Haryana BSEH Secondary NSQF BFSI flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

BFSI sector

BFSI stands for Banking, Financial Services and Insurance. It includes banks, NBFCs, insurers, mutual funds, brokerages and payment firms that provide financial products and services.

NSQF

The National Skills Qualifications Framework organizes qualifications by levels 1 to 10, linking education and skills. Each level describes learning outcomes, and BFSI vocational courses map to entry-level job roles.

Employability skills

Employability skills are non-technical competencies such as communication, teamwork, problem-solving, self-management and digital literacy that help a person perform effectively in a workplace.

STAR method

The STAR method structures interview answers as Situation, Task, Action and Result. It keeps responses specific, evidence-based and concise, and is widely used in BFSI recruitment.

Active listening

Active listening means giving full attention, avoiding interruption, paraphrasing what was said, and confirming understanding before responding. It improves accuracy and customer trust.

POSH Act, 2013

The Sexual Harassment of Women at Workplace Act, 2013 requires workplaces with ten or more employees to set up an Internal Committee and provides a complaint and inquiry process.

50/30/20 rule

A budgeting guideline that allocates 50% of income to needs, 30% to wants, and 20% to savings and debt repayment. Actual proportions should reflect income and obligations.

Emergency fund

Money set aside for unexpected events such as job loss or medical bills. It should cover three to six months of essential expenses and be held in a liquid form.

Compound interest

Interest calculated on both the original principal and accumulated interest. Formula: A = P(1 + r/n)^(nt), where A is the amount and r is the annual rate.

Real return

The return on an investment after adjusting for inflation. Approximated as nominal return minus inflation, it shows the actual change in purchasing power.

NEFT

National Electronic Funds Transfer is an RBI-operated batch settlement system for rupee transfers within India. It works on a deferred net settlement basis and needs a beneficiary account number and IFSC.

KYC

Know Your Customer is the identity and address verification process banks must complete before opening accounts or allowing specified transactions. It supports anti-money-laundering compliance.

Fixed deposit

A bank deposit for a fixed term at a fixed interest rate. Premature withdrawal is allowed but usually attracts a penalty, and interest is typically compounded quarterly.

Recurring deposit

A bank deposit where a fixed amount is paid every month for an agreed term. Interest is usually compounded quarterly, and maturity value depends on instalment, rate and tenure.

UPI

Unified Payments Interface is a real-time payment system run by NPCI. It uses a Virtual Payment Address to send or receive money through a bank account on a mobile app.

UPI PIN

A secret code that authorises UPI transactions. It must never be shared; banks, NPCI and legitimate merchants never ask for it by phone, message or link.

AePS

Aadhaar Enabled Payment System lets a customer withdraw cash, check balance or transfer funds using Aadhaar number and biometric authentication at a business correspondent.

Phishing

A fraud where fake emails, messages or websites imitate a bank or service to steal passwords, card details or OTPs. Verify the sender and never click unverified links.

SIM swap fraud

Fraudsters obtain a duplicate SIM to receive the victim's OTPs, then use them for unauthorised transactions. Sudden loss of network or SIM signal should prompt immediate contact with the operator and bank.

Zero liability

An RBI rule that limits a customer's loss for unauthorised electronic transactions. Prompt reporting and absence of negligence generally result in no customer liability.

Principle of indemnity

A general insurance principle that a claim cannot exceed the actual financial loss suffered, so the insured is restored to the pre-loss position and does not profit from the loss.

Insurable interest

The legal and financial interest a person has in the subject of insurance. A person cannot insure property or life in which they would not suffer a financial loss.

Demat account

An account that holds shares and other securities in electronic form. NSDL and CDSL are India's depositories, and a demat account is needed to trade and settle securities.

Sensex

The S&P BSE Sensex is a stock market index of 30 major companies listed on the Bombay Stock Exchange. It is calculated using free-float market capitalisation.

NAV

Net Asset Value is the per-unit value of a mutual fund scheme, calculated as total assets minus liabilities divided by the number of outstanding units.

Diversification

Spreading investments across assets, sectors and geographies to reduce unsystematic risk. It cannot eliminate systematic market risk, which affects most securities at the same time.

TAT

Turnaround Time is the maximum or agreed time within which a service or complaint must be completed. Banks publish TAT for common services and complaints.

Needs analysis

The process of collecting information about a customer's income, goals, risk tolerance, time horizon and existing commitments before recommending a financial product.

Accounting equation

Assets equal liabilities plus owner's capital. Every transaction changes at least two elements while keeping the equation balanced, forming the basis of double-entry book-keeping.

Bank reconciliation

The process of comparing the cash book with the bank statement to explain differences such as cheques issued but not presented or bank charges not recorded.

Ergonomics

The design of a workspace and work practices to fit the worker. In offices it includes chair height, monitor position and posture to reduce strain and injury.

E-waste

Discarded electrical and electronic equipment such as computers, phones and chargers. It contains toxic materials and must be sent to authorised recyclers rather than ordinary bins.