banking awarenesswith bank rate viz. presently 5. 40%. (as per rbi policy of 04/10/2019) cd ratio...
TRANSCRIPT
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❖ Abbreviations related to banking, useful in exam & interview.
Term Details Other details /As of dt.
31/10/2019
RBI Governer, Mr Shakti Kant Dass, 03-Dy.
Governers, Sh. M. K. Jain, Sh. B. P kanungo, Sh.
Vishwanathan NS Post of 4th Dy. Govt. is vacant at
present. Head office is in Mumbai & regulator of
the banking industry.
Established as per the
recommendations of Hilton &
Young commission, Established
on 1st April 1935.
SEBI Securities & Exchange Board of India, head office
in Mumbai established in 1992, Regulator of the
Cap. market.
Sh. Ajay Tyagi, chairman
IRDAI Insurance Regulatory & Development Authority of
India, head office is in Mumbai. Established in
1999, Regulator of Insurance industry.
T. S. Vijayan, chairman,
SIDBI Small Industries Development Bank of India,
established in 1990. A premier agency for
providing credit to SSI units. H. O. Lucknow
Mohd. Mustafa, Chairman &
Managing director
SBI & associate
banks
Initially it was Imperial Bank and later on govt.
took ownership wef 1st July 1955 & named as SBI
with 8 Associate banks later on reduced to 5-
namely
1. State Bank of Hydrabad. 2. State bank of Patiala
3. State bank of Mysore 4. SBBJ 5. State bank of
Travancore. These banks were merged with SBI
wef. 01/04/2017 with Bhartiya Mahila Bank
Mr. Rajnish Kumar chairperson
of SBI.
Bhartiya Mahila
Bank
Opened on 19th Nov 2013 with Rs. one thousand
crore as its capital.
Now no more exists. Merged
with SBI wef 1/4/2017
BSE Bombay Stock Exchange established in1985,
oldest in Asia, based in Mumbai. Its share index is
SENSAX, which showes the change in prices of
selected 30 shares, its base year is 1978-79 as
1000.
Sh. Ashish Chauhan, MD & CEO
NSE National Stock exchange established in 1992
based in Mumbai. Its index is NIFTY. 50 selected
shares price variations base year 1995 price as
1000
Sh. Vikram Limay, MD & CEO
Dematerialization Conversion of physical shares into the electronic
form. A Dmat account keeps the record of shares
which are in electronic form. Trading in e shares
is recorded in Dmat a/c.
Dmat accounts can be opened
with any bank/ NBFC. The
opposite of De materlisation is
Re- materlisation.
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Depositories Agencies which keep the records of all shares of a
Co in e-form and are called as e-warehouses or
Depositories.
In India only two depositories are
functioning namely NSDL owned
by NSE & CDSL owned by BSE.
Demand Deposits These are the deposits which can be withdrawn
by the customer as per his demand. Amount kept
in these types of accounts can be withdrawn by
the customers at any time 24 × 7 by using any
mode e. g. branch, ATM, net banking, POS etc.
Savings and Current accounts are
such accounts. This is also known
as CASA deposit. It plays a great
role in Bank’s profitability.
Time Deposits These are the deposits kept by the customers for a
fixed duration in a bank. This amount can’t be
withdrawn by the customer at any time but can
be withdrawn with the request before the
maturity date.
Fixed deposits, recurring deposits,
money multiplier etc. are such
deposits.
SLR (Non-Cash
Ratio)
Statutory Liquidity Ratio, as per Banking
Regulation Act 1949 every bank has to maintain
liquidity in the form of Govt Bonds, gold, and free
approved securities. It can be changed by RBI at
any time and can be maximum 40% of NDTL.
Presently it is 18. 50% of total
NDTL. It compels the banks to
keep larger portion of their
deposits in liquid shape.
CRR (Cash Ratio) Cash Reserve Ratio, as per RBI act 1934 u/s 42,
all banks have to keep cash either with itself or
with RBI compulsorily. It can be changed in the
range 3%-20%.
Presently it is 4% of NDTL (net of
demand and time liabilities). This
Repo Rate
Re Purchase
Option Rate
Rates at which RBI Allows short term (1-14 days
but-less than one year)Finance to banks against
govt- bonds
5. 15% ( as per RBI policy of
04/10/2019).
