Easy banking systems for common people

Easy banking systems for common people

The world banking and its banking definitions

World-Bank provides loan to the bank for long term (90 to 365 days). On

That amount of loan the World Bank takes some interest i.e. called Bank Rate.

According to modern banking definition of BR (Bank Rate) Bank Rate is used by main bank to provide discount on his securities. So, Bank Rate is known as Discount or Exchange Rate

Statutory Liquidity Ratio: Bank has to maintain some part of their deposits in itself in the form of cash/foreign exchange, mutual fund.

The financial systems includes

The sound and efficient financial system is necessary for rapid economic development of the nation.

Cash Reserve Ratio:

Cash Reserve Ratio is a certain percentage of bank deposits (Net Time and Demand Liabilities) which banks are required to keep with main bank in the form of reserves or balances.

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