Encashment

/ɪnˈkæʃmənt/ noun

Definition

The act or process of converting a financial instrument into cash; the amount of cash obtained.

Etymology

From encash + -ment (suffix forming nouns from verbs, expressing action or result). Emerged as a formal financial and legal term in the 19th century.

Kelly Says

This is the formal, official term you'd see in banking documents and contracts—'encashment of funds' sounds much more professional than 'cashing it in'!

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