SSC CGL 2013 Tier II exam date

Tier-II Written Examination
Revised Date of Examination
28.09.2013 (Afternoon)
29.09.2013 (Forenoon)
29.09.2013 (Afternoon)

Banking terms

AIDB- All India Development Bank

ATM- Automated Teller Machine is a machine uses a computer that verifies your account information and PIN (Personal Identification Number) and will dispense or deposit funds per your request) Annuity- Fixed amount of cash to be received every year for a specified period of time

Asset/Liability Risk- A risk that current obligations/ liabilities cannot be met with current assets. 

Assets- Things that one owns which have value in financial terms.

Banking Cash Transaction Tax (BCTT) - BCTT is a small tax on cash withdrawal from bank exceeding a particular amount in a single day

Bank Credit – Bank Credit includes Term Loans, Cash Credit, Overdrafts, Bills purchased & discounted, Bank Guarantees, Letters of Guarantee, Letters of credit.

Bank Debits - Sum of the value of all cheques and other instruments charged against the deposited funds of a bank’s customer.

Bank Rate - Interest rate paid by major banks if they borrow from RBI, the Central Bank of the country.

Bank Statement - A periodic record of a customer’s account that is issued at regular intervals, showing all transactions recorded for the period in question

Basis Point- Basis Point is one-hundredth of one percentage point (i.e. 0.01%), normally used for indicating spreads or cost of finance.

Balance of Payment (BoP) – BoP is a statement showing the country’s trade and financial transactions (all economic transactions), in terms of net outstanding receivable or payable from other countries, with the rest of the world for a period of time

BR Act - Banking Regulation Act

Cash reserve Ratio (CRR) - CRR is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the available amount with the banks comes down

CAD- current account deficit

Capital Adequacy Ratio (CAR) – CRR is a ratio of total capital divided by risk-weighted assets and risk-weighted off-balance sheet items. 

Cash Credit (CC) - An arrangement whereby the bank gives a short-term loan against the self-liquidating security

Certificate of Deposit (CD) - CD is a negotiable instrument issued by a bank evidencing time deposit

Cheque - A written order on a bank instrument for payment of a certain amount of money. 

C-D ratio- Credit- Deposit Ratio

Corporate Banking - Banking services for large firms

CRAR - Capital to Risk-Weighted Assets Ratio

Credit Crunch - Fall in supply of credit even though there is sufficient demand for it

Cross default - Two loan agreements connected by a clause that allows one lender to recall the loan if the borrower defaults with another, and vice versa.

Deposit: A check or cash that is put into your bank account.

Endorse: To sign the back of your check before cashing or depositing it, as proof that you are the person the check was written out to.

Equitable  mortgage - Mortgage under which one still owns the property which is security for the mortgage. The owner can occupy or live in the property

Exchange Rate - The rate at which one currency may be exchanged for another

FRNs - Floating Rate Notes

Fixed assets - Assets such as land, buildings, machinery or property used in operating a business that will not be consumed or converted into cash during the current accounting period

Fixed Rate - A predetermined rate of interest applied to the principal of a loan or credit agreement

IFSC Code - Indian Financial System Code or IFSC code is an eleven character code assigned by RBI to identify every bank branches uniquely, that are participating in NEFT system in India

Liquidation – Liquidation is divestment of all the assets of a firm so that the firm ceases to exist

Liquidity- The extent to which or the ease with which an asset may quickly be converted into cash with the least administrative and other costs

Letter of Credit (LC) - A formal document issued by a bank on behalf of a customer, stating the conditions under which the bank will honour the commitments of the customer

Line of Credit - pre-approved credit facility (usually for one year) enabling a bank customer to borrow up to the specified maximum amount at any time during the relevant period of time.

MICR- Magnetic Ink Character Recognition or MICR is the bottom line on all checks. It is printed using a special font.

Monthly Statement: statement received by customers at the end of the month about the account’s activity (what went in and what came out) from the previous month.

NEFT- national electronic funds transfer 

Non Performing Assets (NPA) - When due payments in credit facilities remain overdue above a specified period, then such credit facilities are classified as NPA.

