English PSSSB Practice 49

Important banking terminology includes key words and concepts that help people understand how banks work and manage money. These terms are useful for anyone who wants to learn about banking and finance. One important term is Deposit, which means money placed in a bank for safekeeping. Deposits can be in different forms, such as savings accounts, current accounts, or fixed deposits. Interest is another key term, which is the money a bank pays to depositors for keeping their money in the bank or charges borrowers for giving loans. Loan means money borrowed from a bank for personal, business, or other needs, which must be paid back with interest. Credit refers to the bank's willingness to lend money to customers, while Debit means money taken out of a customer's account. Overdraft is a facility where a bank allows a customer to withdraw more money than they have in their account, up to a limit. Cheque is a written order directing the bank to pay a certain amount to another person or organization. Demand Draft (DD) is a bank document used to transfer money from one branch to another securely. NEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross Settlement) are electronic payment systems used to transfer money between bank accounts instantly or within a day. ATM (Automated Teller Machine) allows customers to withdraw cash, check balances, and deposit money without visiting a bank branch. Credit Card is a card issued by a bank that allows customers to borrow money up to a certain limit to make purchases. Debit Card is linked to a bank account and lets the user pay directly from their account. KYC (Know Your Customer) is a process banks follow to verify the identity of their customers. These banking terms are part of the basic knowledge everyone should have. Understanding them helps in managing personal finances, using banking services efficiently, and making informed financial decisions. Banks not only store and protect money but also offer facilities that help in savings, investment, and smooth financial transactions.