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FAQs Banking Awareness

Banking IBPS PO Clerical Insurance Railways UPSC SSC CTET NDA CDS RRB Exams General Knowledge Super Fast Revision for Competitive Examinations.

Banking Awareness

What are the important terms and definitions in Banking Awareness for Competitive Exams?

A bank statement contains summary of financial transactions.

A fixed income security is actual value.

ATM Automatic Teller Machines - They are electronic machines.

They can dispense cash, receive cash, accept  cheques and other services to customers.

Balance of payments  - The systematic record of economic transaction between the governments of one country to another.

Bank Account - Customers account with the bank.

Bank Rate -  It is the rate of interest charged by a central bank to commercial banks on advances and loans.

Base rate - It is the rate of interest which decides bank lending rates.

Basis Point -  Cost of Finance One hundredth of 1% point

Brent Index  - is related to Crude Oil prices

Budgetary Deficit  - Total expenditure is more than total revenue.

Call Money -  Loan for a very short period.

Central Statistical Organisation Prepares the National Income Estimates in India

Core Banking Solutions CBS -  Interconnected Bank Branches and customers can operate from any branch

Core Banking Group of networked bank branches providing services

Corporation tax is imposed by central government

Credit cards, Debit cards, ATM cards and International Cards are also called plastic money.

CRR Cash Reverse Ratio Funds that a bank keeps with the RBI Current Account It is a business account

Debit Card It is a card issued by the bank for cash withdrawals.

Demat Account - Account where share certificates are kept in electronic form

Development expenditure of central government does not include defence expenditure

Direct Bank  Any bank without any branch network that offers its services remotely through Online Banking Telephone /Mobile banking and interbank ATM network alliance.

EBanking Banking in which financial transactions are conducted electronically.

EFT – Electronic Fund Transfer To move funds electronically between different accounts in different or same bank

Equity market is also known as stock market.

Expansionist open market operation policy  RBI adopts a policy which will offer commercial banks more credit in the open market.

Fiscal Deficit Funds borrowed by the government to meet the expenditures.

FTSE – Stock market Index in London

Gross domestic capital formation  Net addition to Stock after Depreciation

Gross Domestic Product  The most appropriate method to measure the economic growth of a country.

Gross Proceeds  Price at which stock is sold to investors by investment bank.

Gustav Casell - The Concept of Purchasing Power Parity 

Hindu rate of growth – Growth rate of around 35 % per annum during First Six Five Year Plans planned economy.

ILO Headquarters – Geneva

Inflation Increase in the quantity of money in circulation leading to price rise.

Infosys – First Indian Company to be listed at NASDAQ

Initial Public Offering IPO The first offering of the shares to the public by a company.

Internet banking is sometimes known as virtual banking

Irving Fisher – Developed the Time Preference Theory of Interest 

K V Kamath – First President of New Development Bank BRICS

Liquidity Conversion of an investment into cash quickly.

Mixed Economy - Economy consists of private sector and public sector units.

Mortgage Security offered for taking an advance or loan from someone

Mutual Fund - These are investment schemes.

National Waqf Development Corporation works under Ministry of Minority Affairs

New York Stock Exchange is located in Wall Street.

NITI Aayog – Replaced Planning Commission in Jan, 2015.

Non Performing Assets NPAs Nonperforming loans            

Oudh Commercial Bank - First Bank of Limited Liability and managed by Indians founded in 1881     

Pass Book - Book where all the bank transactions are recorded

Per Capita Income – Money earned per person.

Permanent Account Number PAN -  Number issued by the Income Tax Department for tax payers

Point of Sale - PoS Location at which a payment of a card transaction occurs.

Prime Lending Rate PLR Rate of interest at which a bank gives loan to its customer

RBI issues commercial papers.

Regional Rural Banks falls under Public Sector Banks

Repo Rate - Rate at which Commercial banks borrow funds from the RBI.

Reverse Repo Rate RBI borrows money from banks at this rate

SBI Incube – Start up Focused Bank Branch by SBI – State Bank of India

SEBI – Regulates Mutual Funds

SEBI– Capital Market Regulator.SENSEX – Sensitive Index

Shivaraman Committee recommended establishment of NABARD

Short term finance – Finance is usually for a period ranging upto 12 months

SLR Statutory Liquidity Ratio Banks should have this amount before giving credits to its customers.

Smart Money is a term used for FDR in Banks

Special Drawing Rights – IMF – International Monetary Fund

State Bank MobiCash Mobile Wallet issued by SBI and BSNL.

Stock exchange often function as continuous auction

Stock market is also called equity market 

Term Deposit – Bank’s Fixed Deposit

The value of the derivative market is started in notional value

World Bank is also known as International Bank of Reconstruction and Development.

What is a Payment Bank?

Payments bank is a new model of banks.

Payment Bank can accept a restricted deposit.

Payment Bank may not issue loans or credit cards.

Payment Bank may offer both savings and current accounts.

Payments banks may issue Debit cards and ATM Facilities.

Payment Bank can offer mobile and net-banking.            

Banking IBPS PO Clerical Insurance Railways UPSC SSC CTET NDA CDS RRB Exams General Knowledge Super Fast Revision for Competitive Examinations.

FAQs Banking Awareness

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