NBFCs- Non-banking Finance Companies

NHB- National Housing Bank

Overdraw: To write a check for more money than what is present in the account. Usually there is a fee (known as NSF/non-sufficient funds)

Principal- Principal is the amount of debt that must be repaid. Also means a person who deals in securities on his own account and not as a broker

Prime Lending Rate (PLR) - The rate of interest charged on loans by banks to their most creditworthy customers

PSB - Public Sector Bank

Repo rate- the rate at which the RBI lends money to banks

Reverse repo rate- Reverse Repo rate is the rate at which the RBI borrows money from commercial banks

SCBs - Scheduled Commercial Banks 

Statutory Liquidity Ratio- SLR is Statutory Liquidity Ratio. It’s the percentage of Demand and Time Maturities that banks need to have in any or combination of the following forms:
i) Cash
ii) Gold valued at a price not exceeding the current market price,
iii) Unencumbered approved securities (G Secs or Gilts come under this) valued at a price as specified by the RBI from time to time

Standby Letter of Credit - A guarantee issued by a bank, on behalf of a buyer that protects the seller against non-payment for goods shipped to the buyer

Securitization - Securitization is a process of transformation of a bank loan into tradable securities

Selective Credit Control (SCC) - Control of credit flow to borrowers dealing in some essential commodities to discourage hoarding and black-marketing

Tier 1 Capital - Refers to core capital consisting of Capital, Statutory Reserves, Revenue and other reserves, Capital Reserves (excluding Revaluation Reserves) and un-allocated surplus/ profit but excluding accumulated losses, investments in subsidiaries and other intangible assets

Tier 2 Capital - Comprises Property Revaluation Reserves, Undisclosed Reserves, Hybrid Capital, Subordinated Term Debt and General Provisions. This is Supplementary Capital.
Withdrawal: To take money out of your bank account. To make a withdrawal is the opposite of making a deposit

More banking terms

Balance of Payment: A summation of imports and exports made between a country and the other countries that it trades with.

Balance of trade: The difference in value over a period of time between a country's imports and exports.

Base year: In the construction of an index, the year from which the weights assigned to the different components of the index is drawn. It is conventional to set the value of an index in its base year equal to 100.

Variable Rate: Any interest rate that may fluctuate over the life of the loan is a variable rate loan or credit agreement. This fluctuation then causes changes in either the payments or the length of the term. This variable rate is often tied to an index that reflects changes in market rates of interest.

Bill of exchange: Often known as draft, Bill of Exchange is a document is a third party instrument (written, dated, and signed) containing an unconditional order by a drawer that directs a drawe to pay a definite sum of money to a payee on demand or at a specified future date. It is the most commonly used financial instrument in international trade.

Bretton Woods: It is an international monetary system, in which the value of the dollar was fixed in terms of gold, and every other country held its currency at a fixed exchange rate against the dollar. When trade deficits occurred, the central bank of the deficit country financed the deficit with its reserves of international currencies. The Bretton Woods system operated from 1946-1973 and collapsed in 1971 when the US abandoned the gold standard.

Capital account: Part of a nation's balance of payments that includes purchases and sales of assets, such as stocks, bonds, and land. A nation has a capital account surplus when receipts from asset sales exceed payments for the country's purchases of foreign assets. The sum of the capital and current accounts is the overall balance of payments.

Current account: Part of a nation's balance of payments which includes the value of all goods and services imported and exported, as well as the payment and receipt of dividends and interest. A nation has a current account surplus if exports exceed imports plus net transfers to foreigners. The sum of the current and capital accounts is the overall balance of payments.

Currency appreciation: An increase in the value of one currency relative to another currency. Appreciation occurs when, because of a change in exchange rates; a unit of one currency buys more units of another currency. Opposite is the case with currency depreciation.

Fiscal deficit: When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). A fiscal deficit is regarded by some as a positive economic event. Deficit differs from debt, which is an accumulation of yearly deficits.

Foreign exchange reserves: Also known as forex reserves or FX reserves, Foreign exchange reserves are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. Reserves enable the monetary authorities to intervene in foreign exchange markets to affect the exchange value of their domestic currency in the market. Reserves are invested in low-risk and liquid assets, often in foreign government securities.

Gross domestic product (GDP): It refers to the market value of all officially recognized final goods and services produced within a country in a given period, usually in one year. GDP per capita is often considered an indicator of a country's standard of living but is  not a measure of personal income. GDP per capita exactly equals the gross domestic income (GDI) per capita.

Gross national product (GNP): It is the value of all final goods and services produced within a nation in a given year by labour and property supplied by the residents of a country. It adds income earned by its citizens abroad, minus income earned by foreigners from domestic production.

Gross domestic income: GDI is the total income received by all sectors of an economy within a nation. It includes the sum of all wages, profits, and minus subsidies.

Inflation: Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. It leads to less purchasing power of goods and services by each unit of currency; a loss of real value in the internal medium of exchange and unit of account in the economy.

