Defining BACH, BEFTN and RTGS

Defining BACH, BEFTN and RTGS

Bangladesh Automated Clearing House (BACH):

BACH is an electronic network for financial transactions in Bangladesh.

BACH, the first ever electronic clearing house of Bangladesh, has two components – the Automated Cheque Processing System (ACPS) and the Electronic Funds Transfer (EFT). Both the systems operate in batch processing mode- transactions received from the banks during the day are processed at a pre-fixed time and settled through a single multilateral netting figure on each individual bank’s respective books maintained with the Bangladesh Bank. A state-of-the-art Data Center (DC) and a Disaster Recovery Site (DRS) have been established comprising of most modern software and hardware for dealing with the operations of BACH. A Virtual Private Network (VPN) has been created between the participating commercial banks and Data Center (DC) & Disaster Recovery Site (DRS) for communicating necessary information related to BACH. Digital Certificate has been formulated for the first time in Bangladesh for secured data communication.

Definition of CRR and SLR.

CRR :

CRR is Cash Reserve Ratio. It refers to keeping a portion of net demand and time liabilities (NDTL) of banks with the central banks. Central bank fixes this percentage of NDTL. Central bank can change this percentage as a monetary measure to control the availability of funds in the economy i.e. to inject liquidity or to suck liquidity. But doesn’t pay any interest on such funds held with it.

SLR : 

SLR is Statutory Liquidity Ratio. It’s the percentage of Demand and Time Maturities that banks need to have in any or combination of the following forms:

1. i) Cash
2. ii) Gold valued at a price not exceeding the current market price,

iii) Unencumbered approved securities

Definition of Current Assets, Current Liabilities, Current Ratio

Current Assets :

A balance sheet account that represents the value of all assets that can reasonably expected to be converted into cash within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash.

Current Liabilities :

A company’s debts or obligations that are due within one year. Current liabilities appear on the company’s balance sheet and include short term debt, accounts payable, accrued liabilities and other debts.

Current Ratio :

One application is in the current ratio, defined as the firm’s current assets divided by its current liabilities. A ratio higher than one means that current assets, if they can all be converted to cash, are more than sufficient to pay off current obligations. All other things equal, higher values of this ratio imply that a firm is more easily able to meet its obligations in the coming year.

In Bangladesh the issue of current liabilities are often seen as overlapping among different types of liabilities.

The standard C.A. /C.L ratio is 2:1

HSC Results 2016 | www.educationboardresults.gov.bd

HSC Results 2016  www.educationboardresults.gov.bd, Alim Results 2016. <![endif]--> HSC Vocational Results 2016 HSC (BM) Results 2016, Diploma in Commerce, HSC Result 2016 Diploma in Business Studies Result -2016 here www.educationboardresults.gov.bd

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