Central Bank of India ZBO key terms

The interest rate at which the Reserve Bank of India lends short-term funds to commercial banks against government securities, used as the main tool to signal the direction of monetary policy.

The rate at which the RBI absorbs surplus liquidity from banks by borrowing against government securities; it usually sits below the repo rate and forms the floor of the policy corridor.

The share of a bank's net demand and time liabilities that must be kept as cash with the RBI, earning no interest and directly reducing the funds available for lending.

The minimum percentage of net demand and time liabilities a bank must hold in approved liquid assets such as cash, gold or government securities before lending to customers.

The total of liabilities owed by a bank to the public, including savings and current deposits and term deposits, after netting interbank claims; it is the base for computing CRR and SLR.

The six-member body chaired by the RBI Governor that meets at least four times a year to set the policy repo rate and target consumer price inflation of four percent with a two percent band.

The RBI's framework of repo and reverse repo operations through which banks borrow or park short-term funds, helping keep overnight money market rates close to the policy rate.

A window allowing banks to borrow overnight from the RBI against excess government securities, up to a set share of their NDTL, at a rate above the repo rate when interbank liquidity is tight.

The rate at which the RBI lends long-term funds without collateral and which is used as a penalty rate for shortfalls in CRR or SLR; it is aligned with the marginal standing facility rate.

The monetary framework, adopted in India in 2016, in which the central bank publicly commits to a numeric inflation goal and is answerable to the government if it misses the target for three consecutive quarters.

A retail price index tracking the cost of a fixed basket of goods and services bought by households; the combined CPI is the RBI's headline measure of inflation for policy decisions.

An index of prices charged by producers and wholesalers across primary articles, fuel and manufactured products; it excludes services and is not the RBI's policy anchor.

A loan or advance on which principal or interest has remained overdue for more than 90 days, requiring the bank to classify it as substandard, doubtful or a loss asset.

An NPA that has remained non-performing for 12 months or less, where the bank has to make higher provisions because repayment capacity is weak but recovery is still possible.

The amount a bank sets aside from profit to absorb expected losses on bad loans and standard assets, following RBI norms that prescribe minimum percentages for each asset category.

A 2002 law letting secured creditors enforce their security interest without court intervention by taking possession of and selling mortgaged assets after a 60-day demand notice.

A specialised quasi-judicial body set up under the Recovery of Debts Act to hear banks' and financial institutions' claims above a threshold amount and issue recovery certificates quickly.

A 2016 law creating a time-bound process for resolving insolvency of companies and individuals, with the committee of creditors approving a resolution plan within a fixed timeline.

The ratio of a bank's capital to its risk-weighted assets, showing how far losses can be absorbed before depositors are exposed; Indian banks follow Basel III minima plus a capital conservation buffer.

An international set of bank capital, leverage and liquidity standards agreed after the 2008 crisis, introducing buffers such as the capital conservation buffer and the liquidity coverage ratio.

A Basel III measure requiring a bank to hold enough high-quality liquid assets to survive 30 days of stressed outflows, calculated as liquid assets divided by net cash outflows.

A mandate requiring banks to give a fixed share of credit, currently 40 percent of adjusted net bank credit, to agriculture, micro and small enterprises, education, housing and weaker sections.

A scheme giving farmers a revolving credit limit for crop inputs, issued by banks and cooperatives, with simplified documentation and interest subvention for prompt repayment.

An RBI arrangement assigning each district to a designated lead bank responsible for coordinating credit planning and branch expansion with other banks and government agencies.

The process of ensuring affordable access to basic financial services such as savings accounts, credit, insurance and payments for all sections of society, especially the unbanked.

A national mission launched in 2014 to open basic savings accounts with overdraft and accident insurance benefits, using Aadhaar and mobile linkage to expand financial inclusion.

A payment system letting a customer transact at a business correspondent's point using Aadhaar number and fingerprint authentication, without a card or bank branch visit.

A document that promises or orders payment of money and can be transferred by delivery or endorsement, giving the holder a right to sue in their own name.

A clearing process in which an image of a cheque rather than the physical instrument is sent electronically between banks, cutting clearing time and the risk of cheque fraud.

A payment system for high-value, irrevocable fund transfers settled one by one in real time through the RBI; the current minimum transaction value is two lakh rupees.

A retail payment system that settles individual fund transfers in half-hourly batches through the RBI, with no minimum amount and near-continuous availability on all days.

A 24x7 interbank instant payment service operated by NPCI that transfers funds in real time using mobile number and mobile money identifier or account details.

A NPCI platform that lets users link bank accounts to a virtual payment address and send or receive money instantly through mobile apps using a single interface.

The minimum lending rate below which a bank may not lend, calculated from cost of funds, negative carry, overheads and profit margin; replaced by the marginal cost of funds based lending rate.

A benchmark introduced in 2016 that links loan pricing to the bank's marginal cost of borrowing, making rate cuts pass to borrowers faster than the older base rate system.

The mandatory process by which a bank verifies a customer's identity, address and source of funds before opening an account or allowing high-value transactions, to prevent money laundering.

Laws and procedures requiring banks to detect, report and deter the disguising of illegal funds as legitimate income, including suspicious transaction reports to the Financial Intelligence Unit.

A distribution arrangement in which a bank sells insurance products of one or more insurers to its customers, earning commission while widening the insurer's reach.

A reasoning question type in which two or more statements about categories are given and the candidate must decide which conclusions necessarily follow, using set relationships rather than real-world knowledge.

A technique of drawing overlapping circles to represent the possible relationships between the classes in a syllogism, so that valid conclusions can be checked visually.