The Banking Tutor’s

The Business Terms

(2024)

Compiled by Sekhar Pariti

Book No 129 from The Banking Tutor

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 Preface
From 16th September, 2019, I am sharing daily one point related to Banking,
Finance, Insurance, Accountancy and Legal Services. I am happy to share the fact
till now I have shared 1966 by way of Daily Points (which includes 32 Points shared
under the caption Let Us Know (LUK) regularly (daily) without any break from 16th
September, 2019. These points I am sharing directly in WhatsApp Groups and also
in Telegram Group – The Banking Tutor and in my Blog The Banking Tutor.

The same are shared in numerous WhatsApp and Telegram Groups by others.

At the end of the calendar month, I am releasing List of the such points shared
during the respective month. This apart, I have arranged these Daily Points shared
in alphabetical order and released 7 volumes of Book titled “Banking Jargon”.
Each Volume covers the points shared on daily basis during last 6 months. The
Volume 8 covered Daily Points shared from 01-04-2023 to 31-12-2023 (9 months
period) arranged in alphabetical order. Earlier I had named books in this series as
Banking Jargon or BEFIT (Banking, Economic, Financial and Insurance
Terminology). It is decided to update this Book every year and the updated book
will be shared on Last Day of the Calendar Year (31st December) every year. Once
updated version is shared, earlier books (Banking Jargon or BEFIT) will be kept out
of circulation. From this Book onwards Name of the Book is TBT’s The Business
Terms (as the points shared are related to other than Banking also like Insurance,
Investment, Legal, Treasury).

Hyderabad Sekhar Pariti

31-12-2024 +91 9440641014

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Wish You Happy Year 2025

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 Acknowledgements
I sincerely thank my young Bank Friends; Mr E. Devanathan of State Bank of India,
Chennai Circle and Ms. Kaviyangkanni Selvaraju of Indian Bank, Sriperumbudur
who are sharing Daily Points in various groups, from 1st September, 2022 as Core
Members of The Banking Tutor Group.

I appreciate their appetite for sharing knowledge.

Also I wish to place on record, help rendered by Ms. Padma Rajagopalan

of Indian Overseas Bank, Hosur in arranging the Terms furnished in this Book in
alphabetical order.

These three Young Bankers are Members of The Core Group of The Banking
Tutor, who are contributing their mite for smooth running the activity.

I wish all the Young Bankers a Bright Future and Colourful Life.

Sekhar Pariti

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Page 5 of 363
 Index
Alphabet Page No

A 007-028

B 029-052

C 053-088

D 089-107

E 108-122

F 123-140

G 141-153

H 154-165

I 166-180

J 181-184

K 185-189

L 190-200

M 201-213

N 214-225

O 226-235

P 236-256

Q 257-261

R 262-278

S 279-310

T 311-323

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 U 324-330

V 331-336

W 337-345

X 346-346

Y 347-348

Z 349-351

Number 352-352
related

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 A
Aadhaar Enabled Payment System

Aadhaar Enabled Payment System is an Indian payment system which allows online
interoperable financial transaction at Micro ATM or Point of Sale (PoS) terminal
through the Business Correspondent (BC) of any bank using the Aadhaar
authentication. In order for the AEPS to work, the Aadhaar number should be linked
with the bank account. AEPS can be used for Aadhaar to Aadhaar fund transfer,
balance inquiry, cash withdrawal, mini statement, etc.

Aadhaar Payment Bridge (APB) System

Aadhaar Payment Bridge (APB) System is one of the unique payment systems
implemented by NPCI, using Aadhaar number as a central key for electronically
channelizing Government benefits and subsidies into Aadhaar Enabled Bank Accounts
(AEBA) of the intended beneficiaries.

A-B Trust

A-B Trust is a joint trust created by a married couple for minimizing estate taxes,
formed with each spouse placing assets in the trust and naming as the final
beneficiary any suitable person except the other spouse. The trust splits into two
separate entities when one spouse dies: Trust A (survivor's trust) and Trust B
(decedent's trust).