Reverse Repo Rate Interest rate paid by RBI to Banks on their surplus
funds held by RBI (Oppose to Repo Rate)
4. 90%( as per RBI policy of
04/10/2019).
Bank Rate Long term rate of Discounting/Lending to banks
by RBI
5. 40% (as per RBI policy of
04/10/2019)
MSF Marginal standing facility extended by RBI to
banks to meet the emergency liquidity crisis,
mainly the clearing house operations. It can be
maximum 1% of their NDTL and allowed only for
one day that too after 8pm till 11 am next-day.
Interest charged by RBI, at par
with bank rate viz. presently 5.
40%. (as per RBI policy of
04/10/2019)
CD Ratio Credit to Deposit Ratio. It is the ratio of a bank’s
total advances to its total deposit.
76% average (approx. )
EFT Electronic Fund Transfer, fast measure for
remitting, the funds between bank account.
It is by three ways namely RTGS,
NEFT & NACH.
RTGS Real Time Gross Settlement started in 1999 For remittances over Rs 2 lac.
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Maximum time allowed for such funds to receive
in the account is one hour. Gross settlement in
RBT Settlement account.
Real Time/ on line funds transfer
between 2 accounts.
NEFT National Electronic fund Transfer time allowed
for such funds to receive in the 24hrs. DNS-
deferred Net-Settlement in RBI account.
Hourly settlement in bunches. No
on line fund transfer. No lower or
upper limit for remitting the
funds.
ECS Electronic Clearing Service Used for bulk transactions both
for sending and receiving the
funds from one to many & many
to one account
MICR Magnetic Ink Character Recognition used for
lodging /clearing the cheques through clearing
house.
9 digit code, first 3 digits are for
city next 3 for bank and last 3 for
branch. It is issued by RBI to
branches.
Cheque
Truncation
Scheme 2010
A scheme, in which for the purpose of fast (to
reduce the clearance time) cheque’s clearance,
photo image of the cheque is being sent to the
paying bank through clearing house. The original
cheque is retained by the collecting bank. (Payee’s
Bank)
In the year 2010 some basic
guidelines were issued by RBI and
the banks has to follow them for
CTS purpose. Introduced in
selected cities in India.
E-commerce Electronic commerce trading of goods on line. Business through Website
CBS Core Banking Solution, all branches of the bank
connected through single server CORE
(centralized online real time environment)
All banks even RRB & cooperative
banks operating in India are now
CBS connected
ATM Automated Teller Machine, performs as Mini
Bank, First ATM in India was installed by HSBC
bank in south Mumbai in 1987.
Invented by John Shepherd
Barron. World’ first ATM was
established by Barkley’s Bank in
1939 in south Landon.
Debit – Card
3” × 4” Plastic Card Linked to the account of the
customer. Customer must have a bank account.
for having a Debit–Card.
Customer can withdraw the amt.
from his account max. to the
available balance. no credit
allowed.
Cr. Card 3” × 4” Credit Plastic Card through which credit
is allowed with in limit sanctioned. No bank
account is required.
Credit limit allowed as per the
annual income of the customer
VISA
Issues VISA
Cards.
Visa International Service Association. It is an
international payment settlement agency based in
US, California. A payment Card using Visa
payment net word.
16 Digit Cards Nos.
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Master
Issue Master
card
It is an international payment settlement agency
based in US, California. Used by ICICI payment
16 Digit Cards Nos.
Maestro
Cards Issues
Maestro Card.
It is an international payment settlement agency
based in US, California. Used by SBI group
19 Digit Cards Nos.
Ru-PAY card
Indian substitute
of International
cards
Issued By National Payment Corporation of India
Ltd. Indian payment gateway to the world. India
is the 4th country to have its payment gate way -
Ru-Pay.
Issued by 43 banks in India. All
account holders in PM Jan Dhan
Yojna to get Ru PAY card.
Swift Society for World Wide Interbank Financial
Telecommunication –A massaging plate form
used for international funds transfer maximum
time 48 hrs. allowed to get- funds.
Mode of international Payment
system -16 digit code allotted to
the banks
FERA Foreign Exchange Regulation Act, Replaced by
FEMA in 1999
Enacted in the year1973
FEMA Foreign Exchange Management Act Replaced FERA and enacted in the
year 1999
Import Purchase of Goods from Abroad. Payments of
goods in international currency mainly in US
Doller.
