6 Essential Bank Instruments to Process the Bank Activities

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Bank Instruments to Process the Financial
Transactions with an Ease Heres all that you
Need to Know
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• In the recent times, with the advanced
  technologies, people can easily process their
  transactions via bank.
• Bank has not only reduced the uncertain tragedies
  associated with the cash but has also made the
  process of transferring funds much easier.
• Yes, there is no doubt to say that you can make
  the payment, receive funds, make deposits, and
  pay the electricity and mobile bills online
  through your bank account.

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6 essential bank instruments to process the bank
activities

• Apart from these, there are several bank
  instruments that are especially utilized to
  process diverse financial and bank-related
  activities.
• Here is the list of some major bank instruments
  you must know

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1. Depository slips

• A depository slip is a written document
  specifying the notice that indicates the number
  of funds deposited by an account holder to
  his/her respective bank account.
• In short, a standard depository slip is often
  said as an itemized written notification that
  analyzes the exact amount of funds being
  deposited.

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2. Cheque

• An unconditionally written form of order issued
  by the customer that has deposited a certain
  amount of money in his bank, requesting the bank
  to pay a particular amount on demand to the
  bearer of the document or to the order of
  particular person.
• This form requires the signature of the issuer.

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3. Demand draft (DD)

• If you are familiar with the bank procedures,
  then DD wont be a new term for you.
• Demand draft is the procedure utilized by
  individual account holders to transfer the
  payment from one account to another bank account.

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• It is often considered to be the safest method
  for cashing checks.
• Though demand draft and cheque are almost
  similar, they can be distinguished in terms of
  the signature which is a must in cheque whereas
  the same is not applicable to DD.

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4. Passbook and statement of account

• Bank either provide their customers with
  statements of account or hand over a pass-book to
  them on a regular period.
• A passbook comprises pages that are further used
  for simple accounting notations of the bank
  account.

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On the other hand, a statement of the bank is the
written document that displays the entire
transaction that has been processed within the
mentioned dates.
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5. Pay order

• Another bank instrument that is utilized by the
  bank to clear up the payment requirement on
  behalf of their clients.
• The instrument is identical to demand draft and
  is assured by the bank for its complete value.
• These instruments are mostly utilized for payment
  that needs to be processed within the local
  clearing jurisdiction.

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6. Antedating and post dating

• A drawer is provided with the opportunity to date
  the cheques as per his needs.
• Antedating cheques comprise a date prior to the
  date of its issue.
• So these are some major bank instruments that are
  especially used for processing the bank
  transactions.

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