Banking Terms And Abbreviations

Banking Terms And Abbreviations

Terms	Full Forms	Definitions
LAF	Liquidity Adjustment Facility	By this policy, banks are allowed through repurchase agreements to borrow money.
MCA	Ministry of Company Affairs	This Ministry regulates various sectors. Arun Jaitley is the current minister of MCA.
MSF	Ministry of Company Affairs	In emergency Situation this facility allows banks to borrow the required money from RBI (Reserve Bank of India).
MIBOR	Mumbai Inter Bank Offered Rate	–
MIS	Management Information System	The weaknesses and strengths of the company are measured by this system. It is just a planning tool system of the company.
MMSE	Minimum Mean Squared Errors	Basically, it is used to decrease the errors. It uses estimation to decrease the mean squared error.
NABARD	National Bank for Agriculture and Rural Development	Established in 1982. Dr. Harsh Kumar Bhanwala is its chairman. This bank was set up for agricultural development.
NASSCOM	National Association of Software and Services Companies	It is a non-profit organization that was established in 1988. It has right now 1500 + members. R. Chandrasekhar is its president.
NCTC	National Counter Terrorism Centre	Indian government formed this center in 2008 after Mumbai attack. It comes under IB (Intelligence Bureau). It works for handling and controlling the terrorism.
NBFCs	Non Banking Finance Companies	Which not being a bank still act as a financial institute.
NBC	Non-Banking Companies	It acts as a financial institute.
NEFT	National Electronic Fund Transfer	One of a very effective and efficient electronic fund transfer system which started in India in 2005. Banks provides its customers with this facility with proper security for transferring the fund. The transfer limits are set at 2.5 lakhs.
NBFC	Non-Banking Financial Companies	This type of company has no interference of any bank and government as well and above that banking license not needed.
NEER	Nominal Effective Exchange Rate	NEER represents the difference between the value of a currency with respect to another currency. So simply this is a way to compare one country’s currency with another
NFA	Net Foreign Assets	This asset is equal to the balance of payment. NFA = Current account + Valuation Effect.
NSFR	Net Stable Funding Ratio	It was established just ahead of the crisis that occurred in 2007 -2008. NSFR = Available amount of stable funding / Required amount of stable funding >100%
NGO	Non-Government Organization	They are basically a Non – Profit Making Organization. In this NGOs number of countries comes together, gather money and work for nonprofit activity. The government is not supposed to take part in these activities.
NHB	National Housing Bank	RBI established it in 1988 under National Housing Bank act 1987. It is a financial institute for housing. It provides the house loan to the needy.
NSG	Nuclear Supplier Group	This group consists of seven countries’ government who are supposed to act as participants and they all works in the direction to control the people who are an expert of the equipment, used in the manufacturing of nuclear weapons.
NPA	Non Performing Assets	Basically, this term is used for those financial institutes who borrowed the money are in default due to loan. Because the borrower was not able to make the payment within 90 days after the due date and then they are considered as NPA.
NSC	National Statistical Commission	The government of India established it in 2006, to manage or handle the mistake and problems that statistical agencies make at the time of collecting data.
NSSF	National Small Savings Fund	The government established this in 1999 to pool all available small resources and put them together and simplify things for that category of customers whose financial savings or household savings are small.
OD	Overdraft	In this facility, companies can withdraw more money than their actual available balance in their bank accounts. This facility is provided to companies by the discretion of the bank.
ODA	Official Development Assistance	DAC (Development Assistance Committee) formed this to measure and keep a check on the transfer of resources from place to place.
OMO	Open Market Operations	OMO is basically carried out to maintain the currency liquidity. In which central bank buys or sells bonds in the open market.
PACS	Primary Agriculture Credit Societies	RBI established This Society in India to deal with a specific kind and level Customers (Gram Panchayat & village level).
PDAI	Primary Dealers Association of India	PDAI was formed under RBI by PD (Primary Dealers). It represents the market practices which develops a healthy market and are suitable for market.
PDO	Public Debt Office	PDO is a strategy for the ministry of finance for debt.
PIO	Persons of Indian Origin	Other than the citizens of Afghanistan, Bangladesh, Bhutan, China, Nepal, Sri Lanka and Pakistan, people can get this certificate.
PO	Principal Office

