Learn about various Banking related topics. This page is your one-stop solution to the world of Banking. Our aim for the banking category is high-quality content that is easy to understand. The content for each page is further supported with a bullet point list, table, and images. We aim to learn all your confusion related to Banking related topics.
What is a Bearer Cheque? Through its name, the purpose of the cheque becomes quite clear. It is called a bearer cheque because anyone who bears it can encash it by submitting it to the bank. A bearer cheque provides anonymity to the person who carries it. A person bearing this cheque does not need …
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Banks play a vital role in the economy of each nation. They are very advantageous for people who want to start a business. Rather than lending money to some people, it is the best choice to look for a bank. Central and commercial banks are two types of banks available in every country. Central Bank …
Difference Between Central Bank and Commercial Bank Read More »
Today, we all do bank transfers in our daily life. With the emergence of the Internet, the counting of online transfers has been increased rapidly. Global transactions have also been increased with the increase in business. Both Swift code and IBAN are ways to make our online transactions secure and delay-free. Swift Code vs IBAN …
We all live in an era of a fast and technological world. One such thing is cards that ease our necessities. Almost everyone owns a debit card and smart card. Still many are confused between these two. With different functions and different advantages making transactions and storing data has become easier. Smart Card vs Debit …
Various types of Cards are available for financial and banking purposes, like debit cards, credit cards etc. Visa Signature and Platinum are certain types of credit cards that provides its customer with “spend now and pay later” services. The banks levy a fee to Visa Platinum cards every year. However, an annual charge is not …
NEFT and IMPS are two types of RTGS systems based on the nature of fund transfers. NEFT and IMPS is an electronic funds transfer system that facilitates person-to-person and bank-to-bank money transfer transactions between different bank accounts in India. IMPS and NEFT are exceptionally similar, yet they are different too. IMPS vs NEFT IMPS (Immediate …
When you lend money or conduct any transaction, you have to pay interest, a small sum of money you pay for the transaction. Similarly, PayPal and Bank charge a fee on any transaction where there is a cash outflow. Furthermore, they are fixed rates based on a range of transaction values. PayPal Rate vs Bank …
The amount of money in an individual’s account is called Balance. In banking, current and available balance are often confused terms. People often think of the same terms. But there is a slight difference between the two. In accounts, if there is a difference between the debit and credit amount in a given period, then …
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Every country’s central bank is responsible for keeping an eye on inflation and enforcing certain controls on money circulation in the industry. The CRR and SLR are key economic strategies for managing inflation and money flow in the country. Through these, the RBI manages bank lending capacity. CRR vs SLR CRR is a percentage of …
The term market is widely and closely associated with our day-to-day lives. When it comes to marketing, the two most important elements are vendor and distributor. Although these two words are commonly used, they vary in their features and functioning. Both vendors and distributors are interdependent on each other but cannot be used interchangeably. Vendor …
Visitors to London are familiar with these terms but tend to get confused at times. Both terms refer to payment methods for public transport in London, United Kingdom. Buying a ticket for a single journey might seem financially penalizing. To mitigate this problem, London has introduced these payment methods. Money in oyster cards gets debited …
The loans are the way by which a person gets investment, and he pays it back on a monthly basis. The loans have made it easy for people to buy houses, cars and get funding for their businesses. But the loans are paid back with interest, and those interests are calculated on the bank rate …
We observe several transactions in our daily life when we pay for goods or services in a transaction. Whether it may be a small-scale or big-scale business, there is a need for the transaction. We have two kinds of transactions, cash transactions and credit transactions. These two transaction kinds differ in the time gap between …
Difference Between Cash Transaction and Credit Transaction Read More »
Not a single person in today’s time is unknown because, in some ways, he has given his information of identity to the authorities. Visas and Maestro cards also contain the personal information of individuals to avoid unnecessary troubles. Visa vs Maestro Visa is a credit and debit card brand accepted in over 200 countries and …
English can often be a tricky language. The words have several implications and denote varied meanings when placed in different contexts. And due to this reason, many words become the root of our confusion. Landlord and owner are both noun words that indicate someone who has possessions. The nature of the possessions held by someone …
Millions of purchasers prefer the ease and security that PayPal provides. PayPal is a global leader in the digital wallet ecosystem, allowing customers all over the world to pay, send money, and receive payments. PayPal can reshape the business world and open new global payment avenues. The two divisions of PayPal, premier and business account, …
Allstate and Wells Fargo are two fantastic internet banks that provide vital services for free. But, in the aggregate, which is the best option for you? We intend to provide you with the information you require to determine which is ideal for you. We believe they both seem trustworthy and more dependable than traditional banks. …
Swift code is assigned to the instructions so that it will be helpful in the foreign market for identity. While the routing number is a number that consists of nine-digit within itself and is used for the identification of our transactions identity. Swift Code vs Routing Numbers The difference between swift code and routing number …
Difference Between Swift Code And Routing Numbers Read More »
In a world where digitalization is a must, and people are still scared of online fraud, PayPal has made sending or receiving money a lot easier with full-proof security. PayPal has introduced express and standard checkout methods for people to utilize money in the comfort of their homes. PayPal Standard vs PayPal Express PayPal Standard …
