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Draft – Knowing It In Brief
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MCQs on Banking -Set 1
1. Which of the following is not concerned with banks? A. Loan B. Deposit C. Insurance D. Letter of credit Correct Answer: C 2. Which is the first development bank of Nepal? A. Nepal Industrial Development Corporation B. Lumbini Development Bank C. Housing Development Bank D. Muktinath Bikas Bank Correct Answer: A 3. When was…
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SWIFT – Its Advantages and Disadvantages
SWIFT is a worldwide messaging network for financial institutions. It stands for Society for Worldwide Interbank Financial Telecommunication. It is a network used by financial institutions to transmit information and instruction through a standard system of codes. It is a secure, reliable, and standardized system of networks used by financial institutions throughout the world to…
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Branchless Banking- How Is It Different To Regular Banking ?
The mechanism by which banking services are delivered to customers without establishing a branch in physical form is known as branchless banking. Under this system, an agent is appointed to render basic banking services in certain geographical area. Certain banking services are provided through branchless banking, specially to unbanked communities which are located remotely and…
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Letter of Credit (LC) : MEaning, Feature, Types, Documents Required and Risk Associated
Meaning of Letter of Credit (LC) Modern trade is confined to the global trading of goods and services. This means the trade takes place between buyer and seller of two different countries or even continents. While doing so there is no chance of face-to-face interaction between the buyer and the seller. Thus, there exists a…
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Bank Guarantee (BG) : Concept, Importance and Types
Concept A Bank guarantee is an important banking arrangement that plays a vital role in promoting international and domestic trade. It is concerned with three parties: the buyer, the seller, and the guaranteeing bank. BH is issued by a bank upon the request of the applicant for the guarantee amount to the beneficiary. A bank…
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Core Banking System (CBS) : Role and Risk In Banking Service Delivery
Core Banking System (CBS) is a back-end system that processes daily banking transactions across all of the various branches of a given bank. It is a Centralized Online Real-time system. The function of core banking is to connect multiple branches of the same bank to provide 24/7 real-time services for customers. Major functions facilitated by…
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Funded and Non-Funded Business of Bank
Concept The funded business of a bank refers to any transaction or business where the actual fund of the bank is used. IN other words, it facility provided by a bank where the real money is used.These are credit facilities provided by banks making the disbursement of real cash to the concerned beneficiary.It includes bank…
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Internal Control System in Banking Transactions
Internal Control System in Banking Transaction Meaning and Need An organization is established with definite aims and objectives. These objectives are achieved by performing different managerial, financial, operational and decisional activities. Different employees are involved in different levels of these activities. The work done by these employees has to be checked by another independent employee…
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Interbranch and Interbank Transaction
Interbranch Transaction A bank has a number of branches operating in different locations of a country. Sometimes two or more branches are involved in a transaction. These transactions performed with the involvement of two or more branches is called an inter-branch transaction. Such transactions involve either customer-related works or merely official transactions. A customer,/ can…