Banking Terms And Abbreviations

Terms	Full Form	Definition
FPI	Foreign Portfolio Investment	In which foreigners purchase or Issue company’s bond and stock by depositing money in the bank.
FSLRC	Financial Sector Legislative Reforms Commission	The government of India established it in 2011. If the financial market is affected by legislative then FSLRC has the rights to rewrite the legislative to maintain the financial market.
GDP	Gross Domestic Product	It is the measure to check the growth of the economy of the country. It is the ultimate value of services & goods produced at a given specified period
GDR	Global Depository Receipt	It is issued in the EURO market. Basically, it is used by an Indian company to raise funds in International or foreign currency.
GFD	Gross Fiscal Deficit	It is used to differentiate the total expense from non-debt capital receipt and revenue receipt.
GIC	General Insurance Corporation	Established in 1972. Its main objective was to manage and control the Indian insurance sector.
GAAR	General Anti-Avoidance Rule	The GAAR was made for anti-tax avoidance in 2012. Our Former Finance Minister “Pranab Mukherjee” formed this rule.
GPD	Gross Primary Deficit or Gross Fiscal Deficit	We can easily calculate the fiscal deficit or primary deficit by using the given formula.
GIRO	Government Internal Revenue Order	This is a panel controlled by Reserve Bank of India (RBI). Umesh Bellur is the Chairman of GIRO. RBI started It to centralize the system of bill payment.
HDFC	Housing Development Finance Corporation	Established in 1977. The motto of HDFC is “With you right through”. HDFC provides housing loans in India.
HFT	Held For Trading	It is defined as an asset purchased with a motive to receive short-term gain from it. That’s why it is also addressed as Short-term marketable security.
IBS	International Banking Statistics	Its purposes are, to provide guidelines to all reporting countries for reporting the data and to provide the complete detail about present country practicing the data reported.
ICAR	Indian Council Agricultural Research	Established in 1929 with a motto is “agri-search with a human touch”. It helps in studying agriculture because ICAR is the head of the department of agriculture in India.
ICICI	Industrial Credit and Investment Corporation of India	Established in 1994. If this bank is observing from assets ‘point of view, it stands as the 2nd largest bank of India and from Market Capitalization point of view, ICICI stands as the 3rd largest in India. ICICI owns a large network all over the world.
ICMR	Indian Council of Medical Research	ICMR has been one among the oldest basis for many medical types of research that took place in India. The government of India established this in India to expand the research center for the welfare of India.
IDBI	Industrial Development Bank of India	A subsidiary of Reserve Bank of India (RBI).hence it is controlled and managed by RBI.
IFC	International Finance Corporation	Established in 1956. The corporation provides help to many developing countries and many other private sectors by lending them money. The number of countries that joined with IFC is 184.
IFCI	Industrial Financial Corporation of India	It is a 1948, the government set up the financial institute. Its original purpose is to provide loans for the long term and medium term to their customers.
IIP	Index of Industrial Production	It is published every month by CSO (Central Statistical Organization). It is basically an index which is used to reflect the economy conditions and also reflects the growth of Industrial unit. CSO is the controlling body of IIP.
IMF	International Monetary Fund	An International Financial Institution established in 1945. The main objective of IMF is to maintain the flow of foreign currency in the Indian market.
IRBI	Industrial Reconstruction Bank of India	Established in 1985. This bank provides small & medium sectors with the credit facilities. IRBI has enough power to work and take enough steps to remove and cure the industrial sickness.
ISDA	International Swaps & Derivatives Association	A trade association established in 1985. The role of ISDA is to observe the derivative transactions. Therefore ISDA makes a master agreement in order to notify the derivative transactions. As ISDA brings the transparency in trade so it also reduces the credit risk.
ISIC	International Standards Industrial Classification	ISIC does classify all economic activities which are productive in nature. So it collects the statistics on all these economic activities and provides it.
ISO	International Standards Organization	It was a non-governmental organization established in 1947 with 162 members. ISO defines and represents the standards to be used by the national organization.
LBS	Locational Banking Statistics	It basically helps in International Banking Business. LBS was formed in the year of 1970. It reflects the growth that EURO currency has attained in the market and also the breakdown it suffers.
LIBOR	London Interbank Offer Rate	The bank accepts these rates, at the time of fund borrowing. LIBOR is actually named as British Banker Association LIBOR or BBA LIBOR.
LERMS	Liberalized Exchange Rate Management System	This system helps to exchange the currency or to control or manage the exchange rate system.
LIC	Life Insurance Company of India	When LIC comes into the existence in 1956, many small companies merged with LIC. It is basically an investment company with its headquarter in Mumbai.
LCR	Liquidity Coverage Ratio.	LCR = HQ LAS / Net cash outflows
LRMT	Liquidity Risk monitoring Tools	It is a tool that helps to keep a check on the liquidity of risk and is considered under BASEL III.