Haryana BSEH SS NSQF BFSI flashcards

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

Scheduled bank

A bank included in the Second Schedule of the RBI Act 1934, meeting minimum paid-up capital and reserve requirements and subject to RBI supervision.

NBFC

A non-banking financial company that lends and invests but cannot accept demand deposits and is outside the payment and settlement system.

Law of large numbers

The principle that as the number of independent similar exposures increases, actual losses approach expected losses, allowing insurers to set stable premiums.

Lender of last resort

The central bank function of providing emergency liquidity to solvent banks facing temporary cash shortages, preventing panic-driven bank runs.

Negotiable instrument

A document promising or ordering payment of money that can be transferred by delivery or endorsement, such as a cheque, draft or promissory note.

NPA

A non-performing asset: a loan where interest or principal has been overdue for more than 90 days, requiring provisioning by the bank.

CRR

Cash Reserve Ratio: the percentage of net demand and time liabilities that a bank must keep as cash with the RBI, earning no interest.

Account payee crossing

A cheque crossing that directs the collecting bank to credit the proceeds only to the named payee's account, preventing third-party encashment.

Priority sector lending

The RBI mandate requiring banks to direct a minimum share of credit to agriculture, micro enterprises, weaker sections and other specified sectors.

Treasury bill

A short-term money market instrument issued by the government at a discount to face value and redeemed at par, with maturity up to one year.

NAV

Net Asset Value: a mutual fund's total assets minus liabilities, divided by the number of units outstanding, used to price purchases and redemptions.

Bancassurance

Distribution of insurance policies through a bank's branches and customer base, typically under a corporate agency or referral arrangement with an insurer.

Depository

An entity such as NSDL or CDSL that holds securities in electronic dematerialised form and transfers them between accounts on trade settlement.

Primary market

The market where new securities are issued to investors for the first time, raising fresh capital for the issuer through IPO, FPO or rights issue.

Insurable interest

A financial relationship in which the insured benefits from the subject's continued existence and suffers measurable loss from its damage or destruction.

Utmost good faith

The insurance principle requiring both parties to disclose all material facts fully and honestly, as the insurer cannot inspect the risk directly.

Indemnity

The principle that a general insurance claim restores the insured to the pre-loss financial position, never allowing profit from the loss.

Subrogation

The insurer's right, after paying a claim, to step into the insured's shoes and recover the loss from the third party responsible.

Contribution

When multiple policies cover the same risk, each insurer pays its rateable share so the total received does not exceed the actual loss.

Proximate cause

The dominant, effective cause of a loss, which determines whether the policy responds, rather than the final event in the sequence.

ULIP

Unit Linked Insurance Plan: an insurance policy where part of the premium buys protection and the rest is invested in market-linked funds chosen by the policyholder.

Reliability

The service quality dimension of delivering the promised service accurately and consistently the first time, the attribute customers value most.

Banking Ombudsman

An RBI-appointed authority that resolves customer complaints against regulated entities free of charge when the bank's internal grievance process fails.

Needs-based selling

A sales approach that first identifies the customer's stated goal and then recommends the product that best meets it, rather than pushing a preferred product.

Cross-selling

Offering an additional, complementary product to an existing customer after the primary need is met, such as a credit card to a savings account holder.

UPI

Unified Payments Interface: an instant, 24x7 account-to-account payment system that uses a virtual payment address instead of bank account details.

RTGS

Real Time Gross Settlement: a system for high-value fund transfers settled individually and immediately, without netting across transactions.

Two-factor authentication

Verification using two independent elements, such as an OTP plus a PIN, so a stolen password alone cannot authorise a transaction.

Phishing

A fraud in which a fake message or website impersonates a bank to trick the customer into revealing PIN, OTP or account credentials.

Basel III capital adequacy

The ratio of a bank's eligible capital to its risk-weighted assets, with Basel III adding a leverage ratio and liquidity coverage ratio.

Suspicious transaction report

A report filed by a regulated entity with FIU-IND when a transaction appears linked to money laundering or terrorist financing, regardless of amount.

Insider trading

Trading in securities while in possession of unpublished price-sensitive information, prohibited by SEBI regulations as a market abuse offence.