Related to balance of payment of
the country and current account
deficit.
Export Sale of Goods to overseas parties payment would
be received in foreign currency mainly US
Dollers.
EXIM Bank Export Import Bank of India established in 1982
fully owned by GOI, for financing foreign trade
in India.
Mr. David Rasquinha, MD ?
BL Bill of Lading. A proof of goods having placed on
the ship for overseas journey/ country.
Documents issued by shipping
company confirming the journey
US Dollar $ American Currency also known as reserve
currency as most of the international financial
transactions takes place in US $.
All countries of the world has
linked their currencies to dollar.
Euro € European Countries Currency
Pound £ Pound sterling - Great Britain Currency
YEN ¥ Japan Currency- Yen
Aus. $ Australian dollar likewise Can. $, Canadian dollar
Takka Bangladesh Currency
Pakistani Rs. Pakistan Currency
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Shrilankan Rupia Shri Lanka Currency Rupee
Baht Thailand
Dirham UAE, Dubai all gulf countries are using
Yuan China
Rend South Africa
Italy Lira
CASA Current account and savings account. Balance
held by the banks in CA & SA known as CASA
deposit. CASA balance affects the bank’s
profitability. High CASA is required by banks.
Low cost deposit, beneficial for a
bank.
RD Recurring
Deposit/Monthly
Deposits
Deposit of a fixed amount in monthly installment
in banks. Carries interest at par with FD rates.
Min. period 12 months & max. 10yrs.
Recurring deposit. TDS provisions
are now applicable on RD also.
Can be paid premature at the
request of the depositor.
FD (Deposits Kept
for a fixed time)
One time deposit for a fix time. Interest can be
paid as per the depositor’s instructions. It may be
Mly or Qtly or Yly or on maturity. TDS provisions
are applicable.
Minimum period 7 days and
maximum 10 years. Can be paid
premature at the request of the
depositor.
Simple interest Intt. calculation P*R*T/100, as paid on SA & FD
accounts.
Compound
interest
interest becomes part of principal after each 3-
months interval. In case of deposit accounts intt.
is being compounded qtly and on loan accounts it
is being compounded mly. It can be calculated by
the formula P*(1+R/100)t – P
Interest on FD can either be
calculated as simple or
compounded. Depending upon
the choice of the customer.
BEP Break Even Point Stage of no profit or loss in any
business activity.
CR Current Ratio Current asset/ current liability it
should be more than 1. 33
Quick Ratio Can be calculated by the formula -
Current Asset minus stock + current liabilities
Quick conversion of current
assets in cash
DER Debt to Equity Ratio Debt/Equity ratio it should be less
than 3, higher the ratio most
risky the loan granted.
DSCR Debt Service Coverage Ratio. Capacity to pay the
interest to the creditors out of the income
generated during the business activity. 1. 5 DSCR
is considered as good.
Cash Surplus/ Installment of
repayment
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Depreciation Value of asset reduced by some % age on account
of its uses during an accounting year. Two
methods for calculating the dep. It is calculated
on each & every fixed asset of the entity.
RDW and straight line are two
methods for calculating
depreciation. Rates of dep. is
being given by Income tax deptt.
Profit & loss account is affected
after its application.
Cost of Deposit Average interest paid in %age on deposit account
or it is the cost of acquiring the deposit.
Total interest paid/average
deposits
Yield Average interest income given by a deposit
calculated in %age.
Smart card ATM cards having extra security features like
chip embedded which can only be read by a
microprocessor.
EMV featured.
Performing &
Non Performing
Assets
It relates to the loan accounts. An a/c is
performing if it is regularly paying the intt.
applied, if not than it is a Non performing asset.
NPA doubly adversely affects the profitability of
the bank.
In any loan a/c if an Installment
& interest due but not paid within
90 days than it becomes NPA.
ROA Return On assets Net Profit/ Total Asset
ROE Return On Equity Net Profit/ Total Equity
White label ATM ATM set up by a NBFC, approved by RBI. RBI has
granted approval to NBFC, having net worth Rs.
100 cr. To set up WL- ATM in 2016.
These ATM’s are not having any
logo of any bank that is why
called as white label ATM.
SMS Alerts A self-generated massage received on registered
mobile phone of the customer.
