ENCASHMENT Meaning and
Definition
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Encashment refers to the act of converting financial instruments such as checks, bonds, or coupons into cash. It involves the process of redeeming or exchanging these instruments for their equivalent cash value. Encashment is often facilitated by banks, financial institutions, or other authorized entities that have the ability to convert these instruments into liquid form.
Encashment services are commonly availed by individuals or businesses in need of immediate cash. For example, a person who receives a payment in the form of a check may choose to encash it at their bank instead of depositing it. Similarly, a bondholder may opt to encash their bond for cash before its maturity date rather than waiting for the interest or principal repayment.
Encashment may also be associated with foreign currency. When someone returns from a foreign country with excess currency, they can encash it by exchanging it for their home currency at a financial institution or currency exchange booth. This allows them to convert the foreign cash into a usable form within their own country.
The process of encashment typically entails presenting the financial instrument to the relevant entity, providing identification, and possibly paying a fee or meeting specific requirements. The encashment value may be subject to deductions such as transaction fees, commissions, or taxes depending on the circumstances.
Overall, encashment is an integral part of financial transactions that enables individuals and businesses to convert various financial instruments into liquid cash for practical use.
Common Misspellings for ENCASHMENT
- wncashment
- sncashment
- dncashment
- rncashment
- 4ncashment
- 3ncashment
- ebcashment
- emcashment
- ejcashment
- ehcashment
- enxashment
- envashment
- enfashment
- endashment
- enczshment
- encsshment
- encwshment
- encqshment
- encaahment
Etymology of ENCASHMENT
The word "encashment" is derived from the combination of two words: "en" and "cashment".
The prefix "en-" is of Middle English origin and it means "to put into" or "cause to be". It is derived from the Old English "on-" or the Old Norse "en-".
The word "cashment" is derived from the word "cash", which originated from the Latin word "capsa" meaning "box" or "container". Over time, the meaning of "cash" evolved to represent money in the form of coins or notes.
When the two words are combined, "en" signifies the action of putting something into something else, and "cashment" refers to money itself. Therefore, "encashment" refers to the action of converting or exchanging something for cash.
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