*✅Most Important Banking Terms* 1. *Repo Rate*: The interest rate at which the Reserve Bank of India (RBI) lends short-term funds to commercial banks. 2. *Reverse Repo Rate*: The rate at which the RBI borrows money from commercial banks. 3. *Cash Reserve Ratio (CRR)*: The percentage of a bank's total deposits that must be maintained with the RBI as reserves. 4. *Statutory Liquidity Ratio (SLR)*: The mandatory percentage of net demand and time liabilities that banks must maintain in the form of liquid assets. 5. *Non-Performing Asset (NPA)*: A loan or advance where interest or principal repayment is overdue for 90 days or more. 6. *Inflation*: The rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. 7. *Deflation*: A decline in the general price levels of goods and services, often associated with reduced consumer spending. 8. *Base Rate*: The minimum interest rate set by the RBI below which banks are not permitted to lend, except for certain specified cases. 9. *Balance of Payments (BOP)*: A comprehensive record of a country's economic transactions with the rest of the world over a specific period. 10. *Monetary Policy*: The process by which the central bank controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency. 11. *Know Your Customer (KYC)*: A regulatory process that financial institutions and other regulated companies must perform to verify the identity, suitability, and risks involved with maintaining a business relationship. 12. *Marginal Standing Facility (MSF)*: A window for banks to borrow from the RBI in an emergency situation when inter-bank liquidity dries up completely. 13. *Bancassurance*: The partnership or relationship between a bank and an insurance company, wherein the insurance company uses the bank's distribution channels to sell insurance products. 14. *Capital Adequacy Ratio (CAR)*: A measure of a bank's available capital expressed as a percentage of its risk-weighted credit exposures. 15. *Merchant Banking*: A combination of banking and consultancy services that provide financial advice and services to large corporations and high-net-worth individuals. 16. *Cheque Truncation System (CTS)*: An image-based clearing system that eliminates the need for physical movement of cheques for clearing, thereby speeding up the process. 17. *Credit Rating*: An evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt and an implicit forecast of the likelihood of the debtor defaulting. 18. *Call Money*: Short-term finance repayable on demand, with a maturity period ranging from one to fourteen days, used for inter-bank transactions. 19. *Foreign Exchange Reserves (Forex Reserves)*: Assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills, and other government securities. 20. *National Electronic Funds Transfer (NEFT)*: A nation-wide payment system facilitating one-to-one funds transfer from one bank account to another. https://whatsapp.com/channel/0029Vamoo618kyyNzgKxSj3N/124