BANKING AWARENESSwith bank rate viz. presently 5. 40%. (as per RBI policy of 04/10/2019) CD Ratio...

C L A S S E S

BANKINGAWARENESS

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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.



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.



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



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



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.



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



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.



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



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



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.



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.



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.



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.

BANKING AWARENESSwith bank rate viz. presently 5. 40%. (as per RBI policy of 04/10/2019) CD Ratio...

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Transcript of BANKING AWARENESSwith bank rate viz. presently 5. 40%. (as per RBI policy of 04/10/2019) CD Ratio...