• Parties to the transaction:
The parties to a plastic money transaction are the card
issuer, card holder (customer), the designated merchant
establishment and the franchiser who brings several card
issuers under one roof like Master Card International and
Visa International.
• The principal issuers of the plastic money are the banks.
Card Holders
• The card holder includes both salaried individuals and
business organizations.
• The eligibility criteria for individuals to acquire plastic
money are predicted on the annual incomes.
• MEs are establishments enlisted by the plastic money issuer
who accept valid credit cards towards payment for the goods
sold or services rendered by them in lieu of cash.
• While enlisting MEs, their reputation, integrity, standing and
popularity are taken into consideration.
• MEs include retail outlets, departmental stores, restaurants,
hotels, hospitals, travel agencies, petrol pumps, etc.
• A credit card can be viewed as a payment mechanism which
enables the holder of the card to purchase goods or services
without parting with immediate cash and make a one-time
payment at the end of a specified period (known as billing
cycle which is usually a month) with a provision for spreading
this payment over several easy installments.
• Charge card is a variation of plastic money where the payment
for the purchase of good is done within a month immediately
after the purchase.
• Whole of the amount of purchase is paid by the cardholder
normally within a month of purchase of goods and, therefore,
there is no carry forward of amount for subsequent payment.
• The payment may be made either by direct transfer through
cheque or cash or may be made by allowing transfer from
designated bank account.
• Unlike a credit card which is a ‘Pay Later’ product, a Debit
card is a ‘Pay Now’ product where the customer’s account with
the issuer is immediately debited to the extent of the value of
transaction and merchant’s account credited instantly.
• Anytime Banking, Anywhere Banking
• It is possible to use one bank’s ATM Card with another
bank’s ATM through the use of a network system called
as Shared Payment Network System (SPNS).
• ATM, Mobile Banking, Tele Banking, Internet Banking
• ATMs provide the customer 24x7 hour access to money in his/
her savings and or current accounts.
• They help bank reduce transaction costs.
• They reduce branch traffic.
• Besides cash dispensing, ATMs cater to other functions like
collection of cheques through drop boxes, issuance of mini
statements etc.
• On – Site
• Off – Site
• Worksite
• Mobile ATM
• The acronym 'RTGS' stands for Real Time Gross
Settlement, which can be defined as the continuous (real-
time) settlement of funds transfers individually on an
order by order basis. 'Real Time' means the processing
of instructions at the time they are received rather than at
some later time. 'Gross Settlement' means the settlement
of funds transfer instructions occurs individually (on an
instruction by instruction basis). Considering that the
funds settlement takes place in the books of the Reserve
Bank of India, the payments are final and irrevocable.
• The RTGS system is primarily meant for large value
transactions. The minimum amount to be remitted
through RTGS is ` 2 lakh. There is no upper ceiling for
RTGS transactions
• RTGS is a communication network which is responsible
to provide network technology;
• It enables to treat a customer as a Bank customer instead
of a Branch customer;
• Indian Financial Network (INFINET) is an exclusive
network designated for RTGS;
• This innovative network technology product was launched
by RBI on 26
th
March 2004;
• RTGS is a facility for quick, safe and secured electronic
fund transfer;
• Through RTGS remittance and payment settlement can be
made to another Bank;
• It is an on-line system without any kind of delay connected
with settlement of funds;
• By paying nominal charges/transaction fees, one can make any
type of currency payments to anyone
• Delight customers by giving money at short notice
• Speedier disposal of remittances between branches
• A good source of non-interest income for the bank
• Immediate customer service as no settlement delay
• Significant reduction in the paper works of banks
• Customer retention
• Customers receive new technology driven products
• Effective channel over traditional branch banking
• VALUE received instantaneously through transfer
• Provide less risk-based fund transfer to customer
• Products provided as per requirements of customers;
• National Electronic Funds Transfer (NEFT) is a nation-
wide payment system facilitating one-to-one funds
transfer. Under this Scheme, individuals, firms and
corporates can electronically transfer funds from any
bank branch to any individual, firm or corporate having an
account with any other bank branch in the country
participating in the Scheme.
• Upto Rs 2 lakhs can be transferred using NEFT.
• The Indian Financial System Code (also known as IFSC)
is a 11 character code for identifying the bank and branch
which an account is held. The IFSC code is used both by
the NEFT and RTGS finance transfer systems.
