Important banking terms – SBI, IBPS PO/ Clerk/ SO/ RRB Exam

We are all aware how important the concepts are to improve our understanding. The concepts not only help us build our skills but also help us score better in the exams. In recent times a lot of questions have been asked directly from the banking terminology in the various banking exams like SBI, IBPS PO, IBPS Clerk, specialist officer, and RRB exams. Below is the list of some of the most important banking terms that are often asked in the exams. Idioms for Bank Exams

Important Banking Terms

Bancassurance

Here the bank acts as a corporate agent for the insurance companies through their branches by distributing the insurance products and the insurance policies of these companies. In return, banks charge a fee for the service.

Bank account

It is an account opened in a bank by the general public which can be used only for personal purposes. There are a few procedures that need to be followed regarding the withdrawal of the money.

Basis point

Basis points indicate the cost of finance. One-hundredth of 1% point is normally considered a  basis point.

Bank rate

October 2021 Current Affairs – Read here Bank rate is the rate at which the Central Bank lends money to commercial banks.

Cheque

It is a document written by an individual to withdraw money from his account and to transfer an amount between two accounts of the same bank or any other bank.

Cash reserve ratio

The cash reserve ratio, also known as CRR is the portion of total their deposits that banks have to keep in liquid cash with RBI.

Core banking solution

Core Banking (Centralised Online Realtime Electronic) solution is simply a centralised accounting package. All the branches of a bank are connected to a central server where all data of transactions are kept and updated.

Current account

A Current Account is a business account. It is an account opened with a bank excljusively for business purposes; there are no restrictions on withdrawal and the current account holder does not get any interest on the amount deposited. Success Story of Ajith S

Dishonor of cheque

This is the term used when the paying bank returns a cheque with a return memo citing reasons for the nonpayment.

Debit card

With this card, the customers can withdraw their money from their accounts through ATMs, or can be used to do purchased ttansactions. The card is issued by the bank with which the customer has an account.

Demat account

It is an electronic account in which a depositary company converts share certificates into electronic format. This electronic storehouse is known as a Demat account.

Kiosk banking

This is a form of Banking which is done from a cubicle where other businesses such as food, newspapers tickets, etc are also sold. 18 Important Bank Terms to Know

Non-Bank ATM/ White Label ATM

These are automatic teller machines that do not prominently display a bank’s name or logo. One who withdraws from such banks will be charged for cash withdrawals and they don’t accept any deposits. To put it simply, while label; ATMs are run by non-banking entities.

Nonperforming assets

Nonperforming assets also known as NPA, are loans given by a bank on which interest payments and or repayments are not being made on time.

Prime lending rate

The prime lending rate is also known as PLR is the rate of interest at which a bank gives a loan to its most reliable customer. Search customers are also known as customers with zero risks.

Repo rate

Repo rate stands for re-purchase offer rate. This is the rate at which commercial banks borrow funds from the RBI to manage short term liquidity requirements. When Repo rate is reduced, generally banks pass on the benefit to borrowers by offering them funds at lower rates. 10 tips to prepare for IBPS RRB Exam 2021. Click here to read.

Reverse repo rate

Reverse repo rate is the rate at which RBI borrows money from banks to reduce the money floating in the banking system. In other words, the reverse repo rate is the opposite of the repo rate.

Statutory liquidity ratio

SLR is that portion of total bank deposits that banks have to use to purchase government securities. Statutory liquidity ratio or the SLR is the ratio that a commercial bank has to maintain before giving any loan to its customer, in the form of gold reserves, money, or bonds.

Special drawing rights

Special drawing rights or SDR is a paper gold asset or reserve asset which is created within the framework of the International monetary fund. Consider it the currency of the IMF. The motive behind these rights is to increase international liquidity.

Universal banking

Universal banking refers to the idea of keeping all financial services under the umbrella of banks. The History of Banking in India, Click here to read.

Virtual banking

Virtual banking in the simplest sense is similar to internet banking with no rules or boundaries. Virtual banking or internet banking is regulated by the world wide web.

Wholesale banking

Retail banking and wholesale banking are somewhat similar to each other; the only difference is that wholesale banking focuses on the financial needs of the industry as well as the institutional clients.

Teller

Teller is a member of the bank who accepts deposits, cashes cheques, and also offers other banking services to the customers. Above mentioned are a few banking terminologies that are most commonly asked in the banking exams. 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