Bank Terminology and Banking Glossary

• Bank Draft – Banker’s draft is a negotiable claim drawn upon a bank. Drafts are as good as cash. The drafts cannot be returned and unpaid.
• Bank Rate – Bank rate is the rate of discount at which the central bank of the country discount first class bills. It is the rate of interest at which the central bank lends money to the lower banking institutions. Bank rate is a direct quantitative method of credit control in the economy.
• Cash Reserve Ratio (CRR) – The commercial banks are required to keep a certain amount of cash reserves at the central bank. This percentage amount is called CRR.
• Central Bank – Central Bank may be defined as the apex banking monetary institution whose main functions is to control, regulate and stabilize the banking and the monetary system of the country in the national interest.
• Cheque – Cheque is an order in writing issued by the drawer to a bank. If the customer has sufficient amount in his account, the cheque is paid by the bank. Cheques are used in place of cash money.
• Clearing Bank – Clearing Bank is one which settles the debits and credits of the commercial banks. Event of the cash balances are lesser, clearing bank facilities banking operation of the commercial bank.
• Clearing House – Clearing house in an institution which helps to settle the mutual indebtedness that occurs among the members of its organisation.
• Commercial Bank – Commercial bank is an institution of finance. It deals with the banking services through its branches in whole of the country operation of current accounts, deposits, granting of loans to individuals and companies etc. are various functions of the commercial bank.
• Commercial Bill- it is a bill of exchange drawn by the creditor on the debtor when the debtor’s acceptance is obtained the paper becomes the bill of exchange.
• Commercial paper –it is an unsecured promissory note issued by financial institutions to meet their short run financial requirements, for issuing commercial papers, it is a compulsion on the past of financial companies to follow credit rating. In India CRISIL is famous  institutions for credit rating.