Banking Awareness 2026
Complete Banking Terms • Full Forms • RBI • Rates •
Digital Banking • Limits • Schemes • Exam Facts
SBI • IBPS • RBI • NABARD • Banking Exams
SBI PO
SBI Clerk
IBPS
RBI
NABARD
SSC
Banking Awareness – One Page Complete Revision
Revise
Banking Basics, RBI & Monetary Policy,
Loans & Credit, Digital Payments, Banking Limits,
Full Forms, Regulators, Financial Institutions,
Government Schemes, Capital Market,
International Finance and Economics
in one exam-oriented place.
200+
Exam Terms
15
Categories
100%
Exam Focused
6+
Exam Targets
Core Banking
Basic banking concepts and terminology
Current Account Savings Account
Meaning:
Current and savings deposits maintained with a bank.
Important low-cost deposit concept.
Non-Performing Asset
Meaning:
Loan or advance classified as non-performing under applicable norms.
Key asset-quality term.
Special Mention Account
Meaning:
Classification identifying stressed loan accounts before NPA classification.
Study SMA with NPA.
Know Your Customer
Meaning:
Customer identification and verification process.
Core banking-compliance term.
Anti-Money Laundering
Meaning:
Measures to prevent and detect money laundering.
Frequently asked with KYC.
Combating the Financing of Terrorism
Meaning:
Measures aimed at preventing financing of terrorism.
Capital to Risk-Weighted Assets Ratio
Meaning:
Capital measured against risk-weighted assets.
Net Interest Margin
Meaning:
Net interest income relative to relevant earning assets.
Gross Non-Performing Assets
Meaning:
Total gross NPAs before specified deductions.
Net Non-Performing Assets
Meaning:
NPA amount after specified provisions and adjustments.
Credit / Deposits
Meaning:
Credit outstanding relative to deposits.
Return on Assets
Meaning:
Profitability measured relative to assets.
Return on Equity
Meaning:
Profitability measured relative to shareholders' equity.
Provision Coverage Ratio
⭐
Provision Coverage
Meaning:
Measure of provisions held against stressed assets.
Deposit + Credit + Payment Services
Meaning:
Banks accept deposits, provide credit and facilitate payment services.
RBI & Monetary Policy
Rates • Liquidity • Inflation • Monetary tools
Repo Rate
Repurchase Rate
Meaning:
Rate associated with RBI lending and liquidity operations against eligible securities.
Major monetary-policy rate.
Reverse Repo Rate
Reverse Repurchase Rate
Meaning:
Rate associated with liquidity absorption under the applicable framework.
SDF
Standing Deposit Facility
Meaning:
Facility allowing eligible banks to place funds with RBI without collateral.
MSF
Marginal Standing Facility
Meaning:
Overnight liquidity facility for eligible banks.
Bank Rate
Bank Rate
Meaning:
Rate notified by RBI for purposes specified under applicable provisions.
CRR
Cash Reserve Ratio
Meaning:
Prescribed portion of bank liabilities maintained as cash reserve with RBI.
SLR
Statutory Liquidity Ratio
Meaning:
Prescribed portion maintained in specified liquid assets.
LAF
Liquidity Adjustment Facility
Meaning:
Framework used by RBI to manage short-term system liquidity.
OMO
Open Market Operations
Meaning:
Purchase or sale of government securities by RBI.
MPC
Monetary Policy Committee
Meaning:
Statutory committee responsible for policy-rate decisions.
Inflation
General Price-Level Increase
Meaning:
Sustained broad increase in the general price level.
Deflation
General Price-Level Decline
Meaning:
Broad decline in the general price level.
Disinflation
Declining Inflation Rate
Meaning:
Decline in the rate of inflation.
Liquidity
Availability of Funds
Meaning:
Availability of funds in the financial system.
Sterilisation
Liquidity Offset
Meaning:
Action to offset unwanted liquidity effects.
Yield Curve
Yield vs Maturity
Meaning:
Relationship between yields and maturities.
