Important Banking Abbreviations

BOE- Bill of Exchange

CASA- Current and Savings Accounts
CBLO- Collateralized Bank Lending Obligations
CIBIL- Credit Information Bureau of India Limited
CRR- Cash Reserve Ratio
KYC- Know Your Customer Guidelines
IPO- Initial Public Offer
SMERA- SME Rating Agency of India Limited
NBFC- Non Banking Finance Companies
NEFT- National Electronic Fund Transfer
RTGS- Real Time Gross Settlement
NPA- Non Performing Assets
QIB- Qualified Institutional Buyers
SLR- Statutory Reserve Ratio
CAR- Capital Adequacy Ratio
SEBI- Securities and Exchange Board of India
MICR- Magnetic Ink Character Recognition
NSE- National Stock Exchange
FCNR- Foreign Currency Non Resident Deposit Accounts
CDRS- Corporate Debt Restructuring
IDRBT- Institute for Development and Research Of Banking Technology

YTM- Yield To Maturity

MCA- Ministry Of Company Affairs
MIS- Management Information System
CRISIL- Credit Rating Information Services Of India
ICRA- Investment Information and Credit Rating Agency of India Limited
CARE- Credit Analysis and Research Limited
IRDA- Insurance Regulatory and Development Authority of India
LIC- Life Insurance Corporation of India
IEPF- Investors Education and Protection Fund
IRDA- Insurance Regulatory and Development Authority
CCIL- Clearing Corporation of India Limited
OTCEI- Over the Counter Exchange Of India
ISCI- International Standard Industrial Classification
KCC- Kisan Credit Card
BCSBI- Banking Codes and Standards Board of India
SEBI- Securities and Exchange Board of India
SFMS- Structured Financial Messaging Services
SHG- Self Help Group
FEDAI- Foreign Exchange Dealers Association of India
ALCO- Asset Liability Committee
ALM- Asset Liability Management
KVIC- Khadi and Village Industries Corporation

KYC- Know Your Customer

EXIM bank- Export and Import Bank of India
NABARD- National Bank for Agriculture and Rural Development
SIDBI- Small Industries Development Bank of India
EDP- Entrepreneurship Development Programme
LAMPS- Large Sized Adivasi Multipurpose Societies
LERMS- Liberalized Exchange Rate Management System
NABARD- National Bank for Agriculture and Rural Development
NBFC- Non Banking Finance Companies
QIB- Qualified Institutional Bankers
RBI- Reserve Bank of India
RDBMS- Relational Database Management System
REC- Rural Electrification Corporation
RFC- Resident Foreign Currency
RIDF- Rural Infrastructure Development Fund
RRB- Regional Rural Bank
RTGS- Real Time Gross Settlement
RWA- Risk Weighted Assets
SBI- State Bank of India
SCB- Scheduled Commercial Bank
NRE- Non Resident External Account
NRI- Non Resident Indian

SDR- Special Drawing Rights

SIDBI- Small Industries Development Bank of India
SIDC- State Industrial Development Corporation
SJSRY- Swarna Jayanthi Shahari Rozgar Yojana
SSI- Small Scale Industries
SME- Small and Medium Industries
SSSBE- Small Scale Service and Business Enterprises

>> Important Banking terms for Bank Exams

UTI- Unit Trust of India
WPI- Wholesale Price Index
EDI- Electronic Data Interchange
SLR- Statutory Liquidity Ratio
SLRS- Scheme for Liberation and Rehabilitation of Scavengers
EMI- Equated Monthly Instalments
EPS- Earning per Share
ESOP- Employee Stock Options
YTM-Yield to Maturity
LAB- Local Area Banks
ALM- Asset Liability Management
ANBC- Adjusted Net Bank Credit
ASBA- Applications Supported Bank Accounts
DPG- Deferred Payment Guarantee