International Monetary Fund (IMF): An international organisation that was created in the Bretton Woods Conference of 1944. Its main purpose is to regulate the international monetary exchange system, but has been modified since it creation. In particular, one of the central tasks of the IMF is to stabilize exchange rates of world currencies in a bid to alleviate severe balance of payments problems.

Monetary policy: The regulation of the money supply and interest rates by a central bank in order to control inflation and stabilize currency. If the economy is heating up, the central bank (such as RBI in India) can withdraw money from the banking system, raise the reserve requirement or raise the discount rate to make it cool down. If growth is slowing, it can reverse the process - increase the money supply, lower the reserve requirement and decrease the discount rate. The monetary policy influences interest rates and money supply.

Subsidy: It is an assistance paid to a business or economic sector by government to prevent the decline of that industry. Examples are export subsidies to encourage the sale of exports; subsidies on some foodstuffs to keep down the cost of living, especially in urban areas; and farm subsidies to encourage expansion of farm production and achieve self-reliance in food production.

Treasury bill: A short-term debt issued by a national government with a maximum maturity of one year. Treasury bills are sold at discount, such that the difference between purchase price and the value at maturity is the amount of interest.

WTO: The World Trade Organization is a global international organization that deals with the global rules of trade between nations. Its main function is to ensure that trade flows smoothly, predictably and freely as possible.

Black Market: A black market or underground economy is a market in goods or services which operate outside the formal ones supported by established state power. Typically the totality of such activity is referred to with the definite article as a complement to the official economies, by market for such goods and services, e.g. "the black market in bush meat" or the state jurisdiction "the black market in China".

Income inequality metrics: Income inequality metrics or income distribution metrics are used by social scientists to measure the distribution of income, and economic inequality among the participants in a particular economy, such as that of a specific country or of the world in general

new terms in banking sector

Debit Card Hotlisting

When you lose your debit card, you should call your bank immediately to avoid misuse of the card and request a new card. In India and some other countries in South Asia, this process is commonly referred to as hotlisting. There are a few things to keep in mind when hotlisting your debit card.

inflation-indexed bond

Treasury bonds designed to cancel the capital eroding effects of inflation, their interest rate remains fixed but the principal is adjusted to match changes in a price index such as consumer price index (CPI) 