Abandonment or Termination Option

Abandonment or Termination Option is an optional clause in a contract or an

agreement. This option allows either party to cease or abandon the project any time
before the maturity. Or, we can say it gives all parties in a contract the right to end
or leave the agreement, without fulfilling their obligations.

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Abandonment Value

Abandonment value is the equivalent cash value of a project if it is liquidated

immediately after reducing all debts which need to be repaid. Abandonment Value is
the equivalent cash value of a project if it is liquidated immediately after reducing all
debts which need to be repaid. Abandonment value is also known as liquidation value
of an asset.

Abatement

Abatement” refers to a situation where an economic burden is reduced. This burden

might take the form of a debt, an import tariff, a tax, a fine, a penalty or a reduction
of the percentage being charged, like an interest rate or a tax bracket reduction. Tax
abatements are the most frequent scenarios where the term is employed and they are
a reduction or exemption granted to an individual or a corporation by the
government to encourage the expansion of certain activity or project."

Abnormal Return

Abnormal return is the difference between the actual return of a security and the
expected return. Abnormal returns are sometimes triggered by “events.” Events can
include mergers, dividend announcements, company earnings announcements,
interest rate increases, lawsuits, etc. all of which can contribute to an abnormal return.

ABPC (Automated Banknote Processing Centre)

RBI established Automated Banknote Processing Centre (ABPC) in Jaipur for the
receipt, storage and dispatch of currency notes including processing of banknotes
received from currency chests (CCs) and bank branches and destruction of soiled
banknotes in an automated manner.

Absolute Assignment

Absolute Assignment is the act of complete transfer of the ownership (all rights,
benefits and liabilities) of the policy completely to another party without any terms
and conditions.

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Absolute Poverty

Absolute Poverty is a condition characterized by severe deprivation of basic human

needs, including food, safe drinking water, sanitation facilities, health, shelter,
education and information.

Absolute Priority

Absolute Priority is a rule that determines the order of the payments to creditors and
shareholders of the company. The other name of absolute priority is the Liquidation
Preference Rule. It is applicable in cases of bankruptcies for settlement of payment
of the outstanding amount in the preferential order of claimants.

Absolute Rate

Absolute Rate is the interest rate that is determined without reference to an index or
funding base such as LIBOR or U.S. treasury rates. For example, rather than LIBOR +
0.75%, the bid is expressed as 10.375%.

Acceleration

Acceleration is the process, where the lender demands a full and final payment of the
debt or loan, before the allotted time period for repayment. A clause in the document
of the debt usually empowers the lender to accelerate the time period.

Accelerated Depreciation

A method of depreciation of fixed assets, where the early deductions are greater in
monetary terms and later ones are smaller.

Acceleration Clause

Acceleration clause is a provision in a loan document stating that the entire amount
of loan become immediately due and payable if the borrower defaults payment of
even one instalment.

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Accessible India Campaign (AIC)

Accessible India Campaign (AIC) also known as Sugamya Bharat Abhiyan, it was
launched by Department of Empowerment of Persons with Disabilities, in December,
2015, as a nation-wide Campaign for achieving universal accessibility for Persons with
Disabilities (PwDs).

Accessions

Accessions are the goods that are physically united with other goods in such a manner
that the identity of the original goods is not lost. An example is a new motor in a
piece of equipment.

Accommodation Bill /Cheque

A bill of exchange or a cheque without backed by any genuine transaction is known

as Accommodation Bill/Cheque. It is also known as Convenience Bill."

Accommodation Maker

Accommodation maker is a person signing a note without receiving compensation

or other benefit. He may be an acceptor, maker, or endorser. An accommodation
maker guarantees the debt of another person.

Account Aggregator (AA)

Account Aggregator (AA) is a type of RBI regulated entity (with an NBFC-AA license)
that helps an individual securely and digitally access and share information from one
financial institution they have an account with to any other regulated financial
institution in the AA network. Data cannot be shared without the consent of the
individual.

