Important Banking Terms: Banking Awareness is an important section of any government exam. In this article, we cover the most important banking abbreviations from A to Z. Banking Awareness is very important when it comes to the banking exams such as IBPS PO, IBPS Clerk, SBI PO, SBI Clerk, etc.
Important Banking Terms from A to Z for Bank Exams
Banking awareness is a scoring section in exams like SBI PO, IBPS PO/Clerk, RBI Grade B, and NABARD. A large number of questions are asked about banking terms and abbreviations. Knowing these terms helps not only in prelims and mains but also during interviews. Below is a complete A to Z list of important banking terms that every aspirant must remember.
| Term/Abbreviation | Full Form / Meaning |
| AEPS | Aadhaar Enabled Payment System |
| AML | Anti-Money Laundering |
| APY | Atal Pension Yojana |
| ATM | Automated Teller Machine |
| Bank Rate | Long-term lending rate of RBI |
| Basel Norms | Global standards on banking capital & risk |
| BBPS | Bharat Bill Payment System |
| BC | Banking Correspondent |
| Bond | Debt instrument issued by borrower |
| CAR | Capital Adequacy Ratio |
| CASA Ratio | Current and Savings Account deposits to total deposits |
| CBS | Core Banking Solution |
| CIBIL Score | Credit score agency |
| CRR | Cash Reserve Ratio |
| Cheque Truncation | Digital cheque clearing system |
| DBT | Direct Benefit Transfer |
| DD | Demand Draft |
| Debit Card | Card linked to bank account |
| Deflation | Decline in prices of goods and services |
| Digital Banking | Banking services using internet/mobile |
| EMI | Equated Monthly Installment |
| ECS | Electronic Clearing System |
| E-Banking | Banking through internet |
| Exchange Rate | Value of one currency vs another |
| FASTag | RFID-based toll collection |
| FD | Fixed Deposit |
| Financial Inclusion | Affordable banking for low-income groups |
| Fiscal Policy | Govt. policy on taxation and spending |
| Forex | Foreign Exchange |
| Green Banking | Eco-friendly banking practices |
| Gross NPA | Total NPAs before provisioning |
| G-Sec | Government Security |
| Home Loan | Loan for housing |
| Hypothecation | Pledging of movable assets as loan security |
| IFSC | Indian Financial System Code |
| IMPS | Immediate Payment Service |
| Inflation | Rise in prices over time |
| Investment Banking | Advisory and capital raising services |
| Jan Dhan Yojana | Financial inclusion through zero balance accounts |
| Joint Account | Account held by two or more persons |
| KYC | Know Your Customer |
| LAF | Liquidity Adjustment Facility |
| LCR | Liquidity Coverage Ratio |
| Loan Moratorium | Pause on loan repayment |
| Locker Facility | Bank safe deposit service |
| MICR | Magnetic Ink Character Recognition |
| MCLR | Marginal Cost of Lending Rate |
| MDR | Merchant Discount Rate |
| Monetary Policy | RBI policy to control money supply |
| NBFC | Non-Banking Financial Company |
| NFS | National Financial Switch |
| NPA | Non-Performing Asset |
| NPCI | National Payments Corporation of India |
| OMO | Open Market Operations |
| OTS | One-Time Settlement |
| Overdraft | Withdrawal beyond balance |
| PCA | Prompt Corrective Action |
| PoS | Point of Sale terminal |
| PSL | Priority Sector Lending |
| QR Code | Quick Response code for payments |
| RD | Recurring Deposit |
| Repo Rate | RBI lending rate (short term) |
| Reverse Repo Rate | RBI borrowing rate from banks |
| RTGS | Real Time Gross Settlement |
| SGB | Sovereign Gold Bond |
| SLR | Statutory Liquidity Ratio |
| SWIFT | International transfer code |
| SSY | Sukanya Samriddhi Yojana |
| Term Loan | Loan with fixed tenure |
| T-Bills | Treasury Bills |
| Transaction ID | Unique ID for transfers |
| UPI | Unified Payments Interface |
| Universal Banking | All financial services under one roof |
| Virtual Banking | Banking without physical branches |
| Volatility | Price fluctuations in market |
| White Label ATM | ATM by non-bank entities |
| Working Capital Loan | Loan for business operations |
| Yield | Return on investment |
| Zero Balance Account | Savings account without minimum balance |
100 Banking Terms Free E-Book
For complete coverage of 100 banking terms and abbreviations, you can download the free e-book. This e-book is handy for quick revision, last-minute exam prep, and interviews.
FAQs
Banking exams test candidates on financial awareness. Knowing these terms helps in prelims, mains, and interview stages.
Terms like CRR, SLR, Repo Rate, NPA, and UPI are among the most commonly asked in SBI, IBPS, and RBI exams.
Make short notes, revise daily, and group terms (like deposits, loans, policies) to learn them faster.
Yes, they help you understand how banks, loans, and digital payments work in real life.
You can download the free e-book 100 Banking Terms for All Bank Exams which covers all key definitions.
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Hi, I’m Tripti, a senior content writer at Oliveboard, where I manage blog content along with community engagement across platforms like Telegram and WhatsApp. With 3+ years of experience in content and SEO optimization related to banking exams, I have led content for popular exams like SSC, banking, railways, and state exams.