Bouncing of a cheque: Where an account does not have sufficient
balance to honour the cheque issued by the customer, the cheque is returned by
the bank with the reason "funds insufficient" or "Exceeds
arrangement”. This is known as 'Bouncing of a cheque’.
ATM: ATMs are Automatic Teller Machines, which do the job of a teller in a bank through Computer Network. ATMs are located on the branch premises or off branch premises. ATMs are useful to dispense cash, receive cash, accept cheques, give balances in the accounts and also give mini-statements to the customers.
Business of Banking : Accepting deposits, borrowing money,
lending money, investing, dealing in bills, dealing in Foreign Exchange, Hiring
Lockers, Opening Safe Custody Accounts, Issuing Letters of Credit, Travelers’
Cheques, doing Mutual Fund business, Insurance Business, acting as Trustee or
doing any other business which Central Government may notify in the official
Gazette.
Ask Price: The lowest price at which a dealer is willing to sell a
given security.
At-the-money: The exercise price of a derivative that is closest to the
market price of the underlying instrument.
Banker's Lien: Bankers lien is a special right of lien exercised by the
bankers, who can retain goods bailed to them as a security for general balance
of account. Bankers can have this right in the absence of a contract to the
contrary.
Authorization: The issuance of approval, by a credit card issuer, merchant,
or other affiliate, to complete a credit card transaction.
Automated Clearing House (ACH): A computerized facility used by member
depository institutions to electronically combine, sort, and distribute
inter-bank credits and debits. ACHs process electronic transfers of government
securities and provided customer services, such as direct deposit of customers'
salaries and government benefit payments (i.e., social security, welfare, and
veterans' entitlements), and preauthorized transfers.
