WBBSE Madhyamik Banking & Financial Services (Vocational) flashcards

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

Scheduled bank

A bank listed in the Second Schedule of the RBI Act, 1934, meeting minimum paid-up capital and reserve conditions and eligible for RBI facilities.

CRR

Cash Reserve Ratio: the percentage of a bank's net demand and time liabilities that must be kept as cash with the Reserve Bank of India.

SLR

Statutory Liquidity Ratio: the share of net demand and time liabilities a bank must hold in cash, gold or approved securities before lending.

Priority Sector Lending

A mandate requiring banks to give a fixed proportion of credit to agriculture, MSMEs, education, housing and weaker sections of society.

Current account

A deposit account for businesses that usually pays no interest and allows unlimited withdrawals, used for frequent day-to-day transactions.

Crossed cheque

A cheque marked with two parallel lines, which cannot be cashed at the counter and must be collected through a bank account.

KYC

Know Your Customer: mandatory identity, address and photograph verification a bank performs before opening an account or granting credit.

Bank guarantee

A written promise by a bank to pay a beneficiary a stated sum if the applicant fails to meet a contractual obligation.

Rule of 72

A quick estimate of doubling time: divide 72 by the annual interest rate percentage to get the approximate number of years.

Real return

The return on an investment after adjusting for inflation, roughly equal to the nominal return minus the inflation rate.

Emergency fund

Liquid savings set aside to cover three to six months of essential expenses during job loss, illness or other income shocks.

Credit score

A number from 300 to 900 issued by bureaus like CIBIL, summarising repayment history and used by lenders to judge creditworthiness.

Compound interest

Interest calculated on both the original principal and accumulated interest, using A = P(1 + r/n)^(nt) for n compounding periods yearly.

Net Asset Value

The per-unit value of a mutual fund scheme, calculated as total assets minus liabilities divided by the number of units outstanding.

Insurable interest

A financial stake in the person or property insured such that loss or damage would cause the policyholder genuine monetary loss.

Public Provident Fund

A government savings scheme with a 15-year term, quarterly declared interest, and partial withdrawal and loan facilities after specified years.

UTI

A real-time retail payment system run by NPCI that transfers funds instantly using a Virtual Payment Address or mobile number.

RTGS

Real Time Gross Settlement: an RBI system settling large-value payments individually and instantly, with a minimum transaction of two lakh rupees.

Phishing

A fraud where fake emails, messages or websites imitate a bank to trick customers into revealing passwords, OTPs or card details.

Two-factor authentication

Security using two independent proofs of identity, typically a PIN or password plus a one-time password sent to the registered device.

Accounting equation

Assets equal Liabilities plus Capital; every transaction changes at least two elements while keeping this balance intact.

Trial balance

A statement listing all ledger balances to verify that total debits equal total credits before preparing final accounts.

Bank reconciliation statement

A statement explaining differences between the cash book bank balance and the passbook balance caused by unpresented cheques and unrecorded items.

Depreciation

The systematic allocation of an asset's cost over its useful life, recorded as an expense in the profit and loss account.

Active listening

Fully concentrating on a customer, paraphrasing and confirming understanding instead of preparing a reply while they speak.

Service recovery

The process of responding to a service failure promptly and fairly so the customer's trust and loyalty are restored.

Integrated Ombudsman Scheme

An RBI scheme allowing bank customers to escalate unresolved complaints to a single ombudsman for free, time-bound redressal.

Banker's confidentiality duty

The obligation not to disclose customer account information except with consent, by law, court order or permitted regulatory practice.

MUDRA loan

A loan under Pradhan Mantri MUDRA Yojana for small businesses, classified as Shishu, Kishore or Tarun by amount financed.

Break-even point

The sales volume at which total revenue equals total cost, found by dividing fixed costs by contribution per unit.

Working capital cycle

Inventory days plus receivable days minus payable days; a shorter cycle means cash is tied up for less time.

Business correspondent

An individual or entity engaged by a bank to deliver basic banking services such as deposits and withdrawals in underserved areas.

Primary data

Information collected first-hand for a specific project through surveys, interviews or observation, rather than from published sources.

Project rubric

A scoring guide listing criteria such as content accuracy, presentation, originality and viva performance used for internal assessment.

Secondary data

Information already published by others, such as RBI reports, bank annual reports or government statistics, reused for project analysis.