Sent by banks to its customers
Push Alerts A self-generated massage sent on registered
mobile phone of the customer after the
transaction.
Sent by banks to its customers
without any charges, some banks
are charging a small fee annually
Pull alerts On demand a massage sent on registered mobile
phone of the customer
Such massages are chargable on
each occasion.
World Bank International Bank for Reconstruction and
development, IBRD and IDA are part of it
Mr. David Malpass is present
Chairman. HQ is in Washington
DC.
IMF International Monitory Fund. Helps its member
countries to meet the liquidity Balance of
payment crisis by way of providing loans
Mrs. Kristalina Georgieva is
present chairperson. Washington
DC as its HQ
BRICS A group of 5 nations namely Brazil, Russia, India,
China & South Africa. These countries contributes
25% to the world’s GDP, 30% of land & 45%
population. The group has decided to set up a $
High Growth Emerging
Countries. BRICS Bank’s present
chairman is Sh. KV Kamath.
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100 Bn Development Bank in Shanghai to be
head by Indian Chairman.
GDP Gross Domestic Production is the sum total of all
Goods & Services produced in a country during a
financial year. Growth of GDP indicates the
growth of the economy of a country. India is
expecting a GDP growth of 5/6 % in next two
years.
Contributions to GDP are from-
65 % service, 22% Industry, 13%
Agriculture
Per Capita
Income (India)
Per Person Average annual Income presently is Rs.
126406/- during 2018-19 as per current price
level.
A rise of 10% to the year 2017-
18.
BPL Below Poverty Line new concept of spending less
than Rs. 47/- in urban and Rs. 33 per day in
rural areas are now defined as people living
below the poverty line. Or annual income less
then Rs. 27000/-yearly
As per C. Rangrajan Committee
report 2009-10. About 39%
popn. Lives below poverty line.
NABARD National Bank for Agriculture and Rural
Development established on 1982 as per the
recommendations of Shiv-Raman Committee
Mr. Harsh Kumar Bhanwala,
chairman
NITI Aayog National institution for transforming India. It
replaced the old Planning commission.
It’s chairperson is PM and dy.
Chair man is Dr. Rajiv Kumar.
Small Finance
Bank (Object
Specific Bank)
New banks opened in pvt. sector with a capital of
Rs. 100 cr. To facilitate the banking to the small
borrowers. RBI has recently issued licenses to 11
parties to set up these banks.
Object Specific Bank Can be
opened by individual, NBFC, with
10 yrs. of banking exp. in
financing etc. These banks can
accept deposit and give loans.
Can issue cr. Cards & can
perform other bank functions.
Payment Bank
(Object Specific
Bank)
New banks opened in pvt. sector with a capital of
Rs. 100 cr. To facilitate the funds transfer and
provide other banking services at small centers.
These banks can accept the deposits and have to
invest 75% of funds in Govt. bonds and rest with
accounts in other banks. Cannot give loan & cr.
Cards but can provide other financial services like
insurance, mutual funds & debit cards etc.
Can be opened by any telecom
company which is in the field of
sending money. These banks have
been established to facilitate the
small remittances across the
country Pay-tm is the first-
Payment Bank, IPPB is a Bank
owned by Deptt. Of Post &
Telegram
IBA Indian Bank Association. Present CEO M. V.
Taksale. Association of Banks Govt. & Pvt. Banks
in India.
Chairman Sh. Sunil Mehta
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FII Foreign Institutional Investors. FII invests in stock
market and earns profit in a short time. Fast
movement of foreign money through stock
market in India.
No govt. permission is required
for investment.
FDI Foreign Direct Investment by the foreign investors
per policy of DIPP, Participation in equity or
long-term funding with or without govt.
approval.
Recently the govt. has allowed
100% FDI in single brand retail
trade.
SWOT analysis Strength, Weakness, Opportunities and threats
analysis.
KCC Kisan Credit Card. Limit Sanctioned by banks for
growing a crop. it was introduced in 1998. A
short-term facility for taking a crop.
As per KC Chakraverty
Committee 2012 now the
sanctioned amount can be
withdrawn by ATM card.
Biometric ATM ATM with photo recognition and thumb
impression
UIDAI Unique Identification Authority of India, all
Adhar cards are being issued by UIDAI. it has 12
digits. Issued to Indian citizens only of any age.