Loans & Credit
Loan types • Security • Lending rates • Credit appraisal
EMI
Equated Monthly Instalment
Meaning:
Periodic loan payment generally containing principal and interest.
MCLR
Marginal Cost of Funds Based Lending Rate
Meaning:
Benchmark lending-rate methodology.
EBLR
External Benchmark Based Lending Rate
Meaning:
Lending rate linked to an external benchmark.
Base Rate
Base Rate
Meaning:
Earlier benchmark lending-rate regime before MCLR.
BPLR
Benchmark Prime Lending Rate
Meaning:
Earlier benchmark lending-rate system.
LTV
Loan-to-Value Ratio
Meaning:
Loan amount relative to value of underlying asset.
DSCR
Debt Service Coverage Ratio
Meaning:
Cash flow available for servicing debt relative to obligations.
Credit Score
Creditworthiness Indicator
Meaning:
Numerical indicator derived from credit information.
Credit Report
Credit Information Record
Meaning:
Detailed record of credit accounts, repayment and enquiries.
Collateral
Loan Security
Meaning:
Asset offered as security for a loan.
Hypothecation
Security Interest in Movable Asset
Meaning:
Security interest where borrower generally retains possession.
Mortgage
Security in Immovable Property
Meaning:
Security interest in immovable property.
Pledge
Movable Asset Security
Meaning:
Movable goods given as security subject to applicable possession rules.
Lien
Right of Retention
Meaning:
Right to retain property until an obligation is satisfied.
Working Capital
Business Operating Funds
Meaning:
Funds required for regular business operations.
Term Loan
Fixed-Period Credit
Meaning:
Credit facility repayable over a defined period.
Cash Credit
Working Capital Facility
Meaning:
Working-capital borrowing facility within a sanctioned limit.
Overdraft
Overdraft Facility
Meaning:
Withdrawal beyond available balance up to sanctioned limit.
Letter of Credit
Trade Finance Instrument
Meaning:
Bank undertaking to make payment subject to stipulated conditions.
Bank Guarantee
Contingent Liability Instrument
Meaning:
Bank undertaking to pay if customer fails to meet a specified obligation.
Digital Banking
UPI • NEFT • RTGS • IMPS • AePS • CBDC
UPI
Unified Payments Interface
Meaning:
Interoperable instant payment system for bank-account transactions.
Operated by NPCI.
NEFT
National Electronic Funds Transfer
Meaning:
Electronic funds-transfer system operated by RBI.
RTGS
Real Time Gross Settlement
Meaning:
Transactions settled individually on real-time basis.
IMPS
Immediate Payment Service
Meaning:
Immediate interbank electronic fund-transfer service.
NPCI payment system.
BBPS
Bharat Bill Payment System
Meaning:
Interoperable ecosystem for bill payments.
AePS
Aadhaar Enabled Payment System
Meaning:
Aadhaar-enabled banking transaction service.
NACH
National Automated Clearing House
Meaning:
Electronic clearing system for recurring and bulk payments.
CTS
Cheque Truncation System
Meaning:
Electronic cheque processing using image/data.
IFSC
Indian Financial System Code
Meaning:
Identifies a bank branch for electronic transfers.
MICR
Magnetic Ink Character Recognition
Meaning:
Technology/code used in cheque processing.
UPI Lite
Low-Value UPI Facility
Meaning:
Facility designed for certain low-value transactions.
CBDC
Central Bank Digital Currency
Meaning:
Digital form of sovereign currency issued by a central bank.
Digital Rupee
e₹
Meaning:
Digital representation of the Indian rupee issued by RBI.
RuPay
Domestic Card Payment Network
Meaning:
Indian card-payment network associated with NPCI.
FASTag
Electronic Toll Collection
Meaning:
RFID-based electronic toll-payment system.
Tokenisation
Card Tokenisation
Meaning:
Replacement of sensitive card data with a token.
OTP
One Time Password
Meaning:
Temporary authentication code.
2FA
Two-Factor Authentication
Meaning:
Authentication using two independent factors.