DRI- Differential Rate Of Interest

DSCR- Debt Service Coverage Ratio
FEDAI- Foreign Exchange Dealers Association Of India
FOB- Free On Board
NPV- Net Present Value
DPN- Demand Promissory Note
DRAT- Debt Recovery Appellate Tribunal
OCB- Overseas Corporate Bodies
POA- Power of Attorney OLTAS- Online Tax Accounting System
OMO- Open Market Operations
PACS- Primary Agricultural Credit Societies
PDO- Public Debt Office
PIN- Personal Identification Number

Important Banking Related Terms

Cheque: Cheque is a negotiable instrument containing conditional order to pay sum of money to
the person mentioned on it or to the bearer of the instrument.
Crossing: Two parallel lines drawn on the top left corner of the cheque
Account Payee Cheque: Account payee cheque can be routed only through accounts
Post dated Cheque: The date on the check beyond todays date then cheque becomes post dated.

Stale Cheque: A cheque which has completed the stipulated validity period of the cheque is
called as the stale cheque (The validity period of 6 months as at present)
Mutilated cheque: It is a damaged cheque
Bounced Cheque: It is nothing but an ordinary bank check that any bank can refuse to encash or
pay because of the fact that there is no sufficient balance in the bank account of the originator
At Par cheque: It is payable anywhere in India
Multi city cheque: A cheque which is payable in any branch of a particular bank
Travellers Cheque: Cheques issued by a bank and function as cash but are protected against loss
or theft when travelling.
Money Laundering: Conversion of money which is illegally obtained
Linked Account: Any account linked to another account in the same bank where funds can be
transferred electronically between accounts and carry out other specified services as well
Consumer durables loans: Loan granted by banks for purchasing of white goods
Collateral: A borrower needs to provide some kind of security to the bank in case of high ticket
loans, such security is called collateral
Floating Rate: An interest rate that is referenced to a market rate and is revised as per the
change in the interest rates in the economy. When interest rates in the economy rise, floating
rates rise and vice versa

Exchange Rate: Rate at which the domestic currency can be converted into foreign currency and
vice versa
Inflation: Decreasing the value of money in this state money looses the value hence prices will
go up
Deflation: Opposite to inflation here money will have more value and hence product looses the
value
Electronic Clearing Service (ECS): It is a service provided by the banks to facilitate direct
debit from your bank account towards an investment account (such as a mutual fund SIP) and/or
paying regular loan EMIs.
Billing Cycle: A billing cycle is a time period that covers the credit statement that usually lasts
for 25 days

Bridge Loan: It is also known as swing loan, which is basically a real estate loan or a home
loan, where the current residence/real estate is pledged by the borrower as a collateral in order to
purchase a new residence
Debit cum ATM Card: Customer can deposit and withdraw cash by means of magnetic ATM
Card
Core Banking: A centralized database with online connectivity to branches, internet as well as
ATM network which has been adopted by almost all major banks of the country
Bankassurance: When the banks entertain in dealing with insurance business then it is called as
bankassurance
Short term loan: If the repayment period of any loan is up to 36 months , then that loan is called
Short term loans
Medium term loan: If the repayment period of any loan is up to 37 to 84 months , then that loan
is called Medium term loans
Long term loan: If the repayment period of any loan more than 84 months , then that loan is
called long term loans
Grace Period: It is an interest free period that is to be given by a creditor to a debtor after the
period of the loan gets over, before initiating the process of loss recovery. The grace period
depends on the amount of the loan and also the credit score of the borrower.
Internet Banking: It is also called as e-banking or online banking, where customer can conduct
their transactions through the internet.
Life Cap: The upper and lower limit for changes in the borrowers interest rate over the term of
his/her loans
Net Income: The amount that is left after paying the taxes is called the net income.
Original Principal Balance: The amount borrowed by any borrower is called the original
principal balance
Overdraft: It is a check or rather an amount of check, which is above the balance available in
the account of the payer.
Refunding: The act of paying back the amount or returning the funds is called as refunding.
Repricing: Change in the rate of interest
Reserve Account: An account which is maintained by depositing undistributed parts of profits
for future needs is called as a reserve account

Smart Cards: Unlike debit and credit cards, smart cards possess a computer chip with magnetic
strips, which is used for data storage, processing and identification