Banking Terms

  1. RBI (Reserve Bank of India): The central banking institution in India.
  2. Public Sector Banks: Government-owned banks like State Bank of India (SBI), Punjab National Bank (PNB), etc.
  3. Private Sector Banks: Banks owned by private entities, e.g., ICICI Bank, HDFC Bank.
  4. NPA (Non-Performing Asset): Loans that are in default or are not generating income for the lender.
  5. Core Banking System (CBS): A centralized online system that allows customers to conduct transactions from any branch.
  6. IFSC Code: Indian Financial System Code used for electronic money transfer.
  7. NEFT (National Electronic Funds Transfer): Electronic funds transfer system in India.
  8. IMPS (Immediate Payment Service): An instant interbank electronic funds transfer service.
  9. SWIFT Code: A unique identification code for a particular bank.
  10. KYC (Know Your Customer): Process of verifying the identity of customers.
  11. CRR (Cash Reserve Ratio): The percentage of deposits banks must keep with the RBI.
  12. SLR (Statutory Liquidity Ratio): The percentage of deposits banks must invest in government securities.
  13. Merchant Banking: Financial services for businesses, including capital raising and advisory services.
  14. ATM (Automated Teller Machine): Electronic banking outlet allowing cash withdrawals and other services.
  15. Mobile Banking: Banking services accessed via mobile devices.
  16. Base Rate: The minimum interest rate set by the RBI.
  17. CIBIL (Credit Information Bureau India Limited): Credit information company that assesses creditworthiness.
  18. Demand Draft (DD): A prepaid negotiable instrument used for transferring funds.
  19. Fixed Deposit (FD): A financial instrument where money is deposited for a fixed period.
  20. Recurring Deposit (RD): A savings account with regular deposits at fixed intervals.
  21. Nomination: The process of appointing a person to receive the proceeds of an account in case of the account holder’s death.
  22. Green Banking: Banking practices that focus on environmental sustainability.
  23. Repo Rate: The rate at which the RBI lends money to commercial banks.
  24. Reverse Repo Rate: The rate at which banks can park funds with the RBI.
  25. MICR (Magnetic Ink Character Recognition): A technology used to verify the legitimacy or originality of paper documents.
  26. Bancassurance: The partnership between a bank and an insurance company.
  27. Cheque Truncation System (CTS): An image-based clearing system for faster cheque processing.
  28. Debit Card: A card that deducts money directly from a bank account.
  29. Overdraft: A credit facility that allows withdrawing more than the account balance.
  30. Net Banking: Online banking services provided by banks.
  31. SWOT Analysis: An evaluation of a bank’s Strengths, Weaknesses, Opportunities, and Threats.
  32. Debenture: A long-term debt instrument issued by a company.
  33. NOSTRO and VOSTRO Accounts: Accounts held by a bank in a foreign country.
  34. Financial Inclusion: Providing access to financial services to all sections of society.
  35. Standing Instruction: An instruction to make regular payments from an account.
  36. Non-Banking Financial Company (NBFC): Financial institutions that provide banking services without meeting legal definitions of a bank.
  37. ECS (Electronic Clearing Service): An electronic mode of funds transfer from one bank account to another.
  38. Hawala: An informal system of transferring money without a physical movement of cash.
  39. Wholesale Banking: Providing services to large corporations, institutions, and government entities.
  40. Cross-Selling: Offering additional banking products or services to existing customers.
  41. Greenfield Banking: Establishing a new bank branch or subsidiary in a new market.
  42. Merchant Discount Rate (MDR): The fee charged to a merchant for accepting electronic card payments.
  43. Liabilities: The financial obligations a bank owes to its customers and creditors.
  44. Asset Reconstruction Company (ARC): Companies that buy bad loans from banks.

UPI (Unified Payments Interface):