Capital Market & Investment
Shares • Bonds • Mutual Funds • Securities
IPO
Initial Public Offering
Meaning:
First public offering of shares by a company.
FPO
Follow-on Public Offer
Meaning:
Public issue by an already listed company.
OFS
Offer for Sale
Meaning:
Mechanism for selling shares to public investors.
Rights Issue
Existing Shareholders
Meaning:
Additional shares offered to existing shareholders under specified terms.
Bonus Shares
Bonus Issue
Meaning:
Additional shares issued to existing shareholders from eligible reserves.
Dividend
Profit Distribution
Meaning:
Distribution of profit/return to shareholders as declared.
Equity
Ownership Interest
Meaning:
Ownership interest in a company.
Bond
Debt Instrument
Meaning:
Debt instrument through which an issuer borrows from investors.
Debenture
Corporate Debt Instrument
Meaning:
Corporate debt instrument used to raise funds.
G-Sec
Government Security
Meaning:
Debt security issued by government.
T-Bill
Treasury Bill
Meaning:
Short-term government security.
Commercial Paper
CP
Meaning:
Short-term unsecured money-market instrument issued by eligible entities.
Certificate of Deposit
CD
Meaning:
Negotiable money-market instrument issued by eligible entities.
Mutual Fund
Pooled Investment Vehicle
Meaning:
Pooled investment vehicle collecting money from investors.
NAV
Net Asset Value
Meaning:
Per-unit value of a mutual fund's net assets.
ETF
Exchange Traded Fund
Meaning:
Fund whose units trade on an exchange.
Market Capitalisation
Share Price × Outstanding Shares
Meaning:
Market value of a company's outstanding shares.
Bull Market
Rising Market
Meaning:
Broad market phase of rising prices.
Bear Market
Falling Market
Meaning:
Broad market phase of falling prices.
Volatility
Price Fluctuation
Meaning:
Degree of price fluctuation or variability in returns.
International Finance & Economy
IMF • World Bank • Forex • FDI • FPI • BOP
IMF
International Monetary Fund
Meaning:
International organisation promoting monetary cooperation and financial stability.
HQ: Washington, D.C.
World Bank
World Bank Group
Meaning:
International development-finance institution group.
SDR
Special Drawing Rights
Meaning:
International reserve asset created by IMF.
BOP
Balance of Payments
Meaning:
Record of economic transactions between residents and the rest of the world.
BOT
Balance of Trade
Meaning:
Difference between merchandise exports and imports.
CAD
Current Account Deficit
Meaning:
Current-account payments exceed receipts.
FDI
Foreign Direct Investment
Meaning:
Cross-border investment involving a lasting interest.
FPI
Foreign Portfolio Investment
Meaning:
Foreign investment in financial assets/securities.
Forex
Foreign Exchange
Meaning:
Currencies and the market in which they are traded.
Exchange Rate
Currency Exchange Rate
Meaning:
Price of one currency in terms of another.
Appreciation
Currency Appreciation
Meaning:
Rise in the value of a currency relative to another.
Depreciation
Currency Depreciation
Meaning:
Fall in the value of a currency relative to another.
Devaluation
Official Currency Reduction
Meaning:
Official reduction in currency value under a fixed/managed regime.
Revaluation
Official Currency Increase
Meaning:
Official increase in currency value under a fixed/managed regime.
Financial Institutions & Regulation
Regulators • Development Institutions • Financial Architecture
RBI
Reserve Bank of India
Role:
India's central bank.
SEBI
Securities and Exchange Board of India
Role:
Regulator of securities markets.
IRDAI
Insurance Regulatory and Development Authority of India
Role:
Insurance-sector regulator and development authority.
PFRDA
Pension Fund Regulatory and Development Authority
Role:
Regulates and develops the pension sector under its mandate.
NABARD
National Bank for Agriculture and Rural Development
Role:
Development institution focused on agriculture and rural development.
SIDBI
Small Industries Development Bank of India
Role:
Principal financial institution for MSME promotion and development.
NHB
National Housing Bank
Role:
Institution associated with housing-finance development.