A credit card is a financial tool that provides loans and debt to its consumers and allows them to repay the provider in future data through installments. Credit cards let consumers make purchases everywhere and at any time without carrying any cash. Visa and American Express credit cards are accepted in many countries. These cards …
Currency is one of the most important things in this world. Every people need currency to survive in this world. Currency is the same, but their values and names differ for every country. Quid and Bob are currencies used in different countries. Quid is a slang term for Pound. Bob is used in Bolivia. Quid …
Currency is traded all around the world. The currencies of various countries are distinct from one another. The Pound Sterling, which is associated with the United Kingdom, is one example of a sort of money. The name “sterling” is occasionally used to refer to British currency. The words pound and sterling are interchangeable in the …
An NRI can earn a double income – one in the form of foreign currency, which costs more in your country and the other from your investment in Indian Rupees. Nowadays, people want to transfer the income earned from abroad to their country, and for this, there is a need to create a bank account …
Investments are one the greatest and most rewarding tools for creating wealth nowadays. For this purpose, it is necessary to have an investing platform that is secure and easy to handle. Savings account and fixed deposit account are two such platforms that allow investors to earn fixed returns easily despite the instability of market situations. …
Difference Between Savings Account and Fixed Deposit Account Read More »
OLAP and OLTP are online processing systems. However, there are prominent differences between them. OLAP and OLTP vary in their data, transaction, time, queries, and normalisation. OLAP refers to an Online Analytical Processing system. In contrast, OLTP refers to the Online Transaction Processing system. There are several other differentiating factors between the two. OLAP vs …
ISIN and CUSIP codes are two of the world’s most famous checkpoints for securities and are especially important for trade, selling, and purchase of shares. ISIN vs CUSIP ISIN stands for International Securities Identification Number, and is a code that is used to identify securities issued by companies or governments. It’s a 12-character alphanumeric code. …
Taking loans can be highly helpful for people when they are in need. But lately, it can convert into a severe headache, too, If the loans are not paid in time, or the debt continues to rise. The majority of people make use of credit cards for small loans. However, later the debt becomes piled …
Difference Between Credit Card Refinancing and Debt Consolidation Read More »
Certificate of Deposit (CD) and the Saving account both are the money market instruments that represent some amount of money is deposited in the bank for which the bank is giving interest to the depositor. Certificate of Deposit vs Saving Account The difference between the two is that a saving account provides liquidity to the …
Using cards to make purchases is considered easier than cash transactions due to several reasons including ease of access. The two main types of cards include credit cards and debit cards. Credit Transactions vs Debit Transactions The difference between credit transactions and debit transactions is that credit transactions can be used to spend from existing …
Difference Between Credit and Debit Transactions Read More »
Money and currency are closely connected. They almost seem to be the same. These two terms are used by people in everyday life. Money vs Currency Money is a general term to any form of payment or exchange of value, is anything that can be used to purchase something. Currency is a type of money …
There are different kinds of branches of banks. Each of them has its own workings and functions. Each of them stands out differently when it comes to operating in the market. Branch Banking in the form of banking where the storefront locations are operated away from the institution’s home office, and this is done for …
Difference Between Branch Banking and Group Banking Read More »
Maintaining accounts for an organization is very important. There are many methods out there to maintain accounts. Different companies will opt for different methods depending upon their needs. Real and Nominal Accounts have different approaches in maintaining the accounts and will be preferred basis on the type of work the company needs. Real vs Nominal …
Chime Bank and Wells Fargo are both magnificent online banks that offer essential administrations for nothing. However, which is the most ideal decision for you, generally speaking?We are expecting to furnish you with what you need to realize which is best for you – we have accounts with the two Wells Fargo and Chime actually …
A financial institution that helps people to deposit money, give loans etc., are known as Banks. The main function of a bank is to lend money directly or indirectly, i.e., through capital markets. Banks are very important as it maintains the economic and financial stability in the country. Banking is believed to be evolved in …
Banking services have different functionalities all around the world. Keeping your everyday cash requires a bank account too. As the banking business requires to charge a fee on an everyday transaction or even on minimum balance, it is time to explore other banking options to save money. On that front, there are two types of …
The financial area assists nations with keeping up soundness and maintainability in their economy. The financial business offers various advances and freedoms to end clients, associations, and governments to develop their business and acquire benefits. Simultaneously, they likewise make approaches to limit the dangers to the organizations. The financial framework comes in various structures, for …
Difference Between Wholesale Banking and Institutional Banking Read More »
They do not exist in any physical form, just operation on phone or computer with the help of the internet. The best examples of such banks are Chime Bank and Varo. Both of them are online banks that provide customers with all the banking facilities at their homes without much physical work. Both of them …
We are hoping to provide you with what you want to know which is best for you – we have accounts with both Ally Bank and Chime personally as they are two big banks, and we feel they are both trustworthy and safer/better banks compared to conventional old-school banks. With a registration bonus, that’s easy …
The cash of a nation is the foundation of its economy. Nonetheless, the nations, for example, Sweden, that has gone totally paperless, there are many paper monetary standards on the planet like the Dollar, Pound, and Euro. Quid vs Dollar The difference between the dollar and the quid is that the pound is authorized money …
