May 27, 2015

M-pesa

Pesa means money in Swahili language. M-Pesa is a mobile payment service (also a branchless banking) which was first launched by Vodafone in 2007 in Kenya and Tanzania. Since

April 27, 2015

Prompt Corrective Action

Prompt Corrective Action is a system of RBI under which it can initiate a corrective action in case of a bank which is found to be having low capital

March 15, 2015

Bill Discounting

Under Bill discounting, the lending bank takes the bill drawn by the borrower on his (borrower’s) customer and pays him immediately deducting some amount as discount/commission. The bank then

March 15, 2015

Cash Credit Facility

Under Cash credit facility, a line of credit is provided to the borrower on the basis of his projected level of sales, inventories, receivables and cash requirements. This is

March 15, 2015

Letter of Credit: Meaning & Types

A letter of credit (L/C) is a type of “documentary credit” or a “non-fund based credit”. It is a document issued by a bank or financial institution at the

March 10, 2015

Primary Credit Societies

Primary Cooperative Credit Societies are formed at village or town level. A primary credit society refers to any cooperative society other than a primary agricultural credit society. It is

March 1, 2015

Credit Authorization Scheme

The Credit Authorization Scheme (CAS) was launched in 1965 and was withdrawn in 1989. Under this scheme, all commercial banks had to obtain prior approval / authorization of the