EXIM Bank
Export-Import Bank of India
Role:
Supports India's international trade.
NPCI
National Payments Corporation of India
Role:
Umbrella organisation for retail payment and settlement systems.
DICGC
Deposit Insurance and Credit Guarantee Corporation
Role:
Provides deposit insurance under applicable law.
FSDC
Financial Stability and Development Council
Role:
High-level forum for financial-sector coordination and stability.
Financial Inclusion & Schemes
PMJDY • DBT • BC • BF • SHG • Microfinance
Financial Inclusion
Access to Financial Services
Meaning:
Access to useful and affordable financial services.
PMJDY
Pradhan Mantri Jan-Dhan Yojana
Meaning:
National financial-inclusion programme for access to banking services.
DBT
Direct Benefit Transfer
Meaning:
Eligible government benefits transferred directly to beneficiaries.
BC
Business Correspondent
Meaning:
Authorised banking channel extending specified services.
BF
Business Facilitator
Meaning:
Channel facilitating banking outreach/services.
SHG
Self Help Group
Meaning:
Small voluntary group commonly used for savings and credit linkage.
Microfinance
Small-Value Financial Services
Meaning:
Small-value financial services for low-income clients.
MFI
Microfinance Institution
Meaning:
Institution providing microfinance services under applicable framework.
PMJJBY
Pradhan Mantri Jeevan Jyoti Bima Yojana
Exam Focus:
Insurance scheme — prepare age, premium, cover and eligibility.
PMSBY
Pradhan Mantri Suraksha Bima Yojana
Exam Focus:
Accident insurance scheme — prepare eligibility, premium and cover.
APY
Atal Pension Yojana
Exam Focus:
Pension scheme — prepare age, contribution and pension-related facts.
MUDRA
Micro Units Development and Refinance Agency
Exam Focus:
Prepare Shishu, Kishor, Tarun and Tarun Plus categories.
KVP
Kisan Vikas Patra
Exam Focus:
Prepare investment, maturity and applicable rules.
PPF
Public Provident Fund
Exam Focus:
Prepare tenure, contribution, interest and tax-related features.
Payment Bank
Payments Bank
Exam Focus:
Prepare deposit limit, permitted services and restrictions.
Accounting & Economics
Economy concepts • Fiscal terms • Money supply
GDP
Gross Domestic Product
Meaning:
Value of final goods and services produced within a country's territory during a period.
GVA
Gross Value Added
Meaning:
Value of output minus intermediate consumption.
Fiscal Deficit
Fiscal Deficit
Meaning:
Government expenditure exceeds specified receipts excluding borrowings.
Revenue Deficit
Revenue Deficit
Meaning:
Revenue expenditure exceeds revenue receipts.
Primary Deficit
Primary Deficit
Meaning:
Fiscal deficit minus interest payments.
Public Debt
Government Borrowings
Meaning:
Government borrowings outstanding.
Money Supply
Monetary Aggregates
Meaning:
Stock of money available in an economy.
Broad Money
Broad Monetary Aggregate
Meaning:
Wider monetary aggregate including specified currency and deposits.
Reserve Money
High-Powered Money
Meaning:
Monetary base consisting of currency and specified central-bank liabilities.
Interest Rate
Cost of Borrowing / Return
Meaning:
Cost of borrowing or return on lending/investment expressed as percentage.
Simple Interest
SI = P × R × T
Meaning:
Interest calculated only on principal.
Compound Interest
Interest on Accumulated Amount
Meaning:
Interest calculated on principal plus accumulated interest.
Annuity
Periodic Payments
Meaning:
Series of structured payments at regular intervals.
Banking Limits & Eligibility
Limits • Age • Eligibility • Contribution • Premium
Payment Bank Limit
Deposit / Balance Limit
Exam Focus:
Prepare applicable deposit/balance limit and permitted banking services.
Small Finance Bank
SFB
Exam Focus:
Prepare purpose, eligibility, lending focus and comparison with Payment Banks.
MUDRA Shishu
PMMY Category
Limit:
Up to ₹50,000.
