Cheque Truncation: Cheque truncation, truncates or stops the physical flow of cheques. Generally truncation takes place at the collecting branch, which sends the electronic image of the cheques to the paying branch through clearing house and stores the paper cheques with it.
Dishonour of Cheque: Non payment of a cheque by the paying banker with a return memo giving reasons for the non-payment.
Digital Signature: A digital signature or digital signature scheme is a type of symmetric cryptography used to simulate the security properties of a signature in digital, rather than written, form. Digital signature scheme normally give two algorithms, one for singing which involves the user's secret or private key, and one for verifying signatures which involves the user's public key. The output of the signature process is called the 'digital signature'. Digital signatures, likes written signatures, are used to provide authentication of the associated input, usually called a 'massage'.
Money Market: Money market is the network of banks, financial institutions who deals in money market instrument of short terms like CP, CD and Treasury bills of Government. it is not an organized market like Bombay Stock Exchange.
Underwriting: Underwriting is an agreement by the underwriter to buy on a fixed date and at a fix rate, the unsubscribed portion of share or debentures or other issues. Underwriter gets commission for this agreement.
Rescheduling of Payment: Rearranging the repayment of a debt over a longer period than originally agreed upon due to financial difficulties of the borrower.
Virus: This is an acronym of "Vital Information Resource Under Seize". A virus is a program that can pass malicious code to the other non-malicious programs by modifying them. The term 'Virus' was coined because the affected programs act like a biological virus, it infects other healthy subjects by attaching itself to the program and either destroying it or co-existing with it.
Restrictive Endorsement: Where endorser desires that instrument is to be paid to particular person only, he restricts further negotiation or transfer by such words as " Pay to Ashok only". Now Ashok cannot negotiate the instrument further.
Creditor: A person / institution which extends credit to others.
Bouncing of a cheque: Where an account does not have sufficient balance to honour the cheque issued by the customer, the cheque is returned by the bank with reason "fund insufficient" or "Exceeds arrangement". this is known as 'Bouncing of a cheque'.
Certificate of Deposit: Certificate of Deposit are negotiable receipts in a bearer from which can be freely traded among investors. This is also a money market instrument, issued for a period ranging from 7 days to one year. The minimum deposit amount is Rs. 1 lakh and the are transferable by endorsement and delivery.
Demand Deposits: Deposits which can be withdrawn on demand by customers. E.g. saving bank and current account deposit.