Before a full-scale launch (Commercialization), banks conduct Test Marketing (Beta Testing) with a select group of customers or in a specific region to identify potential issues and refine the product.

High credit utilization indicates credit hungriness and increases the risk of default, thereby lowering the score. Checking one's own score (soft inquiry) does not hurt it.

Since 2010, RBI has mandated that interest on savings accounts must be calculated on a daily product basis (Daily Closing Balance) and credited at quarterly or shorter intervals.

As per RBI/IBA rules, if a deposit matures on a non-business day, interest is paid for the intervening holidays/Sunday at the contracted rate until the next working day.

During the construction of a property, the loan is disbursed in tranches. The borrower pays only simple interest (Pre-EMI) on the amount disbursed until possession, after which regular EMI (Principal + Interest) starts.

If the customer rolls over credit (pays only MAD), the interest-free period is withdrawn, and new purchases attract interest from Day 1. Full payment of the previous bill restores the grace period.

As per RBI guidelines, uncredited NEFT proceeds must be returned to the originating bank within 2 hours of the completion of the batch (B+2) to avoid penalties.

Since the possession of the car remains with the borrower but the bank has a right to seize it upon default, the charge is Hypothecation. The RTO endorses this hypothecation on the RC.

Section 31 of the SARFAESI Act excludes loans where the amount due is less than ?1 Lakh OR where the remaining debt is less than 20% of the original principal and interest.

A VPA (e.g., name@bank) maps to the underlying bank account. It allows users to send/receive money without sharing sensitive bank details like account numbers.

"Thin file" refers to consumers who have insufficient credit history for the bureau to generate a reliable credit score. This makes assessing their risk difficult.

Processing fees cover the administrative cost of assessing the loan application (credit checks, verification). It is usually upfront and non-refundable.

Form 15G is for individuals below 60 years (and HUFs) declaring that their total income is below the taxable limit. Form 15H is for Senior Citizens (60+).

A Charge Card (e.g., Amex) has no pre-set spending limit but does not offer the option to roll over the balance. The full bill must be paid by the due date, unlike credit cards which allow minimum payment.

Lok Adalats provide a low-cost, faster resolution mechanism for smaller loans. The monetary ceiling for cases to be referred to Lok Adalat is ?20 Lakh.

NLP allows the chatbot to understand, interpret, and respond to customer queries in natural language (text or voice), improving customer service efficiency.

The Augmented Product includes additional features/benefits (insurance, concierge) beyond customer expectations to differentiate it from competitors. Core is safety; Basic is the account itself.

Increasing the tenure spreads the repayment over a longer period, reducing the monthly installment amount (though the total interest paid over the life of the loan increases).

If a taxpayer cannot invest capital gains in a new house/bond before the tax filing due date, they can deposit it in a CGAS account to defer tax liability.

S&P is a global Credit Rating Agency (CRA). The four CICs in India are CIBIL, Equifax, Experian, and CRIF High Mark.

To ensure ethical behavior and knowledge of regulations, RBI mandates that all recovery agents must undergo 100 hours of training and pass the DRA examination conducted by IIBF.

The SPV (usually a Trust) isolates the assets from the bankruptcy risk of the Originator. It buys the loans and issues securities backed by the cash flows from these loans to investors.

ECS Credit is a "many-to-one" or "one-to-many" push system. Specifically, ECS Credit is used by a single institution to credit the accounts of many beneficiaries (bulk payments).

To mitigate risk in high-value loans, RBI mandates a lower LTV of 75% for loans above ?75 Lakh. (For loans up to ?30L: 90%; ?30L-?75L: 80%).

RBI allows customers to modify their billing cycle to align the due date with their salary date or cash flow convenience.

Management Information Systems (MIS) aggregate operational data to provide actionable insights for top management to strategize business growth and risk control.

Add-on cards are issued to immediate family members. The liability to pay lies with the primary cardholder, and the limit is shared.

The core feature of BSBDA is that it is a zero-balance account. Banks are strictly prohibited from levying charges for non-maintenance of minimum balance.

A guarantee is a personal security. It acts as collateral because if the borrower defaults, the bank can recover dues from the guarantor.

APIs (Application Programming Interfaces) enable secure data sharing, allowing non-banking apps to initiate banking transactions, enhancing user experience and reach.

Paying only the minimum due revokes the interest-free period. Interest is calculated on the *entire* bill amount from the date of purchase, not just the unpaid portion, until the outstanding is cleared.

Section 13(4) empowers the bank to take possession of the secured assets, take over management, or appoint a person to manage the assets if the borrower fails to pay within 60 days of the demand notice.

