OCM 2 Marks Each

• Bank issues this type of card to its account holder.
• Through this card the amount of purchase is debited from the account of card holder.
• Through this card, the card holder can use the amount he has in his account.
• This card is utilized only where is facility to use this card for transaction.

• Bank carefully studies the account of the account holder or the applicant and decides how much amount he is capable to pay and issues the card of that much amount, which is called 'Credit Card'.
• On the basis of this card the amount of which he has purchased is debited from his account and credited into the account of the seller.
• The bank sends the details of account for the fixed period to the card holder and the amount showed is to be paid to the bank by the card holder.

• The following are the examples of non-financial transactions through e-banking.

• To obtain the statement of bank account,
• Request for cheque book,
• Request for stop payment.

• While travelling in a country or in foreign countries, people bear the tension of cash money being stolen or loss.
• for the safety of cash bank issue a special cheque which is known as Traveler’s cheque.

• Money lending to the businessmen for the purpose of expansion of business, keeping in consideration stock of goods in business, and the amount to be received is called cash credit.
• Against this facility stock of goods of the merchant is mortgaged in the bank.
• The interest is charged on the amount utilized by the borrower not on the entire amount sanctioned by the bank. The amount of overdraft used for specific fixed period becomes cash credit.

• Businessmen are given facility to withdraw the amount more than the balance in current account.
• This is called overdraft. Normally the period of overdraft is short.
• When it is fixed it is known as cash credit. Businessman gets overdraft on his own guarantee.
• Bank recovers interest only on the amount used not on the entire amount sanctioned.

• To pay telephone bill.
• To pay tax, To pay electricity bill etc. are the examples or e-banking.

• Draft is a cheque written by one hank to the branch of another bank. It carried the order to pay the amount to the person whose name is mentioned.
• Bank issues draft to the person only after receiving money and commission from the customer. Draft is A/c.
• Payee means it is made in the name of the account holder and the amount is deposited in the account of the concerned person.
• The amount of draft is already paid in the bank so there is no question of returning the same.

• This account is opened with the intention of saving.
• Every month it is compulsory to deposit fixed amount.
• The rate of interest is higher than that in saving account but lower than term deposit account.
• When the fixed period is over amount deposited in the account is paid to the account holder with interest.

• Banks invest in government securities for easy and quick liquidity when they face financial crisis.
• Banks invest in sound and prosperous units also.

• Banks receive unutilized money from public as deposit in four modes

• saving account
• Current account
• Recurring account
• Term deposit account.

• Banks on behalf of customers pay the amount of cheques written by them and recover the money of cheque.
• Above all, this bank on behalf of customers pay electricity bill, telephone bills, taxes, insurance, premium and transfers money from one account to another.

• Banks give home loan, car loan, education loan, machinery loan, gold loan, personal loan for long or short period give cash credit.

(A) Financial transactions:
A person can perform several financial transactions such as transferring money from his account to another bank account, pay telephone, electricity, tax bills, etc. through a bank’s website.
(B) Non-financial transactions.
A person can also perform several non-financial transactions such as obtaining account statements, requesting for a new cheque book, a new PIN, making a stop-payment request, etc.

Methods of Transferring Money from One Account to Another

With the rapid development and expansion of banking services, money transfer methods have become more convenient and efficient. The common methods through which money can be transferred from one account to another are: Demand Draft (DD): A demand draft is a prepaid instrument issued by a bank that allows the transfer of a specified amount of money from the drawer's account to the payee's account at another branch or bank.

Cheque: A cheque is a written order by an account holder instructing the bank to pay a specific amount to the person named on the
cheque or to the bearer.

Electronic Funds Transfer (EFT): This is an electronic method of transferring money between banks without using physical instruments like cheques or drafts. It includes NEFT and RTGS systems.

NEFT (National Electronic Funds Transfer): NEFT is a nationwide payment system enabling individuals to electronically transfer funds from one bank account to another on a deferred net settlement basis.

RTGS (Real Time Gross Settlement): RTGS allows for the instant transfer of funds between banks on a real-time and gross basis, mainly for high-value transactions.

Mobile Banking and Internet Banking: Customers can transfer money instantly using mobile banking apps or internet banking platforms, providing ease and flexibility.

These methods have made banking transactions faster, safer, and more accessible to customers.