Deposit account in bank

A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the bank, and represent the amount owed by the bank to the customer. Some banks charge a fee for this service, while others may pay the customer interest on the funds deposited.

Contents [hide] 1 Major types 2 Legal framework 3 Regulatory protection 4 See also

[edit] Major types

• Checking accounts: A deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels. Because money is available on demand these accounts are also referred to as demand accounts or demand deposit accounts.

• Savings accounts: Accounts maintained by retail banks that pay interest but can not be used directly as money (for example, by writing a cheque). Although not as convenient to use as checking accounts, these accounts let customers keep liquid assets while still earning a monetary return.

• Money market account: A deposit account with a relatively high rate of interest, and short notice (or no notice) required for withdrawals. In the United States, it is a style of instant access deposit subject to federal savings account regulations, such as a monthly transaction limit.

• Time deposit: A money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or period of time. When the term is over it can be withdrawn or it can be rolled over for another term. Generally speaking, the longer the term the better the yield on the money.

[edit] Legal framework

Although restrictions placed on access depend upon the terms and conditions of the account and the provider, the account holder retains rights to have their funds repaid on demand. The customer may or may not be able to pay the funds in the account by cheque, internet banking, EFTPOS or other channels depending on those provided by the bank and offered or activated in respect of the account.
The banking terms "deposit" and "withdrawal" tend to obscure the economic substance and legal essence of transactions in a deposit account. From a legal and financial accounting standpoint, the term "deposit" is used by the banking industry in financial statements to describe the liability owed by the bank to its depositor, and not the funds (whether cash or checks) themselves, which are shown an asset of the bank. For example, a depositor opening a checking account at a bank in the United States with $100 in currency surrenders legal title to the $100 in cash, which becomes an asset of the bank. On the bank's books, the bank debits its currency and coin on hand account for the $100 in cash, and credits a liability account (called a demand deposit account, checking account, etc.) for an equal amount. (See double-entry bookkeeping system.) In the audited financial statements of the bank, on the balance sheet, the $100 in currency would be shown as an asset of the bank on the left side of the balance sheet, and the deposit account would be shown as a liability owed by the bank to its customer, on the right side of the balance sheet. The bank's financial statement reflects the economic substance of the transaction -- which is the bank has actually borrowed $100 from its depositor and has contractually obliged itself to repay the customer according to the terms of the demand deposit account agreement. To offset this deposit liability, the bank now owns the actual, physical funds deposited, and shows those funds as an asset of the bank.
Typically, an account provider will not hold the entire sum in reserve, but will loan the money at interest to other clients, in a process known as fractional-reserve banking. It is this process which allows providers to pay out interest on deposits.
By transferring the ownership of deposits from one party to another, they can replace physical cash as a method of payment. In fact, deposits account for most of the money supply in use today. For example, if a bank in the United States makes a loan to a customer by depositing the loan proceeds in the customer's checking account, the bank typically records this event by debiting an asset account on the bank's books (called loans receivable or some similar name) and credits the deposit liability or checking account of the customer on the bank's books. From an economic standpoint, the bank has essentially created economic money (although obviously not legal tender). The customer's checking account balance has no dollar bills in it, as a demand deposit account is simply a liability owed by the bank to its customer. In this way, commercial banks are allowed to increase the money supply (without printing currency, or legal tender).

e-banking

Security

Security token devices

Protection through single password authentication, as is the case in most secure Internet shopping sites, is not considered secure enough for personal online banking applications in some countries. Basically there exist two different security methods for online banking.

• The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, the most popular one is to send a list of TANs to the online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token. These token generated TANs depend on the time and a unique secret, stored in the security token (this is called two-factor authentication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there is no additional encryption needed.
• Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation.

