Online Classes
  • Home
  • About
    • About Us
    • Our Facilities
    • Infrastructure
  • Gallery
  • Courses

    About Courses

    • Online Bank Coaching
    • Regular Classroom Bank Coaching
    • Career Bridge Course
    • SSC Exam Training
    ICD-kollam
    READ MORE
    Join Now
    ICD-kollam
    READ MORE
    Register
    bank coaching in kollam
    READ MORE
    Join Now
    ICD-kollam
    READ MORE
    Join Now
  • Register
    • Regular Classroom Programme
  • Our Achievers
    • Latest Placements
    • Placements Archives
  • Blog
  • Contact
    • Cart

      0
Have any question?

+91 474 2797297
contact@icdkollam.in

ICD Kollam
  • Home
  • About
    • About Us
    • Our Facilities
    • Infrastructure
  • Gallery
  • Courses

    About Courses

    • Online Bank Coaching
    • Regular Classroom Bank Coaching
    • Career Bridge Course
    • SSC Exam Training
    ICD-kollam
    READ MORE
    Join Now
    ICD-kollam
    READ MORE
    Register
    bank coaching in kollam
    READ MORE
    Join Now
    ICD-kollam
    READ MORE
    Join Now
  • Register
    • Regular Classroom Programme
  • Our Achievers
    • Latest Placements
    • Placements Archives
  • Blog
  • Contact
    • Cart

      0

Bank Exam Preparation

  • Home
  • Blog
  • Bank Exam Preparation
  • 18 Important Bank Terms to Know | Banking Terminologies.

18 Important Bank Terms to Know | Banking Terminologies.

  • Posted by icdkollam
  • Date July 1, 2021
  • Comments 0 comment
18 important bank terms

In this blog, We’ll describe 18 important Bank terms to improve the
knowledge of all those candidates for the bank examination; hopefully, it will be
useful to everyone.

Bank Recruitment Tests are among the country’s most popular exams, and many
applicants are preparing for them with zeal. They all study the syllabus of various
bank examinations, prepare the basic subjects of bank exams, practise reasoning,
quants, and so on, and strengthen themselves so that they may give their all in bank
exams, clear bank exams, and acquire a good bank job.

It is important that candidates read the bank exam syllabus and prepare well for the
bank exam, but it is also critical that students who want to work in a bank have
theoretical knowledge as well as banking-related technical and practical expertise.
The candidates simply can begin it by learning some basic and important bank
terms.

The 18 important bank terms are –

1. ATM – Automated Teller Machine

The Automated Teller Machine is a machine that dispenses and receives cash,
accepts checks, and provides customers with balance statements and mini
statements (ATM). This one is accessible via a specific form of plastic card known
as an ATM card. We are all aware of this, but a candidate preparing for a banking
exam should be aware of additional information about it.

2. BOP- Balance of Payment

Balance of payments; is a record or statement that details a nation’s transactions with the other nations over a particular time frame, generally one year. A payment means receipt inside the nation is noted as a positive number called a credit under this. Payments made beyond the nation’s boundaries are noted as negative numbers known as debts. The balance of payments surplus is a single number that represents a nation’s global transactions.

3. CBS – Core Banking Solutions –

Core Banking Solution (CBS) is a centralized accounting package, allowing clients to manage their bank accounts and provide banking services on every CBS networked branch, irrespective of wherever he or she keeps a bank account. This is a technology that enables clients on any of its member offices to manage their bank accounts. Thus, the individual is therefore no longer a branch customer, although it is the customer of the bank.

4.  CRR – Cash Reverse Ratio –

Each bank, has to keep a part of their total time and demand liabilities (deposits) with the Reserve Bank of India, This is referred to as the cash reserve ratio. The CRR rate currently stands at 3%. The sum is paid every 15 days by each bank to RBI. This is periodically altered when the liquidity on the market is controlled by RBI thorough its bi-monthly Monetary Policy.

5.  EFT – Electronic Fund Transfer

Electronic funds transfers are commonly performed to move payments from one bank account to the another, whether inside an organization or another via a computer system, without the personal communication of banking institutions. An ATM, wire transfer, and computer are used to move money among accounts with similar or separate banks. EFT necessitates the use of bank accounts from both the sender and the receiver.

6. FDI – Foreign Direct Investment

Foreign Direct Investment is the investment made by an international company or a foreign investor directly in the territory of India. There are 2 FDI methods that are the Automatic Route, which would neither need RBI nor Central Government authorization, and the Government Route, which requires approval from the government.

7.  GDP – Gross Domestic Product –

GDP is the overall worth of every finished product and service manufactured inside a nation’s territory throughout a particular timeframe.

GDP is among the most commonly utilized metrics for measuring a national economy, and this is measured by nations along with global institutions including the World Bank, the International Monetary Fund, and the United Nations occasionally.

It is classified into three types:

  • Expenditures- It is the total worth of all purchases made inside the nation as well as the nation’s capital inflows to foreign lands.
  • Income – It is the overall total amount of money earned by every people and enterprise inside the nation. It is also known as domestic income.
  • Production – The economic worth of all goods produced inside the nation.

8. PAN – Permanent Account Number –

Permanent Account Number, usually known as PAN, is a personal 10-digit alphanumeric code provided to Indian citizens by the Income Tax Department. This office keeps track of every individual’s income tax transaction using his individual permanent account number.

9. VAT – Value Added Tax –

The VAT or value-added tax is a sort of tax imposed upon on selling of products and commodities to a user by the Central Government. VAT shall be provided mostly by manufacturers of products and services, however, the customers who buy the products once they pay for them shall be finally charged.

All producers that are implicated purely inside the manufacture of products and service providers are obligated to register VAT. The processes of registration information exchange the business mostly as a returnable organization with the government. Under the VAT Registration Law, all enterprise organizations are required to be listed for the paying of VAT.