Buy Now and Pay later is an incredible plan for the shoppers. Especially if you are an online shopper, this feature shall be of great help. And if the repayment option does not have interest charged, then nothing like it. There are many Fintech companies available around the globe that offers such services. Two of …
We are living in a world where everything is accessible with a click. Everything has become so easy that we don’t even need to step out or stand up to shop or buy most of the things. But then the problem is to buy or have any goods or services we need to have money. …
The digital world is experiencing rapid growth in today’s era. In the field of investing, banking, and cryptocurrency, one word commonly pops up is blockchain technology. Blockchain technology is a kind of database system. It stores data in a kind of block, and the blocks are then joined together or chained together, giving the name …
Bank deposits, financial transactions to other bank accounts, direct debits, and online transactions are all examples of debit entries. The payment entries appear as balances on the balance sheet. Available Balance vs Posted Balance Available balance refers to the amount of money in an account that can be used for transactions, accounting all deposits, credits, …
Difference Between Available Balance and Posted Balance Read More »
Mobile banking and internet banking are two different but online modes of banking introduced by the banks only that enable their customers to make transactions whenever and wherever. Both forms of banking require intense access and have their own uses. Both the banking system have made transactions and other bank-related issues so much easy that …
Difference Between Mobile Banking and Internet Banking Read More »
Both retail banking and consumer banking are services provide to their customers with some additional facilities for their customers to keep their money safe in banks. Retail Banking vs. Consumer Banking Retail banking is a type of banking in which services are given to the customers. Businesses are not involved in retail banking. Retail banking …
Difference Between Retail Banking and Consumer Banking Read More »
Banking plays a vital role in our economy. They ensure that the transactions happen swiftly and without any disturbance. They are a financial system that can lend money to people (everyday or business needs) for personal or professional needs. Mostly all the economic functions are done through or by the bank. Salaries, bills, savings, loans, …
Difference Between Retail Banking and Corporate Banking Read More »
Banks provide retail banking and personal banking services to the general public or individual or retail customers rather than corporate, businesses, institutions, etc., and both are pretty similar in products and services because both offer approximately the same or quite similar products and services. Retail Banking vs Personal Banking In retail banking, facilities are provided …
Difference Between Retail Banking and Personal Banking Read More »
Currency is the medium of exchange of goods and services authorized by the government of a particular country. Currency is the backbone of an independent and strong nation. There are about 180 different types of currencies across the world. Among the leading 8 currencies, the United Kingdom (UK) has Pound Sterling or Quid, and Euro …
Banking is the most basic and necessary activity in everyone’s daily life. It helps handle cash, credit, and transactions while providing a safe space for the same. Banks also offer a safe space for consumers to invest or take loans. There are different types of banks, which also offer a variety of account types and …
Difference Between Retail Banking and Investment Banking Read More »
There are so many types of banking systems, such as utility, scheduled or unscheduled, indigenous, and so on. However, personal banking, as well as commercial banking, still plays a significant role in society. One type is into retail customers, while the other one is into businesses. Let’s see what distinguishes each term! Personal Banking vs …
Difference Between Personal Banking and Commercial Banking Read More »
Everyone is aware of the term Banking. But What is Banking, have you ever wondered? Well, Banking can be considered a driver which drives the economy financially. For any economy in the world, Banking is essential. Banking consists of cash, credit, and all financial transactions. Maintaining a balance between families, companies, states, and nations is …
Difference Between Corporate Banking and Private Banking Read More »
Pound and ounce are units of measure used to weigh objects, things, and living beings (for pounds). A pound is also written in Ib. And an ounce is also registered as oz. They both are mainly used under the avoirdupois pound system. The pound has been used in various countries, especially in the United Kingdom, …
Individuals used to put their money in storage spaces, underground, or with grains before banks came into the picture. Their money was sometimes stolen or consumed by rats. In either case, current banking aided in the resolution of this issue. Banks lend money and contribute to the growth of the economy. Credits assist in the …
Difference Between Retail Banking and Universal Banking Read More »
In the British system, many names and values are given to the coins, which have been used for many years. Farthing, penny, crowns, and pounds are a few values among many. Shilling and quid are two of those denominations of their system. It can get a little confusing as each of them has different values. …
Money plays a significant role in our day-to-day lives in various forms, for business, education or anything else in the purchase. There are various forms of currencies used across the globe. They have separate names as well as different values. Few nations have currencies like the rupee, dollar, pound, and taka, yuan. Whenever someone travels …
To many of us, both ‘public sector bank’ and ‘nationalized bank’ might not seem so different, but there are a few notable differences between them. A bank is a financial institution that handles cash deposited by the public, safeguards them, and offers loans to the public. Public sector and nationalized banks come under the category …
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There are so many confusing terms regarding banking, and people usually do not know about them. Just like that, people usually get confused between the terms corporate banking and commercial banking. Corporate banking mainly has large multinational companies and big institutions as their customers. They give them a loan for setting up businesses and then …
