Indian Banking Terminologies – Cheat
Sheet
IFSC (Indian Financial System Code):
Unique 11-character code identifying a bank branch, used for NEFT/RTGS transactions.
Example: SBIN0001234.
NEFT (National Electronic Funds Transfer):
Transfers money in 30-minute batches. Not instant. Available 24x7. Suitable for all amounts.
RTGS (Real-Time Gross Settlement):
Used for high-value transfers (above ₹2 lakh). Processes transactions individually in realtime.
IMPS (Immediate Payment Service):
Instant 24x7 transfer. Available via mobile/net banking. Limit usually up to ₹5 lakh.
UPI (Unified Payments Interface):
Mobile-based, instant payment system. Uses UPI ID or QR code. Linked to multiple bank
accounts.
DD (Demand Draft):
Prepaid paper instrument. Guaranteed payment. Cannot bounce. Used for
official/government payments.
ATM (Automated Teller Machine):
Machine for cash withdrawal, balance check, and mini statements using debit/ATM card.
KYC (Know Your Customer):
Bank process to verify identity and address using documents like PAN, Aadhaar.
Cheque:
Paper instruction to the bank to pay a specific amount from your account.
Passbook:
Physical record of bank account transactions and balances, updated by the bank.
Savings Account:
Basic bank account for individuals to save money and earn interest.
Current Account:
Bank account for businesses with higher transaction limits and no interest.
Interest:
Extra money earned (on deposits) or paid (on loans). Can be fixed or variable.
NPA (Non-Performing Asset):
Loan where the borrower hasn’t paid interest/principal for 90+ days.
Bank Statement:
A monthly summary of all transactions in your account.
Standing Instruction (SI):
Automatic instruction to debit your account regularly (e.g., loan EMI, SIP).
ECS (Electronic Clearing Service):
Bulk transfer system for repetitive transactions like salaries, bills.
Credit Score:
3-digit score showing creditworthiness. Range: 300-900. Higher is better.
EMI (Equated Monthly Installment):
Fixed monthly amount to repay a loan, including principal and interest.
Net Banking:
Online access to bank services through a secure website.
Mobile Banking:
Accessing banking services through mobile apps like SBI YONO.