  1. UPI ID: A virtual payment address linked to a bank account.
  2. VPA (Virtual Payment Address): The address used for UPI transactions.
  3. QR Code Payments: Scanning QR codes for instant payments.
  4. Two-Factor Authentication (2FA): A security process requiring two forms of identification.
  5. UPI PIN: Personal Identification Number for UPI transactions.
  6. Transaction Limits: Maximum and minimum amounts allowed for UPI transactions.
  7. Third-Party Apps: Apps that use UPI for payments, e.g., Google Pay, PhonePe.
  8. e-Wallet Integration: Linking e-wallets with UPI for seamless transactions.
  9. UPI Mandate: Pre-authorized instructions for recurring payments.
  10. IMT (Instant Money Transfer): Instant transfer of funds using UPI.
  11. National Payments Corporation of India (NPCI): The organization that developed and operates UPI.
  12. Voucher: A code generated for UPI transactions.
  13. Aadhar Pay: A UPI-based system for merchants to receive payments.
  14. UPI 2.0: The upgraded version of the UPI system.
  15. Merchant Payments: UPI transactions made to businesses.
  16. Mandate for UPI: Authorization for recurring UPI transactions.
  17. Offline UPI: UPI transactions without an internet connection.
  18. Limit Enhancement: Increasing the transaction limit for UPI.
  19. NPCI 24/7 Helpdesk: NPCI’s customer support for UPI-related issues.
  20. Mobile Number as VPA: Using a mobile number as a UPI virtual payment address.
  21. Remitter: The person initiating a UPI transaction.
  22. Standing Instruction for UPI: Pre-authorized instructions for recurring UPI payments.
  23. Merchant-Presented QR Code: QR code presented by a merchant for payment.
  24. Personal QR Code: A unique QR code for individual UPI users.
  25. P2P (Peer-to-Peer) UPI Payments: Direct transactions between individuals.
  26. Refund for UPI Transactions: Process of returning money for failed UPI transactions.
  27. VPA Blocking: Temporarily blocking a UPI virtual payment address.
  28. Merchant Aggregator: Platforms that enable multiple merchants to accept UPI payments.
  29. NACH (National Automated Clearing House): Bulk electronic clearing system for financial transactions.
  30. Remittance: Sending money to a recipient, often in a different location.
  31. Collect Request in UPI: A feature to request funds from another UPI user.
  32. UPI 3.0: The future version of the UPI system with enhanced features.

Loans

  1. EMI (Equated Monthly Installment): Monthly payment for loans.
  2. Collateral: Assets offered as security for a loan.
  3. Credit Score: Numerical representation of creditworthiness.
  4. Personal Loan: Unsecured loan for personal use.
  5. Home Loan: Loan for purchasing or refinancing a home.
  6. Car Loan: Loan for purchasing a vehicle.
  7. Secured Loan: Loan backed by collateral.
  8. Unsecured Loan: Loan without collateral.
  9. Credit Report: Document detailing credit history.
  10. Default: Failure to repay a loan.
  11. Loan-to-Value Ratio (LTV): The ratio of a loan to the value of an asset.
  12. Prime Lending Rate (PLR): The interest rate charged by banks to their most creditworthy customers.
  13. Subprime Loan: A loan offered at a higher interest rate to individuals with poor credit.
  14. Bridge Loan: A short-term loan to cover an interval between two transactions.
  15. Loan Origination Fee: The upfront fee charged by a lender for processing a new loan application.
  16. Lien: A legal right to keep possession of property until a debt is discharged.
  17. Loan Against Property (LAP): A loan where property is used as collateral.
  18. Credit Counseling: Professional advice on managing debt and credit.
  19. Debt Consolidation: Combining multiple debts into a single loan.
  20. Mortgage: A loan to finance the purchase of real estate.
  21. Prime Rate: The interest rate that commercial banks charge their most creditworthy customers.
  22. Securitization: The process of converting assets into financial instruments.
  23. Loan Servicing: Managing the administrative aspects of a loan after it’s granted.
  24. Amortization: Gradual repayment of a loan through regular installments.
  25. Credit Limit Increase: An increase in the maximum amount that can be charged on a credit card.
  26. Loan Moratorium: Temporary suspension of loan payments.
  27. Prepayment Penalty: A fee charged for paying off a loan before its due date.
  28. Mortgage Insurance: Insurance that protects the lender if the borrower defaults on the loan.
  29. Usury: The illegal action or practice of lending money at unreasonably high rates.
  30. Equity Release Loan: A loan that allows homeowners to access the equity in their property.
  31. Installment Loan: A loan repaid with a fixed number of periodic payments.
  32. LIBOR (London Interbank Offered Rate): The benchmark interest rate at which major global banks lend to one another.
  33. Loan Agreement: A document outlining the terms and conditions of a loan.
  34. Microfinance: Financial services for individuals and small businesses who lack access to traditional banking.
  35. Prime Borrower: A borrower with a high credit rating.
  36. Payday Loan: A short-term, high-interest loan typically due on the borrower’s next payday.
  37. Repayment Schedule: A plan outlining the dates and amounts of loan repayments.
  38. Secured Credit Card: A credit card backed by a cash deposit.
  39. Underwriting: The process of evaluating the risk of lending to a particular borrower.
  40. Working Capital Loan: A loan used to finance a company’s day-to-day operations.
  41. Peer-to-Peer Lending (P2P): Direct lending between individuals without a traditional intermediary.
  42. Bridge Financing: Short-term financing to cover immediate expenses.
  43. Non-Recourse Loan: A loan where the borrower is not personally liable for repayment.
  44. Risk-Based Pricing: Setting interest rates based on the borrower’s creditworthiness.