Account Information Service Provider (AISP)

Account Information Service Provider (AISP) or a company with an AISP license, is a

type of financial institution providing access to the financial information of the user
on the accounts that are held with other institutions.

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Accrual Accounting

Accrual Accounting is an accounting system that records transactions at the time they
occur, whether the payment occurs now or in the future.

Accounting Risk

Accounting risk is the possibility that the impressions of a business can be influenced
by the various methods a company might legitimately choose in presenting accounts
in financial statements.

Attestation of Photos of LHA

In case of Accounts operated by Letter of Authority Holders, photographs of LA

Holders are to be attested by the Depositor.

Accounts Receivable Aging

An Accounts Receivable Aging is a list of unpaid balances broken down into

categories that indicate how long the invoices have been outstanding; this list should
include a breakdown by each customer's name as well as by days from date of invoice
i.e. 1-30 days, 31-60 days, etc.

Accredited Investor

Accredited Investor is an individual person or an institutional investor. These

accredited investors have special privileges and rights which allow them to invest in
financial securities that are not usually available to the general public. They get to
invest or trade in securities that are not available to general investors. Or, in securities
that are not registered with any financial watchdog.

Accruing Debt

If a monetary obligation is due in present, but becomes payable on a future date,

then that is accruing debt. For example, if Mr. A is the employee of Mr. B and he gets
his salary on the last day of every month, then his salary is accruing debt during that
month, as it is due throughout the month, but it becomes payable only on the last
day of the month."

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Accumulated Depreciation

Accumulated depreciation is the cumulative depreciation of an asset up to a single

point in its life. Accumulated depreciation is a contra asset account, meaning its
natural balance is a credit that reduces the overall asset value. This type of
depreciation can be calculated using several different methods, including the straight
line and double-declining balance methods. Accumulated depreciation can be located
on a company's balance sheet below the line for related capitalized assets.

Add to Cash Value Option

The add to cash value option is available on permanent life insurance policies that
earn dividends. You can use this option to reinvest the dividends back into your policy
rather than collecting the money as cash. Using this option can build your life
insurance savings by more for the future.

Active Investing

Active Investing takes a hands-on approach and requires someone to act as a

portfolio manager. The goal is to beat the stock market's average returns and take
full advantage of short-term price fluctuations.

Active Investor

An Activist Investor is an individual or group that buys a significant stake in a public

company in order to influence how the company is run, such as by obtaining seats on
its Board of Directors. An activist investor, a specialized hedge fund, buys a significant
minority stake in a publicly traded company in order to change how it is run. The
activist investor's goals may be as modest as advising company management or as
ambitious as forcing the sale of the company, divestitures or restructuring, or
replacing the board of directors. Unlike private equity firms that buy and restructure
companies in order to profit when they are resold, activist investors seldom acquire
full or majority stakes. Instead, they use public communications and private
discussions to win over other shareholders and company insiders. When such efforts
fail, an activist investor may pursue a proxy contest to elect new directors in order to
force the company to meet their demands.

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Actual Cash Value

Actual Cash Value is valuation of the damaged property, i.e. its monetary worth at
market value immediately preceding the occurrence of the loss.

Actuary

Actuary is a person with expertise in the fields of economics, statistics and

mathematics, who helps in risk assessment and estimation of premiums etc for an
insurance business.

Ad-hoc Research

Ad-hoc Research that is specifically designed to address a particular problem or issue.

Ad-hoc research is usually conducted when there is insufficient existing information.
Ad hoc projects are usually single pieces of research rather than part of a continuous
program.

Ad-Valorem Tariff

Ad-valorem tariff is a tariff assessed as a percentage of the value of the goods cleared
through customs. Ad valorem means “according to value.” A 5% ad valorem tariff
means the tariff is 5% of the value of the merchandise.

Adhesion Contract

An adhesion contract is an agreement that usually has non-negotiable terms and

conditions. Generally, it's prepared by a party to a potential transaction that has the
product or service sought by another party, the consumer. The former has the
stronger bargaining position. The latter must accept the adhesion contract to obtain
the product or service. Adhesion contracts are "take it or leave it" agreements where
you must accept the contract or walk away.

