Banking Terms/ Important Definations for bank exams/ Terms used in banking
RBI – The Reserve Bank of India is the apex bank of the
country, which was constituted under the RBI Act, 1934 to regulate the other
banks, issue of bank notes and maintenance of reserves with a view to securing
the monetary stability in India.
Demand Deposit – A Demand deposit is the one which can be
withdrawn at any time, without any notice or penalty; e.g. money deposited in a
checking account or savings account in a bank.
Time Deposit – Time deposit is a money deposit at a banking
institution that cannot be withdrawn for a certain "term" or period
of time. When the term is over it can be withdrawn or it can be held for
another term.
Fixed Deposits – FDs are the deposits that are repayable on
fixed maturity date along with the principal and agreed interest rate for the
period. Banks pay higher interest rates on FDs than the savings bank account.
Recurring Deposits – These are also called cumulative
deposits and in recurring deposit accounts, a certain
