JAIIB IE&IFS 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 and steer the policy interest rate.

The rate at which the Reserve Bank of India absorbs surplus liquidity from banks by borrowing against government securities; it sits below the repo rate and forms the floor of the liquidity adjustment corridor.

The share of a bank's net demand and time liabilities that must be held as cash balances with the Reserve Bank of India, earning no interest and reducing funds available for lending.

The minimum proportion of net demand and time liabilities that a bank must hold in cash, gold, or approved government securities before lending; it is set by the Reserve Bank of India.

The aggregate of liabilities that a bank must maintain in India, comprising demand deposits, time deposits, and borrowings from other banks, used as the base for reserve requirements.

The standard rate at which the Reserve Bank of India is prepared to buy or rediscount eligible bills of exchange or other commercial paper, acting as a ceiling for the policy corridor.

A window allowing banks to borrow overnight from the Reserve Bank of India against approved government securities, above the repo rate, by dipping into their statutory liquidity ratio holdings.

The Reserve Bank of India's framework of repo and reverse repo operations that manages day-to-day liquidity in the banking system and keeps short-term money market rates within the policy corridor.

A six-member statutory body chaired by the Reserve Bank of India Governor that meets to set the policy repo rate and targets consumer price inflation at four per cent with a two per cent tolerance band.

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

An index measuring price changes at the wholesale or producer level across primary articles, fuel, and manufactured products, used as a supplementary inflation indicator rather than the policy target.

The total money value of all final goods and services produced within a country's borders during a given period, used as the broadest measure of economic activity.

The value of output produced in an economy minus intermediate consumption, measured at basic prices; it sums to gross domestic product once product taxes and subsidies are adjusted.

The gap between total government expenditure and total receipts excluding borrowings, indicating how much the government must borrow to fund its spending in a year.

The excess of revenue expenditure over revenue receipts, showing the shortfall in meeting recurring spending such as salaries and interest from routine income like taxes.

The fiscal deficit minus interest payments on past debt, showing the current year's borrowing need before the burden of legacy interest obligations is counted.

A law obliging the central government to pursue transparency in fiscal operations and to keep deficits within targets it sets and reports to Parliament.

Investment by a non-resident into a business in India that creates a lasting interest and significant management control, typically ten per cent or more of equity, and is long-term in nature.

Investment in Indian shares, bonds, and similar securities by non-residents that does not confer control over the issuer and is generally liquid and short-term relative to direct investment.

The excess of a country's imports of goods, services, and transfers over its exports of the same, reflecting net borrowing from abroad to finance domestic absorption.

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

Assets held by the Reserve Bank of India in foreign currency, gold, and special drawing rights, used to meet external obligations and to stabilise the rupee.

An international reserve asset created by the International Monetary Fund and allocated to member countries, valued against a basket of major currencies and usable in official settlements.

A multilateral institution that promotes global monetary cooperation, monitors member economies, and provides temporary balance-of-payments financing to countries in difficulty.

A multilateral development institution, with the International Bank for Reconstruction and Development as its main lending arm, that finances infrastructure and poverty-reduction projects in member countries.

An exchange rate theory holding that currencies should adjust so identical baskets of goods cost the same across countries, used to compare living standards internationally.

The central bank of India, responsible for monetary policy, currency issue, banking supervision, and currency management, established in 1935 and nationalised in 1949.

A bank included in the Second Schedule of the Reserve Bank of India Act, meeting prescribed capital and conduct conditions and thereby eligible for central bank facilities.

A differentiated bank permitted to accept deposits up to a prescribed ceiling per customer and provide payment services, but barred from lending and from issuing credit cards.

A differentiated bank licensed to serve unserved and underserved segments by accepting deposits and lending, with priority-sector lending requirements higher than those for universal banks.

A requirement that banks direct a minimum share of credit to specified activities such as agriculture, micro and small enterprises, education, housing, and weaker sections.

A company registered with the Reserve Bank of India that provides loans, advances, or asset finance but cannot accept demand deposits and is not part of the payment settlement system.

A wholly owned Reserve Bank of India subsidiary that insures bank deposits up to a prescribed limit per depositor per bank, protecting small savers if a bank fails.

A unified law providing time-bound resolution of distressed companies, individuals, and partnerships through a professional resolution process or liquidation under a regulator.

The statutory regulator of India's securities market, protecting investors and regulating stock exchanges, intermediaries, mutual funds, and public issues of securities.

A pooled investment vehicle that collects money from many investors and invests it in a diversified portfolio of securities, issuing units valued at net asset value.

The value of a fund's total assets minus its liabilities, divided by the number of units outstanding, used to price units for purchase and redemption.

The process of ensuring that individuals and businesses have access to affordable, useful financial products and services such as accounts, credit, insurance, and payments.

A real-time payment system operated by the National Payments Corporation of India that lets users transfer funds between bank accounts instantly using a virtual payment address.

An entity promoted by the Reserve Bank of India and banks that operates retail payment systems, including the unified payments interface, card networks, and clearing houses.