A 

bank is a financial intermediary that accepts deposits and channels those deposits

into lendingactivities, either directly or through capital markets. A bank connects customers with
capital deficits to customers with capital surpluses.

 "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and
loans from corporations or large businesses.

Retail

 Business loan
 Cheque account
 Credit card
 Home loan
 Insurance advisor
 Mutual fund
 Personal loan
 Savings account
[edit]Wholesale

 Capital raising (Equity / Debt / Hybrids)
 Mezzanine finance
 Project finance
 Revolving credit
 Risk management (FX, interest rates, commodities, derivatives)
 Term loan

 Commercial bank: the term used for a normal bank to distinguish it from an
investment bank. After the Great Depression, the U.S. Congress required that banks
only engage in banking activities, whereas investment banks were limited to capital
market activities. Since the two no longer have to be under separate ownership,
some use the term "commercial bank" to refer to a bank or a division of a bank that
mostly deals with deposits and loans from corporations or large businesses.
 Community banks: locally operated financial institutions that empower employees
to make local decisions to serve their customers and the partners.
 Community development banks: regulated banks that provide financial services
and credit to under-served markets or populations.
 Credit unions: not-for-profit cooperatives owned by the depositors and often
offering rates more favorable than for-profit banks. Typically, membership is
restricted to employees of a particular company, residents of a defined
neighborhood, members of a certain labor union or religious organizations, and their
immediate families.
 Postal savings banks: savings banks associated with national postal systems.
 Private banks: banks that manage the assets of high net worth individuals.
Historically a minimum of USD 1 million was required to open an account, however,
over the last years many private banks have lowered their entry hurdles to USD
250,000 for private investors.[citation needed]
 Offshore banks: banks located in jurisdictions with low taxation and regulation.
Many offshore banks are essentially private banks.
 Savings bank: in Europe, savings banks took their roots in the 19th or sometimes
even in the 18th century. Their original objective was to provide easily accessible
savings products to all strata of the population. In some countries, savings banks
were created on public initiative; in others, socially committed individuals created
foundations to put in place the necessary infrastructure. Nowadays, European
savings banks have kept their focus on retail banking: payments, savings products,
credits and insurances for individuals or small and medium-sized enterprises. Apart
from this retail focus, they also differ from commercial banks by their broadly
decentralised distribution network, providing local and regional outreach—and by
their socially responsible approach to business and society.
 Building societies and Landesbanks: institutions that conduct retail banking.
 Ethical banks: banks that prioritize the transparency of all operations and make
only what they consider to be socially-responsible investments.
 A Direct or Internet-Only bank is a banking operation without any physical bank
branches, conceived and implemented wholly 
overdraft

Definition

Theamountby whichwithdrawalsexceeddeposits, or
theextensionofcreditby alending institutiontoallow forsuch a situation.

Banking Terms -> ATM

 an unattended machine (outside some banks) that dispenses money when a

personal coded card is used

Banking Terms -> bank

 a building in which commercial banking is transacted; "the bank is on the

corner of Nassau and Witherspoon"
 a financial institution that accepts deposits and channels the money into
lending activities; "he cashed a check at the bank"; "that bank holds the
mortgage on my home"
 put into a bank account; "She deposites her paycheck every month"
 be in the banking business
 do business with a bank or keep an account at a bank; "Where do you bank
in this town?"

CASH-RESERVER RATIO

The part of the total deposits that is maintained in cash by the banks is referred to as CRR or
Cash-Reserve Ratio. The banks in India do not keep this part of their deposits with themselves.
They need to submit this amount to RBI or currency chests. RBI has the right to decide on the
minimum ratio of the deposits that need to be maintained by the banks.

CLEARING HOUSE 

When a cheque is deposited in the bank, the receiving bank has to actualize the amount from
the drawee bank before it is transferred to the concerned person's account. The drawee bank is
presented with the cheque in the clearing house by the receiving bank. The clearing house is a
main collection area for the banks to deal in financial securities including drafts, cheques and
others. This activity is carried out during working days on daily basis. 