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Before banks came into the picture, people used to save their money in underground lockers or with grains. At times, their money used to get stolen or eaten by rats. However, modern banking helped in resolving this issue. Banks lend money and also help in the expansion of the economy. Loans help in lending capital …
Difference Between Cooperative Banks and Public Sector Banks Read More »
Banking is the system that handles all financial transactions. Several types of banking provide different types of facilities; Universal and Commercial Banking are also two types of banking with functions and roles. Universal Banking is much broader, with more functions than Commercial Banking. Universal Banking vs Commercial Banking Universal banking is a type of banking …
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The banking sector helps countries to maintain stability and sustainability in its economy. The banking industry offers different loans and opportunities to end-users, organizations, and governments to grow their business and earn profit. At the same time, they also create policies to minimize the risks to the businesses. The banking system comes in different forms: …
Difference Between Wholesale Banking and Commercial Banking Read More »
Banks play a significant role in the economic growth of the country. Banks are the financial intermediaries between lenders and borrowers to fulfil their needs for funds and returns. Banks do several functions and provide various services to meet the needs of different customers. Wholesale banking and corporate banking are interchangeably used, but there is …
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Banking is an industry that handles financial transactions. There are different types of banks functioning in various sectors of health, education, business, profession, agriculture, and so on to keep the economy running. Group banking, Chain banking, Branch banking, Unit banking, and Mixed banking are the 5 types. Group Banking vs Chain Banking The difference between …
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A term that has gained maximum importance among Americans is “Stimulus Check”. According to recent news, the Corona Virus relief money or the Stimulus Check would be issued via Debit cards. Mailboxes and Bank accounts of millions of Citizens of the US are getting hit by this Stimulus money since the beginning of every pandemic. …
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Banking is one of the most reliable sectors in this advancing world. It is a trustworthy industry that provides a safe environment to store cash and credits. Not only this, but it also helps people to keep an account of their regular expenditures. Since it is an important industry, everyone should know the difference between …
Difference Between Personal Banking and Private Banking Read More »
Banking is ubiquitous and essential in our day-to-day life. It helps us to manage our money and gives us loans when needed. Many banking types are unfamiliar to everyone; hence, they don’t know or are confused about them. Corporate Banking and Business Banking are two types of banks most people are unaware of. Corporate Banking …
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In General, when a person has his businesses, he has two bank accounts. That person will have all his income and expenses, which is known as personal banking and second in which, he will have all his business income and expenses, which is known as business banking. Even though having two different bank accounts may …
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Indian Banking Systems provides many services to the public sector elevating the Indian economy. The Reserve Bank of India regulates these banks through the Parliament Act of the Government of India. Many types of banks are present in India – Nationalised Banks, Cooperative Banks, Scheduled Banks, Private Banks, Non-Scheduled Banks, etc. The bank provides loans, …
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Today’s world has many banks and different types of banking systems. Sometimes people get confused about some terms related to banking. Banking is also needed when it comes to industries and public sector units. For them, there is a banking system called the Corporate banking system. And for public and private banking, there is another …
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Various types of banks are operating in the global economy to meet the financial needs of multiple groups of people involved in agriculture, industry, professions, and other activities. Knowing the difference between these banks is very important. Branch Banking and Chain Banking are two very different types of Banking Systems. Branch Banking vs Chain Banking …
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The concept of banking dates back many centuries. A bank is a system that deposits, borrows, and gives its users loans. It bridges those who have extra money to save and those who need money. There are many types of banking available now. Branch Banking and Agent Banking are two types of Banking systems available …
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In today’s scenario, everything is revolutionized towards going globally digitally. The use of plastic money has increased in the last five years. But an individual must have a bank account to use this plastic money. It may be a Retail Banking Account (for personal use) or a Wholesale Banking Account (for large customers, companies, or …
Difference Between Retail Banking and Wholesale Banking Read More »
Firstly, it must be understood that retail and commercial banks are depository banking institutions. This means that they make loans for their clients through the deposit they make to them. Although their clients are different, they belong to two sides of the same business. Commercial banks’ services and products are usually similar and common to …
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Banking is a service that everyone uses, whether it is an individual, small business, big corporation, or government. Individuals and small businesses often use commercial banks for their day-to-day financial activity, whereas big corporations and governments use investment banks for financial operations. These banks operate with different principal than others and often deal with large …
What is Investment Bank? | Definition, Working, Pros and Cons Read More »
Computerised accounting is the new-age method of gathering, recording and maintaining the financial information of a business or an organisation. This system entered the accounting world following the advent of computers in the 1980s. With its arrival, computing and maintaining financial information became child’s play for organisations and businesses. No wonder it is now the …