10. GNP – Gross National Product –

The Gross National Product (GNP) is the total worth of all final products and services generated by people of a nation in a particular fiscal year, regardless of their locality. GNP also accounts for the production made by a nation’s firms, whether they are domiciled in the state or outside. This is a part of trade measurement that includes Gross Domestic Product (GDP) and profit made by citizens from abroad transactions.

11. IFSC – Indian Financial System Code –

IFSC is an abbreviation for Indian Financial System Code. It is an 11-digit alphanumeric code that recognizes the branch offices in the National Electronic Funds Transfer (NEFT) system. The Reserve Bank of India (RBI) utilizes IFSC to conduct digital currency transactions among banks since the codes can rapidly determine wherever cash is originating from and departing.

12. IPO – Initial Public Offering –

The method through which a private corporation or company becomes public through offering a share of its interest to outsiders is known as an initial public offering (IPO). An IPO is typically launched to introduce share capital money into the company, to promote easier trade of working capital, to generate funds again for the long term, or to commercialize present shareholders’ stakes.

13. ITD – Income Tax Department –

The Income Tax Department is a government body that collects direct taxes  on behalf of the Government of India. It reports to the Ministry of Finance’s Department of Revenue. The Central Board of Direct Taxes is the apex body of the Income Tax Department.

The primary objective of the IT Department is to implement several relevant tax regulations, the most crucial of which is the Income-tax Act of 1961, in order to gather income for the Government of India. It also implements financial regulations such as the Benami Transactions (Prohibition) Act of 1988 and the Black Money Act of 2015.

14. KYC – Know Your Customer –

Know Your Customer (KYC) is a collection of criteria adopted within the investing and financial services business to check consumers, their credit risks, and economic statuses.

KYC is the required method of recognizing and confirming the customer’s identification while creating a bank account and on a regular basis. The goal of KYC requirements is to keep banks from using it for laundering money by corrupt people.

15. MICR – Magnetic Ink Character Recognition –

MICR code, or magnetic ink character recognition code, is a 9-digit number that individually recognizes the bank and branch operating an Electronic Clearing System (ECS). This is a character-recognition technique that is mostly utilized inside the financial sector to speed up the growth and clearing of cheques as well as similar papers.

16. NBFC – Non-Banking Financial Company –

A non-banking financial institution, also known as a non-bank financial corporation, is a commercial bank that does not possess a complete banking license and is not regulated by either a national or international banking supervisory organization.

17. NEFT – National Electronic Fund Transfer –

 NEFT is a form of payment scheme via which money can be transferred through an independent account to others. It applies to both users of accounts and to non-controllers.

It includes one-to-one payment of cash in a particular time span. This is a national method of payment so it is possible to send money using digital means.

18. SLR – Statutory Liquidity Ratio –

SLR or Statutory Liquidity Ratio is the part of the total time and demand liability that banks have to invest in government approved securities. SLR is used by RBI to control credit and availability of liquidity in the market. The SLR is set at 18% at percent.

After reading these important bank terms, we are sure you are now aware about these.

To read 10 tips to prepare for IBPS RRB exam 2021, Click here

The 5 Hottest Technologies in Banking

For More Banking and SSC Content:

𝐅𝐨𝐥𝐥𝐨𝐰 𝐮𝐬 𝐨𝐧 𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦:https://www.instagram.com/icd_kollam/

𝐅𝐨𝐥𝐥𝐨𝐰 𝐮𝐬 𝐨𝐧 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤: https://www.facebook.com/ICDKLM

𝐉𝐨𝐢𝐧 𝐨𝐮𝐫 𝐓𝐞𝐥𝐞𝐠𝐫𝐚𝐦 𝐂𝐡𝐚𝐧𝐧𝐞𝐥: https://t.me/joinchat/SlbgcEr-pPw6gLI7

Subscribe Our YouTube Channel: https://www.youtube.com/c/icdkollam-jk/community

Please follow and like us:
error
fb-share-icon
Tweet
fb-share-icon

Tag:bank terms, bank terms and abbreviations, bank terms in english, banking terms for bank exams, what are the banking terms

  • Share:
author avatar
icdkollam

Previous post

10 tips to prepare for the IBPS RRB Exam 2021
July 1, 2021

Next post

June 2021 Current Affairs | Download PDF of June Month Current Affairs
July 5, 2021

You may also like

monthly current affairs of 2022
Monthly Current Affairs of June 2022 | Download PDF
6 July, 2022
list of upcoming bank exams
List of Upcoming Bank Exam | Bank Exams in 2022
4 July, 2022
monthly current affairs of may 2022
Monthly Current Affairs of May 2022 | Download PDF
7 June, 2022

Leave A Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

Categories

  • Bank Exam Preparation
  • Blog
  • Monthly Current Affairs
  • news
  • Notifications
  • Success Story
  • Uncategorized

Latest Courses

Regular Classroom Bank Coaching

Regular Classroom Bank Coaching

Free
Online Career Bridge Course

Online Career Bridge Course

₹4,000.00
Online SSC Exam Training

Online SSC Exam Training

₹7,250.00

About

Institute for Career Development (ICD KOLLAM) was established in the year 1995. We are professionals in imparting training to young educated job aspirants who wish to appear for competitive exams one of the best bank coaching in Kollam .

Links

  • Register For Admission
  • Online Classes
  • Our Achievers

Social Media

Contact Us

Institute for Career Development
ICD Campus, Aduthala P.O.
Kalluvathukkal, Kollam, Kerala India – 691579.

Give Review

Copyright © 1995 - 2021 @ Institute for Career Development Kollam. All Rights Reserved.

  • Privacy
  • Terms