MSC Bank Recruitment flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Repo rate

The rate at which RBI lends short-term funds to commercial banks against government securities; raising it tightens liquidity and typically pushes up lending and deposit rates.

CRR

Cash Reserve Ratio is the percentage of a bank's net demand and time liabilities that must be held as cash with RBI. It earns no interest for the bank.

Capital conservation buffer

Under Basel III, an additional 2.5 percent of risk-weighted assets in common equity above the minimum capital requirement, designed to absorb losses in stress periods.

SARFAESI Act 2002

A law allowing secured creditors to enforce security interests without court intervention after a sixty-day notice, though it does not cover agricultural land.

Accounting equation

Assets equal liabilities plus capital. Every double-entry transaction changes at least two elements while keeping this equality intact.

NPA substandard classification

A loan asset becomes substandard when it has remained overdue for more than ninety days but for twelve months or less as a substandard asset.

DICGC deposit cover

Deposit insurance protects up to five lakh rupees per depositor per bank, covering both principal and interest, and is administered by DICGC, an RBI subsidiary.

Monetary Policy Committee

A six-member body with three RBI members and three government nominees that sets the policy repo rate to keep CPI inflation near four percent.

Current ratio

Current assets divided by current liabilities. It measures short-term liquidity, and a ratio near two to one is conventionally considered comfortable.

Banker's lien

A banker's right to retain customer securities in its possession until a general balance due from the customer is settled, absent a contrary contract.

Holder in due course

A person who takes a negotiable instrument for value, in good faith, before maturity and without notice of defect, thereby acquiring a better title.

Payment in due course

Payment made in good faith and without negligence to the person entitled to the instrument at or after maturity, which discharges the paying banker.

Section 138 NI Act

Makes dishonour of a cheque for insufficient funds an offence, provided a written demand notice is served within thirty days of intimation.

KYC periodic updation

Banks must refresh customer identification at intervals set by risk category, with high-risk customers reviewed more often than low-risk customers.

Suspicious Transaction Report

A report filed with FIU-IND when a transaction appears unusual or lacks apparent economic purpose, regardless of the amount involved.

Segregation of duties

An internal control principle separating authorisation, recording and custody of assets so that no single person can both commit and conceal an error or fraud.

RTGS

Real Time Gross Settlement transfers high-value funds individually and instantly, with a minimum of two lakh rupees, and settles each transaction separately.

IFSC code

An eleven-character code identifying a bank branch in India, used to route NEFT, RTGS and IMPS transfers; the first four characters identify the bank.

Cheque truncation system

An arrangement where cheque images and data are captured electronically, eliminating the physical movement of cheques between branches for clearing.

EMV chip card

A payment card with an embedded chip that generates a unique cryptogram per transaction, making cloning far harder than with magnetic stripe data.

OSI transport layer

The fourth layer of the OSI model, responsible for end-to-end delivery, flow control and error recovery; TCP and UDP operate at this layer.

Asymmetric encryption

A cryptographic scheme using a public key for encryption or verification and a private key for decryption or signing, which also provides non-repudiation.

Pharming

A cyber attack that redirects users to a fraudulent website by manipulating DNS entries or hosts files, even when the correct address is typed.

VLOOKUP function

A spreadsheet function that searches the first column of a range for a value and returns a corresponding value from a specified column in the same row.

Absolute cell reference

A spreadsheet reference written with dollar signs, such as $A$1, that stays fixed when the formula is copied to another cell.

Alligation rule

The ratio in which two ingredients at different prices must be mixed equals the differences between the mean price and each ingredient price, taken crosswise.

Rule of 72

At compound interest, money roughly doubles in seventy-two divided by the annual percentage rate, giving a quick estimate of doubling time.

HCF and LCM relation

For any two positive integers, the product of their highest common factor and lowest common multiple equals the product of the two numbers.

Proximity rule

With either-or and neither-nor constructions, the verb agrees in number with the subject nearer to it, as in neither the clerks nor the manager was.

Uncountable nouns

Words such as information, furniture, advice, equipment and news take singular verbs and have no plural form ending in s in standard usage.

Parallelism in lists

Items joined by and, or or but must share the same grammatical form, so a gerund should not be paired with an infinitive in one list.

Cube painting count

A cube painted on all faces and cut into n cubed small cubes has eight corner cubes with three painted faces and twelve edge cubes with two.