Articles related to Banking Knowledge.
Working Capital is a financial indicator of operational liquidity of a business organization. Working Capital is the short term assets to cover the short term liabilities of the organization. Working Capital is calculated as Current Assets – Current Liabilities, also represented as Net Working Capital. The Working Capital Ratio or Read more…
Meaning of pari passu charge – Pari-passu is a Latin phrase, which means “equal footing”. Thus pari passu charge means, having equivalent charge/ rights or say charge-holders have equal rights over the asset on which pari pasu charge is created. “Pari Passu” charge means that when borrower company goes into Read more…
The Simplified Turnover Method is normally used by banks in order to assess the working capital requirement of business enterprises. Working Capital Loan finance may include cash credits or overdraft accounts maintained with banks, the bills purchases / discounted, term loan etc. However, it is really confusing to understand the Read more…
Letter of Credit (LC) and the ‘Standby Letter of Credit’ (SBLC) are used by Importers and Exporters in International Trade to ensure financial safety so that payment of the supplier is assured of payment once he has performed his obligation. While LC is used as a primary method of payment, Read more…
If you have just joined the banking Industry, you must have applied for JAIIB or if not yet, you’ll be applying soon. And one thing everyone wants to know is how to pass JAIIB in first attempt. The obvious reason for clearing JAIIB i.e., Junior Associate of Indian Institute of Read more…
Can Trading business/ Trader be classified as MSME? Retail Trade and Wholesale trade are now treated as MSME as per new definition of MSME. Traders can now apply for Udyam Registration Portal Ministry of Micro, Small and Medium Enterprises vide Office Memorandum (OM) No. 5/2(2)/2021-E/P & G/Policy dated July 2, 2021, Read more…
Finacle 10 or Finacle X is the latest buzz in Banking Industry. Some Banks have already migrated to Finacle 10 whereas some are under implementation. Finacle 10 is the upgraded version of the flagship product of Infosys, which is being worldwide bank various banks. If your bank has also migrated Read more…
This is summary of Public Provident Fund (PPF) Scheme covering major features of the scheme summarized in one picutre. Eligibilty •Only 1 A/c in one name. No Joint A/c. No Age limit•Only Individual Resident. Blind/ Illitrate person can open•Power of Attorney holder not allowed Deposit Rules •Min Initial Dep. Rs.500•Thereafter Read more…
Emergency Credit Line Guarantee Scheme of Rs. 3 lakh crore Objective The Scheme is a specific response to the unprecedented situation COVID-19. To provide relief to the MSME sector, enabling MSMEs to meet their operational liabilities and restart their businesses. MLIs All SCBs are eligible as MLIs. NBFCs which have Read more…
What is Diversion of Funds? Diversion of Funds means (mis)utilization of Funds for a purpose for which loan was not sanctioned. Most common example is buying immovable property out of the Cash Credit Limit, which is being sanctioned for working capital purposes. Utilisation of short-term working capital funds for Read more…