RBI Security Guard 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 borrowing costlier and helps control inflation.

The rate at which the Reserve Bank of India absorbs surplus cash from commercial banks by borrowing against securities. It usually sits below the repo rate and helps drain excess liquidity from the banking system.

The set of decisions taken by a central bank to manage money supply, credit availability and interest rates. In India the Monetary Policy Committee sets these directions roughly every two months.

A six-member body of the Reserve Bank of India that decides the policy repo rate and other monetary measures. It has three RBI members and three external members appointed by the central government.

A sustained rise in the general price level of goods and services, which reduces the purchasing power of money. Central banks typically aim to keep consumer price inflation near a target of about four percent.

A statistical measure of the average change over time in prices paid by households for a fixed basket of goods and services. In India it is released by the National Statistical Office and is the main inflation gauge.

An index tracking price movements at the wholesale or bulk transaction level, before retail margins are added. It covers primary articles, fuel and power, and manufactured products, and is released by the Office of the Economic Adviser.

The share of a bank's net demand and time liabilities that must be kept as cash with the Reserve Bank of India. It earns no interest and is used to control liquidity in the banking system.

The minimum percentage of net demand and time liabilities that a bank must hold in safe assets such as government securities, cash or gold. It is prescribed by the Reserve Bank of India under the Banking Regulation Act.

The ease with which an asset can be converted into cash without significant loss of value, or the amount of cash available in the banking system. High liquidity generally supports lending and lowers short-term interest rates.

The rate at which the Reserve Bank of India lends long-term funds to banks without collateral, or rediscounts bills of exchange. It is one of the RBI's standing liquidity facilities and signals the cost of funds.

A Reserve Bank of India window that lets banks borrow overnight funds against approved government securities, up to a limit of a set share of their net demand and time liabilities. Its rate normally sits above the repo rate.

Purchase or sale of government securities by the central bank in the open market to adjust the amount of money in circulation. Buying securities injects liquidity while selling absorbs it.

The process of ensuring that individuals and small businesses have access to affordable financial services such as bank accounts, credit, insurance and pensions. Initiatives like Jan Dhan accounts and small finance banks support this goal.

The Reserve Bank of India, the country's central bank, established in 1935 and nationalised in 1949. It issues currency, regulates banks and non-bank lenders, manages foreign exchange reserves and conducts monetary policy.

A mandate requiring banks to give a minimum share of their lending to specified sectors such as agriculture, micro enterprises, education, housing and weaker sections. It aims to channel credit to areas that often lack it.

A loan on which the borrower has not paid interest or principal for more than ninety days. Banks must classify such accounts, set aside provisions and follow recovery procedures for them.

A law enacted in 2016 that provides a time-bound process for resolving insolvency of companies and individuals. It allows creditors to take control of a defaulting firm through a resolution professional.

Measures taken by financial institutions to prevent criminals from disguising the proceeds of illegal activity as legitimate funds. These include customer identification, record keeping and reporting of suspicious transactions.

A mandatory process by which banks verify the identity and address of customers using documents such as Aadhaar, PAN or passport. It helps prevent fraud, money laundering and financing of terrorism.

A twelve-digit unique identity number issued by the Unique Identification Authority of India after collecting biometric and demographic data. It is widely used for identity verification and direct benefit transfers.

Drawing a certain conclusion from general premises that are assumed true, as in syllogisms. If the premises hold and the logic is valid, the conclusion must follow necessarily rather than probably.

A form of reasoning with two or more premises and a conclusion, often using statements like all, some or no. Questions ask which conclusion logically follows from the given statements regardless of real-world facts.

A statement given as a starting point in a reasoning question from which a conclusion is drawn. In syllogism questions, premises are treated as true even if they contradict common knowledge.

The statement that is tested against given premises to see whether it follows logically. A valid conclusion must be true whenever the premises are true, without assuming extra information.