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A letter of credit is a document called a credit letter given by a bank or financial services. A letter of credit guarantees a seller receives the agreed payment from the buyer. The bank pays the stipulated amount in full or the remaining portion to the seller if the buyer cannot pay the amount. International …
What is a Letter of Credit? | Definition, Working, Types, Pros and Cons Read More »
Electronic funds transfer (EFT) transfers money from one bank account to another. It takes without a manual transaction for single or multiple institutions. It is a cashless system of transferring money from one bank account to another. It’s commonly used via ATM, Fedwire, and point-of-sale (POS) via credit and debit transfers via an electronic medium. …
Before the advent of the digital revolution, most business-related activities, mainly financial accounting, used to be done by hand using pen, pencil and paper. Even today, this traditional manual accounting methodology is prevalent among business entities and companies. This accounting system entails keeping transaction records in books and journals manually converted into financial reports. It …
What is Manual Accounting? | Definition, Uses and Working Read More »
A guarantee usually means giving something as security. A lending organisation offers a bank guarantee that promises to pay for forfeiture if a debtor defaults on money or voids contract obligations within certain regulations. The guarantee increases the company’s purchase power and, in turn, grows the business. There are 2 primary kinds of assurances by …
What is Bank Guarantee? | Working, Types, Examples, Pros and Cons Read More »
What is Merchant Bank The traditional functions include: How does it work? Advantages and Disadvantages of Merchant Banks: Advantages Disadvantages Merchant Banking customers get the most honest advice as they deal with experts and get counselling sessions fit for their respective businesses. Merchant banking services are very costly; this is one of the major disadvantages. …
What is a Merchant Bank? | Definition, Working and Types Read More »
Mobile/Cellular banking is operating your bank account via a mobile device. Phone banking allows the customer to perform the same tasks which can be done by visiting the branch. Phone banking not only saves time but also improves financial decisions. The bank provides an app on the store. It lets you make transactions, find nearby …
What is Mobile Banking? | Definition, Working, and Types Read More »
Banks are the most important financial institutions in the world. The banking system makes all financial transactions possible without much hassle. People can save their money in banks, take loans, and transfer funds easily through bank accounts. However, all banks are not the same. According to their stakeholders, banks can be classified into two types. …
What is Public Sector Bank? | Definition, Working, Advantages and Disadvantages Read More »
The bank is the most trusted financial institution among the public. This institution fulfils all our financial needs. Anyone can open an account in a bank and do all of their financial activity from there. This institution helps everyone save money, do financial transactions, and get a loan for various financial requirements. However, all banks …
What is Private Sector Bank? | Definition, Working, Pros and Cons Read More »
Banks have been a great help to everyone around the world. With the growth of money and the bank, along with technology, individuals remain assured about the safety of their money. Transferring money through banks has also been a great aid and time-saving for many worldwide. But with a bank to bank transfers came the …
In its essence, the word ‘loan’ refers to borrowing any particular object by a person or a collective from another to return it within a stipulated amount of time. This word has a more specific connotation in the banking and financial sector. Here, a loan refers to the borrowing of money by one party from …
What is Loan? Definition, Components, Advantages and Disadvantages Read More »
Banking has become the foundation of modern economic activity. Banks offer various financial services like saving, loans, and fund transfers. Everyone uses banking services daily, Whether an individual or a business entity. Doing financial activity securely will become nearly impossible without proper banking services. However, many people don’t know that all banks are not the …
What is Branch Banking? | Working, Guide, Pros and Cons Read More »
Banking is an essential part of modern economic activity. Doing large financial transactions is nearly impossible without a banking system. In many places, doing large financial transactions without a bank is also illegal. However, all banks do not operate in the same way. Depending on their financial capacity, banks can be classified into different categories. …
What is Unit Banking | Working, Merits and Demerits Read More »
NPA, or, Non-performing assets, are loans that have been left unpaid for a long time after the completion of the repayment time. Such assets are added to the bank’s balance sheets after a long period. Usually, the 90-day period is standard; however, the time can be longer or shorter, as mentioned in the terms and …
The backbone of the modern economy is the banking system. It is one such financial institution on which almost all individual and business entity depends. Banking institutions worldwide offer various monetary arrangements for easy financial transactions. Overdraft and Demand draft are two features that most banks worldwide offer. Many economic activities become possible with these …
Stale and post-dated cheques are two of the many types of cheques that an individual can cash in at a bank. Stale Cheque vs Post Dated Cheque The difference between stale and post-dated cheques is the period in which they can be presented for payment by the individual. Stale cheques are cashed in after three …
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Unified Payment Interface (UPI) and Internet banking are two of the most commonly used banking tools which facilitate the user to perform several baking operations through the internet. UPI vs Internet Banking Unified Payments Interface (UPI) is a real-time payment system that allows instant fund transfers between bank accounts in India. Internet Banking, also known …
Internet Banking and Debit card are two different methods of conducting monetary transactions. Internet Banking vs Debit Card The difference between Internet banking and debit card is that while using Internet Banking, the customer is supposed to have an online account on their bank’s official website, and the user ID and password are used for …
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Mobile money and Mobile Banking are separate terms for a modernized cashless transaction. Mobile money and Mobile banking are maintained by the financial institution that provides the service for the users. Mobile Money vs Mobile Banking The difference between Mobile money and Mobile banking is that mobile money enables only person-to-person (P2P) payments, and Mobile …