Abbreviation for bank exam

Abbreviation	Full Form
ACF	Auto-Correlation Function
AD	Authorized Dealer
ADB	Asian Development Bank
ADR	American Depository Receipt
AFS	Annual Financial Statement
AGM	Annual General Meeting
AIRCSC	All India Rural Credit Survey Committee
AO	Additive Outliers
AR	Auto Regression
ARIMA	Auto-Regressive Integrated Moving Average
AFS	Available For Sale
ASSOCHAM	Associated Chambers of Commerce  and Industry of India
ATM	Asynchronous Transfer Mode
ATM	Automated Teller Machine
BIS	Bank for International Settlements
BOI	Bank of India
BoP	Balance of Payments
BPM5	Balance of Payments Manual, 5th edition
BPSD	Balance of Payments Division, DESACS, RBI
BSCS	Basel Committee on Banking Supervision
BSE	Bombay Stock Exchange
BSR	Basic Statistical Returns
CAD	Capital Account Deficit
CAG	Controller and Auditor General of India
CBS	Consolidated Banking Statistics
CC	Cash Credit
CD	Certificate of Deposit
CD Ratio	Credit Deposit Ratio
CDBS	Committee of Direction on Banking Statistics
CF	Company Finance
CFRA	Combined Finance and Revenue Accounts
CGRA	Currency and Gold Revaluation Account
CII	Confederation of Indian Industries
CO	Capital Outlay
CP	Commercial Paper
CPI	Consumer Price Index
CPI-IW	Consumer Price Index for Industrial Workers
CR	Capital Receipts
CRAR	Capital to Risk Weighted Asset Ratio
CRR	Cash Reserve Ratio
CSIR	Council of Scientific and Industrial Research
CSO	Central Statistical Organisation
CVC	Central Vigilance Commission
DAP	Development Action Plan
DBOD	Department of Banking Operations and Development
and	Development
DBS	Department of Banking Supervision, RBI
DCA	Department of Company Affairs, (Now known as Ministry of Companies Affairs, MCA) Government of India
DCB	Demand Collection and Balance
DCCB	District Central Cooperative Bank
DCM	Department of Currency Management, RBI
DD	Demand Draft
DDS	Data Dissemination Standards
DEIO	Department of External Investments and Operations
DESACS	Department of Statistical Analysis & Computer Services,
DGBA	Department of Government and Bank Accounts, RBI
DGCI&S	Directorate General of Commercial Intelligence and Statistics
DI	Direct Investment
DICGC	Deposit Insurance and Credit Guarantee Corporation of India
DID	Discharge of Internal Debt
DMA	Departmentalized Ministries Account
DRI	Differntial Rate of Interest Scheme
DSBB	Dissemination Standards Bulletin Board
DVP	Delivery versus Payment
ECB	External Commercial Borrowing
ECB	European Central Bank
ECGC	Export Credit and Guarantee Corporation
ECS	Electronic Clearing Scheme
EDMU	External Debt Management Unit
EEA	Exchange Equalization Account
EEC	European Economic Community
EEFC	Exchange Earners Foreign Currency
EFR	Exchange Fluctuation Reserve
EPF	Employees Provident Fund
EUR	Euro
EXIM	Bank Export Import Bank of India
FCA	Foreign Currency Assets
FCCB	Foreign Currency Convertible Bond
FCNR(B)	Foreign Currency Non-resident (Banks)
FCNRA	Foreign Currency Non-resident Account
FCNRD	Foreign Currency Non-Repatriable Deposit
FDI	Foreign Direct Investment
FEMA	Foreign Exchange Management Act
FI	Financial Institution
FICCI	Federation of Indian Chambers of Commerce and Industry
FII	Foreign Institutional Investor
FIMMDA	Fixed Income Money Market and Derivatives Association of India
FISIM	Financial Intermediation Services Indirectly Measured
FLAS	Foreign Liabilities and Assets Survey
FOF	Flow Of Funds
FPI	Foreign Portfolio Investment
FRA	Forward Rate Agreement
FRBM	Fiscal Responsibility and Budget Management Act, 2003
FRN	Floating Rate Note
FSS	Farmers’ Service Societies
FWG	First Working Group on Money supply
GDP	Gross Domestic Product
GDR	Global Depository Receipt
GFD	Gross Fiscal Deficit
GFS	Government Finance Statistics
GIC	General Insurance Corporation
GLS	Generalized Least Squares
GNIE	Government Not Included Elsewhere
GoI	Government of India
GPD	Gross Primary Deficit
G-Sec	Government Securities
HDFC	Housing Development Finance Corporation
HFT	Held For Trading
HICP	Harmonised Index of Consumer Prices
HO	Head Office
HUDCO	Housing & Urban Development Corporation
IBRD	International Bank for Reconstruction and Development
IBS	International Banking Statistics
ICAR	Indian Council of Agricultural Research
ICICI	Industrial Credit and Investment Corporation of India
ICMR	Indian Council of Medical Research
IDB	India Development Bonds
IDBI	Industrial Development Bank of India
IDD	Industrial Development Department
IFAD	International Fund for Agricultural Development
IFC	International Finance Corporation
IFC(W)	International Finance Corporation (Washington)
IFCI	Industrial Finance Corporation of India
IFR	Investment Fluctuation Reserve Account
IFS	International Financial Statistics
IGLS	Iterative Generalized Least Squares
IIBI	Industrial Investment Bank of India
IIP	Index of Industrial Production
IIP/InIP	International Investment Position
IMD	India Millennium Deposits
IMF	International Monetary Fund
INR	Indian Rupee
IOTT	Input-Output Transaction Table
