PSEB SS NSQF BFSI (BC/BF) flashcards

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

NSQF level descriptor

A statement of what a learner can do at a given NSQF level, expressed as learning outcomes covering knowledge, skill and responsibility; it is the basis for assessing vocational competence.

Basic Savings Bank Deposit Account

A no-frills savings account with no minimum balance requirement, free deposits and four free withdrawals a month; banks must not convert it into a regular account to levy charges.

Officially Valid Document

A document accepted for KYC identity or address proof, such as passport, driving licence, voter ID or NREGA job card, subject to the bank's risk-based policy.

Simplified KYC

A lighter customer due diligence process for low-risk customers and small accounts, with limited balance and turnover, designed to widen financial inclusion while retaining identity records.

DICGC cover

Deposit insurance that repays each depositor up to five lakh rupees per bank, covering principal plus interest on savings, current, fixed and recurring deposits, within the prescribed timeline.

Priority Sector Lending

A regulatory requirement for banks to direct a minimum share of credit to agriculture, micro enterprises, weaker sections and other specified sectors, with shortfalls routed to RIDF-type funds.

Negotiable instrument

A document transferable by delivery or by endorsement and delivery, giving the holder a right to payment; cheques, bills of exchange and promissory notes are the main examples.

Cheque validity period

In India a cheque is payable within three months of the date written on it; after that it is stale and the paying bank will return it unpaid.

Reducing-balance interest

Loan interest charged only on the outstanding principal after each repayment, so the interest burden falls as the loan is repaid, unlike flat-rate interest on the original amount.

EMI formula

Equated monthly instalment equals principal times monthly rate times (1 plus monthly rate) to the power of months, divided by that power minus one.

CAGR

Compound annual growth rate is the end value divided by the start value, raised to the power of one over the number of years, minus one; it smooths growth over time.

Banking Ombudsman route

A complaint is first filed with the regulated entity; if unresolved or unsatisfactory within thirty days, the customer may approach the RBI-integrated Ombudsman for a binding award.

Bearer versus order cheque

A bearer cheque is payable to whoever presents it, while an order cheque requires endorsement and delivery by the named payee before payment is made.

Know Your Customer

The process of identifying a customer and verifying identity and address through accepted documents, then monitoring transactions in line with the customer's assessed risk category.

Politically exposed person

A customer entrusted with prominent public functions, or a close associate or family member, who is treated as higher risk and requires enhanced due diligence and senior approval.

Adjusted Net Bank Credit

Net bank credit plus outstanding deposits with other banks and certain refinance balances, used as the base for computing priority sector lending targets.

Aadhaar-enabled Payment System

A biometric or OTP-based system letting a customer operate a bank account through a business correspondent's device using Aadhaar authentication, with a printed transaction receipt.

Business correspondent

An authorised agent who delivers basic banking services such as deposits, withdrawals and account opening at locations away from a bank branch, under the bank's responsibility.

Cash reconciliation

The shift-close process of comparing physical cash counted against the system's expected balance; any excess or shortfall is recorded, explained and reported the same day.

Note security features

Visual and tactile checks such as watermark, security thread, microprint, intaglio feel and see-through register used to confirm a banknote is genuine during cash handling.

Mutilated note exchange

A counter service where damaged notes are exchanged free of charge if the essential area and pieces meet the prescribed tests, and refused if deliberately altered.

Stale cheque

A cheque presented after three months from its written date; the bank returns it unpaid because the instrument is no longer valid.

Post-dated cheque

A cheque bearing a future date that cannot be paid before that date; the lab check is to identify it and hold it for presentation on or after the stated date.

Material alteration

Any change to a cheque's date, amount, payee or other essential term; it must carry the drawer's full signature, otherwise the instrument is treated as invalid.

Day-end cash summary

A closing statement showing opening cash, total receipts, total payments and closing cash, used to prove the terminal is balanced before the correspondent logs off.

Transaction receipt

A printed or SMS record issued for every BC transaction, carrying date, amount, reference number and account details, so the customer and bank can trace the entry.

Biometric authentication

Verification of a customer's identity by matching a fingerprint or iris scan against stored records, commonly used with Aadhaar to authorise withdrawals at a BC point.

OTP sharing fraud

A social-engineering attack in which a fraudster persuades a customer to reveal a one-time password to complete an unauthorised transaction; staff must never request or accept an OTP.

Customer grievance register

A log recording each complaint with date, subject, reference number and action taken, used to track resolution and show the escalation route to the Ombudsman.

Teller cash limit

The maximum cash a teller or BC may hold or pay out in a shift; amounts above it require dual authorisation or referral to the branch.

Dual custody

A control in which cash, keys or security items are held by two authorised persons jointly, so that no single person can access or move them alone.

Signature verification

Comparison of the signature on an instrument or form with the specimen held on record, a mandatory check before paying a cheque or completing account opening.