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The currency of a country is the backbone of its economy. However, the countries such as Sweden that have gone entirely paperless have many paper currencies in the world, such as Dollar, Pound, and Euro. The pound is a popular currency in prevalence in many countries. It is often confused with the word quid. Pound …
Merchant Bank is an entity that performs different types of financial activities for its clients. This bank does not provide any regular banking services to the general public. The wholesale bank provides banking services to other institutional customers, big companies with solid balance sheets, government agencies, etc. These do not provide services to individual people …
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Internet banking and NEFT are the terms related to the transaction of money. These are the most essential services that are provided to the people by the advancing banking sector. Internet Banking vs NEFT The difference between Internet banking and NEFT is that Internet banking is very effective for the customers as they do not …
Banks are licensed financial institutions that help customers save and lend money. Banks play a vital role in people’s lives by offering support to individuals and businesses. The financial services offered by banks help people manage their lives effectively. Banks offer attractive benefits to attract customers to sustain the business due to competition. Electronic Fund …
Rapid growth is on the horizon of the world’s e-commerce market. From the basic level of the internet to innovation in its online payment methods, it is increasing the role of the internet in people’s daily lives. EFT vs EDI The difference between EFT and EDI is that the former revolves around the transfer of …
The country currently accepts two types of payments electronically. One is EFT(Electronic Fund Transfer), and the other is ECS(Electronic Clearing Service). EFT vs ECS The difference between EFT and ECS is that EFT transfers remunerations which may or may not be regular, from one branch to another. At the same time, ECS is a credit-clearing …
Technological advancements made tremendous changes in money transactions, providing numerous options for people to make their financial dealings. Electronic money transactions emerged as the safest and most rapid method for financial trades. Paper cash and paper checks are taking a backseat in the present world, where E-checks and digital transactions are gaining prominence. ACH and E-checks …
Banking has a significant role in our daily lives. With the emergence of online facilities, digital means are possible through all kinds of business and financial transactions. With online cash transaction possibilities, the need for frequent visits and waiting in long lines to get the turn to do the transaction is no longer needed. EFT and …
Commercial and Private Banks are financial institutions that lend funds to individuals and help save deposits. Through investment markets, banks perform these activities either directly or indirectly. On the one hand, where a commercial bank accepts deposits, offers actual investment products that are regulated as a business for profit and makes business loans. In contrast, …
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The primary function of a bank is to support the economic system by acting as a mediator between depositors and loan seekers. Banking services are essential for developing a country, functioning as the backbone of economies. Three categories of Banks are Commercial Bank, Co-operative Banks and Developmental Banks. These can be differentiated based on their …
Difference Between Commercial Bank and Development Bank Read More »
Financial institutions that can offer money whenever a buyer or a seller needs it, based on specific rules and regulations, are called Banks. It acts as a bridge between borrowers, depositors and the customer. Category 1 belongs to Commercial banks, category 2 belongs to Cooperative banks, Category 3 belongs to Regional Rural Banks, and the …
Difference Between Commercial Bank and Cooperative Bank Read More »
It is an evident ubiquitous fact that a bank functions as a commercial institution. It accepts deposits from customers and provides them with interest on the same. Many people seek government jobs in the banking sector as they feel immense opportunities to earn a remarkable sum. However, due to limited knowledge about the commercial aspects …
Difference Between Commercial and Non-Commercial Bank Read More »
A guarantee is a formal assurance or agreement from the third party that they will fulfill certain conditions. If debtors fail to pay the supplier, the bank guarantees to pay a certain amount. A bank or financial institution provides many services to its customers. It lends loans and guarantees payment to another party. International …
Difference Between Bank Guarantee and Solvency Certificate Read More »
A bank guarantee is a statement from a lending institute to ensure that the debtor can fulfill their liabilities. A Bank guarantee makes the bank liable to meet the person’s obligations if they fail to pay. Whereas a Standby Letter of Credit (SBLC) is a type of guarantee made by a lending institution for the …
Businesses need regular cash flow for its day to day running, growth, and expansion. It is not always possible for a business owner to find the funds through their efforts alone. Businesses need considerable funds to make deals with different vendors and other suppliers. Bank and corporate guarantees are two types of guarantees that can …
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Online banking is the new paradigm in the banking industry. It has garnered tremendous support from clients and banking officials alike. With 57% of the world’s population having access to the internet, things have pretty much changed regarding the transfer of funds. With the antagonists turning into supporters, financial institutions, too, have started to revolutionize …
ACH stands for Automatic Clearing House Payments. In this mode, payments are made directly person-to-person or by direct deposit. Wire payment is the electronic method of transferring funds from one source to another. It can be initiated bank to bank via a network like Swift or a Fed wire. ACH vs Wire Payment ACH stands …
Financial Management is a regular practice in a day to day life in a business environment. It refers to Strategic planning, organizing, directing, and controlling business entities. The payment methods are up to the individual; it is his choice the payment is made. Direct debit and Automated Clearing House (ACH) are the method of payment …
