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Important Banking Terms And Definitions Pdf

It shows the current status of the loan account, all sums due, and the daily rate of interest. A home equity loan allows you to tap into your home’s built-up equity, which is the difference between the amount that your home could be sold for and the amount that you still owe.

As a result of using a fraudulent scheme, individuals will lose money, could lose property, will damage their credit rating, and possibly incur additional debt. It is often used in conjunction with the Fair Credit Reporting Act. The transfer is not direct and RBI acts as the service provider to transfer the money from one account to another.

Banking Terms – Pdf Download

Conducting monetary policy Regulating banking institutions and protecting the credit rights of consumers Maintaining the stability of the financial system Providing financial services to the U. See also Home Equity Products.

An area defined on a Flood Insurance Rate Map with an associated risk of flooding. The outstanding balance on a loan, excluding interest and fees. Snehal Hiremath June 4, at See also Right of Offset. The initial interest rate is usually below that of conventional fixed-rate loans.

In India it is the rate at which RBI lends money to the commercial banks in simple terms. There is typically a maximum or ceiling and a minimum or floor defined in the loan agreement.

These include accepting deposits and loan payments, providing withdrawals, and transferring funds between accounts. The loan must be repaid when you die, sell your home, or no longer live there as your principal residence. Banks are not required by the Uniform Commercial Code to honor stale-dated checks and can return them to the issuing bank unpaid. The interest rate at which at central bank lends money to commercial banks.

A detailed report of an individual’s credit history prepared by a credit bureau and used by a lender in determining a loan applicant’s creditworthiness. Either party can conduct transactions separately or together as set forth in the deposit account contract.

See also Charge Off. A period of time that downllad the banks to exceed the maximum hold periods defined in the Expedited Funds Availability Act. See also Debt Elimination and Fraudulent Schemes. The value of SDR is based on the portfolio of widely used countries and they are maintained as accounting entries and not as hard currency or physical assets like Gold.

A signed, written order by which one party the drawer instructs another party the drawee to pay a specified sum to a third party the payeeat sight or at a specific date. See also Private Mortgage Insurance. See also Who Regulates My Bank?

It is the minimum rate at which the commercial bank lends to its prime customers. The minimum dollar amount that must be paid each month on a loan, line of credit, or other debt.

The contract governing your open-end credit account, baking provides information on changes that may occur to the account. Also called a charge account or open-end credit. The depository bank is the bank into which the check was deposited.

Substitute checks were created under Check 21, the Check Clearing for the 21st Century Act, which became effective on October 28, The required process for resolving errors involving electronic transfers to and from deposit accounts. Closing a Mortgage Loan: The Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods.

Dictionary of Banking Terms and Phrases

We will publish them here. The LTV will bankinh programs available to the borrower; generally, the lower the LTV, the more favorable the program terms offered by lenders. The fraudulent signing or alteration of another’s name to an instrument such as a deed, mortgage, or check.

The process used to imprint or inscribe MICR characters on checks, deposits, and other financial instruments. Debit cards may be used to obtain cash from automated teller machines or purchase goods or services using point-of-sale systems. SLR is the amount a commercial banks needs to maintain in the form of cash, or gold, or govt. The net amount of funds that a lending institution disburses under the terms of a loan, and which the borrower then owes. If requested soon enough, the check will not be debited from the payer’s account.

They are not insured by the FDIC.

This small pdf file of 28 pages covered all important terms related to banking with detailed explanations more than terms are there. Banking terms tfrm a lot in number. A mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change. A letter requesting that a company stops the activity mentioned in the letter. It was enacted by the Congress in The month, date, and year when yerm periodic or monthly statement is generated.

See also Credit Cards.