Q. What is Plastic Money?
With the increasing use of credit, debit cards for withdrawal of cash from ATMs, the use of the term plastic money is common. These cards being of plastic facilitating availability of cash or money to the card holder, have come to be referred commonly as plastic money.
Q:Give some examples of Functions of Finance?
Determination of the financial requirements of the firm, obtaining necessary finance from the necessary sources at minimum possible cost & allocation of finance in different assets. In simple terms the finance functions are raising of funds, planning for funds and allocation & control of funds.
Q: What is Lead Bank Scheme?
Lead bank scheme was introduced around 40 years ago and recently it was in the news as a high level committee chaired by RBI Deputy Governor Usha Thorat was constituted to review and revitalize this scheme. The scheme aims at facilitating credit delivery to the farfetched areas of India. There are members of the committee from NABARD and SIDBI. Thus the scheme focuses upon financial inclusion.
The Opinion of this committee is that full financial inclusion is possible only if it makes a facility of opening of no frill accounts backed by other specialized services.
Q. What are Nostro & Vostro Accounts ?
A nostro account is maintained by an Indian Bank in the foreign countries for a facility of easy clearing of their transactions. For instance, if the bank pays a demand drawn on it by its correspondent bank, there is no delay because the foreign corresponded bank would already have credited the nostro account of the paying bank while issuing the demand draft.
A vostro account is maintained by a foreign bank in India with their corresponding bank.
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