1. Returned Cheque
When you do not have enough available funds in your account (including any overdraft protection transfer from another account) to cover a cheque, the bank may decide not to pay the cheque and to return it to the payee. A returned item fee may be charged to your account.
Duly authenticated extension of the validity period for negotiation/payment of cheque/draft or a negotiable instrument.
3. Reverse Mortgage
A financial product, which provides senior citizens with funds against their home equity. Senior citizens can get a regular amount monthly, quarterly or as a lump sum. They can live in their homes for their lifetime and after that banks can recover the amount by selling the property or if the heirs of the property want they can claim it by repaying the dues to the bank.
4. Revolving Credit
A credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off, it becomes available again to use for another purchase or cash advance.
5. Reward Points (Cards)
A loyalty scheme that supplies benefits based upon the card's usage. Benefits are usually in the form of points that can be redeemed for gift vouchers, gift items or services, such as airline tickets, discounts on purchases or cash refunds. The credits accumulated toward these benefits are often a percentage of each purchase.
6. Safe Custody
Documents and articles placed with the Bank for safe keeping under mutually agreed terms and conditions and payment of fee/rent on a regular basis.
7. Sale deed
It is a legal document, which transfers the ownership of the property or objects for a mentioned price. Every sale deed has to be registered with appropriate authority.
8. Savings Account
An account maintained by a customer with a bank for the purpose of accumulating funds over a period of time. Only the account owner or a duly authorized agent may withdraw funds deposited in a savings account. It attracts a modest rate of interest, which is fixed by RBI and is considerably lower than the rates applicable on the Fixed Deposits. There is generally a limit on the number of transactions that can be done without attracting a charge.
9. Secured Card
A credit card that is guaranteed by a cash deposit held in a special savings account or certificate of deposit. The deposit must remain in the account until the credit line is closed or the issuer decides security is no longer necessary. The credit line on the card is usually equal to the amount of the deposit. If the Card member defaults on the card, the issuer will apply the deposit toward the outstanding balance.
10. Secured Debt
Debt for which repayment is guaranteed through collateral property of equal or greater value than the amount of the loan. If you do not repay the loan, the issuer may take possession of the collateral. Collateral may be an asset such as a car or a home or, in the case of a secured credit card, a cash deposit held by the issuer. For example, a mortgage is a secured debt in which the home is collateral. If the person fails to repay the loan, the bank may take the home as payment.
11. Security Documents
This refers to the list of original documents to be collected from the customer towards the security of the loan amount sanctioned/disbursed
12. Service Charges
Charges levied by a Bank for providing various banking services. (The Tariff Schedule for commonly availed banking services is displayed on the Branch Notice Board and on the Bank's Website.)
13. Simple Interest
Simple interest is calculated solely as a percentage of the principal sum from the date of the availment to the date of repayment (also see compount interest).
14. Stamp Duty
It is the duty to be paid to appropriate authority on the different documents used in the loan process. Stamp duty varies from state to state and the stamp duty should be adequate enough so as to make the documents valid and enforceable.
15. Standing Instruction
Signed instructions given by a customer to his/her Bank to make regular transfer of funds for specified purposes and valid for the period indicated by the customer until the instruction is withdrawn.