We had earlier posted an article on the Banking Rates and Terminologies. This is a continuation of the same, it is a List of 30 Common Abbreviations and Terms Used in Banking Sector.
1) NFS – National Financial Switch
The largest network of shared automated teller machines (ATMs) in India.
2) CBS – Core Banking Solution
Core Banking services provided by a group of networked bank branches where a customers may access their bank account and perform basic transactions from any of the member branch offices.
3) SME – Small And Medium Sized Enterprises
SME finance is the funding of small and medium sized enterprises, and represents a major function of the general business finance market.
4) BTM – Banking Through Mobile
BTM allows customers to do the transfer of fund through Mobile Phone between any IMPS member bank to another IMPS member bank registered with NPC of India.
5) CORE – Centralized Online Real-Time Electronic
CORE Banking means that all the bank’s branches access applications from centralized datacenters.
6) ACH – Automated Clearing House
NACH (National Automated Clear House) a web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature
7) NPA – Non Performing Assests
NPA is a loan or lease that does not meet its stated principal and interest payments.
8) ATM – Automated Teller Machine
Allows Bank customer to conduct their banking transactions through ATM machine without the help of Bank Representative.
9) AMB – Average Monthly Balance
AMB is the Average of the closing balances for each day in a given month or statement period.
10) EMI – Equated Monthly Installment
An amount payed by a borrower to the bank at a specified date each calendar month.
11) ECS – Electronic Clearing Service
A mode of electronic funds transfer from one bank account to another bank account.
12) SWIFT – Society For Worldwide Interbank Financial Telecommunication
13) MICR – Magnetic Ink Character Recognition
A character recognition technology used by banking sector to ease the processing and clearance of cheques.
14) CTS – Cheque Truncation System
15) DCD – Dual Currency Deposit
(check the details on Common Banking Terms and Rates)
16) RTGS – Real-Time Gross Settlement
17) KYC – Know Your Customer
It is a customer identification process used by banks.
18) TDS – Tax Deducted At Source
With regard to certain income, government makes it mandatory to deduct a certain amount of tax.
19) HNI – High Networth Indiviuals
20) HUF – Hindu Undivided Family
21) IFSC – Indian Financial System Code
An alphanumeric code that uniquely identifies a bank-branch participating in the funds settlement systems.
22) POS – Point Of Sale
23) LC – Letter Of Credit
A Bank letter guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.
24) LAF – Liquidity Adjustment Facility
A monetary policy tool that allows banks to borrow money through repurchase agreements.
25) OMBUDSMAN – A senior official appointed by the RBI to redress customer complaints against deficiency in certain banking services.
26) NDTL – Net Demand And Time Liabilities
27) NSF – Non-Sufficient Funds
28) NRE – Non-Resident External
29) UTR NO – Unique Trasaction Reference Number
A Unique Trasaction Reference Number, generally used in association with NEFT transactions done through bank.
30) NEFT – National Electronic Funds Transfer
NEFT is an electronic funds transfer system, which facilitates transfer of funds to other bank accounts.