Banking terms which can be asked in interview

In the world of banking, where precision, intelligibility, and clarity are critical, understanding banking language is not only a benefit; it is a requirement. Understanding the subtleties of banking words is critical, especially when preparing for interviews, whether you are a seasoned banker or seeking to begin a career in the financial business. Banking terminology is the foundational language that underpins the industry's operations, laws, and practices. We will explain the crucial Banking Terms for Interview you need to know, giving you the knowledge and confidence to negotiate the complexities of banking interviews and flourish in the dynamic world of finance.

50 Important Banking Terms for Interview

Familiarity with important banking phrases is a valuable asset in the competitive world of banking interviews. These Banking Terms for Interview are the foundation of the banking industry's lingua franca, and a solid grasp of them can greatly improve your performance during interviews. In this essay, we will go over 50 crucial banking terminology that you must understand in order to excel in your banking interview preparations. From fundamental concepts like 'liquidity' and 'asset quality' to more complex ideas such as 'derivative' and 'capital adequacy ratio,' this comprehensive list will provide you with the knowledge and confidence to tackle interview questions effectively and shine as a prospective banking professional.

Repo Rate

Reverse Repo Rate

Statutory Liquidity Ratio (SLR)

The Statutory Liquidity Ratio (SLR) is a minimum proportion of deposits that a commercial bank must keep in liquid cash, gold, or other securities. It is essentially the reserve requirement that banks must meet before extending credit to customers. The current Statutory Liquidity Ratio SLR is currently at 18%.

Retail Banking

Retail banking is a part of banking that deals directly with retail customers.

Bitcoin

Call Money

Notice Money

Notice Money is money that is borrowed or lent for more than a day to a maximum of 14 days.

Difference between Capital market and Money Market

Scheduled Bank

Scheduled commercial banks are those that are included on the second schedule of the RBI Act of 1934. These banks must meet two requirements:

  1. The paid-up capital and cash acquired should not be less than Rs.5 lacs.
  2. Any Bank operation should not jeopardise the interests of its consumers.

Non-Performing Assets

Money Inflation

Money inflation is a condition in which the value of money falls while prices rise over time.

Negative Interest Rate

Green Banking

Block Chain System

Balloon Mortgage

Retail Credit Operations

Retail Credit Operations refers to the sequential process of screening, risk evaluation, and guaranteeing that the bank lends to a creditworthy client from the asset product applications sourced.

Skimming

Money Laundering

Cheque

Cheque is an unconditional order addressed to a banker, signed by the person who has deposited money with a banker, requesting him to pay on demand a certain sum of money only to the order of the certain person or to the bearer of the instrument.

Direct Debit

Direct Debit is a financial transaction in which one person withdraws funds from another person's bank account.

Cash Credit

Cash Credit is a proper limit sanctioned by the bank to the borrowing manufacturing/trading unit against the value of raw materials, semi-finished items, finished goods, and stores.

Bill of Exchange

Cash Reserves Ratio

Bank Rate

Marginal Standing Facility

Minimum Reserve System of RBI

Clean Note Policy of RBI

Camels Rating System

CAMELS is a US-developed rating system used by supervisory bodies to grade banks and other financial institutions.It applies to every bank in the United States and is also utilised by a number of financial organisations outside the United States.

Masala Bonds

Core Banking Solutions

Unified Payment Interface

Micro ATMs

Letter of Credit

Bancaassurance

Banking Ombudsmen

The Banking Ombudsman is a senior officer designated by the RBI to handle and resolve customer complaints about deficiencies in certain banking services.The Banking Ombudsman Scheme was implemented by the RBI in 1995 under Section 35 A of the Banking Regulation Act of 1949.

The Balance of Trade

A Balance of Payments

A list of a country's dealings with other countries over a specific time period (usually one year).

Nostro Account

A NOSTRO account is one that is kept in a foreign country by an Indian bank.

Vostro Account

A VOSTRO account is one that a foreign bank maintains in India with their corresponding bank.

LIBOR

LIBOR stands for London Interbank Offered Rate, and it is the interest rate at which money are borrowed in marketable size by banks from other banks in the London interbank market.

MIBOR

CASA Account

RAFA Account

The RAFA ratio, which stands for Recurring Deposit Account Fixed Deposit Account, displays how much deposit a bank has in the form of recurring and fixed deposits.

Demat Account

Demat Account is an abbreviation for Dematerialized Account.

Legal Tender

Currency Chest

Insolvency

Bankruptcy

Amortisation

Amortisation is the payment of a debt on a regular basis, such as a loan or a mortgage.

Amortisation is the process of dividing a lump sum cash flow into several periodic installments over a period of time, often known as an amortisation schedule.

Credit Crunch

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