IIBF UCB Certificate flashcards
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31 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Multi-State Co-operative Societies Act
- The 2002 federal statute governing co-operative societies operating in more than one state, covering registration, management, audit, and winding up of such societies.
- Banking Regulation Act Section 22
- The provision under which the Reserve Bank of India grants a banking licence; a co-operative society cannot commence banking business without it.
- Scheduled urban co-operative bank
- An urban co-operative bank that satisfies RBI capital and deposit benchmarks and is included in the Second Schedule to the Reserve Bank of India Act, 1934.
- One member one vote
- The co-operative governance principle under which each member has a single vote regardless of shareholding, unlike the proportional voting of a joint stock company.
- Board supersession by RBI
- The regulator's power to remove a bank's board and appoint an administrator for a specified period when management is found unfit or the bank's affairs are mismanaged.
- Substandard asset
- A loan classified as a non-performing asset that has remained overdue for more than 90 days but has not yet completed twelve months as a non-performing asset.
- Doubtful asset
- A non-performing asset that has remained substandard for twelve months, with collection or liquidation uncertain but some recovery still expected.
- Loss asset
- An asset identified as uncollectible by the bank, its auditors, or the regulator, with little or no security value remaining.
- Capital to risk-weighted assets ratio
- A prudential measure of capital adequacy computed as regulatory capital divided by risk-weighted assets, expressed as a percentage of the risk exposure.
- DICGC deposit insurance
- Insurance covering each depositor per bank up to the statutory limit, applying to principal and interest, funded by premiums paid by insured banks.
- Priority sector lending target
- The share of a bank's lending that must go to specified sectors such as agriculture, micro enterprises, housing, and weaker sections, calibrated to bank category.
- Credit-deposit ratio
- Loans and advances divided by total deposits, indicating how much of the deposit base a bank has deployed as credit rather than held in liquid assets.
- Statutory liquidity ratio
- The minimum proportion of net demand and time liabilities that a bank must hold in approved liquid assets such as cash, gold, and specified securities.
- Cash reserve ratio
- The proportion of net demand and time liabilities that a bank must maintain as cash balances with the Reserve Bank of India.
- Co-operative statutory audit
- The annual audit of a co-operative bank's accounts by an auditor appointed under the relevant co-operative societies law, reported to the registrar.
- RBI inspection under Section 35
- The regulator's periodic examination of a bank's books, accounts, and affairs to assess financial soundness, compliance, and management quality.
- Know Your Customer
- The mandatory identity and address verification process at account opening, with periodic re-verification whose frequency depends on the customer's risk category.
- Periodic re-KYC
- The risk-based refresh of customer identification data, conducted more frequently for high-risk customers and at longer intervals for low-risk customers.
- Video-based customer identification
- A permitted remote onboarding method in which the customer is identified through a recorded video interaction, subject to consent and audit trail requirements.
- Aadhaar-based e-KYC
- An electronic onboarding route using Aadhaar authentication with the customer's consent to verify identity and address without paper documents.
- Suspicious transaction report
- A confidential filing to the financial intelligence unit about a transaction that appears unusual or potentially linked to crime, regardless of the amount involved.
- Tipping off prohibition
- The rule that a bank and its staff must not disclose to the customer that a suspicious transaction report has been filed or is being considered.
- Techno-economic viability study
- An appraisal of a large term loan covering project cost, market feasibility, technical soundness, and cash flow before sanction is granted.
- Drawing power
- The maximum amount a borrower may draw under a working capital limit, computed from paid stock and book debts after deducting the stipulated margin.
- CERSAI registration
- The filing of a security interest over immovable property in the central registry so that the charge is traceable and enforceable against third parties.
- SARFAESI enforcement
- The statutory route allowing a secured creditor to take possession of and sell secured assets without court intervention after a sixty-day demand notice.
- Penal interest disclosure
- The requirement that the rate and basis of penal charges for default be stated in the loan agreement and applied only to the defaulted amount.
- Loan agreement essentials
- The sanction document recording amount, interest rate, repayment schedule, security, margin, and covenants, signed by the borrower before disbursement.
- Charge creation on immovable property
- The legal process of mortgaging property to the bank, requiring registration with the relevant registrar and, where applicable, the central security registry.
- Credit rating of borrower
- An assessment of repayment capacity and creditworthiness used to price loans and set exposure limits, required above prescribed thresholds.
- Recovery through asset sale
- The disposal of secured assets after due notice, with sale proceeds applied to the outstanding dues and any surplus returned to the borrower.