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Banking Terms

Define Acceptnace in Banking

This is drawee? acknowledgement of the LIABILITY on a BILL OF EXCHANGE, in writing on the instrument itself. A bill may also bear the co-acceptance by a bank, which is a guarantee to honour the instrument in the event of default by the drawee.

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Loans & Advances

What is Quasi Equity ?

Certain items though not contributed by owners can be considered under NW or capital to improve DE Ratio, such as, subsidy, seed capital assistance, unused loans backed by, pegging letter, amount of debentures which is compulsorily convertible to shares within a period of 18 months from their date of issue.

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Loans & Advances

What is Trust Receipt (TR) ?

Goods pledged as security or covered under a bill purchased, can be given to the borrower against a TR for enabling him to sell & deposit sale proceed to the Bank & return unsold goods to Bank. This TR finance is a clean advance.

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Mutual Fund

What is a Mutual Fund?

Mutual fund is process of pooling the resources by issuing units to the investors and investing funds in different securities in accordance with objectives as per the disclosed offer document.Under Mutual Fund the investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the...

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