Transfer and distribution systems constantly evolve, offering customers and credit seekers various options. Banks offer multiple plans for payments and settlements. ACH vs RTGS ACH (Automated Clearing House) transfers are batched and settled in batches, where transactions are grouped together and processed. RTGS (Real-Time Gross Settlement) transfers are settled in real-time, meaning that they are …
Money has become part and parcel of our life. It plays a vital role in our modern society and global business. Over the years, banking has modified radically and has globally affected millions of individuals. During this age of development, instead of exchanging cash, checks, and paper works, faster electronic methods of transferring money straightforwardly …
The history of banking dates back to the times of Mesopotamian civilization, where grain loans were provided to traders and farmers supplying goods and services to the people of Babylonia and Mesopotamia. However, the modern banking system developed in Italy under the name Banco. In India, a colonial rule introduced the concept of institutional banking. …
Banking has existed in one form or another from ancient times onwards as an essential part of society to manage the financial activities of individuals and businesses. Clever banking ideas and facilities are the best way to grow one’s finances and organise funds for different purposes. People’s deposits should be managed effectively and provide them …
Difference Between Commercial Bank and Small Finance Bank Read More »
The effective functioning of the finance sector is one of the essential aspects that can strengthen a country’s growth and development. Different types of banking services are available these days that focus on other areas. Merchant Banks and Development Banks are part of them. People need banking services to support their businesses and other finance-related …
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Bank Guarantees and Bonds are both considered financial instruments that act as sureties to protect the parties who enter into contracts to exchange goods and services. These instruments guarantee the purchaser that in case of failure by the seller, they can impose the contractual obligations to be fulfilled. Bank Guarantee vs Bonds A Bank Guarantee …
Almost everyone has a bank account nowadays. A bank is an institution that deals with the financial assets of ordinary people. In the most basic sense, banking deals with the usual money deposition by the people and then lending this money to business ventures. The profit garnered from these business ventures is returned as an …
Difference Between Core Banking and Internet Banking Read More »
Growing companies usually approach investment banks for the sole purpose of funding. It can also be said that investment banks suggest companies for funding-related queries. You are digging deep into the business model in the private equity model. People employed in private equity are inclined towards one sector. Many people go from investment banking to …
Difference Between Private Equity and Investment Banking Read More »
Overdraft and current account are two separate banking terms. Banks maintain both statements for the convenience of customers. One can withdraw money at their convenience through a current account, whereas an Overdraft enables the customer to remove more than the funds available. Overdraft vs Current Account A person can withdraw money from an overdraft account …
Difference Between Overdraft and Current Account Read More »
Bank Guarantee is a form of promise by the bank on behalf of the buyer and in favour of the seller who provides services on goods or credit. Here the bank is known as surety, the buyer as an applicant, and the seller as beneficiary. The banks assure the seller, that bank will pay the …
Difference Between Bank Guarantee and Fixed Deposit Read More »
Loans are an essential aspect of banking functionality that helps build the nation’s economy. Financial institutions help the individual or an enterprise financially acquire or use a property for personal reasons. In return, the banks charge an interest that the individual or an enterprise has to be paid along with the principal in a certain …
Internet Banking and Traditional Banking are two different forms of Banking. These both are the platforms for the bank’s customers to withdraw money or perform their banking transactions. The important thing about internet banking is that it is always accessible, which means you can operate your accounts anywhere, at any time. You can make your …
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In today’s fast-moving competitive world, it is of immense importance that hard-earned money is invested in the right place to enable it to grow energetically. There are multiple modes to invest in.CD and Savings are two of the most common and preferred options many choose. In fact, to some people, CD and Savings may seem …
Loan and Advance are both financial terms related to economic welfare. For an ordinary man, both liabilities must be paid off. Most people use these words synchronously but have a slightly different perspectives. Loan vs Advance The difference between a loan and an advance is that banks give loans with interest to be returned, whereas …
In day-to-day life, money and banking play a crucial role for everyone, and they are an inevitable part of survival. Banks provide people with many different types of financial products to manage their money. People need money to survive for various beneficial purposes such as shelter, education, business, transport, etc. To satisfy every individual’s needs, …
Financial Management has become a part of individuals, businesses, companies, institutions, and government’s points of concern in their everyday operations. This is a result of these sectors’ increasing trend of financial needs. Further, prioritizing their financial needs is also a significant contributor to the efficient use of their financial resources. That withstanding, growth and development …
Loans benefited two parties; the People and the Nation. Lending is a system that drives the banking industry to help a country’s economy grow to sensational heights. The government takes this opportunity to increase the money supply in the economy. This, in turn, improves the purchasing power of the people. It is also advised the …
Money is the primary requirement for any monetary purchase to be made. It can be a business to operate or a family to function; money has played a prime part in everyone’s lives. The funds are generated naturally by the income made by an individual. The salary that he receives or the revenue earned out …
Lending systems were available as old as 3000 years before. One of the earlier forms of lending systems was pawnbroking, a system of collecting collateral to offer money in return. Lending is the process of giving money to the borrower to get it paid back with interest. The interest for the amount availed is pre-defined. …
