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Glossary Terms
| Term (EN) | Definition | Exam Relevance |
|---|---|---|
| Repo Rate | Rate at which RBI lends overnight to banks against G-Sec collateral — policy's primary tool | Core monetary policy |
| Reverse Repo / SDF | Rate at which banks park excess funds with RBI — SDF (5.75%) replaced reverse repo in Apr 2022 | Interest rate corridor |
| CRR | % of deposits held as cash with RBI — currently 4%; earns no interest | Monetary tools PYQ |
| SLR | % of deposits held in liquid assets (G-Secs) — currently 18%; earns interest | Monetary tools |
| MPC | 6-member body (3 RBI + 3 external) deciding repo rate; meets 6x/year | 2023 PYQ |
| Inflation Targeting | Monetary policy framework targeting CPI at 4% ± 2% (since Aug 2016) | 2016/2023 PYQ |
| NPA | Loan where principal/interest overdue >90 days — classified sub-standard, doubtful, loss | Banking reform |
| SARFAESI Act | 2002 — allows banks to auction secured assets without court; speeds NPA recovery | NPA resolution |
| IBC 2016 | Insolvency and Bankruptcy Code — 180-day corporate insolvency resolution via NCLT | Landmark reform |
| NCLT | National Company Law Tribunal — adjudicating authority under IBC | IBC mechanism |
| EBLR | External Benchmark Lending Rate — repo-linked; mandatory for retail/MSME loans since 2019 | Monetary transmission |
| OMO | Open Market Operations — RBI buys/sells G-Secs to manage liquidity | Liquidity management |
| Priority Sector Lending | 40% of ANBC must go to priority sectors — agriculture (18%), micro enterprises (7.5%) | PSL norms |
| PCA Framework | Prompt Corrective Action — restricts weak banks on dividends/lending/branching | Bank supervision |
| CBDC / Digital Rupee | Central Bank Digital Currency — RBI liability; sovereign digital money; pilot Nov 2022 | 2024-style questions |
| UPI | Unified Payments Interface — 17.4 billion transactions (March 2025); NPCI system | Digital payments |
| JAM Trinity | Jan Dhan + Aadhaar + Mobile — financial inclusion framework | Social sector linkage |
| PMJDY | PM Jan Dhan Yojana — 54 crore accounts; zero-balance; RuPay card | Financial inclusion |
| Basel Norms | International capital adequacy framework — Basel III requires 8% CRAR; India mandates 9% | Banking regulation |
| Narasimham Committee | 1991 and 1998 committees on financial reforms — basis of modern Indian banking regulation | Historical reforms |
| Scale-Based Regulation | 2021 RBI framework classifying NBFCs into Base/Middle/Upper/Top layers | NBFC regulation |
| FEMA | Foreign Exchange Management Act 1999 — replaced FERA; RBI enforces | Forex management |
| Ways and Means Advance | Short-term RBI credit to government for within-year liquidity mismatch | Debt management |
| SFB | Small Finance Bank — serves underbanked; 12 SFBs (AU, Equitas, Ujjivan etc.) | Differentiated banking |
| ARC | Asset Reconstruction Company — buys NPAs at discount; ARCIL is largest | NPA ecosystem |