Important information for banking preparation Please study once.
Cheque :
A cheque is an order through which money or money from a bank Can be extracted The money deposited by the customer in the bank account is given to the customer for the purpose of withdrawing the money prepared by the bank. It is a bill of exchange that is drawn on the bank and is paid immediately upon demand. A check is a demand form for the amount deposited in a customer's account. An order or instruction written by an individual or a business organization to the bank to give from its account in the bank to a certain person or organization.
ATM :
An automated teller machine, or ATM, is called plastic money in international banking parlance. In developed countries, the card works like putting money in one's pocket.
E-Banking :
E-banking is a service provided by the bank through internet. From this, the customer can use the facilities received from the bank through his own computer through internet. The services of e-banking can be used to view the balance, check the interest received in the account, view and print the statement, request for a new check book, request for a lost check, send a message to the branch.
Debit Card :
A debit card, also known as a bank card or check card, is a type of plastic card. It can be used to withdraw cash from ATMs (automated teller machines) and make payments through purchases of goods or services. So it can also be called 'electronic check'. Like a paper 'check', it can be used only as long as there is money in the bank account. Debit cards can also be used to shop online. Its use eliminates the problems of check cutting, unsigned signatures, and long lines in banks and financial institutions. This card is the current ATM card.
Credit Card :
Credit cards are used as payment cards. Customers can pay by credit card after purchasing any goods or services. A person with this card can buy goods or services on loan up to a certain amount. The card was issued saying, "Spend now, pay later." With a credit card, consumers can use up to 45 days interest free. But if you do not pay within that period, you will have to pay late fee and higher interest rate than usual. You can also withdraw money from a credit card using an ATM machine. However, some fees are deducted for this. Credit cards are rarely used in Nepal. Banks have also shown little interest in issuing credit cards. Basically, banks issue this card to customers who have won confidence in their ability to pay. In developed countries, a person's age, income, health status, family, and other information can be used to calculate how much money he can trust. Such a system has not been developed in Nepal.
Mobile Banking :
Banks and financial institutions have been providing various mobile applications called mobile banking to expand their business across the country through mobile technology so that banking transactions can be done from mobile or tablet. Mobile banking has created an environment where even people in places where there is no direct access to banks should not be deprived of banking services as it is possible to open bank accounts and deposit money from mobiles. As mobile banking is available round the clock, it is easy for the general public to get banking services. Mobile banking is considered to be very profitable as it also saves time.
Branchless Banking :
At present, branchless banking services are very effective in Nepal. The branchless banking service is the banking service provided by the banks in remote and rural areas by using the employees of the bank as agents without their physical branch. Such banking services are more prevalent in remote areas than in accessible areas. In the context of Nepal, branchless banking services are considered cheaper and faster than other banking services. Banks are providing banking services through their employees in case they are unable to expand their physical branches in remote areas.
Interbank electronic payment system :
It is a payment technology operated by customers in banks and financial institutions to manage payments and transactions in each other's accounts. Nepal Clearing House Limited has introduced this technology in Nepal. The system, which came into operation on September 1, has so far signed agreements with 60 banks and financial institutions as direct members and three remittance companies as indirect members, while all A-class banks have joined. With the company's electronic payment system, customers will be able to make payments to another bank's account online or by filling out a form at a bank.
Balance sheet (bashlat) :
The details prepared for the real information of the financial status of any organization, such as capital, assets, liabilities, are called vassals. Vasalat is considered as a legally recognized statement of the organization. In the case of a business entity, the profit and loss account is calculated at the end of the account. It's not really an account, it's a summary of accounts. The balance sheet should be made at the end of each financial year. The depiction of the economic condition of the vassals is from the day the vassals are prepared. The trader wants to know the real economic condition of the business. Profit Loss Account The account gives information about the total profit or total loss or not and also helps to determine the net profit or net loss.
Dividend and Bonus Share :
Dividend is the return given to its shareholders from the profits earned by the company. If such dividend is paid in cash, it is called cash dividend and if it is paid in shares, it is called bonus share or stock dividend. Existing decisions are made to capitalize the company's savings or reserves.
Shareholders are thus given additional shares (bonus shares) or increased paid-up capital. The amount of dividend by the board of directors
Merchant Bank :
Merchant Bank is an organization that manages the primary issuance of securities, guarantees and collects applications and details for securities trading.
Securities brokers :
A securities dealer who buys and sells securities on behalf of a customer is called a securities broker.
Securities trader :
A securities dealer is a person who buys all or some of the securities issued in the primary market and sells them through the stock market and manages the investment by entering into an investment agreement with the customer. A securities dealer buys and sells securities through a customer or a securities broker in his own name.
Market maker :
A market maker is an institution that trades securities in its own name for the purpose of providing liquidity in debentures or collective investment schemes or listed securities issued on the securities of the Government of Nepal.
Share Registrar :
An organization is responsible for keeping records of securities transactions of the organizations and for taking care of all the work related to rejecting or registering the filings and updating the information of the shareholders.