Additional Tier-1 Bonds (AT-1 Bonds)

Additional Tier-1 bonds, are a type of unsecured, perpetual bonds that banks issue to
shore up their core capital base to meet the Basel-III norms. Also known as AT – 1
Bonds

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Advance-fee Scam

Advance-fee Scam, also known as the 419 Scam, is a form of fraud and one of the
most common types of confidence tricks. An Advance fee scheme occurs when the
victim pays money to someone in anticipation of receiving something of greater
value—such as a loan, contract, investment, or gift—and then receives little or
nothing in return. There are many variations of this type of scam, including the
"Nigerian prince scam," the "Spanish Prisoner Scam," and the "Black Money Scam."
The number "419" refers to the section of the Nigerian Criminal Code dealing with
fraud.

Adverse Selection

Adverse Selection (aka Anti Selection) is an instance where an Insurer would not wish
to insure a person whose genetic condition is indicative of an illness which is
considered very expensive. For example, Colon Cancer. For insurance providers, this
means using information about a specific person’s genetic data to make decisions
about whether or not to insure them. If it is know that somebody has a genetic
predisposition towards colon cancer, for example, an insurer may then take a number
of different actions to negate this increased risk. They might exclude colon cancer
coverage from a policy, raise premiums substantially to cover potential costs, or
simply refuse to insure an applicant outright."

Advertorial

"Advertorial is a form of advertisement in a newspaper, magazine or a website which

involves giving information about the product in the form of an article. Usually, a
brand pays the publisher for such an article."

Affiliate Marketing

Affiliate marketing is the process by which an affiliate earns a commission for

marketing another person's or company's products. Companies are affiliated when
one company is a minority shareholder of another. In most cases, the parent company
will own less than a 50% interest in its affiliated company. Two companies may also
be affiliated if they are controlled by a separate third party. In the business world,
affiliated companies are often simply called affiliates.

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Affiliate

In Corporate Finance, Affiliate is an associated company of a parent company if the

latter has less than 50% shareholding in the affiliated company. This means that in
the affiliated firm the parent company has minority shareholding only. On the other
hand, in the case of a subsidiary firm, the parent company has more than 50% share.
So affiliate and subsidiary are compared in terms of degree of shareholding

Affinity Card

Affinity card is a card that is offered jointly by two organizations. One is a credit
card issuer and the other is a professional association, special interest group or other
non-bank company. For example, Citibank and American Airlines sponsor the
Citibank AAdvantage card.

Affirmative Covenant

Affirmative covenant is a provision in the lender's documents that requires the

borrower to do something in the future. For example, a requirement for the borrower
to provide annual audited financial statements to the bank during the term of the
loan.

Affirmative Warranty

Affirmative Warranty is a statement by the insured as to the credibility or verification

of certain facts or conditions pertinent to the issuance of the policy.

After-acquired Property Clause

After-acquired property clause is a provision in a bank's documents, the purpose of

which is to extend the bank's interest in the debtor's property to property not owned
by the debtor at the time of the transaction but subsequently acquired by the debtor.

Agflation

Agflation is an increase in the price of agricultural food products caused by increased

demand, especially as a result of the use of these products in alternative energy
sources.

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Agglomeration Strategy

Agglomeration Strategy in production implies large number of units are located in a

specific location. For example, the Special Economic Zones regarding exports
indicates agglomeration. There are several benefits when the industrial units are
located together.

Aggregate Supply Stock

Aggregate Supply Shock indicates the shortfall in the availability of goods and
services in an economy compared to demand.

Agile Enterprise

An Agile Enterprise is an enterprise that is fast moving, flexible, and capable of rapid
response to unexpected challenges, events, and opportunities. Built on policies and
processes that facilitate speed and change, it aims to achieve continuous competitive
advantage in serving its customers. Agile enterprises use diffused authority and flat
organizational structure to speed up information flows among different
departments, and develop close, trust-based relationships with their customers and
suppliers.

Agnate

An Agnate is a person related to wholly through males either by blood or by adoption.