For ordinary people, Cheque and Overdraft may mean the same as both link to the way of withdrawing money, but they have a lot of differences in terms of meaning and financial procedure. Overdraft vs Cheque The difference between Overdraft and Cheque is that an Overdraft allows you to withdraw more money than the current …
A variety of banks are available worldwide, and together they are known as Financial Institutions. The functionality of a financial institution, in simple words, is any public or private organization that collects, invests, and distributes funds. In simpler terms, banks are the bridge between people who save money and those who want to borrow money. …
Difference Between Branch Banking and Retail Banking Read More »
Credit Cards are into existence for the past 70 years. Introduced by the Diner’s Club in 1950, credit cards have benefits to users all along. Earlier credit cards were made of either cardboard or celluloid. Plastics came into use in 1959. There was a closed-loop system earlier than the period mentioned. Nevertheless, it is understood …
A bank is a financial institution, aside from receiving deposits and lending money to businesses and individuals, also involves protecting people’s money, disbursing payments, and investing the funds in securities. The concept of the banking system in India was developed during the British Era. The British East India Company established three banks in India during …
Difference Between Scheduled and Nationalized Bank Read More »
The Modern Banking system came into existence in the year 1587 in Venice. The traders established it to facilitate the deposit of money through their trade businesses. It is, from then on, named for safeguarding, transferring, and lending money. The banks later categorized the accounts into two types; checking and savings. People choose from the …
A Charge card and a credit card are the terms that are considered the same by most people; However, this is not the case. These cards have pros and cons; no one card is better for all use cases. Charge Card vs Credit Card A charge card requires the balance to be paid off in …
Every business needs money to run. To even think about running a business, the first thought that will come to anyone’s mind is how much money will be required. To let the business survive and grow, a business person might borrow loans from family members or banks; in this context, people use the terms cash …
If someone wants to decide where to do his banking, he has two choices. A credit union or any usual bank. Both these terms are financial institutions that offer quite similar services like- taking loans, checking or savings accounts, etc. Their goal is to save your funds from unnecessary spending, but their inner forms differ. …
If one has a credit card, the accurate amount he or she can spend will rely upon the current credit limit and the balance his or her card has. After one reaches the credit limit, the person cannot use that card for any further purchase. But after paying off at least a part of the …
The bank rate is the interest at which the Central Bank of any nation provides a loan to its domestic banks. It is usually given against government securities and for a shorter or longer period. MSF rate is the rate charged by the Central bank of the nation (RBI) to its domestic banks when there …
Banking plays a crucial role in facilitating trade and investments in the modern economy. These institutions come in various kinds. The differences are mainly brought about by the unique roles they play in facilitating the economy. Of the many kinds that are available, the investments and the merchant banks stand out. We shall examine merchant …
Difference Between Merchant Bank and Investment Bank Read More »
Whenever you want to take a loan or a credit card from a financial institution like bank or NBFC, you will hear them talk about credit report and credit score. Credit Report vs Credit Score The difference between Credit Report and Credit Score is that a credit report is a report which shows the past …
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Electronic Funds Transfer (EFT) refers to a method of transferring money from one bank account to another one directly. It does not in any way entail the use of paperwork. It includes direct deposits, wire transfers, automated teller machines, debit and credit cards, and electronic checks to name but a few! An automated clearing house …
A letter of credit is a financial instrument that is issued out by one bank to another one. The receiving bank is often located in a foreign nation. Its role is to guarantee the payments which are made to one person and is governed by a stringent set of rules and regulations. A bank guarantee …
Difference Between Letter of Credit and Bank Guarantee Read More »
Banks act as intermediaries between borrowers and depositors. They’re the financial institutions accepting deposits, lending, and offering a broad range of investment products. It’s to be, however, noted that not all banks are the same. There are different types of banks, each tasked with performing different functions. Among them are the two primary forms of …
Difference Between Commercial Bank and Merchant Bank Read More »
Common in the banking industry, the words overdraft and loan make one of the most confusing. Notably, both of the words involve borrowing cash from a financial institution. However, the terms and conditions of borrowing some extra cash from a financial institution lead to differences between an overdraft and a loan. Overdraft vs Loan An …
Apart from public and private banks, there is another categorization of banks: scheduled and non-scheduled. Scheduled Banks vs Non-Scheduled Banks Scheduled banks are banks that are eligible to receive loans from the Reserve Bank of India at a concessional rate. Non-scheduled banks are banks that are not listed in the Second Schedule of the Reserve …
Difference Between Scheduled Banks and Non-Scheduled Banks Read More »
When you reach out to any bank to open a saving or current account, you will find that there are two types of banks, viz public and private banks. Public Sector vs Private Sector Banks A public sector bank is a financial institution in which the state government owns over 50% of their shares and …
Difference Between Public Sector and Private Sector Banks Read More »
Unit and branch banking are the two popular types of banks. Unit Banking vs Branch Banking Unit banking is a system where each bank branch operates independently, with separate management and operations. In contrast, branch banking is a system where multiple branches operate under a single banking institution with a centralized management system. Unit banking …
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