Daily One Banking Term : ( 05 oct 2017 )

 ■ Money Market: Market in which short-term securities are bought and sold.

 ■ Marginal Standing Facility Rate: MSF scheme has become effective from 09th May, 2011 launched by the RBI. Under this scheme, Banks will be able to borrow upto 1% of their respective Net Demand and Time Liabilities. The rate of interest on the amount accessed from this facility will be 100 basis points (i.e. 1%) above the repo rate. This scheme is likely to reduce volatility in the overnight rates and improve monetary transmission.

  ■ Mandate: Written authority issued by a customer to another person to act on his behalf, to sign cheques or to operate a bank account.

 ■  Material Alteration: Alteration in an instrument so as to alter the character of an instrument for example when date, amount, name of the payee are altered or making a cheque payable to bearer from an order one or opening the crossing on a cheque.