BANKING TERMS PART 2

          ----BANKING AWARENESS BY B.K SHARMA---

12. What is a DEMAT Account?

DEMAT is nothing but a dematerialized account. If one has to save money or make cheque payments, then he/she needs to open a bank account. Similarly, one needs to open a Demat account if he/she wants to buy or sell stocks. Thus, Demat account is similar to a bank account wherein the actual money is being replaced by shares. In order to open a Demat account, one needs to approach the Depository Participants [DPs]. In India, a DEMAT Account is a type of banking account that dematerializes paper-based physical stock shares. The DEMAT account is used to avoid holding of physical shares: the shares are bought as well as sold through a stock broker. In this case, the advantage is that one does not need any physical evidence for possessing these shares. All the things are taken care of by the DPs. This account is very popular in India. Physically only 500 shares can be traded as per the provision is given by SEBI. From April 2006, it has become mandatory for any person holding a Demat account to possess a Permanent Account Number (PAN).

13. What is RuPay Card?

RuPay is the Indian domestic card payment network set up by National Payments Corporation of India (NPCI) at the behest of banks in India. The RuPay project had been conceived by Indian Banks Association (IBA) and had the approval of Reserve Bank of India (RBI). RuPay Logo National Payments Corporation of India (NPCI) has a plan to provide a full range of card payment services including the RuPay ATM, RuPay Micro ATM, Debit, Prepaid and Credit Cards which will be accepted in India and abroad, across various channels like POS, Internet, IVR and mobile etc.

14. What is NOSTRO ,VOSTRO and LORA account ?

NOSTRO Account: A NOSTRO account is maintained by an Indian bank in the foreign countries.

VOSTRO Account: a vostro a/c is maintained by a foreign bank in India with their corresponding bank for doing transaction in foreign currencies. It has to be opened different currencies of the concerned country.

Lora account is cross currency account.

       -------BANKING AWARENESS BY B.K SHARMA-------

15. What is Bancassurance?

Bancassurance stands for distribution of financial products particularly the insurance policies (both the life and non-life), also called referral business, by banks as corporate agents, through their branches located in different parts of the country.

16. WHAT IS PLASTIC MONEY ?

The debit card,credit cards and smart cards white cards are known as plastic money . The debit card is linked account where as the credit card is given as credit facility on the baisi of income . Smart cards are prepaid cards . white cards are credit cards where issuers have joined together without any name on the cards. These are small credit credit cards .

17. What is Foreign Exchange Reserves?

Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, SDRs and IMF reserve positions

Components The components of India’s Foreign Exchange Reserves include:
Foreign currency assets (FCAs), Gold, Special Drawing Rights (SDRs) and RBI’s Reserve position with International Monetary Fund (IMF).

NOTE-- 

RBI India’s Forex Reserves reach Life Time High of $381.167 billion 


 According to RBI, India’s foreign exchange (Forex) reserves have increased by $2.404 billion to touch a lifetime high of $381.167 billion in the week that ended on June 2. 
The increase was due to increase in foreign currency assets (FCAs). 

          ----BANKING AWARENESS BY B.K SHARMA------

                                                   (PO IN VIJAYA BANK)

                                

                                                                                                          DINESH DAYMA JI (RRB PO)