New risk areas in Banking [All you need to know about modern banking system]

Dear friends, Lets Connect on the issue of money laundering and how to counter it . PREVENTION OF MONEY LAUNDERING : INTERNATIONAL COOPERATION MECHANISM Detection & confiscation of money laundered by the economic offenders has always been a sensitive issue. It has always invited a lot of interest & attention of general public especially the middle & low income group. Bringing back the money laundered and stocked at foreign jurisdiction is a big priority of the Government as it directly affects the growth of the economy. However, this task is not so easy as it has to pass through various International Treaties and cooperations among the Countries. The FATF recommendations on cooperation between member countries lists out International aspects of Money laundering and terror financing, are  best practices and a basic  framework for establishing,  maintaining effective AML /CFT programme worldwide and International co-operation. Some methods for international coop...

Dear friends, The Bill discounting business has always been a good source of generating income for the Bank. The facility is also beneficial for the business entities as it is a source of working capital finance for them while selling goods on credit. The facility of “Bill discount” differs from “Bill purchase” in terms of time involved in realization of proceeds. In case of “Purchase of Bills” the Bank can collect the payment immediately by presenting it before the drawee while in “Bill discounting”, the proceeds are realized after the agreed period i.e. date of maturity. That is why the charges in “Purchasing Bill” are lesser than in “Discounting the Bill” as in later case, it includes interest for period from discounting till the date of its’ maturity.   The Banks extend Bill discounting facility as an arrangement whereby, the sellers get proceeds of sales represented by bills from the Bank, before the agreed period of payment. Normally, the discounting of bills is allowed for t...