IP	Interest Payment
IRBI	Industrial Reconstruction Bank of India
ISDA	International Swaps and Derivative Association
ISIC	International Standard Industrial Classification
ISO	International Standards Organization
ITRS	International Transaction Reporting System
IWGEDS	International Working Group on External Debt Statistics
KVIC	Khadi & Village Industries Corporation
LAF	Liquidity Adjustment Facility
LAMPS	Large-sized Adivasi Multipurpose Societies
LAS	Loan & Advances by States
LBD	Land Development Bank
LBS	Locational Banking Statistics
LERMS	Liberalised Exchange Rate Management System
LIC	Life Insurance Corporation of India
LS	Level Shift
LT	Long Term
LTO	Long Term Operation
M1	Narrow Money
M3	Broad Money
MA	Moving Average
MCA	Ministry of Company Affairs
MIGA	Multilateral Investment Guarantee Agency
MIS	Management Information System
MMSE	Minimum Mean Squared Errors
MoF	Ministry of Finance
MOF	Master Office File
MRM	Monitoring and Review Mechanism
MSS	Market Stabilisation Scheme
MT	Mail Transfer
MTM	Mark-To-Market
NABARD	National Bank for Agriculture and Rural Development
NAC(LTO)	National Agricultural Credit (Long Term Operatiion)
NAIO	Non Administratively Independent Office
NAS	National Account Statistics
NASSCOM	National Association of Software and Services Companies
NBC	Non-Banking Companies
NBFC	Non Banking Financial Companies
NEC	Not Elsewhere Classified
NEER	Nominal Effective Exchange Rate
NFA	Non-Foreign Exchange Assets
NFD	Net Fiscal Deficit
NGO	Non-Governmental Organization
NHB	National Housing Bank
NIC	National Industrial Classification
NIF	Note Issuance Facility
NNML	Net Non-Monetary Liabilities
NPA	Non-Performing Assets
NPD	Net Primary Deficit
NPRB	Net Primary Revenue Balance
NPV	Net Present Value
NR(E)RA	Non-Resident (External) Rupee Account
NR(NR)RA	Non-Resident (Non-Repatriable)  Rupee Account
NRE	Non-Resident External
NRG	Non-Resident Government
NRI	Non-Resident Indian
NSC	National Statistical Commission
NSSF	National Small Savings Fund
OD	Over Draft
ODA	Official Development Assistance
OECD	Organisation for Economic Cooperation and Development
OECO	Organisaton for Economic Co-operation
OFI	Other Financial Institutions
OLTAS	OnLine Tax Accounting System
OMO	Open Market Operations
OSCB	Other Indian Scheduled Commercial Bank
PACF	Partial Auto-Correlation Function
PACS	Primary Agriculture Credit Societies
PCARDB	Primary Cooperative Agriculture and Rural Development Bank
PD	Primary Deficit
PDAI	Primary Dealers Association of India
PDO	Public Debt Office
PDO-NDS	Public Debt Office-cum-Negotiated  Dealing System
PDs	Primary Dealers
PES	Public Enterprises Survey
PF	Provident Fund
PIO	Persons of Indian Origin
PNB	Punjab National bank
PO	Principal Office
PRB	Primary Revenue Balance
PSE	Public Sector Enterprises
PUC	Paid Up Capital
QRR	Quick Review Report
RBI	Reserve Bank of India
RD	Revenue Deficit
RDBMS	Relational Database Management System
RE	Revenue Expenditure
REC	Rural Electrification Corporation
REER	Real Effective Exchange Rate
RFC	Residents Foreign Currency
RIB	Resurgent India Bonds
RIDF	Rural Infrastructure Development Fund
RLA	Recoveries of Loans & Advances
RLC	Repayment of Loans to Centre
RMB	Renminbi (Chinese)
RNBC	Residuary Non-Banking Companies
RO	Regional Office
RoCs	Registrars of Companies
RPA	Rupee Payment Area
RPCD	Rural Planning and Credit Department, RBI
RR	Revenue Receipts
RRB	Regional Rural Bank
RTP	Reserve Tranche Position
RUF	Revolving Underwriting Facility
RWA	Risk Weighted Asset
SAM	Social Accounting Matrix
SAS	Statistical Analysis System
SBI	State Bank of India
SCARDB	State Cooperative Agriculture and Rural Development Bank
SCB	State Cooperative Bank
SCB	Scheduled Commercial Bank
SCS	Size Class Strata
SDDS	Special Data Dissemination Standards
SDR	Special Drawing Right
SEBI	Securities and Exchange Board of India
SEBs	State Electricity Boards
SFC	State Financial Corporation
SGL	Subsidiary General Ledger
SGSY	Swarnajayanthi Gram Swarrojgar Yojana
SHGs	Self-Help Groups
SIDBI	Small Industries Development Bank of India
SIDC	State Industrial Development Corporation
SI-SPA	Systems Improvement Scheme under Special Project Agriculture
SJSRY	Swarna Jayanti Shahari Rojgar Yojana
SLR	Statutory Liquidity Ratio
SLRS	Scheme for Liberation & Rehabilitation of Scavangers
SMG	Standing Monitoring Group
SNA	System of National Accounts
SRWTO	Small road & Water Transport Operators
SSI	Small-Scale Industries
SSSBEs	Small Scale Service & Business Enterprises
SWG	Second Working Group on Money Supply
TBs	Treasury Bills
TC	Temporary Change
TT	Telegraphic Transfer
UBB	Uniform Balance Book
UBD	Urban Banks Department
UCB	Urban Cooperative Bank
UCN	Uniform Code Number
US	United States
USD	US Dollars
UTI	Unit Trust of India
VC	Venture Capital
WGMS	Working Group on Money Supply: Analytics and Methodology of Compilation
WPI	Wholesale Price Index
WSS	Weekly Statistical Supplement
YTM	Yield to Maturity
ZO	Zonal Office