Banking Services and Operations

In the case of corporate trade payments, the payment information from the payer is electronically transferred to an Automated Clearing House (ACH) which is a link between the banks of the buyer and the seller.

In recurring deposit account, a depositor chooses a fixed amount and deposits it for fixed period every month.

NRE stands for Non-Resident External, which refers to bank accounts held by non-resident Indians in India.

Subscription is an agreement to receive something for providing access to something. Membership fees is a subscription as a person pays money to become a member of an organisation and is usually paid annually. 

A letter of credit is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. 

Maturity means the date on which a bill of exchange falls due for payment. The date of maturity is to be calculated in respect of bills which are payable after a specified time. In arriving at the maturity date three days, known as days of grace, must be added to the date on which the period of credit expires instrument is payable. Here, the cheque is payable after three mgonths and addin the three days grace which makes the maturity date to be 31st August 2019 + 3 months + 3 days i.e. 3rd December, 2019.

Quasi Negotiable Instruments are those Instruments which can be transferred by endorsement and delivery but the transferee does not get a better title that of the transferor. Therefore they cannot be classified as negotiable Instruments and hence the negotiable Instruments act is not applicable to them. It includes government promissory notes, railway receipts, bills of lading, dividend warrants and share warrants.

The payments in e-business can be done using non cash methods like credit cards or debit cards or by issuing cheques and also cash on delivery option is available as it will ensure the trust of customers on business ensuring no frauds.

Non-for-Profit organisations do not maintain Capital account. They prepare income and expenditure account as profit and loss account, receipts and payments account as cash account and balance sheet. They do not maintain a capital account because of all the balance regarding the capital introduced and withdrawn are recorded in the balance sheet.

Credit issued to the company is to be requested by the applicant. Applicant is the customer for the bank applyingfor credit to be issued to him.

An endorsement is said to be Partial endorsement, if the endorser purports to transfer to the endorsee only a part of the amount payable. In simple terms, endorsement which allows transferring to the endorsee a part of the amount payable is known as partial endorsement.

Certificates of deposit (CD) help to mobilize a large amount of money for short periods- this is a true statement. CDs are freelyy negotiable. It can be issued for a period of 91 days to 1 year. It is generally issued at a discount on the actual amount of deposits held.

Factoring is a financial service under which the factor undertakes collection, accounting and management of the client's debt. Thus the factor is an intermediary between the supplier and the customers who performs financing and debt collection services.

Money market instruments are short-term debt securities with high liquidity and low risk, such as Treasury Bills and Commercial Paper. Warrants are long-term options that give the holder the right to buy stock, making them capital market instruments, not money market instruments.