RBI CONCEPTS:NATIONAL ELECTRONIC FUNDS TRANSFER (NEFT) #5

Oracle IAS, the best coaching institute for RBI grade B in Dehradun (Uttarakhand), brings to you views on important issues.

Q.1. What is NEFT?

Ans: 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. Continue reading “RBI CONCEPTS:NATIONAL ELECTRONIC FUNDS TRANSFER (NEFT) #5”

RBI CONCEPTS: CHEQUE TRUNCATION #4

 Oracle IAS, the best coaching institute for RBI grade B in Dehradun (Uttarakhand), brings to you views on important issues.

  • What is Cheque Truncation?

Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch. In its place, an electronic image of the cheque is transmitted to the paying branch through the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc. Cheque truncation thus obviates the need to move the physical instruments across bank branches, other than in exceptional circumstances for clearing purposes. This effectively eliminates the associated cost of movement of the physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing. Continue reading “RBI CONCEPTS: CHEQUE TRUNCATION #4”

RBI concept:Sovereign Gold Bond Scheme #2

Oracle IAS, the best coaching institute for RBI grade B in Dehradun (Uttarakhand), brings to you views on important issues.

  • What is Sovereign Gold Bond (SGB)? Who is the issuer?

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India. Continue reading “RBI concept:Sovereign Gold Bond Scheme #2”

RBI concept: ATM/White Label ATM #1

Oracle IAS, the best coaching institute for  RBI grade B in Dehradun (Uttarakhand), brings to you daily economics/finance concept.

Q.1. What is an Automated Teller Machine (ATM)?

Ans 1. Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch.

Q.2. What are White Label ATMs (WLAs)?

Ans 2. ATMs set up, owned and operated by non-banks are called White Label ATMs. Non-bank ATM operators are authorized under the Payment & Settlement Systems Act, 2007 by the Reserve Bank of India.

Example-Indicash

Continue reading “RBI concept: ATM/White Label ATM #1”