RBSE Prav Voc BFSI key terms

The umbrella term for the banking, financial services and insurance industries, covering banks, insurers, mutual funds, brokerages and non-bank lenders that together move and protect money in an economy.

The effort to give every adult affordable access to basic financial services such as a savings account, credit, insurance and digital payments, especially people in rural or low-income groups who were previously excluded.

A person or small business appointed by a bank to offer basic services, such as opening accounts, accepting deposits and helping with payments, in places where the bank has no branch, earning a commission for each transaction.

Current Account Savings Account: low-cost deposits banks hold in savings and current accounts, which usually pay little or no interest and are a cheap, stable source of funds for lending.

A loan or advance on which the borrower has stopped paying interest or principal for more than 90 days, so the bank must classify it as bad and set aside money to cover the loss.

The fixed amount a borrower repays every month on a loan, made up of interest plus a slice of principal, calculated so the loan is fully repaid by the end date.

The loan amount divided by the market value of the asset pledged as security, usually a property or vehicle; a higher ratio means the lender carries more risk and may charge a higher rate.

A three-digit number from 300 to 900 summarising a borrower's repayment history and credit behaviour, used by lenders to judge how likely a person is to repay a new loan on time.

Unified Payments Interface: a mobile payment system run by NPCI that lets a person send money instantly between bank accounts using a virtual payment address or phone number, without entering account details.

Real Time Gross Settlement: an RBI-run system for sending large-value payments one by one in real time, with immediate final settlement, typically used for high-value business and interbank transfers rather than small retail payments.

A rule requiring banks to lend a minimum share of their loans to sectors such as agriculture, small businesses, education and low-income housing, which the regulator considers underserved.

The interest rate at which the central bank lends short-term money to commercial banks against government securities; changes in it influence deposit rates, loan rates and overall inflation in the economy.

A collective investment scheme that pools money from many investors and invests it in shares, bonds or other assets, managed by a professional fund manager, with each investor owning units of the pool.

The market value of a mutual fund's assets minus its liabilities, divided by the number of units outstanding; it is the price at which investors buy or redeem units.

An account that holds securities such as shares and bonds in electronic form instead of paper certificates, allowing the investor to buy, sell and transfer holdings through a broker.

The Securities and Exchange Board of India, the regulator that supervises stock exchanges, brokers, mutual funds and listed companies to protect investors and keep securities markets fair and transparent.

A facility that lets an investor put a fixed sum into a mutual fund at regular intervals, spreading purchases across market levels and building discipline rather than trying to time the market.

The amount a policyholder pays, usually once a year or monthly, to keep an insurance policy in force; it is the price the insurer charges for taking on the risk.

The maximum amount the insurer will pay under a policy, either as a lump sum on death or as reimbursement of expenses; it sets the upper limit of the cover.

The part of a covered loss that the policyholder must bear before the insurer pays anything; a higher deductible usually means a lower premium because the insurer's exposure is smaller.

The percentage of insurance claims an insurer has paid out of the claims it received in a year, often used as a rough indicator of how reliably it honours policies.

A firm that processes health insurance claims on behalf of the insurer, handling hospital bills and pre-authorisation, and sometimes also offering wellness and claims support services.

An accounting method where every transaction is recorded in at least two accounts, one debit and one credit of equal value, so that the accounting equation stays in balance.

A statement listing all ledger account balances at a particular date, with debits and credits in separate columns, used to check that total debits equal total credits before preparing final accounts.

A financial statement showing what a business owns as assets, what it owes as liabilities and the owners' equity at a point in time, usually expressed as assets equal liabilities plus equity.

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

Selling an additional, related product to an existing customer, for example offering a credit card or insurance along with a savings account, to deepen the relationship and increase revenue.

The processes and software a BFSI firm uses to record every customer interaction, track service requests and sales leads, and give staff a complete view of each customer.

A formal process for receiving, recording and resolving customer complaints within fixed time limits, starting with the branch or bank's internal team and escalating to an ombudsman if unresolved.

The mandatory process of verifying a customer's identity, address and nature of business before opening an account or giving a loan, to prevent fraud and money laundering.

The laws, procedures and monitoring a BFSI firm uses to detect and report attempts to hide the origin of illegally earned money, including filing suspicious transaction reports with authorities.

A person entrusted with a prominent public role, plus close family members and associates, who is treated as higher risk in KYC checks because of greater exposure to bribery and corruption.

A fraud where criminals send fake emails, messages or websites that look genuine to trick customers into revealing passwords, card details, OTPs or UPI PINs so their accounts can be drained.

An independent RBI-appointed authority that hears customer complaints against banks and certain regulated entities, such as service delays or wrongful charges, and can order compensation within its scope.

Basel III is an international framework of bank capital and liquidity rules; the capital adequacy ratio expresses a bank's capital as a percentage of risk-weighted assets, showing its ability to absorb losses.

A structured work-based training arrangement, often under NAPS in India, where a learner works in a firm under a contract, learns practical skills on the job and studies related theory for a recognised qualification.

Micro, Small and Medium Enterprises: businesses defined by limits on investment and turnover, which receive support such as priority sector loans, cheaper credit, subsidies and protection against delayed payments.

The activity of spotting an opportunity, assembling resources, taking on risk and building a new business or venture, including inside an existing firm, in order to create value and earn profit.

Training that combines classroom or online study with real work in a firm, so the learner practises job tasks while earning credit, often through internships, live projects or apprenticeships.