Essential Banking Terms

Debit Cards

Debit cards provide instant access to funds in your bank account via ATMs or point-of-sale transactions (PoS). Transactions deduct directly from your account balance, with no credit available.

Guarantor

A guarantor assumes responsibility for repaying a loan, though typically not obligated to do so. In some cases, however, the guarantor may become liable for loan repayment.

Internet Banking

Internet banking, also known as e-banking or online banking, enables access to bank accounts and facilitates various online transactions for convenience.

Letter of Credit (LOC)

A bank issues a Letter of Credit (LOC) on behalf of a buyer, committing to pay the seller a specific amount for goods purchased. Sellers must meet specified conditions and submit documents to receive payment. LOCs are commonly used in large international trade transactions.

Repo Rate

Repo Rate is the rate at which banks borrow money from the RBI, typically for up to two weeks, by selling government securities. Unlike the Bank Rate, Repo Rate pertains to short-term loans.

Time Deposit

Debit cards provide instant access to funds in your bank account via ATMs or point-of-sale transactions (PoS). Transactions deduct directly from your account balance, with no credit available.

Wholesale Banking

Wholesale banking provides banking services to large institutions, corporations, governments, real estate developers, and other financial entities. It also involves lending and borrowing among institutional banks.