There is always a credit risk for both buyers and sellers during domestic or international trade/ transaction between two parties. The letters of credit and bank guarantees, both are utilised to mitigate the credit risks of buyers. However, letter of credit and bank guarantee are not similar and often used (domestic and international) in different circumstances during the export and import transaction or performance of real sates and infrastructure projects.
There are various types of bank accounts which anyone can open in nearby banks whether it is public or private. Are you a professional, self-employed or entrepreneur? Looking for opening a bank account or just curious to know the different types of bank accounts.
The banks are the major components of the Indian financial system which play a vital role in the economic development of India.
In this article, we will go through each type of banks functioning in India as of 1st April 2020. But before we go ahead, let us first discuss how many categories of banks are functioning in India.
The banking system plays a vital role in economic development and is one of the most significant components of the financial system of any country. The banks not only facilitates the creation of credit but at the same time they provide numerous other services for the management and transactions of funds between two persons or entities.
In this article, we will help you to understand what exactly the banks are? what are the key functions they perform and how important they are for the economic development of a country?
In case of high-value transactions, real estate companies, government entities, colleges or other large corporations/ institutions typically don’t accept general/ personal cheques from individuals or firms to receive payment because there is always a risk of dishonour of the cheque. Therefore, such organisations/ institutions instruct the individuals/ entities to enclose a bankers cheque or demand drafts in order to pay the amount.