MUDRA Kishor
PMMY Category
Limit:
Above ₹50,000 and up to ₹5 lakh.
MUDRA Tarun
PMMY Category
Limit:
Above ₹5 lakh and up to ₹10 lakh.
MUDRA Tarun Plus
PMMY Category
Exam Focus:
Applicable borrowers may be eligible for loans above ₹10 lakh up to ₹20 lakh under the scheme's conditions.
Scheme Age Eligibility
Age + Conditions
Exam Focus:
Prepare minimum age, maximum age and scheme-specific conditions.
Deposit Limits
Account / Product Limits
Exam Focus:
Prepare product-wise and account-wise applicable limits.
Withdrawal Limits
ATM / Cash / Channel Limits
Exam Focus:
Prepare bank, card and channel-specific withdrawal rules.
Premium / Contribution
Scheme Financial Contribution
Exam Focus:
Prepare premium, annual contribution, maturity and insurance cover.
Banking Full Forms & Abbreviations
High-frequency terms for banking exams
CRR
Cash Reserve Ratio
Cash reserve requirement with RBI.
SLR
Statutory Liquidity Ratio
Specified liquid-assets requirement.
LAF
Liquidity Adjustment Facility
RBI liquidity-management framework.
MSF
Marginal Standing Facility
Overnight liquidity facility.
NPA
Non-Performing Asset
Important asset-quality classification.
KYC
Know Your Customer
Customer identification process.
AML
Anti-Money Laundering
Anti-money-laundering framework.
CASA
Current Account Savings Account
Current and savings deposits.
MCLR
Marginal Cost of Funds Based Lending Rate
Benchmark lending-rate methodology.
EBLR
External Benchmark Based Lending Rate
External-benchmark-linked lending rate.
MICR
Magnetic Ink Character Recognition
Cheque-processing technology.
IFSC
Indian Financial System Code
Identifies bank branch for electronic transfers.
CRAR
Capital to Risk-Weighted Assets Ratio
Capital adequacy indicator.
NIM
Net Interest Margin
Bank profitability indicator.
CTS
Cheque Truncation System
Electronic cheque-processing system.
LTV
Loan-to-Value Ratio
Loan amount relative to asset value.
DSCR
Debt Service Coverage Ratio
Debt-servicing capacity indicator.
MFI
Microfinance Institution
Institution providing microfinance services.
NABARD
National Bank for Agriculture and Rural Development
Agriculture and rural-development institution.
NPCI
National Payments Corporation of India
Retail payment and settlement systems.
Complete Payment Systems
Payment channels • Cards • Security • Digital Currency
UPI
Unified Payments Interface
Instant retail payment interface.
NEFT
National Electronic Funds Transfer
Electronic fund-transfer system.
RTGS
Real Time Gross Settlement
Real-time gross settlement system.
IMPS
Immediate Payment Service
Immediate electronic fund transfer.
BBPS
Bharat Bill Payment System
Interoperable bill-payment ecosystem.
AePS
Aadhaar Enabled Payment System
Aadhaar-enabled banking transactions.
NACH
National Automated Clearing House
Bulk and recurring payment framework.
RuPay
Indian Card Payment Network
Domestic card-payment network.
FASTag
Electronic Toll Collection
RFID-based toll-payment system.
CBDC
Central Bank Digital Currency
Digital sovereign currency.
e₹
Digital Rupee
India's central-bank digital currency.
NPCI
National Payments Corporation of India
Retail payment systems organisation.
Tokenisation
Card Tokenisation
Sensitive card data replaced with a token.
QR Payment
Quick Response Code
Scan-based digital payment method.
OTP
One Time Password
Temporary authentication code.
2FA
Two-Factor Authentication
Two-factor authentication mechanism.
Debit Card
Bank Account Linked Card
Card generally linked to a deposit account.
Credit Card
Credit Facility Card
Card providing access to a credit line subject to terms.
Who Regulates What?
Very important examiner-pattern section
RBI
Reserve Bank of India
Area:
Banking system and monetary policy.