Debentures :
Debentures are securities issued on the condition that the principal and interest are paid at the prescribed rate and time. Its face value is usually Rs. Debenturers receive interest annually or semi-annually at a fixed rate on their investment. The debenture holders receive interest before paying dividends on ordinary shares and preference shares. Even if the organization is at a loss, there is no obstacle for the debenture holders to get the prescribed interest. The relationship between the debenture holder and the organization is like that of a lender and a debtor. If the company is unable to pay the interest at the specified rate and on time, the debenture holders can take action to send the company to liquidation. Most investors who do not want to take risks prefer to invest in debentures. Debenture holders do not have the opportunity to attend the company's annual general meeting and vote. Debentures are secured (secured by company assets or mortgaged) or unsecured, redeemable (repayable after a certain period of time) or irrevocable and convertible (can be converted into ordinary shares after a certain period of time) or unchangeable in nature.
Warrant :
A warrant is a securities instrument issued so that ordinary shares can be purchased at a specified number and price at a given time. In other words, a warrant is a right given to investors to buy ordinary shares of a company in the future. Generally, warrants are issued along with bonds to make the issuance of bonds attractive to investors. In the future, investors are free to decide on the option of buying or not taking ordinary shares using a warrant. When using a warrant, it is converted into ordinary shares, but the bond remains the same. The issuance of a warrant discloses the price to be paid for the purchase of ordinary shares in the future, the ratio of ordinary shares to be obtained using the warrant and the time period for which the warrant has to be used.
Blue Chip Share :
Blue chip shares are the shares of an organization that have been making profits for a long time by efficiently managing the organization and have been paying dividends to the investors as well as being aware of the accountability towards the investors and winning the trust of the investors. Most of these types of shares have a high value and the dividends are moderate.
The Central Depository System of Securities :
The system of taking charge of the securities of all the securities holders and helping them to complete the process of sale and purchase, transfer, transfer etc. in a simple and quick manner is called Central Depository System of Securities. Securities holders can open an account by depositing their securities under this system just like depositors keep money in the bank. This system eliminates problems like loss of securities, loss, theft, issue of fake shares. The system also helps reduce transaction costs.
Guarantee :
Commitment to purchase securities issued in the primary market if there is no sale of securities is called securities guarantee. Although the guarantor guarantees the securities, the issuing company receives the fee as per the agreement.
Statement :
Before issuing securities in public, the concerned organization should publish the statement. The prospectus discloses the details of the organization that wants to issue the securities and helps the investors to decide whether to invest in the securities of the respective organization based on the said details.
High and Low Demand for Securities :
There is an arrangement to distribute securities which is in high demand.
In that case, the group demanding less is given more weight and the group demanding more securities is given less weight.
Additional value :
Premium for the difference between the issue price and the face value of the securities Called The issuance of securities at a price higher than the face value of the securities is called securities issuance at a premium.
Purchase Proposal and Sale Proposal Price :
The value of the securities that a potential buyer wants to pay is called the offer price. The sale and purchase of securities is completed when the securities brokers inspect the securities market.
Paid value of listed securities :
The sum of the value of the listed securities paid by all the securities holders is called the paid up value of the securities.
Market capitalization :
The market value of all securities listed on the stock exchange market.
The total emphasis is called market capitalization. Market capitalization is obtained by multiplying the number of securities listed in the market and their market value.
Market indicator :
The market indicator is the ratio between today's total market value of listed securities and the total market value of a base year. Listed.
This indicator increases when the price of securities increases and decreases when it decreases. Nepal Securities Exchange Market Ltd. in Nepal. Each day, it produces this type of indicator, which is called Nepse indicator.
Market price per share :
The price per share of the stock market
Called price.
Earnings per share :
The earnings per share is obtained by dividing the net profit of the company by the total number of shares of the company. Earnings per share provide a significant measure of profit for shareholders and individuals outside the company. To the company whose earnings per share are increasing.
The company is considered to be successful in performance while its earnings per share is declining Gone are considered symptoms of the problem.
Net worth :
The total value of the company's paid-up capital and total reserves is the company's net worth. Dividing the net worth by the total number of shares of the company gives the net worth per share or the book value of the shares.
Value sensitive information :
Value sensitive information related to dividend distribution or bonus share issue by the company Announcements, management changes, expansion plans, financial measures, important agreements with other parties and events that directly affect the value of securities and other information and data are called price sensitive information.
Insider business :
As per the rules, the securities should be made public to the investors of the company but the securities have not been made public. This type of transaction is prohibited by the prevailing system.
Downward and upward emerging securities market :
The emerging market of securities refers to the gradual emergence of the market. In this type of market, along with the improvement of every sector of the economy including industry, banking, insurance, the company's profits have gradually increased due to efficient management. At this time the share price of listed companies is higher. On the other hand, the downward market for securities refers to the downturn in the market. In this situation, the market price and market index of listed securities are on a downward trend and there is an atmosphere of frustration among investors.
The directors and the board of director :
The directors and the board of directors are the people who are responsible for managing the entire business of any company, exercising their rights and fulfilling their duties. The directors of the company are appointed by the founders until the first annual general meeting and then by the general meeting. In order to be the operator of any company, one has to take the shares as prescribed in the rules of that company.
