FAQ Category: Banking system & loans schemes under govt

When it comes to creating assets, banks can be a great help, especially for beginners. While some in-house investment services are targeted at high-net-worth individuals, there are plenty of tangible asset creation options available at the bank, such as:

• Recurring deposit account: You invest a fixed amount at regular intervals with a set time limit, and you can’t change the deposit amount or time.

• Fixed deposit account: By keeping a sum of money invested in a fixed deposit account, you can earn attractive interest rates offered by the bank.

• Public Provident Fund (PPF) account: A PPF account is a government-supported scheme that provides a decent interest rate for your savings.

A recurring deposit is a special kind of term deposit offered by Indian banks which helps people with regular incomes to deposit a fixed amount every month.

A Fixed Deposit is a lump sum cash amount in your bank for a fixed tenure at an agreed rate of interest. During the end of the tenure, you receive the total invested amount along with the compound interest.

In the Indian market, banks offer various other services, including:

• Credit Cards: Credit cards let you spend now and pay later.
• Debit Cards: Debit card is linked to the bank account of the spender and the money is debited from the account.
• Online Banking/Mobile Banking: Mobile/Online banking is the use of a mobile device, such as a smartphone or tablet, to access and manage one’s banking accounts and conduct various financial transactions.
• Locker Facility: It is a rented locker that a bank offers to store valuables to keep one’s valuables safe.
• Insurance Products: Offering life, health, and other insurance plans.
• Investment Services: It is a special segment of banking operation that helps individuals or organisations to raise capital and provide financial consultancy services to them.
• Currency Exchange and Money Transfer-Currency exchange is physical money that is usually done over the counter at a teller stations. Money transfer means electronic funds transfer. It is also known as Wire transfer.
• Remittance Services: Transferring funds domestically and internationally.
• Demat Account: Holding and trading shares and securities electronically.

These services cater to various banking needs and make financial management more convenient for customers.

ECS stands for Electronic Clearing Service. It is a facility provided by banks in the Indian market that allows the automatic transfer of funds from one bank account to another electronically. ECS is commonly used for activities like salary credits, bill payments, loan EMIs, and other regular transactions, making the process faster, safer, and more convenient for customers.

Internet banking, also known as online banking, is a service offered by banks that allows customers to perform various financial transactions and access banking services through the internet using a computer or mobile device.

Things to keep in mind while using internet banking:

• Keep your login credentials confidential and never share them with anyone.
• Use secure and strong passwords for your online banking accounts.
• Avoid accessing internet banking from public or shared computers.
• Regularly update your device’s operating system and antivirus software.
• Be cautious of phishing emails and fraudulent websites pretending to be your bank.
• Check your account statements regularly for any unauthorized transactions.
• Use trusted Wi-Fi networks or consider using a virtual private network (VPN) for added security.
• Avoid clicking on suspicious links or downloading unknown attachments in emails or messages.
• Enable two-factor authentication for an extra layer of security.
• Log out of your internet banking session after use, especially on shared devices.

Following these precautions will help ensure the safety and security of your online banking transactions.

When you link your bank account with digital payment apps like Paytm and Gpay, you can use the UPI feature for making payments. UPI, or Unified Payments Interface, allows you to connect your bank account to these digital service providers and enables you to make payments from anywhere using your linked device. It’s a convenient and secure way to carry out transactions without needing cash.

An ATM is an Automated Teller Machine, a self-servicing bank outlet that allows you to perform multiple functions. Many ATMs allow dispensing cash, check deposits, and balance transfers. You must carry your debit or credit card in order to avail the self-banking services at the ATM.

A salary account is a type of a saving account, in which the employer of the account holder deposits a fixed amount of money as ‘salary every month.

Withdrawing more than your available balance is called an overdraft. Bank overdraft policies may allow your transactions to go through but you will be charged a fee.