6 Essential Bank Instruments to Process the Bank Activities

1. Bank Instruments to Process the Financial Transactions with an Ease: Here’s all that you Need to Know

2. In the recent times, with the advanced technologies, people can easily process their transactions via bank. • Bank has not only reduced the uncertain tragedies associated with the cash but has also made the process of transferring funds much easier. • Yes, there is no doubt to say that you can make the payment, receive funds, make deposits, and pay the electricity and mobile bills online through your bank account.

4. 6 essential bank instruments to process the bank activities • Apart from these, there are several bank instruments that are especially utilized to process diverse financial and bank-related activities. • Here is the list of some major bank instruments you must know:

5. 1. Depository slips – • A depository slip is a written document specifying the notice that indicates the number of funds deposited by an account holder to his/her respective bank account. • In short, a standard depository slip is often said as an itemized written notification that analyzes the exact amount of funds being deposited.

7. 2. Cheque – • An unconditionally written form of order issued by the customer that has deposited a certain amount of money in his bank, requesting the bank to pay a particular amount on demand to the bearer of the document or to the order of particular person. • This form requires the signature of the issuer.

8. 3. Demand draft (DD) – • If you are familiar with the bank procedures, then DD won’t be a new term for you. • Demand draft is the procedure utilized by individual account holders to transfer the payment from one account to another bank account.

10. It is often considered to be the safest method for cashing checks. • Though demand draft and cheque are almost similar, they can be distinguished in terms of the signature which is a must in cheque whereas the same is not applicable to DD.

11. 4. Passbook and statement of account – • Bank either provide their customers with statements of account or hand over a pass-book to them on a regular period. • A passbook comprises pages that are further used for simple accounting notations of the bank account.

12. On the other hand, a statement of the bank is the written document that displays the entire transaction that has been processed within the mentioned dates.

13. 5. Pay order – • Another bank instrument that is utilized by the bank to clear up the payment requirement on behalf of their clients. • The instrument is identical to demand draft and is assured by the bank for its complete value. • These instruments are mostly utilized for payment that needs to be processed within the local clearing jurisdiction.

14. 6. Antedating and post dating – • A drawer is provided with the opportunity to date the cheques as per his needs. • Antedating cheques comprise a date prior to the date of its issue. • So these are some major bank instruments that are especially used for processing the bank transactions.