Annual General Meeting :
The annual meeting of the shareholders is called by the company every year to inform the shareholders about the work done by the company during the year, achievements, problems and future plans and to approve the annual accounts of the company, appoint auditor and approve other important issues. According to the prevailing rules in Nepal, such meeting should be convened within 6 months of the end of each financial year
Representative :
If any shareholder is unable to attend the annual general meeting of the company in person, then any other person who has given the right to vote by signing the application in the prescribed format is called a representative. A shareholder of any company can only nominate another shareholder of the same company as a representative.
Merchant Banker :
Merchant Bank is a financial institution licensed by the Securities and Exchange Board of India (SEBI) for the purpose of conducting all necessary activities related to issuance, sale, distribution and management of securities. The banking sector operates in two ways, the financial market and the capital market. While government banks, commercial banks, development banks and microfinance banks fall under the financial market, Merchant Bank is a branch of the capital market. Merchant banks are not separate private banks in themselves, they are subsidiaries of banks and financial institutions. Merchant banks operate according to the jurisdiction and jurisdiction given by the regulatory body Nepal Securities Board. According to this, merchant banks manage the capital of their leading company, buy and sell shares in the secondary market, transfer of shares and keep records of shareholders on behalf of the organization and manage the funds deposited in the case of mutual funds. In addition, it acts as a consultant in the merger and acquisition process of banks and financial institutions and operates investment advisory services for equity investors.
Demat account :
Depositing share certificates and other securities by opening a bank account is called dematerialization or dematerialization of shares. Such an account is also called a beneficiary account. After dematerializing the physical share certificate you have, you do not need the paper of share certificate, it is in the demat account in the bank. This makes it easier to buy and sell shares, speeds up the purchase and sale, and the bonus shares and entitled shares received are credited directly to the beneficiary's account. Therefore, you do not have to go to the company to get the certificate of such shares.
Commodity market :
Commodities are items that are not packaged under a brand name, such as wheat, corn, coffee, gold, silver, and crude oil. Its value fluctuates not only daily but also hourly. While such fluctuations occur, such commodities are systematically traded through exchanges with the aim of generating profits for investors and minimizing the risk of future price fluctuations for producers. In this system commodity transaction agreement is made. The exchanges that list and contract such transactions are called commodity exchanges. In the case of Nepal, all the commodity exchanges established so far have been trading in agricultural products, metals and energy contracts. There are currently four major types of such contracts: forewords, futures, options and swaps. Currently, only futures are traded on Nepal's commodity exchanges. The price used in Nepal's commodity market is determined on the basis of US dollar and Indian rupee.
Interest rate corridor :
In the general sense, the interest rate corridor is the limit of the minimum and maximum rates of interest. Once the corridor is implemented, there is a guarantee that interest rates will not go above or below a certain limit. When there is stability in interest rates, there is also stability in the economy. The depositor always seeks higher interest while the borrower naturally seeks lower interest. So when interest rates rise, depositors get excited and borrowers get discouraged. Therefore, NRB should adopt a policy to balance the two. Depositors have been discouraged by low interest rates for some years. In this case, central banks around the world keep interest rates stable through the corridor. If interest rates are not kept within a certain range, there will be huge losses in the economy. Therefore, once the corridor is implemented, depositors, debtors and the economy will all benefit.
Interest deferred :
According to the integrated directive of NRB, the interest earned on loan investment can be earned only if it is received in cash. However, such interest should be kept on 'interest deferred' basis until the interest due on time is received in cash. Similarly, there is a provision to defer the interest amount of the loan which has turned into bad loan by exceeding the arrears.
Inflation :
Inflation is a condition in which the average price of goods and services used by the general public continues to rise. This means that if only the price of some goods or services increases, it is not called inflation. For this, the overall price level should have increased. Even if the prices of some have gone down, the prices of most goods and services have gone up and if such growth has continued, that condition is called inflation.
Debt risk :
Debt risk is defined as the risk arising from a debt or borrowing due to one party failing to meet its obligations. That is, it is the risk of the person or entity taking the loan or the borrower taking a loan or a loan or non-payment of the loan.
Liquidity :
Liquidity refers to the ability of a company to properly address any type of debt or debt that needs to be repaid immediately without any problems. These include payment of raw materials, tax related charges, periodic expenses, and payments that have to be made immediately during the transaction. The only way companies pay these bills is through cash. The means by which companies receive cash is the cash reserves of the company and they can also receive cash by converting current assets including inventory and cash to cash.
Wealth purification :
Attempts to legalize ill-gotten gains by converting them are called money laundering in the general sense. This is a type of financial transaction in which an attempt is usually made to convert the proceeds of a crime or criminal act into legal property in various ways. In other words, money laundering is an aspect of financial transactions that seeks to conceal and conceal the real origin and source of the assets you have acquired illegally or through misappropriation and to create new legal sources through various financial transactions. According to Jeevan Prakash Sitaula, director general of the Asset Laundering Investigation Department, "the crime of asset laundering is not a crime in itself but a co-product of the original offense."
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