A garnishee order is a legal directive issued by a court, allowing a creditor to collect a debt by seizing funds directly from a debtor’s bank account or wages. Here’s a stage-wise explanation of how a garnishee order works: Stage 1: Debt and Default Debt Arises: A debtor owes money to a creditor, typically due…
Current account in a Bank in India
Current account in a Bank in India Current account in a Bank in India is mainly opened for business purpose. Business men/ entities are required to issue and accept payments on frequent basis and to smoothen the process of accepting/making payments Bank account are helpful. In current account, accountholders can make any number of transactions…
Meaning of LLP-Limited liability Partnership
Meaning of LLP-Limited liability Partnership LLP-Limited Liability Partnership means it is a partnership with the benefit of limited liability of a company. In this type of partnership firm, the partner’s liability is only up to the maximum limit of his agreed contribution. In a traditional partnership firm, the liability of partners is unlimited and all…
What is IMPS- Immediate Payment Service
IMPS- Immediate Payment Service as the name indicates is a mode of immediate/real-time interbank electronic fund transfer system. It’s launched in November 2010 by NPCI and it is available for the general public 24x7x365 days. NPCI provides this service through its existing National Financial Switch (NFS) ATM network. Various channels for initiating IMPS- Immediate Payment…
meaning of IFSC-Indian Financial System Code
Meaning of IFSC-Indian Financial System Code explained as under: In this paragraph let us discuss the meaning of IFSC-Indian Financial System Code in a simple way. IFSC –Indian Financial System Code is an 11 digit unique code. The Reserve Bank of India assigns IFSC for identifying a particular bank’s branch. And it is widely used…
How RTGS- Real Time Gross Settlement functions
RTGS- Real Time Gross Settlement To know How RTGS- Real Time Gross Settlement functions we will go step by step. Firstly by understanding meaning of the term RTGS- Real Time Gross Settlement. Simply, it is a system for the transfer of funds from one account of a bank to any other account of another Bank….
Charges on NEFT as per RBI
Charges on NEFT as per RBI RBI waived off all its charges on NEFT-National Electronic Fund Transfer transactions from member banks. No bank can charge its customers for inward NEFT Transactions. RBI advised the banks not to charge their Saving Bank account holders for NEFT fund transfers initiated online with effect from 1st January 2020. …
How NEFT-National Electronic Fund Transfer Functions
What is NEFT-National Electronic Fund Transfer NEFT –The term NEFT stands for National Electronic Fund Transfer. It is an electronic form of transfer of funds from one bank account to another bank account based on net settlement. The system is owned and operated by the Reserve Bank of India. How NEFT-National Electronic Fund Transfer functions An…
Features of CTS-2010 Cheque
Features of CTS-2010 Cheque listed as below: Paper: The CTS-2010 standard paper will not glow under Ultra-violet light and will have protection against alterations may be done by acids, alkalis, bleaches and will give a visible reaction on a fraudulent attempt. The paper shall ensure that the feel of the cheque remains uniform of all…
NPCI- National Payments Corporation of India
NPCI (National Payments Corporation of India) established in the year 2009. It acts as an umbrella organization for all retail clearing operations (paper-based and electronic). It is an initiative of the Reserve Bank of India and Indian Banks Association under the provisions of the Payment and Settlement Systems Act, 2007, for setting up a powerful…