Punjab PSEB Matric NSQF BFSI key terms

A financial institution licensed to accept deposits from the public, hold them safely, and lend them out, while also offering services such as payments and remittances.

Money placed by a customer with a bank for safekeeping, usually earning interest, and repayable on demand or after an agreed period.

A basic bank account meant for individuals to keep money, earn modest interest, and withdraw cash or make payments as needed.

A bank account for businesses and frequent transactions that usually pays no interest but allows unlimited deposits and withdrawals.

A sum locked with a bank for a set period at a fixed interest rate, with early withdrawal normally attracting a penalty.

The price paid for using money, charged by a lender on a loan or paid by a bank to a depositor on their savings.

Money lent by a bank or lender to a borrower who agrees to repay it, usually with interest, over an agreed schedule.

Equated Monthly Instalment: the fixed amount a borrower pays each month to repay a loan, covering both principal and interest.

The original amount borrowed or invested, separate from any interest or charges added on top of it.

An asset pledged by a borrower to a lender, which the lender may sell if the loan is not repaid.

A loan secured against property, where the lender can take possession of the property if the borrower fails to repay.

Know Your Customer: the process by which a bank verifies a customer's identity and address using documents before opening accounts or offering services.

Anti-Money Laundering: rules and checks that financial institutions follow to detect and prevent the hiding of illegal money through the system.

A written order directing a bank to pay a stated amount from the drawer's account to a named person or bearer.

The process by which banks exchange cheques and settle the payments between them, confirming funds before crediting the payee.

National Electronic Funds Transfer: a retail system for sending money between bank accounts in India, settled in batches rather than instantly.

Real Time Gross Settlement: a system for large-value transfers where each payment is settled individually and immediately, without batching.

Unified Payments Interface: a mobile system that lets people send money between bank accounts instantly using a simple virtual address.

Using a smartphone application to check balances, transfer funds, pay bills, and carry out other bank transactions remotely.

Accessing a bank account and its services through a secure website, allowing transfers, statements, and bill payments from a computer.

A small booklet, or its digital equivalent, in which a bank records deposits, withdrawals, and the running balance of an account.

Services provided by the finance industry, including banking, insurance, lending, investment, and payment services to individuals and businesses.

A contract in which a person pays regular amounts to a company, which then pays compensation if a specified loss or event occurs.

The amount a policyholder pays, usually monthly or annually, to keep an insurance policy in force and maintain cover.

The person who owns an insurance policy and is responsible for paying its premiums, who may differ from the person insured.

A formal request made by a policyholder to an insurer for payment after a loss or event covered by the policy has occurred.

Cover that pays a sum to nominated beneficiaries when the insured person dies, and sometimes also on survival to a set date.

Insurance covering property, health, motor, and other non-life risks, paying for losses rather than on a person's death.

A pool of money collected from many investors and managed professionally, which invests in shares, bonds, or other assets on their behalf.

Putting money into an asset such as shares, bonds, or property with the aim of earning a return over time.

Net Asset Value: the value of one unit of a mutual fund, calculated as total assets minus liabilities divided by the number of units.

The chance that an investment's actual return will differ from what was expected, including the possibility of losing money.

A regular income paid to a person after retirement, built up through savings or contributions made during their working years.

A number based on a person's borrowing and repayment history, used by lenders to judge how reliably they repay debt.

Deliberate deception used to obtain money or information dishonestly, such as fake calls or stolen card details.