Banking Terminologies: Important Banking Terms List

Banking Terminologies: Banking terminologies encompass the definitions and concepts commonly used in the banking and finance sector. Familiarity with banking abbreviations and terms is crucial for both customers and professionals. This ensures better understanding and smoother transactions. Banking terminologies also play an important role in competitive exams especially in banking exams such as IBPS, SBI PO, RBI Grade B, SSC, etc. These exams cover sections on banking awareness and current affairs that evaluate candidates’ understanding of common banking terms. Mastering these terminologies is a must for aspirants aiming to establish a career in the banking sector.

Banking Terminologies List

Banking terminologies are the key terms and abbreviations used in the banking field. Having a clear knowledge of these terms enables employees to interact effectively with customers, process transactions correctly, and manage daily operations seamlessly. Additionally, a good grasp of these terms will boost aspirants’ general awareness and allow them to answer questions quickly and accurately in the competitive exams. Some popular bank terminologies include account, ATM, bank deposit, CRR, CBS, PAN, etc. Continue reading to learn about the detailed list of banking terminologies for reference purposes.

List of Banking Terminologies

A list of banking terminologies explains important words and concepts used in banking. It helps employees, students, and customers understand definitions better, handle banking processes smoothly, and prepare for exams easily. Given below is the complete list of bank terminologies for clarity purposes.

• Account: It is a system to keep track of all the transactions between two parties.

• Assets: Valuable things owned by a person, company, or country that can bring future benefits.

• ATM (Automated Teller Machine): A machine used to withdraw or deposit cash, check account balances, and perform basic banking tasks without visiting a bank.

• Annuity: Regular yearly payments made to a person, often continuing for life.

• Bailout: Financial help given to save a company from severe losses or bankruptcy.

• Balance Sheet: A statement that displays what a company owns, owes, and the value left for shareholders.

• Bankruptcy: When individuals or businesses cannot pay back their loans and get legal help to settle their debts.

• Banknote: A note from the bank assuring the holder a fixed sum when presented.

• Bank Credit: The money a bank lends to customers through loans, bill discounting, and other methods.

• Bank Rate: A monetary policy tool where the central bank establishes the interest rate for loans provided to commercial banks.

• Bank Deposits: The amount of money people put into banks for safekeeping and earning returns.

• Bridge Loan: A quick loan provided by a bank to manage short-term financial gaps.

• Bouncing of a Cheque: When a cheque is returned because there is not sufficient cash in the account to pay it.

• Capital Assets: Assets kept for business use rather than for everyday buying and selling.

• Cash Reserve Ratio (CRR): The portion of a bank’s funds that must be kept with the RBI.

• Call Money: A quick, short-duration loan provided at a low interest rate.

• Cheque: A written order to transfer money between bank accounts.

• Core Banking: A system where bank branches work together to offer services to customers.

• Collateral Security: An Asset provided to the bank as a guarantee for a loan.

• Core Banking Solutions (CBS): Customers can manage their funds and transactions from any branch because all branches are linked.

• Commercial Banks: Financial institutions that help people and businesses save money, open accounts, and get loans.

• Credit Card: A card that lets you buy goods or services now and pay the bank later, with agreed charges.

• Debit Card: A card allowing customers to pay or withdraw money from their accounts electronically.

• E-banking: Banking that allows people to do financial transactions online using tools like UPI, debit/credit cards, and RTGS.

• EFT (Electronic Fund Transfer): Transferring funds electronically between accounts in the same or different banks.

• Finance: Handling, creating, and analysing money and investments.

• Fiat Money: Currency declared as money by the government, with no intrinsic value

• Insolvency: Being unable to fulfil debt commitments due to a lack of funds.

• Interest: Extra money paid by a borrower to a lender on top of the original loan.

• Initial Public Offering (IPO): A company’s first offering of its shares to the public.

• Leverage Ratio: An indicator of a company's capacity to cover financial losses.

• Liabilities: Money or obligations that a person or company owes.

• Mortgage: A loan secured by offering a house or property to the lender.

• Permanent Account Number (PAN): An identification number issued for tax purposes in India.

• Repo Rate: The interest rate at which the RBI offers money to commercial banks. Higher rates make borrowing costlier.

• Teller: A bank employee who handles deposits, cheque processing, and helps customers with banking services.

Banking Terminologies FAQs

Question 1: What is the Banking Terminology?

Answer: Banking terminologies cover the essential definitions and concepts that are often used in the banking and finance sector.

Question 2: What are popular examples of Banking Terminology?

Answer: Some popular Banking terminologies are assets, liabilities, accounts, ATM, bank deposits, CRR, CBS, etc.