IBPS RRB CA Officer Scale II key terms

The share of a bank's net demand and time liabilities that must be held as cash with the Reserve Bank of India. It earns no interest and is used to control liquidity in the banking system.

The minimum proportion of net demand and time liabilities a bank must keep in safe assets such as government securities, cash or gold. It is held by the bank itself rather than with the RBI.

The total of liabilities a bank owes to the public, including demand deposits and time deposits, after netting inter-bank claims. It forms the base on which reserve requirements like CRR and SLR are calculated.

The interest rate at which the RBI lends short-term funds to commercial banks against government securities. Raising it typically tightens liquidity and is a key tool of monetary policy.

The rate at which the RBI absorbs surplus liquidity from banks by borrowing against securities. It sits below the repo rate and forms the floor of the liquidity adjustment corridor.

A window allowing banks to borrow overnight from the RBI against approved government securities, up to a limit of their NDTL, at a rate above the repo rate. It acts as a safety valve during liquidity stress.

The RBI's framework for managing day-to-day liquidity through repo and reverse repo operations with banks. It keeps short-term money market rates close to the policy rate.

A six-member statutory body chaired by the RBI Governor that sets the policy repo rate to meet the inflation target. It must meet at least four times in a financial year.

A monetary framework in which the central bank commits to a numerical inflation goal, currently four percent consumer price inflation with a two percent tolerance band, and is accountable for missing it.

A measure of the average change over time in prices paid by households for a basket of consumer goods and services. It is the headline gauge used for India's inflation target.

An index tracking price changes at the wholesale or producer level across primary articles, fuel and manufactured products. It excludes services and is not the RBI's target measure.

A mandate requiring banks to direct a minimum share of credit, generally forty percent of adjusted net bank credit, to specified sectors such as agriculture, MSMEs, education and weaker sections.

A loan or advance on which principal or interest has remained overdue for more than ninety days. Such assets stop earning income and require provisioning by the bank.

The amount a bank sets aside from profits to absorb expected losses on bad or doubtful loans. Higher provisioning reduces reported profit and capital adequacy headroom.

A bank's capital expressed as a percentage of its risk-weighted assets. It measures the cushion available to absorb losses and must stay above the regulator's minimum.

A bank's exposures weighted by credit and other risks according to regulatory rules, so riskier loans count more heavily. They form the denominator of capital adequacy calculations.

Internationally agreed banking standards on capital, leverage and liquidity introduced after the 2008 crisis. They raise minimum capital quality and add buffers such as the liquidity coverage ratio.

A Basel III requirement that a bank hold enough high-quality liquid assets to survive a thirty-day stress scenario of net cash outflows. It guards against short-term funding runs.

A supervisory framework under which the RBI imposes restrictions on a weak bank once capital, asset quality or profitability breach set thresholds. It aims to force timely corrective steps.

A 2016 law creating a time-bound process to resolve insolvency of companies and individuals through a resolution professional and the National Company Law Tribunal. It strengthens creditor recovery.

A 2002 law letting secured creditors enforce their security interest without court intervention, including taking possession of and selling mortgaged assets, after serving due notice.

A category of bank investments intended to be held until maturity, whose securities are not marked to market. Shifts into this category can shield bonds from interest rate volatility.

Valuing an asset at its current market price rather than its purchase cost. Banks must do this for trading and available-for-sale investments, so rate moves affect reported profits.

A scheme giving farmers a revolving credit facility for crop production and allied needs, with interest subvention for prompt repayment. It is a major instrument of agricultural priority sector lending.

A national financial inclusion programme launched in 2014 providing basic savings accounts with overdraft and insurance benefits. It brought millions of unbanked households into the formal system.

A real-time payment system run by NPCI that lets users transfer funds between bank accounts using a virtual payment address. It is widely used for retail digital payments in India.

An umbrella organisation owned by banks that operates retail payment systems such as UPI, IMPS, RuPay and AEPS. It sets rules and settles transactions across member institutions.

The set of arrangements, institutions and rules that allow money to move between payers and payees, including clearing, settlement and messaging. In India it is regulated under the Payment and Settlement Systems Act.

Laws and procedures requiring banks to identify customers, monitor transactions and report suspicious activity to prevent laundering of criminal proceeds. Compliance is enforced by the financial intelligence unit.