ADHAR card have unique ID
features. Finger prints & color of
retina. Present CEO is Ajay
Bhushan Pandey
ASCB All Schedule Commercial Banks. These banks are
authorised to open the ASBA accounts.
ASBA account – Special Saving
account opened by Banks for
applying shares in IPO.
ASBA Application supported by blocked amount, used
while applying for the purchasing the shares in
its IPO.
Application amount is first
blocked by the banks but paid
only after the allotment of the
shares and on the demand of the
issuing company.
GST Goods & Service Tax. Single tax structure for all
indirect taxes. 4 tax slabs.
Replacement of all the indirect
taxes applied by state govt.
Indirect Taxes These taxes can be passed on to the other /
purchaser party. e. g sales tax,. excise tax.
Direct Taxes Directly recovered from the eligible parties. e. g.
Income tax, corporate tax & wealth tax.
MNREGA Mahatma Gandhi National Rural Employment
Guarantee Act
Started 2nd Feb. 2006, M-
NAREGA started in 2009.
Stale Cheque A cheque of which validity has passed. Older then
3 month.
It requires revalidation
Postdated cheque Cheque bearing any future date not of today’s. It can’t be paid before the date
stated on it.
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Validity of ch.
/dd
3 months from the date of issue. A demand draft
can’t be a post dated or earlier dated.
MUDRA
PMMY (Pm-
Mudra Yogna)
Micro Units Development and Refinance Agency.
It is a public sector financial institution in India. It
provides loans at low rates and without guarantee
to small entrepreneurs for starting & expansion of
business. It was launched by Prime Minister on
on 8 th April 2015. Set up with a capital base of
Rs. 20000 cr. It is a refinancing agency for banks,
RRB & NBF etc.
3-catagories of Loans granted are
-Sishu to start a business up to Rs.
50000
- Kishore to expand Rs. 5 Lac
- Tarun to expand Rs. 10 Lac
Maximum loan amount Rs. 10
Lac. (Loan + wc)
Virtue Banking Banking in e environment like ATM, Phone,
Mobile, Net etc.
Various alternate channels can be
used by the a/c holder to operate
his account without visiting the
bank’s branch.
BC (Bank
Correspond)
Business Representative for extending banking
facilities to rural/unbanked are:
Now also known as Bank Mitra
BF Business Facilitator Works as moving bank agent
Banking
Ombudsman
A RBI officer appointed for redressing the
complaints of the customer arising due to lack of
the services offered by the banks.
Scheme started in 1995 re-
newed & enforced since 2006.
OPEC Organization of petroleum Exporting Countries Group of 7 countries
SAARC South Asian Association of Regional Conference 8 Countries: India, Sri Lanka,
Pakistan, Bangladesh, Bhutan,
Afghanistan, Nepal & Maldives
Current Account
Deficit
It is the net of goods & sevices imported and
exported and income from abroad. It is measured
as % age of GDP.
Bank Guarantee
Financial &
performance.
Bank Guarantee, Commitment given by the bank
to compensate losses caused by the actions of the
supplier.
Without asking any proof of
damage the bank has to pay the
gurantee with in 24 hrs.
RAW Research and Analysis wing, Indian International
intelligence agency
Sh. Samant Goel is its present
chief.
CBDT Central Board for Direct Taxes Sh. Pramod Chandra Modi,
Chairman
CVC Central Vigilance Commission Sh. Sharad Kumar, commissioner
Digital locker It helps in keeping all important documents at
one place that too in electronic shape. It is linked
to the Aadhar card and cell no. The uploaded
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documents can be sent as when required.
Islamic Banking Banking as per Islamic Law (Sharia) no interest
paid or charged.
Only one such bank is in
existence in India that too in
Kerla named as al Barka Islamic
bank.
Blood Money Money paid to family of murdered person as per
Islamic law, for acquittal
Bandhan Bank A micro finance company having its base in West
Bengal with 2500 branches and C. S Ghosh its
promoter. RBI has approved for setting up a new
bank in pvt. Sector as Bandhan Bank
Head office in Kolkata has started
functioning wef 23/08/2015.
Sh. Chandra Shekhar Ghosh as its
promoter.
IDFC Bank Infrastructure Development finance company.
RBI has approved for setting up a new bank in
pvt. Sector by IDFC.
Head office in Chanai, has started
functioning wef 01/10/2015.
