Banking Terms — Set 2

Correct Answer: B. Card Verification Value

• **Card Verification Value** = It is a 3 or 4-digit security code printed on debit and credit cards. • **3 or 4-digit** — security code providing an additional layer of security for 'card not present' transactions like online shopping. • 💡 Wrong-option analysis: [Credit Validation Voucher]: 'Validation Voucher' is incorrect; [Card Validity Verification]: While related to validity, 'Verification Value' is the precise term; [Cash Value Verification]: 'Cash Value' is incorrect, CVV relates to card security, not cash value.

Correct Answer: D. Non-Performing Assets

• **Non-Performing Assets** = These are loans or advances for which the principal or interest payment remains overdue for a period of 90 days or more. • **90 days or more** — period for which principal or interest payment is overdue, leading to an asset being classified as non-performing. • 💡 Wrong-option analysis: [Net Profit Accounts]: This is unrelated to overdue loans; [New Policy Allotments]: Not the correct banking term related to problematic loans; [National Payment Authority]: This is an incorrect abbreviation and concept in the context of banking assets.

Correct Answer: A. Cash Reserve Ratio

• **Cash Reserve Ratio** = It is the percentage of a bank's total deposits that it is required to keep in cash with the central bank. • **Percentage of deposits** — kept by banks with the central bank, used as a monetary policy tool to control liquidity. • 💡 Wrong-option analysis: [Credit Rating Record]: This is not a monetary policy tool; [Capital Reserve Rate]: 'Capital Reserve' is different from 'Cash Reserve', which specifically refers to liquid cash; [Currency Revenue Ratio]: This is an incorrect term in monetary policy.

Correct Answer: A. Unified Payments Interface

• **Unified Payments Interface** = It is a system that powers multiple bank accounts into a single mobile application for seamless fund routing. • **Single mobile application** — integrates multiple bank accounts for seamless, real-time fund transfers. • 💡 Wrong-option analysis: [Universal Payment Interface]: 'Universal' is incorrect, the correct term is 'Unified'; [User Payment Integration]: 'User Payment' is not the precise term; [United Payment Index]: 'United' and 'Index' are incorrect terms for UPI.

Correct Answer: D. Statutory Liquidity Ratio

• **Statutory Liquidity Ratio** = It is the minimum percentage of deposits that a commercial bank must maintain in the form of liquid assets like gold or government securities. • **Minimum percentage of deposits** — maintained by commercial banks as liquid assets to ensure solvency and influence credit flow. • 💡 Wrong-option analysis: [Stock Liquidity Requirement]: 'Stock' is incorrect, it refers to deposits and specific liquid assets; [Standard Lending Rate]: This is a different banking rate, unrelated to a bank's reserve requirements; [Systematic Loan Record]: Not related to liquidity management or regulatory ratios.

Correct Answer: B. Society for Worldwide Interbank Financial Telecommunication

• **Society for Worldwide Interbank Financial Telecommunication** = It is a global provider of secure financial messaging services. • **SWIFT codes** — used to identify specific banks during international wire transfers. • 💡 Wrong-option analysis: [System for World Investment and Financial Transfer]: Incorrect full form; [Security for World Inter-bank Fund Transfer]: Incorrect full form; [Standard World Interbank Fiscal Transaction]: Incorrect full form.

Correct Answer: C. Personal Identification Number

• **Personal Identification Number** = It is a numeric password used to authenticate a user to a system. • **various devices** — commonly used with debit cards, mobile phones, and secure door access. • 💡 Wrong-option analysis: [Primary Identification Note]: सही परिवर्णी शब्द नहीं; [Personal Information Network]: सही परिवर्णी शब्द नहीं; [Private Index Number]: सही परिवर्णी शब्द नहीं।

Correct Answer: D. Insurance Regulatory and Development Authority of India

• **Insurance Regulatory and Development Authority of India** = It is an autonomous body that regulates and licenses the insurance and re-insurance industries in India. • **Malhotra Committee report** — its establishment followed recommendations from this report. • 💡 Wrong-option analysis: [Indian Rural Development and Agricultural Institute]: गलत पूर्ण रूप, बीमा से संबंधित नहीं; [Investment Regulation and Development Authority of India]: 'Investment' की जगह 'Insurance' होना चाहिए; [Insurance Revenue and Development Authority of India]: 'Revenue' की जगह 'Regulatory' होना चाहिए।

Correct Answer: B. Securities and Exchange Board of India

• **Securities and Exchange Board of India** = It is the regulatory body for the securities and commodity market in India. • **1992** — SEBI was given statutory powers through the SEBI Act in this year. • 💡 Wrong-option analysis: [Standard Exchange Bureau of India]: गलत पूर्ण रूप, 'Bureau' सही नहीं; [Stock Exchange Board of India]: गलत पूर्ण रूप, 'Securities and Exchange' गायब है; [Securities and Equity Board of India]: गलत पूर्ण रूप, 'Equity' की जगह 'Exchange' होना चाहिए।

Correct Answer: B. Liquidity Adjustment Facility

• **Liquidity Adjustment Facility** = It is a tool used by central banks that allows banks to borrow or lend money to manage liquidity mismatches. • **day-to-day liquidity** — it helps in managing daily liquidity mismatches in the banking system. • 💡 Wrong-option analysis: [Local Asset Finance]: सही परिवर्णी शब्द नहीं; [Legal Action Fund]: सही परिवर्णी शब्द नहीं; [Loan Adjustment Facility]: सही परिवर्णी शब्द नहीं।