Banking & Financial Awareness Quiz: Banking Terms and Abbreviations

RTGS is the system in which a transfer instruction is settled singly and immediately, rather than being held and netted off with others.

All three belong to the monetary policy toolkit of the Reserve Bank of India. SLR, the Statutory Liquidity Ratio, is the part of its deposits that a bank must keep with itself in cash, gold or approved securities, and raising or lowering it changes how much a bank can lend.

The tools of the Reserve Bank are divided into quantitative tools, which change the total amount of credit in the system, and qualitative or selective tools, which change the direction in which that credit flows.

SWIFT is the international messaging network over which banks send payment and guarantee instructions across borders.

The Indian Financial System Code is an eleven character alphanumeric code that identifies a particular bank branch taking part in the electronic payment systems of the Reserve Bank of India.

RTGS was designed for large value payments, so the Reserve Bank of India fixed a floor of two lakh rupees for a single transaction and set no ceiling at all.

CASA is the combined balance a bank holds in the current accounts and the savings accounts of its customers. These are the cheapest deposits a bank can have, because a current account pays no interest at all and a savings account pays very little, unlike a fixed deposit.

Under the asset classification norms of the Reserve Bank of India, a term loan becomes a Non Performing Asset when interest or an instalment of principal stays overdue for more than ninety days.

NABARD was set up in 1982 on the recommendation of the committee headed by B Sivaraman, and its head office is at Mumbai.

The Deposit Insurance and Credit Guarantee Corporation is a wholly owned subsidiary of the Reserve Bank of India, and it insures the deposits held in banks.

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act was passed in 2002.

MICR stands for Magnetic Ink Character Recognition, a technology in which the characters are printed in magnetic ink so that a machine can read them even if the paper is stamped or signed over.