EMI Equated monthly installment. It has two
components viz. repayment towards principal
amt. and interest.
List of all payable EMI’s showing
the details of repayment towards
the two components is known as
Amortization table.
Universal
Banking
Providing Banking & Financial products under
one roof.
AIIB Asian Infrastructure Investment Bank, based in
Bijing Chiana, established in 2016. It’s registered
capital US $100 bn. 75 members
Jin Liqun is its chairman
CIBIL Credit Information Bureau of India Ltd, being
compulsorily used to judge the past loan
repayment history of the new borrower. A person
with a CIBIL score above 700 can be considered
as good for any fresh loan, credit card.
M. V. Nair, Chairman Score
range 700- 900. HQ- Mumbai
ITR Income Tax Return or annual tax return of a f. y
PLR Prime Lending Rate, now MCLR stands for
marginal cost based lending rate.
MCLR is based on cost of funds
and also includes the effect of
change in CRR & SLR from time to
time
Narrow Bank Who takes only deposits and invest in govt. bonds
only no loans. Low profit but no NPA.
Alternate
channels
Providing the banking services through alternate
sources without visiting the branch
ATM. Net banking, phone
banking, POS are examples.
INDRANUSH Banking sector reforms launched by the govt. in
2016 consisting seven points for improving the
conditions of the banks.
Seven points are- A-
Appointments, B- banks bureau
board, C- capitalization, D- de
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stressing the banks, E-
empowerment, F- framework of
accountability & G- corporate
Governance & transparancy.
Gold
Monetization
Scheme
Introduced in 2015, It is a scheme that facilitates
the deposit of gold to earn interest on their metal
accounts. Once the gold is deposited in metal
account, it will start earning interest on the same.
The interest would also be payable in gold. At
maturity (one year) the customer may either can
take gold or cash as per his option given, at the
time of opening of the account.
The objectives of the Gold
Monetization scheme are:
(i) To mobilize the gold held by
households and institutions in the
country.
(ii) To provide gold to the gems
and jewelry sector in the country
by making gold available as raw
material on loan from the banks.
(iii) To be able to reduce reliance
on import of gold over time to
meet the domestic demand.
BBB Bank Board Bureau-The BBB is be a body of
’eminent’ professionals and shall consist of only
one government official. It will be six members
body with at least 3 former bankers, 2
professionals and secretary, department of
financial services representing government.
Present chairman is Sh. Bhanu Pratap Sharma
Functions: Give recommendations
for appointment of full-time
Directors as well as non-
Executive Chairman of PSBs.
Give advice to PSBs in developing
differentiated strategies for
raising funds through innovative
financial methods and
instruments and to deal with
issues of stressed assets.
Also Guide banks on mergers and
consolidations.
CVV Card Verification value, 3 digit no. printed/
pasted on the back of the debit/ credit cards.
Solve the purpose that the card is in the physical
possession of the customer while trading online.
Used at the time of on line
shopping when card not
presented/ given
EMV cards This stands for Europay, Mastercard & Visa. These
are three companies who has created the
technical & safety standards for the cards. These
standards were initially framed in the year 1993-
94.
An EMV card requires a chip
which stores the data in the IC
chip.
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CNP Card not present, used for on line trade when the
payment is being made through card but not
given personally.
In such transactions CVV is
needed which confirms that you
are having the card in person.
VTM Virtual Teller Machine can be operated by the
customer in the bank branch with the help of the
bank staff.
Machines are being kept in e-
lobby of the bank.
CDM Cash Deposit machine installed in the branch
premise, accept cash from Rs. 100/- to any
multiple of Rs. 100 max. Rs. 49900/ if PAN no. is
not given.
Contact less cards Can be used by not touching/ contacting the
ATM. Only by waiving the card near to the
machine, a contact is being established. Gap
should not exceed by 4”.
NFC( near field communication)
technique is being used. short
distance electronic data exchange
E wallet Placing the amount in a separate purse for the
purpose of making payments towards the
purchases eg. Pay tm.
Same e wallet is required to
transfer the amount.
UPI Unified payment Interface is a payment system
which facilitates the fund transfer between two
bank accounts. This system works on mobile
platform. For sending the amount VPA is needed.
You are not required to give
account details for money
transfer. it is the most advanced
method for digital payments.
