Banking Blogs

Knowing the varying features of a salary account vs a savings account helps you choose a feasible option. To begin with, a savings account is a financial product that helps you keep your money secure and earn nominal interest.  On the contrary, a salary account is available only if you get a salary and your …

Direct Benefit Transfer or DBT is a government program to transfer subsidies to the respective beneficiaries conveniently. With many welfare programs introduced by the Government of India, DBT ensures its benefits reach the underprivileged population on time without hassle.  Often, the funds released from the government trusts take time to reach the targeted population. Furthermore, …

RBI launched Digital Rupee officially as a legal tender for the wholesale segment on December 1, 2022. Taking another step towards the ‘Digital India’ initiative, the new digital currency of India is exchangeable with paper currency.  Also referred to as the Central Bank Digital Currency (CBDC), this helps the country head towards a cashless economy. …

The bank number on a card is the first 4 to 6 digits mentioned on all payment cards. Also known as the Bank Identification Number or BIN for short, it is an essential component of your card number. It helps track stolen cards and reduces the chances of theft. You’ll find the Bank Identification Number …

With paper money replacing heavy coins, carrying and circulating money becomes easier. As a legal tender, paper currency holds its value even in the digital age. It will continue to do so in the near future. Given this, you need to know the history behind the origination of paper money and how it works. Know …

By knowing the difference between NEFT and RTGS, you can decide which option is right for you, depending on the urgency and limit. Since the introduction of digital modes of fund transfers, these options have gradually replaced traditional methods like cheques and demand drafts. RTGS and NEFT are among the most popular online transfer options, …

Most banks now offer the facility of auto sweep with a minimum balance on savings accounts, which has become popular amongst account holders. While regular savings accounts offer interest, it is often below the inflation rates.  However, the auto sweep account interest rate is higher than the savings account rates, allowing you to earn higher …

Credit derivatives are a type of financial contract that helps parties minimise their credit risk. Two parties hold these negotiable bilateral contracts privately and trade them over the counter.  In credit derivatives, creditors can transfer the credit risk of a debtor to a third party. In exchange for taking the credit risk, the third party …

The importance of understanding the difference between NACH and ECS is growing as the nation moves towards digital payments. Among the many modes of electronic transfers, these are two of the most popular options. Many companies, banks, financial institutions and merchants use ECS and NACH to receive and make payments. These options also allow automatic …

A non-performing asset (NPA) is a loan that a borrower defaults on or fails to repay. Generally, a financial institution declares an account as an NPA when the borrower misses multiple EMIs for an extended period.  Having a credit account declared as a non-performing asset has severe repercussions for the borrower and the institution. It …