• IFSC Code is required to identify the Branch for which
you will want to transfer funds using RTGS or NEFT. Note
all branches don't have IFSC Codes
• SWIFT code stands for ‘Society for Worldwide Interbank
Financial Telecommunication’ code.
• A SWIFT code is a universal way of identifying banks
throughout the world.
• The SWIFT code is an 8 or 11 alphanumeric characters
code that uniquely identifies financial institution.
• SWIFT is approved by the International Standard
Organization (ISO)
• Magnetic Ink Character Recognition is a character
recognition system that uses special ink and
character.
• Any document, which contains this ink, needs to be
read, and passed through a machine, which
magnetizes the ink and then translates the magnetic
information into characters.
• The numbers and characters that are written at the
bottom of the cheques are mainly printed with this ink.
• This provides secure, high-speed method of scanning
and processing information.
• ECS is an electronic mode of payment / receipt for transactions that are
repetitive and periodic in nature. ECS is used by institutions for making
bulk payment of amounts towards distribution of dividend, interest,
salary, pension, etc., or for bulk collection of amounts towards telephone
/ electricity / water dues, cess / tax collections, loan installment
repayments, periodic investments in mutual funds, insurance premium
etc. Essentially, ECS facilitates bulk transfer of monies from one bank
account to many bank accounts or vice versa.
• There are two types of ECS called ECS (Credit) and ECS (Debit).
ECS (Credit) is used for affording credit to a large number of
beneficiaries by raising a single debit to an account, such as dividend,
interest or salary payment.
ECS (Debit) is used for raising debits to a number of accounts of
consumers/ account holders for crediting a particular institution such as
payment of electricity bills, telephone bills etc.
• Prime Lending Rate
• Base Rate
• Deposit Rates
• Non-Performing Assets
• KYC Norms
• Anti Money Laundering (AML)
• CIBIL
• Wholesale Banking
• Retail Banking
• Principle of Safety
• Principle of Liquidity
• Principle of Security
• Principle of Profitability
• Principle of Purpose
• Principle of Diversity
• Principle of Marketability
• Principle of Value Stability
• Principle of National Interest
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The parties to a plastic money transaction are the card
issuer, card holder (customer), the designated merchant
establishment and the franchiser who brings several card
issuers under one roof like Master Card International and
Visa International.
• The principal issuers of the plastic money are the banks.
Card Holders
• The card holder includes both salaried individuals and
business organizations.
• The eligibility criteria for individuals to acquire plastic
money are predicted on the annual incomes.
• MEs are establishments enlisted by the plastic money issuer
who accept valid credit cards towards payment for the goods
sold or services rendered by them in lieu of cash.
• While enlisting MEs, their reputation, integrity, standing and
popularity are taken into consideration.
• MEs include retail outlets, departmental stores, restaurants,
hotels, hospitals, travel agencies, petrol pumps, etc.
• A credit card can be viewed as a payment mechanism which
enables the holder of the card to purchase goods or services
without parting with immediate cash and make a one-time
payment at the end of a specified period (known as billing
cycle which is usually a month) with a provision for spreading
this payment over several easy installments.
• Charge card is a variation of plastic money where the payment
for the purchase of good is done within a month immediately
after the purchase.
• Whole of the amount of purchase is paid by the cardholder
normally within a month of purchase of goods and, therefore,
there is no carry forward of amount for subsequent payment.
• The payment may be made either by direct transfer through
cheque or cash or may be made by allowing transfer from
designated bank account.
• Unlike a credit card which is a ‘Pay Later’ product, a Debit
card is a ‘Pay Now’ product where the customer’s account with
the issuer is immediately debited to the extent of the value of
transaction and merchant’s account credited instantly.
• Anytime Banking, Anywhere Banking
• It is possible to use one bank’s ATM Card with another
bank’s ATM through the use of a network system called
as Shared Payment Network System (SPNS).
• ATM, Mobile Banking, Tele Banking, Internet Banking
• ATMs provide the customer 24x7 hour access to money in his/
her savings and or current accounts.
• They help bank reduce transaction costs.
• They reduce branch traffic.
• Besides cash dispensing, ATMs cater to other functions like
collection of cheques through drop boxes, issuance of mini
statements etc.