VPA Virtual payment Address- every user of UPI app.
must have a unique id. This unique id is called
VPA. A single VPA can receive amount from any
bank account of the receiver.
In fact the App. provider bank
would allot the VPA to each user.
You can choose VPA similar to
your mail address.
BHIM 1. 0 Bharat Interface for Money-developed by NPCI, in
2016 is a mobile app. based on UPI. It facilitates
the e- payment directly through banks. Inter app.
of banks is Operable. Available in 13 Indian
languages. New version BHIM 2. 0 has recently
been launched with some added features like-3
more languages namely Bhojpuri, Konkani &
Haryanavi added, increased transaction limit &
connectivity to many bank account has been
added.
This UPI app. Supports all Indian
banks which use that platform. It
allows the user to instantly
transfer the money between the
banks.
NPCI National payment corporation of India – founded
in 2008 & promoted by RBI & 10 co -promoter
banks. Core objective- to promote cashless or
digital mode of payments.
Mr. Dilip Asbe, MD & CEO
CCIL Clearing corporation of India – created by RBI for
clearing & settling the financial payments in India
Established in 2001.
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in money market, govt. securities & foreign
exchange market.
NFS National financial switch is central switch to
which all the bank’s ATM switches are connected
in India.
This enables interbank operability
of all ATMs to different cards.
ImPS Immediate payment system, it is a real time
payment service that is available 24*7and 365
days a year. No holiday. To use ImPS mobile no. is
required to be registered with the bank. Here to
transfer the amount IFSC & account no is needed
with MMID- mobile money identifier, 7 digit
password is also needed.
It facilitates the inter bank
account to account funds
transfer. It is available on Mobile,
Internet, ATM & branch as well.
APBS Aadhar payment bridge system – A system
developed by NPCI, is basically meant for
transferring the funds from different govt.
schemes to the beneficiaries account on the basis
of Adhaar nos. Further by using Aadhar Card one
can withdraw amount from one’s a/c. Aadhar
Card original is need for taking payment.
Govt. deptts are using the system
for affording credit of subsidy,
MNEREGA & child scholarship
payments etc.
Bharat QR code It is a digital payment transfer mechanism for
making payments. GOI to encourage the digital
payments has simplified things for both the
parties by launching Bharat QR code. It is the
easiest method of payment. World’s first inter
operable payment method. Automobile co. Denso
wave Inc. of Japan has used this app. For some
other purpose.
A QR code is a two dimensional
code made up with black & white
squres, readable by smart phones
and can have 4000 characters of
Black & White squares.
NACH National automated clearing house –it is a
centralized system launched with an aim to
consolidate the multiple ECS systems running
across the country into a single system.
It facilitates interbank, high
volume electronic transactions,
which are repetitive & periodic in
nature.
e KYC It is an electronic way of doing authentic & real
time KYC using Adhaar authentication.
It enables the bank to get –e copy
of customer’s identity & address
details with his consent.
LC Letter of credit – being issued by the buyer’s bank
in favour of the seller, confirming that the
payment would be made by the issuing bank
without asking from the buyer of the goods.
Buyer & seller may be with in the
same city, country or overseas.
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LOU Letter of Undertaking – issued by a bank to its
customer who has confirmed supply orders in
hand.
This facilitate him to purchase on
credit the raw material etc. from
the suppliers.
RLLR Rapo Linked Landing Rate- Banks are being asked
by RBI to link landing rates with Repo rates to
give the benefits of lowering of Repo Rate from
time to time to the borrower.
SBI is the first Bank to follow
RLLR. It is beneficial for the
customers, low intt. rate on new
loan account.
MUDRA Cards ATM like Cards issued by the banks to the
MUDRA borrowers for withdrawing loan amount
from this card.
MPC Monitory Policy Committee-Formed by GOI to
review by- monthly Monitory Policy, six-member
committee, 3 from RBI & 3 from GOI. Meets
before each review of the Monitory Policy.
MCLR
Marginal Cost based Landing Rate- bank’s
lending rates being designed with the cost of
deposits acquired.
Separate for different periods like
year 1, 2 & 3 yrs…etc.
INFINET
Indian Financial Network- an uninterrupted
messaging system CUG among the member bank
and financial institutions. Set up in 1999 by RBI.
It is the communication back bone of Indian
banking & financial sector.