DEBIT CARD/ CREDIT CARD

An ATM-cum-debit card allows an individual to purchase anything for the cash available in
his/her account that is joined with the card e.g. if a person has Rs 5000 in his/her bank account,
he/she can use his card to the maximum limit of Rs 5000 only. On the contrary, credit card
helps the user to do shopping till the assigned credit limit on that particular card.

FLOATING RATE

An interest rate that goes up and down periodically is referred to as the floating rate. Under the
scheme of floating rate, the interest rate is influenced by the Floating Reference Rate (FRR) or
Benchmark prime Lending Rate (BPLR) of the bank. It implies that interest rate of the loan can
change following the variations in FRR and BPLR.

NET INTEREST MARGIN

Net interest margin measures the success of the bank's decision taken in the area of investment
as in case of debt situation. If the decision of the bank has not been fruitful, it denotes negative
value. Negative value reflects that the interest expenses of the bank were higher than the
returns coming from its investments.

NPA

The loans that can lead to a case of default are declared as Non-performing assets (NPAs). If a
person does not pay interest or principal amount for a period of 90 days, the loan is termed as a
non-performing asset. 

Outstanding Debt: Outstanding Debt refers to the due portion of a liability that may
incorporate interest accumulated on the amount held.

Overdraft: Overdraft is regarded as an immediate expansion of credit from a loan providing

organization. If the borrower has an overdraft bank account, his checks would be covered by the
banks in case if they bounce.

Overdue: Overdue refers to outstanding and more than outstanding amount which is

postponed further ahead the premeditated time of arrival or imbursement.

PLR/BPLR

PLR stands for Prime Lending Rate and BPLR for Benchmark Prime Lending Rate. PLR/BPLR
is given to the main customers of the lending institution. Mostly, the rates of interest for all retail
loans are connected with PLR/BPLR. However, in some cases, interest rates are dependent on
the floating reference Rate (FRR).

PROCESSING FEE

A lending institution levies this fee in order to process the loan application of a person. This fee
can be waived off during festive offers, if the lending institution so decides.

REPO RATE

If any bank faces fund shortage and seeks to borrow some amount from the central bank of
India i.e. RBI, it is charged the Repo rate. If repo rate is reduced, the banks get to avail funds at
low rates.

REVERSE REPO RATE 

When Reserve bank of India takes fund from banks, it is charged the Reverse Repo Rate. If
reverse repo rate is raised, it becomes attractive for the banks to lend more money to RBI, as it
accounts for higher interest rates. 

RTGS, NEFT AND IFSC CODE

The National Electronic Fund Transfer (NEFT) system was started to facilitate the process of
fund transfer from one bank to the other. RTGS or Real Time Gross Settlement, on the other
hand, is a process which helps in money transfer from one bank to the other on gross basis and
on a real time. This system makes money transfer fast and smooth. Settlement in real time
implies that there is no waiting period for the fund transfer. Gross settlement, on the other hand,
stands for settlement done on one-to-one basis. This is considered to be the full and final
payment and cannot be revoked, as it is registered with RBI.

SAVINGS BANK ACCOUNT

A savings account holder of a particular bank can carry out his/her banking transactions on daily
basis. Mostly, these accounts are accessed for non-commercial purposes. Savings account
helps is money withdrawal and cash or cheque deposits. A savings account user gets an easy
access to ATM, mobile banking as well as internet banking.

SECURED LOAN

A secured loan is that against which the lender receives some sort of security from the
borrower. Home loan is considered to be the simplest form of this type of loan. The interest rate
on secured loans is less than the ones charged in case of unsecured loans. 
STATUTORY LIQUIDITY RATIO

The Statutory Liquidity Ratio (SLR) is a metric which enables the banks to know the minimum
deposit percentage such as of cash, gold or any other form of security they need to maintain. It
helps in controlling the credit growth in nation.

Uninsured Deposit: Uninsured Deposits are not covered against losses. They generate
greater interest rate due to absence of cover and the buyer undertakes all risks.