RBI guidelines specify LTV ratios: Up to ?30L = 90%; ?30L to ?75L = 80%; Above ?75L = 75%. This ensures borrowers have sufficient equity in the property.

The new composite definition (July 2020) for Micro Enterprises requires Investment up to ?1 Crore and Turnover up to ?5 Crore.

To encourage retail participation in IPOs and G-Secs, NPCI enhanced the per-transaction limit in UPI to ?5 Lakh for specific categories like IPOs and RBI Retail Direct.

Under Section 30 of the RDDBFI Act, an appeal against the order of the Recovery Officer lies with the Presiding Officer of the DRT itself, not directly to the DRAT.

IMPS (Immediate Payment Service) provides 24x7 instant interbank electronic fund transfer. Transactions are settled individually and instantly.

Moratorium allows the student time to complete the course and find a job. Repayment starts after Course Period + 1 year (or 6 months after getting a job). Simple interest usually accumulates during this period.

Under the Legal Services Authorities Act, the award of a Lok Adalat is deemed to be a decree of a civil court and is final. Since it is based on compromise/agreement, no appeal is allowed.

Multiple financiers (Banks/NBFCs) bid to finance the invoice. The financier offering the lowest interest rate (best bid) is selected, ensuring the MSME gets the best rate through reverse auction.

RBI guidelines state that banks must provide the facility for all cheques of ?50,000 and above. Banks may consider making it mandatory for cheques of ?5 Lakh and above.

Once the loss is reported to the bank, the cardholder has zero liability for any transactions that occur *after* the reporting time. Most cards also offer "Zero Lost Card Liability" for a period prior to reporting as well.

The scheme is specifically for Senior Citizens. The primary borrower must be at least 60 years old. If a spouse is a co-borrower, they must generally be above 55 or 58 years (varies by bank).

To protect farmers, the SARFAESI Act explicitly excludes "any security interest created in agricultural land" from its purview. Banks must use civil courts or DRT for recovery in such cases.

For cash-based remittances (walk-in customers), the limit is ?50,000 per transaction with a maximum of 12 remittances per year. Account holders can remit higher amounts.

To support the smallest micro units, the guarantee cover is higher at 85% for loans up to ?5 Lakh. For amounts above ?5 Lakh up to ?50 Lakh, it is usually 75%.

AePS is primarily used at Micro-ATMs/BC points for Cash Withdrawal, Deposit (at BC), Balance Enquiry, and Fund Transfer. Cash Deposit at an automated ATM requires a card, not just Aadhaar.

ARCs pay banks a portion in cash (e.g., 15%) and the balance in the form of Security Receipts (SRs), which represent an undivided right/interest in the acquired asset.

EWS (Economically Weaker Section) is up to ?3 Lakh. LIG (Low Income Group) is ?3 Lakh to ?6 Lakh. Hence, the cap for the EWS/LIG category is ?6 Lakh.

Banks offer EMI conversion at a reduced interest rate (e.g., 15-24% p.a.) compared to the standard revolving credit rate (36-42% p.a.) to encourage affordability.

Standard SWIFT codes are 8 or 11 characters long. The first 4 are bank code, next 2 country code, next 2 location code, and last 3 (optional) branch code.

The Sale Notice of 30 days is mandatory. If the sale fails and a subsequent sale is conducted, the notice period is reduced to 15 days.

This strict provision ensures timely payments to Micro and Small Enterprises. The rate is punitive (3x Bank Rate).

Merchants are not allowed to store card data. They request a token from the Card Network/Issuer, which is then used for future transactions.

RBI caps the LTV for gold loans at 75% to cushion against volatility in gold prices. (It was briefly raised to 90% during Covid but reverted).

Banks must file details of security interest with the Central Registry (CERSAI) within 30 days to ensure public record and priority of charge.

Cash withdrawal is a high-risk feature. Banks restrict the cash limit to a fraction of the total limit to minimize risk and discourage cash advances.

MTSS is a tied-up arrangement between overseas principals and Indian agents for personal remittances towards family maintenance. It allows ONLY inward remittances.

NACH replaced ECS. It is used for bulk transactions like salary payments, pension, dividend (Credit) and utility bills, EMI collections (Debit).

The overall cost of the dwelling unit should not exceed ?45 lakh in metropolitan centres and ?30 lakh in other centres for the loan (up to limits) to qualify as PSL.

Under the RDDBFI Act, a bank can file an application in the DRT within whose jurisdiction the defendant resides/works OR where the cause of action arises wholly or in part.

