Banking Awareness 2020- For All Bank Exams
List of Important Banking Terms
CASA basically stands for the Current Account Savings Account. The CASA ratio displays the value of deposits which is maintained in a bank in the form of current and savings account deposits in the total deposit.
RAFA is an acronym used for Recurring Deposit Account Fixed Deposit Account. The RAFA ratio basically shows how much deposit a bank has in the form of Recurring and fixed deposits.
Demat Account refers to Dematerialized account. This bank account is mainly operated by citizens in India for trading in stocks or debentures which are listed in the stock market.
A NOSTRO account basically refers to the one which is maintained by an Indian Bank in the foreign countries.
A VOSTRO account basically refers to the one which is maintained in India by a foreign bank with their corresponding bank.
Insolvency is a consition of an organization, a family, person, or company which is declared as insolvent when they are unable to pay their debts back on time.
Bankruptcy refers to a legal declaration of a person who is unable to pay off debts.
Foreign Direct Investment refers to the investment when persons/companies who/which are non-Indian, invest in Indian companies.
Priority sector lending refers to the areas where as per the RBI guidelines, commercial banks are directed to distribute loans in order to promote them and help them in growing.