BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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ICICI Bank
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State Bank of India
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Vijaya Bank
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Bank of Baroda
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Detailed explanation-1: -What Is Invoice Discounting? Invoice discounting is a financial service in which a provider lends cash to a company up to the value of its unpaid invoices. Many international Suppliers work with deferred invoice payment terms-often up to 120 days-which can put a strain on their finances.
Detailed explanation-2: -Who are the participants on Invoicemart? Suppliers categorised as MSMEs, corporate buyers and financiers (banks/NBFC factors) can participate on Invoicemart.
Detailed explanation-3: -Invoice discounting is a process where a vendor gets paid against an invoice on a date earlier than the agreed credit period. The amount paid will be lower than the actual invoice amount, hence the process is called invoice discounting.