Credit Cards

  1. Credit Limit: Maximum amount that can be borrowed on a credit card.
  2. APR (Annual Percentage Rate): Annual cost of borrowing on a credit card.
  3. Grace Period: Time allowed to pay the credit card bill without incurring interest.
  4. Cash Advance: Withdrawing cash using a credit card.
  5. Balance Transfer: Moving a credit card balance to another card.
  6. Reward Points: Incentives earned for credit card spending.
  7. Credit Card Statement: Monthly summary of transactions and balances.
  8. Minimum Payment: Minimum amount required to be paid on a credit card.
  9. Credit Card Fraud: Unauthorized use of a credit card.
  10. Credit Utilization Ratio: Percentage of credit limit used.
  11. Charge Card: A card that requires the balance to be paid in full each month.
  12. Credit Card Churning: The practice of repeatedly opening and closing credit card accounts to earn rewards.
  13. Credit Freeze: A security measure to restrict access to a person’s credit report.
  14. Credit Bureau: A company that collects and maintains individual credit information.
  15. Credit Counseling: Professional assistance in managing credit and debt.
  16. Credit Limit Increase: An increase in the maximum amount a credit card holder can borrow.
  17. Credit Mix: The variety of credit types (credit cards, mortgages) in a person’s credit history.
  18. Credit Rating: An evaluation of a person’s creditworthiness.
  19. Credit Repair: The process of improving a credit score.
  20. Credit Report: A detailed report of an individual’s credit history.
  21. Credit Score: A numerical representation of a person’s creditworthiness.
  22. Cryptocurrency Credit Card: A credit card linked to a cryptocurrency account.
  23. Debit Card: A card that deducts money directly from a bank account.
  24. Default: Failure to repay a loan or credit card balance.
  25. Digital Wallet: An electronic device or online service for making electronic transactions.
  26. EMV (Europay, Mastercard, Visa): A global standard for credit card processing.
  27. Grace Period: The time during which no interest is charged on a credit card balance.
  28. Interest Rate: The cost of borrowing on a credit card, expressed as a percentage.
  29. Joint Credit Card: A credit card shared by two or more people.
  30. Late Payment Fee: A fee charged for not making a credit card payment on time.
  31. Minimum Payment: The smallest amount that must be paid on a credit card balance.
  32. Mobile Payment: Making payments using a mobile device.
  33. PIN (Personal Identification Number): A numeric code used for card transactions.
  34. Prepaid Credit Card: A card with a preloaded amount for spending.
  35. Secured Credit Card: A card secured by a cash deposit.
  36. Travel Credit Card: A card that offers travel-related rewards and benefits.
  37. Unsecured Credit Card: A card without collateral requirements.
  38. Balance Transfer: Moving a credit card balance to another card.
  39. Cash Advance: Withdrawing cash using a credit card.
  40. Credit Card Fraud: Unauthorized use of a credit card.
  41. Credit Card Statement: A monthly summary of transactions and balances.
  42. Credit Utilization Ratio: The ratio of credit card balances to credit limits.
  43. Cryptocurrency Credit Card: A credit card linked to a cryptocurrency account.
  44. Deferred Interest: Interest that accrues on a balance but is not immediately payable.
  45. Digital Wallet: An electronic device or online service for making electronic transactions.
  46. Electronic Funds Transfer (EFT): A transfer of funds between bank accounts electronically.
  47. Expired Card: A credit card that is no longer valid.
  48. Merchant Category Code (MCC): A code that classifies a business by the type of goods or services it provides.
  49. No-Foreign-Transaction-Fee Card: A credit card that does not charge additional fees for international transactions.
  50. Retailer Credit Card: A credit card issued by a specific retailer.
  51. Secured Credit Card: A card secured by a cash deposit.
  52. Smart Card: A credit card embedded with a microprocessor for additional functionality.
  53. Tiered Pricing: Charging different interest rates based on creditworthiness.
  54. Tokenization: The process of replacing sensitive data with unique identifiers (tokens).
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