Banking terms beginning with R
Alphabetical List
REPO RATE
If any bank faces fund shortage and seeks to borrow some amount from the central bank of India i.e. RBI, it is charged the Repo rate. If repo rate is reduced, the banks get to avail funds at low rates.
REVERSE REPO RATE
When Reserve bank of India takes fund from banks, it is charged the Reverse Repo Rate. If reverse repo rate is raised, it becomes attractive for the banks to lend more money to RBI, as it accounts for higher interest rates.
RTGS, NEFT AND IFSC CODE
The National Electronic Fund Transfer (NEFT) system was started to facilitate the process of fund transfer from one bank to the other. RTGS or Real Time Gross Settlement, on the other hand, is a process which helps in money transfer from one bank to the other on gross basis and on a real time. This system makes money transfer fast and smooth. Settlement in real time implies that there is no waiting period for the fund transfer. Gross settlement, on the other hand, stands for settlement done on one-to-one basis. This is considered to be the full and final payment and cannot be revoked, as it is registered with RBI.
In order to ascertain the unique identity of the different branches of the banks, the Indian Financial System Code (IFSC) was devised. This code is a combination of letters and numbers. The first 4 characters of this code represent the banks code and next character includes the control character. Presently, 0 is used in the 5th position. The last 6 characters stand for the branch identity. In MICR code, one can refer to the nine numbers to locate a particular branch of the bank.
REPO RATE
If any bank faces fund shortage and seeks to borrow some amount from the central bank of India i.e. RBI, it is charged the Repo rate. If repo rate is reduced, the banks get to avail funds at low rates.
REVERSE REPO RATE
When Reserve bank of India takes fund from banks, it is charged the Reverse Repo Rate. If reverse repo rate is raised, it becomes attractive for the banks to lend more money to RBI, as it accounts for higher interest rates.
RTGS, NEFT AND IFSC CODE
The National Electronic Fund Transfer (NEFT) system was started to facilitate the process of fund transfer from one bank to the other. RTGS or Real Time Gross Settlement, on the other hand, is a process which helps in money transfer from one bank to the other on gross basis and on a real time. This system makes money transfer fast and smooth. Settlement in real time implies that there is no waiting period for the fund transfer. Gross settlement, on the other hand, stands for settlement done on one-to-one basis. This is considered to be the full and final payment and cannot be revoked, as it is registered with RBI.
In order to ascertain the unique identity of the different branches of the banks, the Indian Financial System Code (IFSC) was devised. This code is a combination of letters and numbers. The first 4 characters of this code represent the banks code and next character includes the control character. Presently, 0 is used in the 5th position. The last 6 characters stand for the branch identity. In MICR code, one can refer to the nine numbers to locate a particular branch of the bank.