What is an instrument in banking terms?
Instrument is any source document which can be used to carry out a financial transaction. For example, Cash deposit voucher, check deposit voucher, Check are some of the instruments. Instruments includes:What is the transaction to be carryout (i.e Cash deposit voucher is used to deposit cash into an account)Value of the transaction (Amount in Figures etc...)Additional particulars of the transaction (Account Numbers, Names, Reference Numbers, Addresses etc...)Instrument is a vital document for a bank because, all bank transactions are generated by an Instrument.
Related Q&A：
What is Internally generated cap deposit？Well, let me explain it to you. An internally generated cap deposit is basically a form of funds or savings that are created within an organization or a system on its own. It's not coming from external sources like investors or loans. You know, it could result from the company's profits, cost savings, or maybe some kind of internal financial strategies. For instance, if a business manages to cut down on unnecessary expenses and saves that money, it could be considered an internally generated cap deposit. Oh, and it's often used for future expansions, improvements, or to deal with unexpected situations. Does that make more sense to you?
