MSC Bank Recruitment key terms

The interest rate at which the Reserve Bank of India lends short-term funds to commercial banks against government securities. Raising it makes credit costlier and helps 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 is used to drain excess money from the system.

The share of a bank's net demand and time liabilities that must be kept as cash with the RBI. This money earns no interest and cannot be lent to customers.

The minimum portion of net demand and time liabilities a bank must hold in safe assets such as cash, gold, or approved government securities before lending the rest.

The total of a bank's demand deposits, time deposits, and other liabilities owed to outsiders, after subtracting assets held with other banks. It is the base for computing CRR and SLR.

The RBI's window through which banks borrow or park funds overnight using repo and reverse repo operations, helping keep short-term interest rates near the policy target.

The rate the RBI charges for long-term lending to banks, without requiring collateral. It is a penal rate used when banks fall short of reserve requirements and signals the central bank's stance.

An emergency borrowing window allowing banks to raise overnight funds from the RBI against government securities, up to a limit, at a rate slightly above the repo rate.

A loan on which the borrower has not paid interest or principal for more than ninety days. Such assets stop earning income and must be provided for in the bank's books.

The total outstanding principal value of all loans classified as non-performing, before subtracting provisions or recoveries. It shows the absolute size of a bank's bad loan burden.

Money a bank sets aside from profits to absorb expected losses on doubtful loans and other assets. Higher provisions reduce reported profit and strengthen the balance sheet against defaults.

The ratio of a bank's capital to its risk-weighted assets, showing how much cushion it holds against unexpected losses. Regulators set a minimum to protect depositors.

International standards on bank capital, liquidity, and risk management issued by the Basel Committee. They set minimum capital buffers and are adopted by national regulators such as the RBI.

A rule requiring banks to give a fixed share of credit to sectors such as agriculture, small enterprises, education, and housing for weaker sections, as directed by the RBI.

The process of bringing unbanked and under-served people into the formal financial system through basic accounts, affordable credit, insurance, and digital payments.

A national scheme launched in 2014 to open basic savings accounts for every household, offering a debit card, overdraft facility, and accident insurance cover.

A scheme giving farmers a revolving credit limit for crop production, allied activities, and consumption needs, with simplified documentation and concessional interest rates.

A document promising or ordering payment of money that can be transferred by delivery or endorsement, giving the holder a right to sue on it. Cheques and bills of exchange are examples.

The act of signing the back of a negotiable instrument to transfer it to another person or to make the signer liable if it is dishonoured.

A written order directing a bank to pay a stated sum from the drawer's account to the payee or bearer. It must be dated, signed, and drawn on a specified bank.

A banker's right to retain a customer's goods or securities until a debt owed to the bank is repaid. It is a legal claim that prevents the customer from taking back the asset.

A transfer of interest in immovable property as security for a loan, where the borrower keeps ownership but the lender may sell the property on default.

A bailment of movable goods as security for a debt, where the lender takes physical possession and must return the goods once the loan is repaid.

The mandatory process by which a bank verifies a customer's identity, address, and source of funds before opening an account or allowing transactions, to prevent fraud and money laundering.

Laws and procedures that require financial institutions to detect, report, and prevent the conversion of illegal earnings into apparently legitimate funds.

The segment where new securities are issued and sold for the first time by companies or governments to raise capital directly from investors.

The exchange-based market where already-issued securities are bought and sold among investors, providing liquidity and price discovery rather than fresh capital to issuers.

A company's first sale of shares to the public, raising capital and listing the stock on an exchange. It converts a privately held firm into a publicly traded one.

A pooled investment vehicle that collects money from many investors and invests it in stocks, bonds, or other assets under professional management, issuing units to participants.

The per-unit value of a mutual fund, calculated by subtracting liabilities from total assets and dividing by the number of outstanding units, usually disclosed daily.

A facility allowing an investor to put a fixed sum into a mutual fund at regular intervals, averaging purchase cost and encouraging disciplined long-term saving.

Interest calculated on both the original principal and the interest already earned, so the amount grows faster than with simple interest over the same period.

Interest computed only on the original principal for the whole period, without adding accumulated interest to the base. It equals principal times rate times time divided by one hundred.

A comparison of two quantities by division, and an equation stating that two such comparisons are equal. These concepts underpin problems on mixtures, partnerships, and scale.

A fraction expressed as a part per hundred, used to compare quantities of different sizes. Converting between fractions, decimals, and percentages is basic to arithmetic problems.

A form of reasoning in which two or more premises are given and a conclusion must be tested for validity, typically using statements about all, some, or no members of a category.

Reasoning puzzles that present family relationships through statements or symbols, requiring the candidate to work out how two people are related.

A reasoning item that gives a pair of related words or numbers and asks the candidate to find another pair sharing the same relationship, testing pattern recognition.

A fixed expression whose meaning cannot be understood from the literal words used, such as 'to let the cat out of the bag' meaning to reveal a secret.

A verb combined with a preposition or adverb that creates a new meaning, as in 'put off' meaning to postpone. The particle changes the sense of the base verb.

A word that has the same or nearly the same meaning as another word in a given context, such as 'begin' and 'commence'.

A word whose meaning is opposite to that of another word, such as 'scarce' and 'abundant'. Questions test the ability to pick the correct opposite in context.

System software that manages a computer's hardware, memory, files, and programs, and provides a platform on which application software runs, such as Windows or Linux.

Volatile primary memory that temporarily holds data and instructions the processor is actively using. Its contents are lost when the computer is switched off.

Hardware or software that monitors and filters incoming and outgoing network traffic against set rules, blocking unauthorised access to a computer or network.