• On – Site
• Off – Site
• Worksite
• Mobile ATM
• The acronym 'RTGS' stands for Real Time Gross
Settlement, which can be defined as the continuous (real-
time) settlement of funds transfers individually on an
order by order basis. 'Real Time' means the processing
of instructions at the time they are received rather than at
some later time. 'Gross Settlement' means the settlement
of funds transfer instructions occurs individually (on an
instruction by instruction basis). Considering that the
funds settlement takes place in the books of the Reserve
Bank of India, the payments are final and irrevocable.
• The RTGS system is primarily meant for large value
transactions. The minimum amount to be remitted
through RTGS is ` 2 lakh. There is no upper ceiling for
RTGS transactions
• RTGS is a communication network which is responsible
to provide network technology;
• It enables to treat a customer as a Bank customer instead
of a Branch customer;
• Indian Financial Network (INFINET) is an exclusive
network designated for RTGS;
• This innovative network technology product was launched
by RBI on 26
th
March 2004;
• RTGS is a facility for quick, safe and secured electronic
fund transfer;
• Through RTGS remittance and payment settlement can be
made to another Bank;
• It is an on-line system without any kind of delay connected
with settlement of funds;
• By paying nominal charges/transaction fees, one can make any
type of currency payments to anyone
• Delight customers by giving money at short notice
• Speedier disposal of remittances between branches
• A good source of non-interest income for the bank
• Immediate customer service as no settlement delay
• Significant reduction in the paper works of banks
• Customer retention
• Customers receive new technology driven products
• Effective channel over traditional branch banking
• VALUE received instantaneously through transfer
• Provide less risk-based fund transfer to customer
• Products provided as per requirements of customers;
• National Electronic Funds Transfer (NEFT) is a nation-
wide payment system facilitating one-to-one funds
transfer. Under this Scheme, individuals, firms and
corporates can electronically transfer funds from any
bank branch to any individual, firm or corporate having an
account with any other bank branch in the country
participating in the Scheme.
• Upto Rs 2 lakhs can be transferred using NEFT.
• The Indian Financial System Code (also known as IFSC)
is a 11 character code for identifying the bank and branch
which an account is held. The IFSC code is used both by
the NEFT and RTGS finance transfer systems.
• IFSC Code is required to identify the Branch for which
you will want to transfer funds using RTGS or NEFT. Note
all branches don't have IFSC Codes
• SWIFT code stands for ‘Society for Worldwide Interbank
Financial Telecommunication’ code.
• A SWIFT code is a universal way of identifying banks
throughout the world.
• The SWIFT code is an 8 or 11 alphanumeric characters
code that uniquely identifies financial institution.
• SWIFT is approved by the International Standard
Organization (ISO)
• Magnetic Ink Character Recognition is a character
recognition system that uses special ink and
character.
• Any document, which contains this ink, needs to be
read, and passed through a machine, which
magnetizes the ink and then translates the magnetic
information into characters.
• The numbers and characters that are written at the
bottom of the cheques are mainly printed with this ink.
• This provides secure, high-speed method of scanning
and processing information.
• ECS is an electronic mode of payment / receipt for transactions that are
repetitive and periodic in nature. ECS is used by institutions for making
bulk payment of amounts towards distribution of dividend, interest,
salary, pension, etc., or for bulk collection of amounts towards telephone
/ electricity / water dues, cess / tax collections, loan installment
repayments, periodic investments in mutual funds, insurance premium
etc. Essentially, ECS facilitates bulk transfer of monies from one bank
account to many bank accounts or vice versa.
• There are two types of ECS called ECS (Credit) and ECS (Debit).
ECS (Credit) is used for affording credit to a large number of
beneficiaries by raising a single debit to an account, such as dividend,
interest or salary payment.
ECS (Debit) is used for raising debits to a number of accounts of
consumers/ account holders for crediting a particular institution such as
payment of electricity bills, telephone bills etc.
• Prime Lending Rate
• Base Rate
• Deposit Rates
• Non-Performing Assets
• KYC Norms
• Anti Money Laundering (AML)
• CIBIL
• Wholesale Banking
• Retail Banking
• Principle of Safety
• Principle of Liquidity
• Principle of Security
• Principle of Profitability
• Principle of Purpose
• Principle of Diversity
• Principle of Marketability
• Principle of Value Stability
• Principle of National Interest
Find More Like This At
WWW.FREEMBANOTES.IN
doc_658528193.pptx