SEBI
Securities and Exchange Board of India
Area:
Securities market.
IRDAI
Insurance Regulatory and Development Authority of India
Area:
Insurance sector.
PFRDA
Pension Fund Regulatory and Development Authority
Area:
Pension sector.
NABARD
National Bank for Agriculture and Rural Development
Area:
Agriculture and rural development.
SIDBI
Small Industries Development Bank of India
Area:
MSME development and finance.
NHB
National Housing Bank
Area:
Housing finance development.
EXIM Bank
Export-Import Bank of India
Area:
International trade finance.
NPCI
National Payments Corporation of India
Area:
Retail payment and settlement systems.
DICGC
Deposit Insurance and Credit Guarantee Corporation
Area:
Deposit insurance.
FSDC
Financial Stability and Development Council
Area:
Financial-sector coordination and stability.
Rates, Ratios & Monetary Tools
High-frequency calculation and concept-based terms
Repo Rate
Policy Rate
Major monetary-policy rate.
Reverse Repo
Liquidity Absorption Rate
Rate associated with liquidity absorption framework.
Bank Rate
RBI Notified Rate
Rate notified for specified purposes.
MSF
Marginal Standing Facility
Overnight liquidity facility.
SDF
Standing Deposit Facility
Facility for eligible banks to place funds with RBI.
CRR
Cash Reserve Ratio
Cash reserve maintained with RBI.
SLR
Statutory Liquidity Ratio
Specified liquid-assets requirement.
MPC
Monetary Policy Committee
Policy-rate decision-making committee.
LAF
Liquidity Adjustment Facility
Liquidity-management framework.
OMO
Open Market Operations
RBI purchase/sale of government securities.
NIM
Net Interest Margin
Bank profitability indicator.
CRAR
Capital to Risk-Weighted Assets Ratio
Capital adequacy indicator.
CASA Ratio
CASA / Total Deposits
Share of current and savings deposits.
LCR
Liquidity Coverage Ratio
Short-term liquidity resilience measure.
NSFR
Net Stable Funding Ratio
Structural liquidity/funding resilience measure.
CAR
Capital Adequacy Ratio
Capital relative to risk-weighted assets.
Risk, Compliance & Customer Banking
Practical banking concepts frequently asked in exams
KYC
Know Your Customer
Customer identification and verification.
AML
Anti-Money Laundering
Measures against money laundering.
CDD
Customer Due Diligence
Customer identification and due-diligence process.
EDD
Enhanced Due Diligence
Enhanced checks for higher-risk situations.
Credit Risk
Default / Counterparty Risk
Risk that borrower/counterparty fails to meet obligations.
Market Risk
Market Price Risk
Risk arising from market-variable movements.
Operational Risk
Process / System / People Risk
Risk from processes, systems, people or external events.
Liquidity Risk
Liquidity Risk
Risk of inability to meet obligations when due.
MICR
Magnetic Ink Character Recognition
Technology used in cheque processing.
Cheque
Banking Instrument
Written instrument directing a bank to pay a specified amount.
Crossed Cheque
Cheque Crossing
Crossing affects how a cheque may be paid or collected.
Demand Draft
DD
Bank-issued payment instrument.
Pay Order
Banker's Payment Instrument
Bank-issued instrument used for payments subject to applicable rules.
Nomination
Account Nomination Facility
Facility for naming a person to receive account proceeds subject to applicable law.
Fraud Risk
Banking Fraud Risk
Risk of loss arising from fraudulent activity.
Cyber Security
Digital Banking Security
Protection of banking systems, accounts and customer information.
Quick Revision – Must Know
Repo Rate •
CRR •
SLR •
MSF •
SDF •
MPC •
CASA •
NPA •
CRAR •
NIM •
MCLR •
EBLR •
UPI •
NEFT •
RTGS •
IMPS •
CBDC •
IPO •
NAV •
G-Sec •
SDR •
FDI •
FPI •
BOP •
CAD •
PMJDY •
MUDRA •
DBT •
KYC •
AML.
It will be available soon. Stay tuned!