IDBI Bank ESO key terms

The interest rate at which the Reserve Bank of India lends short-term funds to commercial banks against government securities. Raising it tightens liquidity and is used to control inflation.

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

The share of net demand and time liabilities that banks must hold as cash balances with the RBI. It earns no interest and directly reduces the funds available for lending.

The minimum percentage of net demand and time liabilities a bank must keep in safe assets such as government securities, cash or gold. It limits credit expansion and protects depositors.

The RBI's management of money supply and interest rates to achieve price stability while supporting growth. Its main tools are policy rates, reserve ratios and open market operations.

A six-member RBI panel, chaired by the Governor, that meets at least four times a year to set the benchmark policy repo rate and announce the monetary policy stance.

The RBI's framework of repo and reverse repo operations that lets banks borrow or park short-term funds against government securities, keeping overnight call money rates near the policy rate.

The minimum lending rate below which a bank may not lend to any borrower, calculated from cost of funds, operating expenses and profit margin. It replaced the earlier benchmark prime lending rate.

A benchmark lending rate computed from marginal cost of funds, negative carry, operating cost and tenor premium. Loans priced against it transmit policy rate changes to borrowers faster than base rate.

A loan on which principal or interest has remained overdue for more than 90 days. Such assets stop earning income and require provisioning, weakening the bank's profitability and capital.

The amount a bank sets aside from profits to cover expected losses on doubtful or loss assets. Higher provisioning reduces reported profit and capital adequacy.

The ratio of a bank's capital to its risk-weighted assets, showing its ability to absorb losses. Indian banks must meet Basel III norms plus a capital conservation buffer.

A global regulatory framework on bank capital, leverage and liquidity, introduced after the 2008 crisis. It strengthens minimum capital, adds buffers and sets liquidity coverage standards.

A 2016 Indian law creating a time-bound process to resolve insolvent companies and individuals through the National Company Law Tribunal, with creditors deciding on resolution plans.

A 2002 law allowing secured creditors to enforce their security interest and take possession of mortgaged assets without court intervention after a loan turns into a default.

A mandate requiring banks to direct a minimum share of credit to sectors such as agriculture, micro enterprises, education, housing and weaker sections, with shortfalls deposited in a fund.

Extending affordable financial services such as savings accounts, credit, insurance and payments to unserved and underserved people, mainly through no-frills accounts and digital channels.

A national financial inclusion scheme launched in 2014 providing basic savings accounts with RuPay cards, overdraft facility and accident insurance to unbanked households.

India's domestic card payment network, launched by the National Payments Corporation of India, offering debit, credit and prepaid cards accepted across banks and payment systems.

A real-time payment system by NPCI that lets users transfer money between bank accounts instantly using a virtual payment address, mobile app or QR code.

An umbrella organisation owned by banks that operates retail payment systems including UPI, RuPay, IMPS, NACH and the BHIM application under RBI guidance.

Debt instruments issued by the central or state government to borrow money, paying fixed or floating interest. Banks hold them for SLR compliance and as collateral for repo borrowings.

The RBI's purchase or sale of government securities in the market to inject or absorb liquidity. Purchases expand money supply while sales drain it.

A scheme giving farmers a revolving credit limit for crop production and allied needs, with simplified documentation, flexible repayment and interest subvention on prompt payment.

The excess of a country's imports of goods, services and transfers over its exports. It must be financed by capital inflows and reflects external imbalance.

A systematic record of all economic transactions between a country's residents and the rest of the world, comprising the current account, capital account and financial account.

Assets held by the RBI in foreign currency, gold, SDRs and reserve position with the IMF, used to defend the rupee and meet external obligations.

The gap between total government expenditure and total receipts excluding borrowings. It measures how much the government must borrow, influencing interest rates and inflation.

A relationship comparing two quantities of the same kind, expressed as a fraction, and an equation stating that two such ratios are equal. Used to share amounts and solve partnership problems.

A fraction expressed with denominator 100, used to compare quantities and compute increases, decreases, discounts and interest. Converting between fractions and percentages speeds up calculation.

Interest calculated only on the original principal for the whole period, equal to principal times rate times time divided by 100. It does not compound.

Interest calculated on both the principal and the interest already accrued, so the amount grows geometrically. It exceeds simple interest for periods longer than one year.

The sum of a set of values divided by the number of values. Useful for finding missing observations, weighted averages and combined averages of groups.

The relationship that distance equals speed multiplied by time. Problems often involve relative speed, trains crossing objects, boats and streams, or conversion between km/h and m/s.

Counting methods where permutation arranges selected items in order and combination selects them without regard to order. They underlie probability and arrangement problems.

The numerical measure of how likely an event is, computed as favourable outcomes divided by total equally likely outcomes, with values between zero and one.

The skill of reading tables, bar charts, line graphs and pie charts, then computing ratios, percentages and differences from the given data to answer questions quickly.

A reasoning topic where two or more statements about categories are given and conclusions must be judged as definitely true, possibly true or false, typically solved with Venn diagrams.

A puzzle type requiring candidates to place people in a row or around a circle using clues about positions, facing directions and adjacency.

Reasoning questions describing family relationships through statements, chains or diagrams, asking how two people are related or identifying a person's gender.

Problems tracking a person's movement through turns and distances, requiring the net displacement and final facing direction to be calculated, often with Pythagoras' theorem.

A broad reasoning category covering floor, box, scheduling and category-based puzzles where multiple attributes must be matched using a set of interlinked clues.

Questions where words are written in a coded form under a rule, and the candidate must apply the same rule to decode a given word or encode a new one.

A sequence mixing letters, numbers and symbols where the candidate must identify the pattern or answer position-based questions about the elements.

Reasoning problems presenting statements with symbols such as greater than, less than, equal to or not equal to, requiring conclusions about the relationship between elements to be validated.

A passage-based section testing the ability to grasp the main idea, infer meaning, identify tone and answer questions about details without importing outside knowledge.

A passage with certain words or phrases removed, where the candidate must choose the option that fits each blank grammatically and contextually.

A set of sentences given in scrambled order that must be rearranged into a coherent paragraph using connectors, pronouns and logical flow.

A question type where a sentence is divided into parts and the candidate must spot the grammatically incorrect segment or decide that no error exists.

A question giving a sentence with an underlined phrase and options to replace it, testing grammar, idiom and appropriateness of usage.

Vocabulary questions asking for a word with the same meaning as, or the opposite meaning to, a given word, requiring both precision and awareness of context.

Fixed expressions whose meaning cannot be derived from the individual words, tested by asking for the correct usage or meaning in a sentence.