Definition of Banking Instrument

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Introduction to Banking Instrument
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Banking instruments are defined as follows

• Banking instruments are checks, drafts, bills of
  trade, credit notes and so on.
• It is a report ensuring the installment of a
  particular measure of cash, either on request or
  at a set time, with the player named on the
  archive.
• These are the accompanying

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• Deposits or pay-in-slip
• Cheques
• Demand Drafts
• Internet Banking
• Mobile Banking
• Core Banking Solution

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Deposits or pay-in-slip

• The deposits are made by filling up a
  pay-in-slip. The form of the pay-in-slip is
• It is used to deposit money in the bank and
  returned to the depositor.
• It has the signature of the cashier, as receipt.
• It gives the details regarding the date, the
  amount deposited.

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Cheques

• A cheque is an unconditional order on the bank
  made by the client instructing the bank to pay a
  certain sum of money to the person named in the
  cheque or his order or the bearer.
• This instrument is very safe and convenient
  method of making payments or withdrawing money
  from a bank.

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Demand Drafts

• A demand draft (DD) is a negotiable bank
  instrument similar to a bill of exchange.
• A bank issues a demand draft to a client
  (drawer), directing another bank (drawee) or one
  of its own branches to pay a certain sum to the
  specified party (payee).
• The difference between a cheque and demand draft
  is given below

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• Basis for Comparison Demand Draft Meaning Cheque
  is a negotiable instrument which contains an
  order to the bank, signed by the drawer, to pay a
  certain sum of money to a specified person.
• Demand Draft is a negotiable instrument used for
  the transfer of money from one place to another.
  Payment Payable either to order or to bearer.
  Always payable to order of a certain person.
  Issuance Cheque is issued by an individual.
  Demand Draft is issued by a bank.
• Bank Charges No Yes Drawer Customer of the bank.
  Client Parties Involved Three Parties- Drawer,
  Drawee, Payee. Two Parties- Drawer, Payee.
  Dishonour Yes, due to insufficient balance or
  other similar reasons. No Demand Draft/Payment
  Order/Travellers Cheques

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Internet Banking

• Web-based keeping money or the Internet saving
  money is an electronic installment system that
  empowers clients of a monetary establishment to
  lead budgetary exchanges on a site worked by the
  bank.
• Web-based saving money was initially presented in
  the mid-1980s in New York.
• Four noteworthy banksCitibank, Chase Manhattan,
  Chemical and Manufacturers Hanoveroffered this
  administration.

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Mobile Banking

• Portable keeping money alludes to the utilization
  of a mobile phone or another cell gadget to
  perform the internet managing an account errands.
  
• Versatile managing an account administrations are
  normally constrained to an electronic development
  of assets and information recovery.

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Core Banking Solution

• This is a procedure in which the data is put away
  in a brought together server of the bank, which
  is accessible to all system branches.

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