Important Banking Terms (IBPS, SBI and other Exams)

ADR : ADR stands for American Depository Receipt. It is like a certificate which is issued by the bank. With the help of this receipt a person can get right on the foreign share. The shares are related to foreign countries that are why it is also known as GDR (Global Depository Receipt).


AGM: AGM stands for Annual General Meeting. This meeting is held by public organizations. This meeting is generally known as Annual Meeting. In this meeting every member of the organization participates. The purpose of this meeting is to discuss all the plans with board of directors. Members can ask questions from them.


AIRCSC : AIRCSC stands for All India Rural Credit Survey Committee. This committee was established in 1966 by RBI. The objective of this committee is to handle, control and manage the credit needs of agriculture.

AFS ; AFS stands for Available for Sale. This is a financial term. This is used for classifying the assets.

AMFI : Association of Mutual Fund in India. This association was established  in 1995. The main objective of this association is to develop the market of mutual funds in India.

ASSOCHAM : ASSOCHAM stands for Association Chambers of Commerce and Industry of India. This association was established in 1920. It is a Non – Government Organisation. The main motive of this organisation is to promote and expand the trade between Domestic and International countries and also remove the barriers to trade.

ATM : ATM stands for Automatic Teller Machine. Through ATM we can withdraw our amount without visiting Bank. It saves our time. But there is a limit to withdraw money from ATM.

ALM : ALM stands for Asset Liability Management. It is basically the risk of the business and manages the Balance Sheet. It manages liquidity risk, currency risk, interest rate risk and foreign currency risk.

BSBDA : BSBDA stands for Basic Saving Bank Deposit Account. In this saving account, a customer can open his / her account with zero balance. There is no limit on depositing & withdrawal of money in this account. But if, someone who has this account then there is a condition that he/she should not have opened any other account in the same bank.

BIS : BIS stands on Bank of International Settlement. It is an International Financial Institution. It was established in 1930. It provide its banking service only to the central banks and other international organizations.

BOP : BOP stands for Balance of payment. It is also known as balance of International Payments. All the economic activities which are held with residence of country and non-residence of country are included in this. These transactions and activities are made by government and individual also . BOP includes all external and non visible transaction of country.

CAD : CAD stands for Capital Account Deficit. For calculating CAD , we have to find out the sum of all trade deficit, net income from abroad, net transfers. CAD = Trade deficit + Net Income from Abroad + Net Transfers

CAG: CAG stands for Controller and Auditor General of India. An auditor is selected by the President of India. Now the current CAG is Shashi Kant Sharma. He was appointed in 2013. He is 12th CAG of India.

CAMELS: CAMELS stands for Capital Adequacy, Asset Quality, Management, Earning, Liquidity, Systems & Controls. In 1995, Federal Reserve changed this abbreviation CAMEL to CAMELS.

CBS: CBS stands for Consolidated Banking Statistics. It provides its banking service only to the central banks and other international organisations.

CEPA : CEPA stands for Comprehensive Economic Partnership Agreement. This agreement was formed in 2009. This agreement was signed between India & South Korea.