[suman]

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Hi buddy here I am looking for Important Banking Terms FOR IBPS exam preparation, so would you plz provide me same here ???

[Vishal Kotkar]

As you asking here I am telling Important Banking Terms FOR IBPS exam preparation,


Banking Ombudsman: Banking Ombudsman is a quasi-judicial authority, which functions under India’s Banking Ombudsman Scheme 2006. It was created by Government of India with a purpose to deal with the complaints of customers of the banks related to various services rendered by the banks.



Deflation: It is a decrease in the general price level of goods and services.



Inflation: It can be defined as a sustained increase in the general level of prices for goods and services.



Liquidity: Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price.



Merchant Banking: It is a combination of Banking and consultancy services.



Monetary Policies: It refers to the use of instruments by Reserve Bank of India (RBI) to regulate the availability, cost and use of money and credits.



Plastic Money: It is a term used in reference to the hard plastic cards we use every day in place of actual bank notes.



Direct Instruments:-



Cash Reserve Ratio (CRR): Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI.



Refinance Facilities: RBI offers refinance facility to help out the exporters by replacing an existing debt obligation with another.



Statutory liquidity ratio (SLR): SLR is the minimum proportion of their Net Demand and Time Liabilities, which every bank maintains in the form of cash, gold and securities, at the close of business every day.




Indirect Instruments:-



Bank rate: The rate of interest which the RBI charges on the loans and advances to a commercial bank.



Liquidity adjustments facility (LAF): It’s a monetary policy tool which allows banks to borrow money through repurchase agreements and adjusting the day to day mismatches in liquidity.



Marginal standing facility (MSF): It’s a window for banks to borrow from the RBI in an emergency situation when inter-bank liquidity finishes completely.



Market Stabilization scheme (MSS): Securities that are issued with the objective of providing a stock of securities to the RBI to intervene in the market for managing liquidity.



Open Market Operations (OMO): It’s an activity by a RBI to give or take liquidity in its currency to or from a bank or a group of banks.



Repo rate: The rate at which the RBI lends money to commercial banks in the event of any shortfall of funds.



Reverse Repo Rate: The rate at which the RBI borrows money from commercial banks within the country.



Term Repo: A repurchase agreement with a term of more than one day.




Money Market Instruments:-



Authorized Capital: The authorized capital/ registered capital/nominal capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders.



Bonds: It is an instrument of indebtedness of the bond issuer to the holders.



Call Money: Money loaned by a bank or other institution which is repayable on demand.



Commercial Bills: A bill of exchange issued by a commercial organization to raise money for short-term needs.



Commercial Papers: An unsecured, short-term debt instrument issued by a corporation for the financing of accounts receivable, inventories and meeting short-term liabilities.



Certificates of deposits (CD): A savings certificate entitling the bearer to receive interest.



Dated government securities: These are long-term securities and a fixed or floating coupon/interest rate which is paid on the face value, payable at fixed time periods.



Debentures: A long-term security bearing a fixed rate of interest, issued by a company and secured against assets.



Issued Capital: The share capital that has been issued to shareholders.



Mutual Funds: It is a professionally managed investment fund that pools money from many investors to purchase securities.



Net Asset Value (NAV): A mutual fund’s price per share or exchange-traded fund’s (ETF) per-share value.



Paid up Capital: The amount of a company’s capital that has been funded by shareholders.



Treasury bills: A short-dated UK/US government security, bearing no interest but issued at a discount on its redemption price.




Negotiable Instruments:-



Bill of Exchange: A bill of exchange is a binding agreement by one party to pay a fixed amount of cash to another party as of a predetermined date or on demand.



Cheques: An order to a bank to pay a stated sum from the drawer’s account, written on a specially printed form.



Ante Dated Cheque: Cheques which have been written by the maker, and dated at some point in the past.



Bounced Cheque: Check that cannot be processed because the writer has insufficient funds.



Crossed Cheque: These cheques can only be deposited directly into a bank account and cannot be immediately cashed by a bank or any other credit institution.



Post Dated Cheque: Cheque that is written by the drawer (payer) for a date in the future.



Stale Cheque: A cheque which a bank will not accept and exchange for money or payment because it was written more than a certain number of months ago.



Cheque Truncation: It is the conversion of a physical cheque into a substitute electronic form for transmission to the paying bank.



Promissory Note: A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.




Various Types of Accounts:-



Current Account/Demand deposit Account: An active account catering for frequent deposits and withdrawals by cheque.



DeMat Account: This account is opened by the investor while registering with an investment broker (or sub-broker).



Fixed deposit account or time deposit account: It is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date.



NOSTRO Account: A bank account held by a UK bank with a foreign bank, usually in the currency of that country.



Recurring Deposit Account: It is opened by those who want to save regularly for a certain period of time and earn a higher interest rate.



Saving Account: A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.




Foreign Trade:-



Current Account Deficit: A current account deficit is when a country’s government, businesses and individuals import more goods, services and capital than they export.



Financial Inclusion: Financial inclusion is the delivery of financial services at affordable costs to massive sections of disadvantaged and low income groups.



Fiscal Deficit: When a government’s total expenditures exceed the total revenue.



Foreign Direct Investment (FDI): It is a controlling ownership in a business enterprise in one country by an entity, based in another country.



Foreign Institutional Investors (FII): FIIs are those institutional investors which invest in the assets belonging to a different country other than that where these organizations are based.



General Anti-Avoidance Rules (GAAR): A GAAR is a statutory rule that empowers a revenue authority to deny taxpayers the benefit of an arrangement that they have entered into for an impermissible tax-related purpose.



Money Laundering: Any act to hide the identity of illegally obtained proceeds so that they appear to have originated from genuine sources.



Participatory notes or P-Notes: These are instruments, issued by registered foreign institutional investors (FII) to overseas investors, who wish to invest in the Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India (SEBI).



Quantitative easing and tapering: A monetary policy in which RBI purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.




Electronic Payment Systems in Banks:-


National Payments Corporation of India (NPCI): NPCI is an umbrella organization for all retail payments system in India.



Clearing Corporation of India Limited (CCIL): It is a joint stock company with share capital contribution by major banks and financial institutions.



Electronic Clearing Service (ECS): ECS is an electronic mode of funds transfer from one bank account to another and can be used for both



Electronic Funds Transfer (EFT): It is a system of transferring credit and debit purposes.money from one bank account directly to another without any paper money changing hands.



National Electronic Funds Transfer (NEFT) System: It is an Indian system of electronic transfer of money from one bank or bank branch to another.



Real Time Gross Settlement (RTGS) System: These are specialist funds transfer systems where the transfer of money or securities takes place from one bank to another on a “real time” and on “gross” basis