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Principles of Sound Lending Banker is essentially a dealer in money belonging to others and he is required to repay it after sometime with interest. While employing these funds to grant loans and advances, a banker is required to follow certain principles. These principles are called principles of sound lending. 1.Safety Safety depends up on the security offered by the borrower and their capacity and willingness to repay. So the banker should ensure that the securities offered by the borrower are adequate and readily realizable. 2.Liquidity :  Liquidity refers to the ability of an asset to convert into cash within a short period of time. 3.Profitability :  A commercial bank is essentially a profit making organisation. The resources of banks should be employed in such a way that they will bring reasonable amount of profit.  4.Purpose :  The banker should enquire the purpose of the loan from the borrower. A banker should grant loans only for productive purposes. Then o...

🪧 ONLINE BANKING Online banking, also known as internet banking, virtual banking, web banking or home banking, is a system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website or mobile app. ​​​​​​​RTGS  -- Real Time Gross Settlement NEFT-- National Electronic Funds Transfer  IMPS -- Immediate Payment Service.  MCLR -- Marginal Cost of Funds based Lending Rate IBC --  Insolvency and Bankruptcy Code MSME --- Micro, Small, and Medium Enterprises NPA --- Non-Performing Asset. 

Centralised Purchasing (Centralised Buying) In a large concern usually there will be a separate department called purchase department to purchase materials. The purchase department will purchase materials for the entire organisation. This is called centralised purchasing. Thus, centralised purchasing means purchasing for the whole organisation by a single purchase department. Advantages of Centralised Purchasing Centralised purchasing is generally preferred because it has the following advantages: 1. Efficient buying on account of specialised knowledge and skill in the art of purchasing. 2. Advantages of bulk purchase. 3. Reduces cost of purchase. 4. Ensures uniform quality of materials. 5. Exercises effective control over inventories. 6. Involves less clerical work because all records relating to purchases are kept at one place. 7. Avoids the problem of overstocking and understocking of materials. Disadvantages of Centralised Purchasing Centralised purchasing suffers from the followin...