YOUGOTBLURRED-FINANCE BLOG

It is a type of notifying bank and provides advises by a letter of credit, which has been opened by that issuing bank for the customers who had applied for opening the account. It has responsibility to avoid the fraud. It is not responsibility for the payment of the credit which it advises the beneficiary of. It can be of two types (1) subordinate office of the issuing bank, or (2) a bank appointed by the beneficiary. The branch office receives the letter of credit from the issuing bank to avoid fraud.

The former bank maintains the specimen signature on their file where the signature can be counter-check on the letter of credit in order to distinguish original from the fraudulent one. The beneficiary can please the subscriber to specify his or her advising bank in a letter of credit application. It is easier to deal with the advisory’s own bank over a bank with which the beneficiary does not maintain an account.

A bank is a financial institution that is licensed by the government. A very crude explanation of its function would be to say it lends and borrows money. There is of course a lot of depth in the activities of a bank depending upon the size of the company owning it. There are both private and public sector banks but the government exercises a certain amount of authority over the private sector banks too in order to prevent chaos and white collared crimes!!Banking is not a modern creation; there are traces of it in ancient Rome where merchants used to set up stalls which were to deal with changing of currency initially. Banks nowadays are involved heavily in offering money for investment funds etc and also own huge stakes in large companies by loaning those funds for activities. These procedures are complex and involve tons of paperwork.
The activities of a bank are not limited to lending or borrowing money like earlier mentioned, they provide many services for the common man and charge certain prices according to their plans and people take up these services because they are less strenuous and save them a lot of travel. The activities of a bank involve: 1. issuing of bank notes to cheque bearers, 2. Processing of payments by telegraphic transfer and internet banking, 3.Issuing bank drafts, demand drafts or cheques for easier mode of payment, 4. Lending money by way of loan, instalments, overdraft etc and charging interest for it, 5. providing guarantees and securities for company or personnel they trust or by mortgaging property 6. Currency exchange according to the changing rates everyday! They come up with innovative ideas or schemes for investing our money in a more profitable and less risk way. These may result in either profit or loss for the bank. They also provide the credit and debit card schemes for people in order to bring about a less tedious mode of payment. Using a credit card up to a certain limit involves paying the money at the end of an agreed period which if not met adds on along with further interest. Using a debit card of the other hand is much simpler as the transaction basically deduct the amount that u have already deposited with the particular bank. So the upraise of banking has brought about more ‘credits’ rather than ‘debits’ into our world. It is the primary reason why a man with nothing in his pockets can turn into a millionaire with one brilliant idea. This would not have been possible if not for today’s banking system!

This is the type of loan given for the customers, these who in search of vehicle. This type of loan gives by all types financial institutions. The financial institution pay the amount of wholesome vehicle, may be 2 wheel vehicles or four wheel vehicles. Then the customers might be in need of vehicle at urgent period. So when they apply for the loan, they will approve the loan based on some certain conditions. It may include period of payment etc…

In case of failure of payment, they may take away the vehicle. Once the entire payment has been paid the vehicle becomes the own of the customers. Customers can apply any kind of vehicle they willing to buy. So that the customers can able to buy the vehicle when they trying to buy. It the mainly hope full for the middle and lower class people, who were dreaming to get a bike.