MRI is a decreasing term life insurance policy where the sum assured reduces along with the outstanding loan balance. If the borrower dies, the insurance pays off the loan, protecting the family.

VPA (e.g., user@upi) acts as a unique identifier to map funds to a bank account. Duplicate VPAs are not allowed within the UPI ecosystem.

If a customer claims a transaction was fraudulent or goods were not delivered, they can raise a dispute. If valid, the bank forces a reversal of funds from the merchant, known as a Chargeback.

Since Small Accounts are opened without complete KYC (simplified measures), they are restricted from receiving foreign remittances to prevent money laundering risks.

In non-metro centers, the loan limit is ?25 Lakh, and the overall cost of the dwelling unit must not exceed ?30 Lakh for PSL eligibility.

In a PTC structure, the SPV acts as a conduit. As borrowers repay loans, the SPV passes these cash flows directly to the investors who hold the PTCs.

Wait! Small criteria: Inv = ?10 Cr AND Turn = ?50 Cr. Here, Turnover (?60 Cr) exceeds the limit for Small. Therefore, it moves to the next category: Medium (Inv = ?50 Cr, Turn = ?250 Cr). The categorization is based on the higher limit breached.

Unlike MTSS (Money Transfer Service Scheme) which caps receipts at 30 per year, RDA has no specific cap on the number of transactions for personal purposes.

In a Flat Rate, interest is calculated on the full principal for the entire tenure, ignoring repayments. This makes the effective cost nearly double that of a Reducing Balance rate (where interest is on outstanding principal).

To prevent delays, the Act specifically bars Civil Courts from issuing injunctions on matters that the DRT/DRAT is empowered to determine.

OFF-US transactions leverage the interoperability of BBPS. For example, paying an Electricity Bill (onboarded by Bank A) using the PhonePe app (Customer OU).

Keeping credit utilization (Balance / Limit) below 30% shows responsible credit usage and positively impacts the score. Maxing out cards (>90%) hurts the score.

Upon death of one joint holder, the title vests in the survivor. The survivor can cancel the old nomination and make a new one in their own name.

The core need is housing finance. The loan is the basic product. Adding value-added services like free cards or insurance makes it an "Augmented Product" to differentiate it.

To encourage exports without fear of losing MSME status, the government allows the exclusion of export turnover from the aggregate turnover calculation.

Under Section 10(43) of the Income Tax Act, any amount received as a loan (lump sum or installment) under a reverse mortgage transaction is exempt from tax.

To encourage compromise, the Legal Services Authorities Act provides that if a case is settled in Lok Adalat, the court fee originally paid is refunded to the plaintiff.

RBI mandated that Full-KYC PPIs (wallets) must be interoperable across UPI, allowing users to send/receive money to/from any bank account or other wallets.

Revolving credit allows the borrower to pay only a minimum amount and roll over the rest of the debt to the next billing cycle, incurring finance charges.

Loans to distressed farmers indebted to non-institutional lenders (moneylenders) not exceeding ?1 Lakh per borrower are classified under Weaker Sections within the Priority Sector.

Credit enhancement (like cash collateral or over-collateralization) absorbs initial losses, making the senior tranches of securities safer and higher-rated.

Banks must credit the returned NEFT amount to the originator's account within B+2 hours to avoid paying penal interest at the repo rate + 2%.

To manage price volatility risk, gold loans usually have a short tenure (e.g., 12 months) with a bullet repayment option (interest + principal at end).

As per RBI guidelines, ARCs must pay at least 15% of the agreed price in cash, and the remaining 85% can be in Security Receipts (SRs).

Dashboards aggregate complex data into charts/graphs (like NPA levels, deposit growth), allowing executives to monitor health and performance at a glance.

NFTs are unique digital assets verified using blockchain technology. Unlike money (fungible), each NFT is unique and cannot be exchanged like-for-like.

RBI mandates that for retail term deposits (up to ?15 Lakh, later revised to ?1 Crore in some contexts, but strictly for small retail), banks must allow premature withdrawal. Non-callable deposits are allowed only for bulk deposits.

CHAMPIONS stands for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength. It serves as a one-stop shop for MSME solutions.

CICRA 2005 provides the legal framework for the registration, governance, and functions of Credit Information Companies like CIBIL.

Section 21 of the RDDBFI Act mandates a pre-deposit of 50% of the amount of debt due as determined by the DRT. The Chairperson of DRAT has the discretion to reduce this amount, but not below 25%. This ensures that appeals are not used merely to delay recovery.