Attacks
Most of the attacks on online banking used today are based on deceiving the user to steal login data and valid TANs. Two well known examples for those attacks are phishing and pharming. Cross-site scripting and keylogger/Trojan horses can also be used to steal login information.
A method to attack signature based online banking methods is to manipulate the used software in a way, that correct transactions are shown on the screen and faked transactions are signed in the background.
A recent FDIC Technology Incident Report, compiled from suspicious activity reports banks file quarterly, lists 536 cases of computer intrusion, with an average loss per incident of $30,000. That adds up to a nearly $16-million loss in the second quarter of 2007. Computer intrusions increased by 150 percent between the first quarter of 2007 and the second. In 80 percent of the cases, the source of the intrusion is unknown but it occurred during online banking, the report states.^[4]
The most recent kind of attack is the so-called Man in the Browser attack, where a Trojan horses permits a remote attacker to modify the destination account number and also the amount.

concept and definition of bank

BANK was an artists’ group active in London during the 1990s. Their most significant contribution to UK contemporary art was a series of curated group shows, often with comical, and sometimes offensive, titles. As a group they adopted an aggressive stance towards the mainstream contemporary art scene of the time.
John Russell and Simon Bedwell founded the group in 1991. Dino Demosthenous was also a member at this time, but left in 1992. In 1993 Russell and Bedwell were joined by Milly Thompson, David Burrows and Andrew Williamson. Burrows left the group in 1995, Williamson in 1998, Russell in 2000. When Gallerie Poo Poo closed after the three-day show Press Release in January 1999, BANK begun to exhibit their collective work in other venues: The Mayor Gallery, London, Magasin 4, Bregenz, Rupert Goldsworthy Gallery, New York, Anthony Wilkinson Gallery, London, Chapman FineARTS, London, Suburban, Chicago, and finally the inaugural show at Store, London, after which Milly Thompson and Simon Bedwell began to work separately as artists whilst managing the BANK archive.
The approximately twenty shows curated by BANK included the work of the BANK artists alongside the work of several future Turner Prize nominees and winners. Although the BANK exhibitions were mostly held in warehouse spaces on Curtain Road, then Underwood Street (both Shoreditch, London) the name of the gallery changed. Initially it was BANKSPACE, then DOG, and finally Gallerie Poo-Poo. The various artworks were combined together as single sprawling installations.
BANK also published a satirical magazine delivering tabloid-style critiques of the art world. Headlines included, "AD MAN YOU’RE A BAD MAN," and, "GALLERIES ‘ALL OWNED BY RICH PEOPLE’ SHOCK."^[1] Other "frankly adolescent" headlines were "GILLIAN WEARING THIN", "SIMON PATTERSON - EIGHT YEARS ONE IDEA!" and "SAM TAYLOR WOULD - NOT DO ANY MORE ART USING OPERA!
Matthew Collings states that many of the works of BANK were based on John Russell's input, but goes on to say that, "If you agree to subsume your personal identity within a collective...then you can't really complain if once you've left the collective, no one talks about your individual contribution."
Julian Stallabrass describes BANK’s activity as “the parodic creation of corporate identity at the centre of which (as their name suggests) is a noisy and constant reference to that matter of which the art world usually whispers: money.”They had, according to Matthew Collings, a "surly, self-destructive, self-conscious, introspective attitude - combined...with critical intelligence and a flair for spotting weaknesses in the art system".

responsiblity of bank cashing a check

Depositing or cashing a check involves at least three parties: the payor, payee and bank. If the check is written from a checking account at a bank other than the one cashing it, this adds another party. With the time it takes to clear the funds on a check from differing institutions, checks have become the prime target for fraud. Unfortunately, you may find yourself an unsuspecting victim.

The Check Cashing Process

1. When you go to your bank to deposit or cash a check, a specific process takes place. The bank teller will verify you and your account information either via debit card or identification card. Those with positive banking history often can cash the check. In some cases, you may be required to deposit the check until it "clears." You endorse the check, and the teller sweeps the check through a machine that creates an imprint of the transaction. The bank must wait for the funds to be sent from the other bank, which also verifies the funds and account number. If the account does not have money, the check will bounce, and you will be responsible for collecting the funds. Most bank policies place a hold on the majority of the check amount to give itself enough time to have the funds clear.

Not Getting the Money

2. The bank is not responsible for the money that cannot be collected in the process of clearing an account. Check with your bank's terms and conditions, as the account owner may need to pay the bank a fee for depositing a check that could not be cashed. If you accept checks for business, get identification and valid contact information. Create policies that will charge the check writer a fee for bouncing a check. Still, you may not be able to protect yourself from fraud.

