Thursday, 5 September 2013

Banking Terminology 7/8

Negotiable Instrument: A claim, the title to which passes by delivery. Examples of such claims include bills of exchange, cheques, promissory notes, dividend warrants and debentures payable to bearer. Transfer is by delivery only. A bill of exchange payable to a certain person ‘only’ is not a negotiable instrument. Neither is a cheque with ‘not negotiable’ written on it. Bill of Lading, Dock warrants, and postal orders are not negotiable.

Ninjna: Sub-prime borrowers can be categorized as “NINJNA” i.e. No Income, No Job, No Asset.

Overdraft: Refers to a system of bank lending, by which the borrower is permitted to draw cheques beyond the credit balance in his account, up to an agreed limit, and to pay interest only on the daily amounts by which the account is overdrawn.

Paper Note: A general term which is used for money in the form of bank notes.

Pass Book: A book supplied to customers by a bank, in which entries are made of all deposits and with drawls.

Prime Lending Rate (PLR): Interest rate charged by banks to their largest, most secure and credit worthy customers on short-term loans.

Probation: A period when a new worker is being tested before getting a permanent Job.

Continued...8


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COPY-WRITE OWNED BY PRAMOD KUMAR

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