Punjab PSEB Matric NSQF BFSI flashcards

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

Reserve Bank of India

India's central bank and regulator of banks and NBFCs; it issues currency, conducts monetary policy, acts as banker to government and banks, and supervises the financial system.

Demand deposit

A deposit repayable on demand, such as a savings or current account; it carries low or nil interest and is withdrawable by cheque, ATM or electronic transfer.

Fixed deposit

A time deposit kept with a bank for a fixed tenure at a fixed interest rate; premature withdrawal is allowed with a penalty, and interest above the threshold attracts TDS.

KYC

Know Your Customer: mandatory identity and address verification, photograph and due diligence done by a bank before opening an account or allowing specified high-value transactions.

Non-Performing Asset

A loan or advance where interest or principal has remained overdue for more than 90 days; the bank must make provisions for it, reducing profit and capital.

NPA classification order

Standard when dues are current; substandard when NPA for up to 12 months; doubtful when NPA beyond 12 months; loss asset when identified as uncollectible.

Crossed cheque

A cheque with two parallel lines, payable only through a bank account; general crossing means any banker, special crossing names a particular banker and restricts further negotiation.

Stale cheque

A cheque presented after three months from its date; banks normally return it unpaid, and the drawer must issue a fresh cheque for payment.

Simple interest formula

Simple interest equals principal multiplied by rate per annum multiplied by time in years, divided by 100; interest is charged only on the original principal.

PMJDY

Pradhan Mantri Jan Dhan Yojana: a financial inclusion scheme providing basic savings accounts with RuPay debit card, accident cover and an eligible overdraft facility.

Primary market

The market where new securities are issued to investors through an IPO, FPO, rights issue or bond issue; proceeds go to the issuer, not to a selling shareholder.

Secondary market

A stock exchange such as NSE or BSE where already-issued securities are bought and sold between investors; prices are set by trading and regulated by SEBI.

SEBI

Securities and Exchange Board of India; it regulates stock exchanges, brokers, mutual funds and depositories and protects investors in the securities market.

Demat account

An account with a depository participant holding securities in electronic form; NSDL and CDSL are India's depositories that record such holdings.

NAV

Net Asset Value: total assets of a mutual fund scheme minus its liabilities, divided by units outstanding; used to price purchases and redemptions.

SIP

Systematic Investment Plan: a fixed amount invested in a mutual fund at fixed intervals, giving rupee-cost averaging and disciplined saving rather than lump-sum timing.

Open-ended scheme

A mutual fund scheme that allows continuous purchase and redemption of units at NAV, with no fixed maturity date, unlike a closed-ended scheme.

Principle of indemnity

In general insurance, the insured is compensated for actual loss up to the sum insured, never profiting from the loss; life insurance is not a contract of indemnity.

Insurable interest

A financial relationship in which the insured benefits from the subject's survival or suffers loss from its damage; required for life insurance at contract formation.

Utmost good faith

Both parties must disclose all material facts relevant to the risk; non-disclosure or misrepresentation by the proposer can allow the insurer to repudiate a claim.

IRDAI

Insurance Regulatory and Development Authority of India; it licenses insurers, agents, brokers and TPAs, and sets solvency, product and policyholder-protection norms.

Sum assured

The amount stated in a life insurance policy payable on death or maturity; premiums are calculated on the basis of sum assured, age and policy term.

Term insurance

A pure protection life policy paying the sum assured only if the insured dies during the term; it has no maturity value and carries a lower premium.

Bonus in life insurance

Surplus distributed to holders of participating (with-profit) policies, usually declared annually and paid along with the sum assured at maturity or claim.

NPS

National Pension System, a defined-contribution pension scheme regulated by PFRDA with Tier-I and Tier-II accounts; part of the corpus must buy an annuity.

FIU-IND

Financial Intelligence Unit-India receives cash transaction reports and suspicious transaction reports from banks and financial institutions under anti-money-laundering rules.

RTGS

Real Time Gross Settlement: high-value fund transfers settled individually and immediately through RBI, without netting, and available during prescribed banking hours.

NEFT

National Electronic Funds Transfer: a retail payment system settling transactions in batches through RBI; it has no minimum amount and operates on a 24x7 basis.

UPI

Unified Payments Interface: a mobile payment system allowing instant account-to-account transfers between banks using a virtual payment address, available 24x7.

Credit score

A numerical summary of repayment history held by a credit bureau such as CIBIL; it influences loan approval, sanction amount and the interest rate offered.

RBI Integrated Ombudsman

A single-window grievance mechanism for bank and NBFC customers whose complaints to the institution remain unresolved within the prescribed period.

Nomination in BFSI

A facility naming a person to receive deposits, securities or insurance proceeds on the holder's death, avoiding delay in settlement to legal heirs.

NSQF level

A national framework placing qualifications from level 1 to 10 by learning outcomes, increasing in complexity and autonomy; BFSI job roles map to specific levels.