A reasoning puzzle that describes family relationships through statements or symbols and asks how two people are related. Candidates draw a family tree to avoid confusing generations and genders.

A reasoning topic in which words or numbers are written in a coded form according to a rule, and the candidate must decode given items or encode new ones. Rules may involve letter shifts, reversals or symbol substitution.

A question type presenting a pair of related items and asking for another pair with the same relationship. The link may be based on function, category, part and whole, or degree.

Also called odd one out, this task asks a candidate to identify the item that does not share the common property of the others. The shared basis may be meaning, spelling, number property or category.

A sequence of letters, numbers or figures following a hidden rule, where the candidate must find the next or missing element. Common rules involve constant differences, alternating patterns or growing gaps.

A reasoning topic involving movement along north, south, east and west, often with turns, and asking for final direction or shortest distance. Sketching the path and using right-triangle geometry usually solves it.

A puzzle where people or objects must be placed in rows, circles or squares according to given conditions about position, facing direction and neighbours. Candidates fix definite clues first and test alternatives.

A reasoning question that gives several interrelated conditions, such as floor, day or age clues, and asks for a complete arrangement. Careful tabulation and elimination of impossible cases are the main techniques.

A comparison of two quantities of the same kind expressed as a quotient, such as three to four. Ratios allow quantities to be scaled together and are widely used in mixture and partnership problems.

An equation stating that two ratios are equal, such as a to b equals c to d. In a proportion the product of the extremes equals the product of the means.

A fraction or ratio expressed as a part of one hundred. It is used to compare quantities, calculate profit and loss, discounts, interest and changes in value.

Interest calculated only on the original principal for the whole period, using the formula principal times rate times time divided by one hundred. It does not earn interest on previously accumulated interest.

Interest calculated on the principal plus interest already added, so the amount grows faster than with simple interest. The formula is principal times one plus rate divided by one hundred, raised to the number of periods.

The sum of a set of values divided by the number of values, also called the arithmetic mean. It is used to find totals, missing values and comparative performance across groups.

A numerical topic where the rate of work of individuals or groups is combined to find the time needed to finish a task. Rates are added when people work together and subtracted when one hinders another.

A topic based on the relation that distance equals speed multiplied by time. Problems often involve relative speed of trains, boats and streams, or conversion between kilometres per hour and metres per second.

The grammatical rule that a verb must match its subject in number and person. Singular subjects take singular verbs and plural subjects take plural verbs, with special cases for collective nouns and indefinite pronouns.

The form of a verb that shows the time of an action, such as present, past or future, and whether it is simple, continuous, perfect or perfect continuous. Correct tense use keeps the timeline of a sentence clear.

A short word placed before a noun to show whether it refers to something specific or general. English has the definite article the and the indefinite articles a and an, chosen by sound.

A word that links a noun or pronoun to another part of the sentence and shows relations such as place, time or direction. Common examples are in, on, at, by, for, with and between.

A word that joins words, phrases or clauses, such as and, but, or, because and although. Correlative pairs like either-or and not only-but also must be used in balanced structures.

Two ways of presenting an action: active voice makes the doer the subject, while passive voice makes the receiver the subject and uses a form of be with the past participle.

Two ways of reporting what someone said. Direct speech quotes the exact words, while indirect speech changes pronouns, tense and time expressions to fit the reporting sentence.

A word that has the same or nearly the same meaning as another word in a given context, such as begin and commence. Synonym questions test vocabulary range and sensitivity to context.

A word with a meaning opposite to another word, such as scarce and abundant. Antonym questions require attention to the exact sense in which the given word is used.

A fixed expression whose meaning cannot be worked out from the individual words, such as to bite the bullet. Idiom questions ask for the correct meaning or the right idiom for a situation.

A passage with some words removed and blanks to be filled from given options. Candidates must use grammar, collocation and overall meaning to choose the word that fits best.

A passage followed by questions on its main idea, details, vocabulary and inferences. Answers should be based on what the passage states or implies, not on personal opinion.