India4u - Business

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	NBFC Non-Banking Financial Company. Negotiable instrument A transferable signed document that promises to pay the bearer a sum of money at a future date or on demand. Nominee A person, bank or brokerage in whose name securities are transferred. Open market operations Purchase or sale of government securities by the Reserve Bank of India to influence the domestic money supply. Overdraft The account holder is permitted to withdraw a sum in excess of the bank account. Pass book A small book that depicts the position of an individual's account. Penal interest The penalty interest a borrower has to pay when the instalment is overdue as per the repayment schedule. PIN Personal Identification Number. It is the password that goes with the card. PIN is required for certain transactions like cash withdrawal etc. Prime rate The interest rate at which banks/ financial institutions lend to their best clients. Promissory note Written promise to pay. Repo rate Short term interest rates. Revolving credit A credit arrangement, as used in credit card where a customer borrows against a pre approved credit limit. Roll over A loan in which the borrower has the option to renew the loan upon maturity. Top