A Clean-up Call is an option permitting the originator to purchase the remaining assets in a securitisation scheme when the outstanding securities usually fall to 10% or less of the original issuance. This is done because the cost of servicing small remaining balances outweighs the benefits.

UPI 2.0 added features like linking of Overdraft (OD) accounts (earlier only savings/current were allowed), "Invoice in the Inbox" (viewing bills before paying), and "Signed Intent and QR" to enhance security and functionality for merchants and customers.

Unlike retail purchases (POS/Online) which may have an interest-free period, Cash Advances on credit cards attract interest charges immediately from the date of transaction until the date of payment, along with a one-time cash advance fee.

The subsidy amount is the Net Present Value (NPV) of the interest savings over the loan tenure (max 20 years), discounted at 9%. This upfront subsidy reduces the principal outstanding immediately.

Due to relaxed KYC norms, Small Accounts are considered high risk for money laundering. Hence, crediting foreign remittances directly into these accounts is prohibited until full KYC is completed.

In the Hybrid Security model, banks can take collateral for a portion of the loan and cover the uncovered portion under the CGTMSE guarantee scheme, allowing for higher loan limits (up to ?5 Crore).

The remittance is originated in Indian Rupees, and the credit to the beneficiary in Nepal is afforded in Nepalese Rupees. The exchange rate is applied by SBI.

The loan is meant for the welfare of senior citizens. Use of funds for speculative, trading, or business purposes is strictly prohibited.

Amendments to the Act state that the right of redemption is available to the borrower only till the date of publication of the auction notice or public notice for sale/transfer.

A healthy "Credit Mix" (balance of secured and unsecured debt) is viewed positively by credit bureaus. Closing old accounts shortens credit history (bad), and frequent applications indicate credit hunger (bad).

According to Kotler, the Core Product is the underlying need being satisfied. For a savings account, the core benefit is "Safety and Liquidity". The passbook is the "Tangible Product".

Tokenization is device and merchant specific. A token generated for Amazon on your mobile cannot be used for Flipkart or on another mobile device, enhancing security.

Collection Efficiency measures the amount collected against the total demand raised during a period. It helps track the quality of the retail asset portfolio.

In Metropolitan centres, the loan limit is ?35 Lakh (with overall dwelling unit cost = ?45 Lakh). In Non-Metropolitan centres, the loan limit is ?25 Lakh (dwelling cost = ?30 Lakh).

These are intelligent interfaces that use NLP (Natural Language Processing) to converse with customers, answer queries, and perform basic transactions.

Every award of the Lok Adalat shall be deemed to be a decree of a Civil Court. It is final and binding, and executed directly as a decree.

MTSS has a cap of USD 2500 per transaction and 30 transactions/year. RDA has no specific limit on individual transactions for personal purposes, though trade remittances have caps.

SCSS accounts can only be opened by an "Individual" who has attained the age of 60 years. HUFs and NRIs are explicitly excluded from SCSS.

Students from Economically Weaker Sections (EWS) with parental income up to ?4.5 Lakh per annum are eligible for full interest subsidy during the moratorium period for loans taken for professional courses.

RBI guidelines allow a Clean-up Call option to the originator to purchase remaining assets when the outstanding securities are not more than 10% of the original amount, facilitating the winding up of the SPV.

Under the SARFAESI Act, details of securitisation, asset reconstruction, or creation of security interest must be filed with the Central Registry (CERSAI) within 30 days.

NPCI functions as the authorized BBPCU, responsible for setting business standards, rules, and procedures for technical and business requirements for all participants.

Paying only MAD keeps the card active but the unpaid balance attracts heavy interest (30-40% p.a.), leading to a debt trap. It acts as a negative factor in credit scoring long-term.

The specific sub-limit for this category (distressed farmers) within the Weaker Sections target is ?1 Lakh per borrower.

This is a key feature. Once the financier accepts the invoice and pays the MSME seller, the risk of non-payment by the corporate buyer is borne by the financier, not the MSME seller (Without Recourse).

Hypothecation creates a charge on movable property where possession remains with the borrower (owner) but the creditor has the right to take possession in case of default.

MT 103 is the standard SWIFT payment message used for cross-border wire transfers between banks for their customers. MT 202 is for bank-to-bank transfers.

Section 34 ensures that Civil Courts cannot entertain any suit or proceeding in respect of any matter which a DRT or DRAT is empowered to determine, preventing delays in recovery.

Using AI to analyze transaction history and behavior, banks can offer products tailored to the specific immediate needs of an individual customer (e.g., offering a travel loan just when a customer books a flight).