Bounced Checks

3. When you deposit a check, the bank sends it for collection. If it is unable to collect the money on a valid account, it will send it through a second time. This is usually done within a week of the first attempt. If the account still does not have the funds to clear the check value, the check will be returned to you and with the reason it was rejected. You will be assessed a fee for the inability to collect the money based on your account terms.

Fraudulent Checks

4. It has become common for con-artists to give someone a check on an account that either does not exist or is not their own. The con-artist gets their goods and services, leaving the person holding the check to foot the entire bill. A check that is deposited or cashed is endorsed by the party cashing or depositing it. By endorsing, you are telling the bank you are taking responsibility for the funds. If the funds are spent, and the bank cannot collect on the money, you will owe the bank the amount of the check plus any fees associated with the bounced check. If the bank suspects that the check is part of fraud, it will advise you to file a police report. If the criminal is caught, you may not be liable for the value and fees.

Check 21

5. The Check Clearing for the 21st Century Act (Check 21) was created to expedite the process of check clearing. Since most banks are on an electronic system and can access other institutions via the Internet instantly, this process can make validating funds in an account a few second process. As more banks update their systems to be a part of Check 21, the consumer response is two-fold. This can reduce hold times for check deposits, but it may increase the amount of fees consumers pay annually because many people send a check waiting for money to clear their own account. If the money isn't there, fees will be assessed in a more timely fashion. This will help banks chase fraudulent activity faster by reacting faster.

Main commercial bank in Nepal

condition of bank in nepal

The beautiful natural sceneries of Nepal have widely attracted a number of tourists in the country all through these years. But the economy of Nepal has remained stagnant as a result of poor development of infrastructural facilities in the country. In order to improve the living conditions of people in the country, banks in Nepal came up with innovative banking schemes intended to upgrade the economic condition of the country. The banking institutions in Nepal offer modern banking facilities and some of the international banks of repute have also opened their branches in the capital city of Kathmandu to cater to the needs of foreign travelers. These banks in Nepal offer money exchange value of almost all foreign currencies as well

as profitable credit card facilities for foreign travelers. If you’re a shopaholic and love to take home some good Nepali artifacts, then you can opt for shopping credit card scheme offered by these international banks, which also give discount facilities especially during the peak season. Majority of the banks in Nepal have made it mandatory to exchange foreign currency either through authorized agents or the money exchange counters located at the Tribhuvan International Airport, in Katmandu. Also when you exchange for money, please ask the respective counters to give you the money exchange receipt. It’s important to note that there are 24 hrs cash withdrawal facilities at some of the popular banks of Nepal. Some of banks in Nepal offer unique facilities for the development of agri-oriented industries in the rural areas. There are certain financial banks in Nepal like the Grameen Bikash Bank Biratnagar, which is in fact a semi government organization with a share distribution of 34.95 % Central Bank of Nepal, 8.25% Nepal government and 25 % different commercial banks. This bank offers different kinds of financial products such as---insurance, voluntary savings and loans.

function of commercial bank

1. Receiving Deposits:
This is the main function of commercial banks to collect savings of individuals and firms. They offer different types of deposits for the facility of the customers.

i. Current Account or Demand Deposits:
Any amount can be withdrawn from this account any time without any notice. No interest is allowed on this type of account.
ii. Saving Account:
This type of deposit account which is usually held by the middle class group. The
saving account carries lower rate of interest.
iii. Fixed Deposit:
Amount cannot be withdrawn before the fixed future date in this type of deposit. High interest is allowed in fixed deposit which is different according to period.

2. Advancing Loans:
This is the important function of the commercial bank. Credit is given to the people in different ways.
(a.): Making Loans:
There are three types of loans given to borrowers.
i. Short Term Loans:
These loans are advanced for the period of six months to one year. High Interest rate
Is charged on this type of accounts.
ii. Medium Term Loans:
Loans from one to five years are called medium term loans.
iii: Long Term Loans:
Loans which are advanced for the period, more than ten years are long term loans.
(b.): Bank Overdraft:
Banks allows their trustful customers to draw more than the deposit they have in the
Bank. Bank charges interest on overdraft.
(c.): Cash Credit:
Bank also gives credit against immovable property and interest is charged by the
bank.
(d.): Discounting of Bills:
This is income source of bank to discount bills of exchange. They charge nominal
Interest and discount only reputed and clear bills of exchange