WBCHSE HS Vocational Banking, Financial Services and Insurance key terms

Money held in an account, such as a savings or current account, that the customer can withdraw on demand without prior notice to the bank.

A deposit account used mainly by businesses for frequent transactions, usually paying little or no interest and allowing unlimited withdrawals and cheques.

A sum placed with a bank for a fixed period at an agreed interest rate; it cannot normally be withdrawn early without a penalty.

A savings scheme in which the customer deposits a fixed amount every month for a chosen term and receives the total with interest at maturity.

The mandatory process by which a bank verifies a customer's identity, address and source of funds before opening an account or allowing certain transactions.

Laws, rules and bank procedures designed to detect and prevent the disguising of illegally obtained money as legitimate income.

A confidential report a bank files with the financial intelligence unit when it suspects a transaction may involve money laundering, fraud or terrorist financing.

Ongoing steps a bank takes to understand a customer's business, expected transaction pattern and risk level, and to keep that information current.

A written order instructing a bank to pay a stated sum from the drawer's account to the named payee or bearer.

Refusal by the paying bank to pay an instrument such as a cheque, commonly because of insufficient funds, a signature mismatch or a stopped payment.

The interbank process through which cheques and other payment instruments are exchanged and settled between the banks involved.

National Electronic Funds Transfer: a retail interbank payment system in India that settles individual fund transfers in batches through the RBI.

Real Time Gross Settlement: a system that transfers large-value funds between banks individually and immediately, without netting or batch delay.

Unified Payments Interface: a mobile platform that lets users link bank accounts and send or receive money instantly using a virtual payment address.

A prepaid digital account, usually on a phone, holding money loaded in advance that can be used for payments and transfers.

A technology service that securely authorises and routes card or online payments between a merchant, the customer and the banks involved.

The final transfer of funds between banks that discharges the payment obligations arising from transactions processed during a period.

The percentage charged by a lender on borrowed money or paid by a bank on deposits, usually expressed on an annual basis.

Money lent by a bank or other lender to a borrower, repayable with interest according to agreed terms and a repayment schedule.

An asset pledged by a borrower to secure a loan, which the lender may sell if the borrower fails to repay.

A loan on which the borrower has stopped paying interest or principal for a specified period, so the bank treats it as impaired.

Money a bank sets aside from profit to cover expected losses on loans or other assets that may not be recovered in full.

India's central bank, responsible for monetary policy, issuing currency, regulating banks and supervising the financial system.

The share of a bank's net demand and time liabilities that must be kept as cash with the central bank, earning no interest.

The minimum share of a bank's liabilities that must be held in safe liquid assets such as government securities, cash or gold.

The rate at which the central bank lends short-term money to commercial banks against government securities, used to steer monetary policy.

Actions taken by a central bank to manage money supply and interest rates in order to control inflation and support economic growth.

A sustained rise in the general price level of goods and services, which reduces the purchasing power of money over time.

Debt instruments issued by a government to borrow money, promising periodic interest and repayment of principal on maturity.

A tradable debt instrument in which the issuer borrows from investors and agrees to pay interest and repay the face value on a set date.

A pooled investment vehicle that collects money from many investors and invests it in a portfolio managed by a professional fund manager.

A method of investing a fixed amount in a mutual fund at regular intervals, helping average out purchase cost over time.

The amount a policyholder pays, usually periodically, to an insurer in exchange for the cover provided by the policy.

The written contract between an insurer and a policyholder setting out the cover, conditions, exclusions and obligations of both parties.

The maximum amount the insurer agrees to pay under a life insurance policy when the insured event occurs, as stated in the contract.

A specific risk, event or circumstance listed in an insurance policy for which the insurer will not pay a claim.

A formal request by a policyholder or beneficiary for payment from the insurer after a loss or insured event has occurred.

The amount of a loss that the policyholder must bear before the insurer begins to pay under the policy.

The formal process through which a bank or insurer receives, investigates and resolves customer complaints within stated timelines.

An independent official appointed to examine complaints against banks or insurers and provide resolution without going to court.

The assistance and support a financial institution gives customers before, during and after a product or transaction, including handling queries and complaints.

Efforts to give all sections of society, especially low-income and rural groups, access to affordable and useful financial services.

An agent appointed by a bank to provide basic banking services, such as deposits and withdrawals, in areas where the bank has no branch.

A basic savings account opened under a national financial inclusion scheme, offering features such as zero minimum balance and a linked debit card.

A plastic payment instrument, such as a debit or credit card, used to withdraw cash or pay for goods electronically.

The date on which a deposit, bond or insurance policy reaches the end of its term and the agreed amount becomes payable.

A facility allowing an account holder or policyholder to name a person who will receive the proceeds in the event of their death.