Author Archives: Gopika

What is Currency? Currency is a liquid financial asset. It represents notes and coins in circulation, which are of fixed nominal values and have no dates of repayment. Issued notes and coins are considered as the liabilities of the RBI (Central Bank).

Classification Financial instruments may be classified from different angles. One classification is Financial Asset and Other Financial Instruments. The criteria for this classification is liquidity and legal characteristics. Financial Assets Currency Deposits Securities other than shares Shares and other equity Loans and borrowings Other accounts receivable / payable Financial derivatives Other Financial Instruments Letters ofContinue reading “CLASSIFICATION OF FINANCIAL INSTRUMENTS”

What is Financial Instruments? Financial Instruments form another important element of a financial system.Financial instruments are financial contracts of different nature made between institutional units. These comprise the full range of financial claims and liabilities between institutional units, including contingent liabilities like guarantees, commitments, etc.The concept of financial instrument is wider than the concept ofContinue reading “FINANCIAL INSTRUMENTS”

What is Financial Markets? Financial Market is an institution or arrangement that facilitates the exchange of financial instruments, including deposits, and loans, corporate stocks and bonds, Government bonds and more exotic instruments such as options and futures contacts. The market, which deals with trading of financial instruments like financial claims, assets and securities is knownContinue reading “FINANCIAL MARKETS”

Customer to Bank E banking : Basically E-banking is Internet based. Customers can easily access all important information relating to their deposits, remittance, and payments etc through internet at any time. Number of E banking facilities are available to customers now. For example ATM, credit cards, Electronic Data Interchange. EFT ete Likewise a customer canContinue reading “DIMENSIONS OF E-BANKING”

Dimensions of E-banking E banking means conducting banking functions electronically. It helps to eliminate paper based transactions. E banking operates through internet, extranet and intranet. E banking should have at the least the following dimensions.(1) Customer to Bank E-banking(2) Bank to bank E- banking(3) Electronic central banking(4) Intranet procurement