Banking Terms and Abbreviations

An abbreviation can be defined as a word or phrase represented in a short form. An abbreviation usually consist a group of alphabets taken from that particular word or phrase. For example, the abbreviation for the word abbreviation can be represented as abbr., abbrv. or abbrev

In everyday banking work the abbreviations are so commonly used, and a candidates who are aspiring to appear for the bank exams must be well versed with the abbreviation to work efficiently and effectively. Most of the bank’s important documents and contract are filled with the important abbreviation and so it demands the person to be good with abbreviation to understand the matter written in it.

Here at Byju’s we are providing a list of important abbreviations which are generally asked in the competitive exams such as IBPS Recruitment Exams, SSC and RRB, IIT JAM, UGC NET or CSIR NET etc.

Terms Full Form Definition
ADR American Depositary Receipt It is a kind of certificate which a bank issues. These certificates are also related to foreign countries which is why they are also sometimes known as GDR (Global Depositary Receipt)
AGM  Annual General Meeting Annual General Meeting is usually held by the public organizations. These meetings are generally addressed as Annual Meetings. In this meeting, each and every member of the organization tries to participate. The main purpose of such meetings is that all members who participate in the meeting discuss about the plans for the next whole financial year with the board of directors. In this meeting, members also ask questions to the board of directors.
AIRCSC  All India Rural Credit Survey Committee This is the committee which was held in 1966 by Reserve Bank of India. The main objective of the committee is to manage, control and handle the credit needs of agriculture.
AFS Available for Sale Which is a financial term used for classifying the assets.
AMFI Association of Mutual Fund in India This is the association which was established in the year 1995. The objective of the association is mainly to develop the mutual fund market in India.
ASSOCHAM  Association Chambers of Commerce and Industry of India. It was established in 1920. ASSOCHAM is a Non– Government Organization. The motive of the organization is to expand and promote the Domestic trade in International countries and remove the probable barriers to trade.
ATM  Automatic Teller Machine We can use ATM to withdraw money from our bank account or take a credit from a bank without visiting that Bank. It usually saves a lot of time. But the amount that can be withdrawn from an ATM has a limit on it.
ALM Asset-liability Management It basically defines the risks that are associated with business and helps to manage the Balance Sheet of the organization. So, mainly it is concerned with interest rate risk, currency risk, foreign currency risk and liquidity risk.
BSBDA Basic Saving Bank Deposit Account It is a type of saving account in which a customer can open his account with a minimum balance of zero. And also there is no maximum limit on the withdrawal and depositing of money from the account. But there is a condition that a person who is holding BSBDA should not possess any other account in any branch of that same bank.
BIS Bank of International Settlement An International Financial Institution established in 1930. Its banking services are only provided to the central banks and International organizations.
BOP Balance of Payment It is also known as the balance of International Payments. It includes the economic activities which are taking place with residents of a country and also with non-residence of the country. These activities and transactions are made by the government as well as individual also. BOP includes all non-visible transaction and external transaction of the country.
CAD  Capital Account Deficit For CAD calculation, one needs to find the total sum of all deficits that occurred in trade, net income that is paid from abroad and net transfers.

CAD = Trade deficit + Net Income from Abroad + Net Transfers

CAG Controller and Auditor General of India The auditor general is usually appointed and assigned by the President of India. Shashi Kant Sharma is the present CAG of India. He is the 12th CAG appointed in 2013.
CAMELS Capital Adequacy Asset Quality, Management, Earning, Liquidity, Systems & Controls The Federal Reserve of India in 1995, changed the abbreviation from CAMEL to CAMELS.
CEPA Comprehensive Economic Partnership Agreement. This was formed on 2009. India & South Korea were the two countries to sign on this agreement.
CC  Cash Credit It is almost similar to a short term loan. In this, a businessman takes the loan to fulfill his capital requirements. In other words, it is a kind of facility which is provided by banks to withdraw money as loan more than the credit held by a person.
CD Certificate Deposit It is similar to a saving account in which, bank saves the deposits in lockers and then that bank issue the deposit certificate.
CECA Comprehensive Economic Cooperation Agreement  This was formed in 2006. India signed the economic cooperation agreement with Japan, for promoting trade.
CF Company Finance It is almost similar to a financial institution which generates and provides credit facilities like loans to the companies.
CII  Confederation of Indian Industries A non- governmental organization established in 1895. This organization consists of 8000 members. In this organization, all Private and Public sectors are included.
CP Commercial Paper Companies sell their CP as money market security as a bond or share to fulfill the short term needs.
CCEA Cabinet Committee on Economic Affairs Its main function is to take decisions regarding the country’s economic development. In 2012, DR. Manmohan Singh decided to start scholarship schemes for Scheduled Caste students, to help improve the economic condition of students.
CR Capital Receipts The revenue generated by selling the assets which were used in carrying out business is termed as Capital Receipt. For example, amount released from companies’ debtors, receivable bill, or sale of a fixed asset or any investment.
CRR Cash Reserve Ratio It helps to maintain the liquidity of the invested capital. When CRR is increased, the rate of interest increases and supply of money falls and vice versa.
CRAR  Capital to Risk Weighted Assets Ratio It also known as Capital Adequacy Ratio. Defined as a ratio between risks to the capital.
CSIR  Council of Scientific and Industrial Research It is one of the largest research and development organization established in 1942.
CSO Central Statistical Organization It is responsible for every statistical activity occurring in India. The main objective of CSO is handling these statistical activities.
CBS Core Banking Solutions The main purpose of CBS is to connect all the branches of the bank via networking, which allows account holder to access their accounts, and enjoy all the banking services at any branch of that Bank connected by CBS network.

 

Bank Exams - Byjus