Debtor: A person who takes money on loan from another person.
Customer: A person who maintains any type of account or avails any service with a bank is a bank customer. Consumer Production Act has a wider definition for consumers as the one who purchases any service for a fee like purchasing a demand draft or a pay order. The term customer is defined differently by Laws, softwares and countries.
General Lien: A right of the creditors to retain possession of all goods given in security to him by the debtor for any outstanding debt.
Insolvent: Insolvent is a person who is unable to pay his debts as they mature, as his liabilities are more than the assets. Civil Courts declare such persons insolvent. Banks do not open accounts for insolvent persons as they cannot enter into contract as per law.
Factoring: Business of buying trade debts at a discount and making a profit when debt is realized and also taking over collection of trade debts at agreed prices.
Micro Finance: Micro Finance aims at alleviation of poverty and empowerment of weaker sections in India. In micro finance, very small amounts are given as credits to poor in rural, semi-urban and urban areas to enable them to raise their income levels and improve living standards.
Public Sector Bank: A bank fully or partly owned by the Government.
NPA Accounts: If interest and installments and other bank dues are not paid in any loan account within a specified time limit (90 days presently). It is being treated as non-performing assets of a bank.
Plastic Money: Credit Cards, Debit Cards, ATM Cards and International Cards are considered plastic money as like money they can enable us to get goods and services.
Repo Rate: The Rate at which the Banks borrows from RBI, Reduction in the same will enable banks to get cheaper funds and infuses liquidity into the system. This is a Policy Rate.
Safe Custody: When articles of value like jewellery, boxes, shares, debentures, Government bonds, Wills or other documents or articles are given to a bank for safe keeping in its safe vault, it is called safe custody. Bank charges a fee from its clients for such safe custody.
Reverse Repo Rate: The rate at which the commercial banks deposit their surplus funds with RBI. This is also a Policy Rate.
Pledge: A bailment of goods as security for payment of a debt or performance of a promise, e.g. pledge of stock by a borrower to a banker for a credit limit. Pledge can be made in movable goods only.