The process of verifying a customer's identity, address and beneficial ownership before opening accounts or allowing transactions. It underpins AML compliance and prevents fraud and impersonation.

A transaction in which property is held in one person's name but paid for by another, with the real owner hiding behind a proxy. Such transactions are void and punishable under the Benami Act.

The systematic allocation of the cost of a tangible fixed asset over its useful life. It is a non-cash expense that reduces reported profit but not cash flow from operations.

The gradual write-off of the cost of an intangible asset, such as goodwill or software, over its useful life. It mirrors depreciation but applies to assets without physical form.

A liquidity measure equal to current assets divided by current liabilities. A value above one suggests a firm can meet short-term obligations from short-term resources.

The excess of current assets over current liabilities, representing funds tied up in day-to-day operations. It indicates whether a business can finance its routine activities.

A technique of interpreting financial statements by computing relationships between figures, such as profitability, liquidity and leverage ratios. It helps compare performance across periods and peers.

A form of logical reasoning in which conclusions are drawn from two or more given statements assumed true. Candidates must judge which conclusions necessarily follow, not merely seem plausible.

A visual technique for testing syllogistic conclusions by drawing all possible arrangements of the given categories. If a conclusion holds in every valid arrangement, it is said to follow.

A reasoning problem describing family relationships through statements or symbols, asking for the relation between two people. Solving requires drawing a family tree and fixing gender carefully.

A puzzle requiring candidates to place people around a circle or in a row using clues about position and facing direction. Consistent line-by-line deduction with a rough diagram is the standard approach.

A question type giving a problem with two or more statements, where you must decide whether the data supplied is enough to answer it. The actual numerical answer is not required.

Questions based on tables, bar charts, line graphs or pie charts, requiring calculation of averages, percentages and ratios. Speed in approximation and percentage conversion is decisive.

A fraction expressed with denominator one hundred, used to compare quantities and express change. Converting common fractions to percentages mentally speeds up many aptitude calculations.

Interest calculated only on the original principal for the whole period, using the formula principal times rate times time divided by one hundred. It does not compound.

Interest calculated on both the principal and previously accumulated interest, so the amount grows geometrically. The effective yield exceeds simple interest for the same nominal rate and period.

A quantitative topic relating distance travelled to speed and time, including problems on trains, boats and relative motion. Converting units and using relative speed are common shortcuts.

A topic dealing with comparison of quantities and equality of two ratios, often used to divide amounts or solve mixture and partnership problems. Setting up a common unit simplifies such questions.

Counting techniques for arranging items where order matters, or selecting items where it does not. Recognising whether order matters is the key decision in such problems.

The numerical chance of an event occurring, calculated as favourable outcomes divided by total equally likely outcomes. It ranges from zero to one and underpins many data-based questions.

A passage with words or phrases removed, where candidates choose the option that best restores meaning and grammatical fit. Reading the whole passage first improves accuracy.

A set of sentences given in scrambled order that must be rearranged into a coherent paragraph. Identifying opening sentences, connectors and pronoun references is the usual strategy.

A section testing understanding of a given passage through questions on main idea, inference, tone and vocabulary. Answers should be supported by the text rather than outside knowledge.

A conclusion drawn from evidence in the passage though not stated explicitly. Inference questions require the reader to distinguish what is logically implied from what is merely assumed.

A grammar question type in which a sentence is divided into parts and the candidate identifies the part containing an error. Subject-verb agreement, prepositions and tense are frequent traps.

The grammatical rule that a verb must match its subject in number and person. Collective nouns, intervening phrases and indefinite pronouns often complicate this agreement in test sentences.

A fixed expression whose meaning differs from the literal sense of its words, such as 'at the drop of a hat'. Questions ask for the correct meaning or appropriate use in context.

Vocabulary questions asking for a word with similar meaning or opposite meaning to a given word. Context often decides the correct choice among near-equivalent options.

ऐसा वाक्यांश जिसका अर्थ उसके शब्दों के शाब्दिक अर्थ से भिन्न होता है। हिंदी प्रश्नपत्रों में मुहावरे का अर्थ बताने या वाक्य में प्रयोग पहचानने के प्रश्न पूछे जाते हैं।

लोक अनुभव पर आधारित सूक्तिपरक वाक्य जिसका अर्थ प्रसंग के अनुसार लागू होता है। हिंदी व्याकरण में इसे कहावत भी कहते हैं और इसका अर्थ पूछा जाता है।