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Important Banking Awareness Terms for IBPS/SBI CWE & Interview

in IBPS/SBI/RBI written or online exam, some banking awareness terms are asked. So, today we have given here study material on some important terms in banking awareness which are very important for IBPS PO, Clerk, RRB  and SBI written exams & interview.

Some Important Banking Awareness Terms

  • RTGS and NEFT system: RTGS stands for REAL TIME GROSS SETTLEMENT. RTGS system is a funds transfer mechanism where transfer of money takes place one bank to another on a  ‘real time’ and a ‘gross’ basis. The full form of NEFT is National Electronic Funds Transaction system. Check details about NEFT and RTGS system here.
  • Deflation: A fall in the generally level of prices. Deflation is the continuous decrease in pries of goods and services. Deflation occurs when the inflation rate becomes negative and stays there for a longer period.
  • Fiscal Deficit: A deficit in the government budget of a country and represents the excess of expenditure over income.
  • Recession: A true recession can only be confirmed if GDP growth is negative for a period two or more consecutive quarters,
  • Mutual Funds: Mutual Funds are investment companies that pool money from investors at large offer to sell and buy back its shares on a continues basis and use the capital thus raised in securities of different companies.
  • Bank rate: the interest rate charged by a central bank to commercial banks for very short term loans.
  • Repo rate: Repo is “Repurchase Agreement”. An agreement to sell a securities for a specified price and to buy it back later at another specified price.
  • CRR: Cash Reserves Ratio is the amount of funds that the bank has to keep with RBI.
  • Reverse Repo Rate: Reverse Repo Rate is the rate at which Reserve bank of India borrows from money from banks.
  • SLR: SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to be maintained in the form of cash or gold approved securities before providing credits to its customers.


  1. its reverse repo rate bhayya... not reserve repo rate...

    1. Thanks for inform us. It was a typo-mistake and it has been corrected now.


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