedesigned to allow the person signing it to make an unconditional

payment to someone else as a result of having paid the issuer for that privilege.

They were generally used by people on vacation instead of cash as many businesses used to accept

traveller's cheques as currency. Their use has been declining since the 1990s as better alternatives, such

ascredit cardsandautomated teller machinesbecame more widely accepted and available.

WITHDRAWAL SLIP

A form or slip of paper from a bank or credit union that is filled out by bank account

holders to take money out of their savings or checking account.

Passbook

A passbook orbankbook is a paper book used to record bank transactions on adeposit account.

Depending on the country or thefinancial institution, it can be of the dimensions of achequebookor

apassport.

Traditionally, a passbook is used for accounts with a low transaction volume, such as asavings account.

Traditionally, abank tellerorpostmasterwould write, by hand, the date and amount of the transaction, the

updated balance, and enter his or her initials. In the late 20th century, smalldot matrixorinkjet

printerswere introduced capable of updating the passbook at the account holder's convenience, either at

anautomated teller machineor a passbook printer, either in a self-serve mode, by post, or in abranch.

Withdrawals normally required the account holder to visit the branch where the account was held, where a

withdrawal slip would be prepared and signed. If the account holder was not known to the teller, the

signature on the slip and the authorities would be checked against the signature card at the branch, before

money was paid out. In the 1960s, banks adopted the black light signature system for passbooks, which

enabled withdrawals to be made from passbooks at a branch other than the one where an account was
http://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Credit_cardshttp://en.wikipedia.org/wiki/Credit_cardshttp://en.wikipedia.org/wiki/Credit_cardshttp://en.wikipedia.org/wiki/Automated_teller_machineshttp://en.wikipedia.org/wiki/Automated_teller_machineshttp://en.wikipedia.org/wiki/Automated_teller_machineshttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Passporthttp://en.wikipedia.org/wiki/Passporthttp://en.wikipedia.org/wiki/Passporthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Bank_tellerhttp://en.wikipedia.org/wiki/Bank_tellerhttp://en.wikipedia.org/wiki/Bank_tellerhttp://en.wikipedia.org/wiki/Postmasterhttp://en.wikipedia.org/wiki/Postmasterhttp://en.wikipedia.org/wiki/Postmasterhttp://en.wikipedia.org/wiki/Dot_matrix_printerhttp://en.wikipedia.org/wiki/Dot_matrix_printerhttp://en.wikipedia.org/wiki/Dot_matrix_printerhttp://en.wikipedia.org/wiki/Inkjet_printerhttp://en.wikipedia.org/wiki/Inkjet_printerhttp://en.wikipedia.org/wiki/Inkjet_printerhttp://en.wikipedia.org/wiki/Inkjet_printerhttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Inkjet_printerhttp://en.wikipedia.org/wiki/Inkjet_printerhttp://en.wikipedia.org/wiki/Dot_matrix_printerhttp://en.wikipedia.org/wiki/Postmasterhttp://en.wikipedia.org/wiki/Bank_tellerhttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Passporthttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Automated_teller_machineshttp://en.wikipedia.org/wiki/Credit_cardshttp://en.wikipedia.org/wiki/Cheque


17/17

BANKING

opened, unless prior arrangements were made to transfer the signature card to the other branch. Under

this system, the passbook's owner would sign in the back of the passbook in an invisible ink and the

signing authorities would also be noted. At the paying branch, the signature on the withdrawal slip would be

checked against the signature in the book, which required a special ultraviolet reader to read .[1]

Nowadays,

customer verification is more likely to be byPIN.

For people who feel uneasy withtelephoneoronline banking, this is an alternative to obtain, in real-time,

the account activity without waiting for abank statement. However, contrary to some bank statements,

some passbooks offer fewer details, replacing easy-to-understand descriptions with short codes, also

known asmnemonics.

Bank statement

An account statement or a bank statement is a summary of allfinancial transactionsoccurring over a

given period of time on adeposit account, acredit card, or any other type of account offered by afinancial

institution.

Bank statements are typically printed on one or several pieces of paper and either mailed directly to the

account holder's address, or kept at the financial institution's localbranchfor pick-up. CertainATMsoffer

the possibility to print, at any time, a condensed version of a bank statement.

Historically, bank statements were producedquarterlyor evenannually. Since the introduction of

computers in banks in the 1960s,[1]

bank statements are generally produced every month. Lesser

frequencies are nowadays reserved for accounts with small transaction volumes, such

asinvestmentsorsavings accounts. Depending on the financial institution, bank statements may include

certain features such as the cancelledcheques(or their images) that cleared through the account during the

statement period, promotionalinsertsor important notices about changes infeesorinterest rates. Thanks

toonline banking, financial institutions offer virtual statements, also known aspaperlessstatements or e-

statements. Due toidentity theftconcerns, a virtual statement may not be seen as a dangerous alternative

against physical theft as it does not contain tangible personal information, and does not require extra safety

measures of disposal such asshredding. However, a virtual statement can be easier to obtain than a

physical through computer fraud, data interception and/or theft of storage media.

Although popular for customers, paperless statements are a way for a bank to reduce their costs.
http://en.wikipedia.org/wiki/Passbook#cite_note-0http://en.wikipedia.org/wiki/Passbook#cite_note-0http://en.wikipedia.org/wiki/Passbook#cite_note-0http://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/Mnemonichttp://en.wikipedia.org/wiki/Mnemonichttp://en.wikipedia.org/wiki/Mnemonichttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Automated_teller_machineshttp://en.wikipedia.org/wiki/Automated_teller_machineshttp://en.wikipedia.org/wiki/Automated_teller_machineshttp://en.wikipedia.org/wiki/Fiscal_quarterhttp://en.wikipedia.org/wiki/Fiscal_quarterhttp://en.wikipedia.org/wiki/Fiscal_quarterhttp://en.wikipedia.org/wiki/Annual_reporthttp://en.wikipedia.org/wiki/Annual_reporthttp://en.wikipedia.org/wiki/Annual_reporthttp://en.wikipedia.org/wiki/Bank_statement#cite_note-0http://en.wikipedia.org/wiki/Bank_statement#cite_note-0http://en.wikipedia.org/wiki/Bank_statement#cite_note-0http://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Insert_(advertising)http://en.wikipedia.org/wiki/Insert_(advertising)http://en.wikipedia.org/wiki/Insert_(advertising)http://en.wikipedia.org/wiki/Feeshttp://en.wikipedia.org/wiki/Feeshttp://en.wikipedia.org/wiki/Feeshttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Paperlesshttp://en.wikipedia.org/wiki/Paperlesshttp://en.wikipedia.org/wiki/Paperlesshttp://en.wikipedia.org/wiki/Identity_thefthttp://en.wikipedia.org/wiki/Identity_thefthttp://en.wikipedia.org/wiki/Identity_thefthttp://en.wikipedia.org/wiki/Paper_shredderhttp://en.wikipedia.org/wiki/Paper_shredderhttp://en.wikipedia.org/wiki/Paper_shredderhttp://en.wikipedia.org/wiki/Paper_shredderhttp://en.wikipedia.org/wiki/Identity_thefthttp://en.wikipedia.org/wiki/Paperlesshttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Feeshttp://en.wikipedia.org/wiki/Insert_(advertising)http://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Bank_statement#cite_note-0http://en.wikipedia.org/wiki/Annual_reporthttp://en.wikipedia.org/wiki/Fiscal_quarterhttp://en.wikipedia.org/wiki/Automated_teller_machineshttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Mnemonichttp://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Passbook#cite_note-0