The agnatic relation may be a male or a female. A relative whose connection is
traceable exclusively through males. One’s father’s brother, or father’s brother’s son
or father’s son’s son or father’s son’s daughter are agnates.

Agribusiness

Agribusiness is the business sector encompassing farming and farming-related

commercial activities. It involves all the steps required to send an agricultural good
to market, namely production, processing, and distribution. This industry is an
important component of the economy in countries with arable land since agricultural
products can be exported.

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AgriSure

An integrated Agri Investment Portal named Krishi Nivesh and 'AgriSure' fund has
been launched by GoI. The Rs 750-crore 'AgriSure' (Agri Fund for Startups & Rural
Enterprises) will support startups and 'agripreneurs' by providing both equity and
debt capital. The portal will cater to diverse stakeholders, including farmers,
entrepreneurs, and industries, by providing easy access to information regarding
various Central and state government schemes.

Agritech

Agritech is a combination of agriculture and technology. It refers to the use of

technological innovations in agriculture to increase yield, quality, efficiency, and
profitability. Agritech uses modern methods to enhance farming and is rapidly
shaping the agricultural economy for a more progressive future. It also uses robots,
big data, AI, and other methods to solve challenges in the agriculture sector. With its
help, crops are modified to grow in any environment, planting is faster, and
harvesting is better.

Algorithm Trading

Algorithm trading is a system of trading which facilitates transaction decision making

in the financial markets using advanced mathematical tools.

Allonge

Allonge is a paper attached to negotiable instruments for signatures when there is

not enough place on the instruments themselves for the signatures.

All Weather Road

All-Weather Road means a road of sufficient construction and firmness for vehicles
and equipment to traverse during normal inclement weather, including expected
rain, snow, and freezing temperatures.

Alternative Delivery Channels (ADCs)

Alternative Delivery Channels (ADC) are those channels that expand the reach of
services beyond the traditional bank branch channel.

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Alternative Investment

An alternative investment is a financial asset that does not fall into one of the
conventional investment categories. Conventional categories include stocks, bonds,
and cash. Alternative investments can include private equity (PE) or venture capital
(VC), hedge funds, managed futures, art and antiques, commodities, and derivatives
contracts. Real estate is also often classified as an alternative investment.

Alternative Risk Transfer (ART)

Alternative risk transfer (ART) refers to devices for managing insurable risk other than
by seeking an insurance cover.

Amazon Effect

The Amazon effect refers to the impact created by the online, eCommerce, or digital
marketplace on the traditional brick and mortar business model that is the result of
the change in shopping patterns, customer expectations, and the industry's
competitive landscape. As online shopping and eCommerce grow in popularity, it has
hurt many traditional businesses that are forced to compete with the online
marketplace with only a physical location.

Amber Box Subsidy

Amber Box Subsidy refers to those subsidies that can distort international trade by
making products of a particular country cheaper in comparison to other countries
products. Examples of amber subsidies include, electricity, seeds, fertilizers,
irrigation, minimum support prices etc.

Ambush Marketing

Ambush Marketing refers to a situation in which a company or product seeks to ride

on the publicity value of a major event without having contributed to the financing
of the event through sponsorship. It is typically targeted at major sporting events like
the Olympic Games or world cups in various games and is a strategy adopted by rivals
of the official sponsors.

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American Quotes

American Quotes - When the price of a foreign currency is expressed in terms of

dollars, it is said to be in American terms. This is the direct method of quoting foreign
exchange.

Amortization

Amortization is the process of decreasing or accounting for, an amount over a period.

Anchoring

Anchoring is a term used to describe an irrational bias towards an arbitrary

benchmark figure.

Anchor Investor

An Anchor Investor is a qualified institutional buyer who makes an application for a

value of ten crore rupees or more in a public issue made through the book building
process in accordance with SEBI regulations.

Angel Tax

Angel Tax is a term basically used to refer to the income tax payable on the capital
raised by unlisted companies via the issue of shares through off-market transactions.

Animal Spirits

Animal Spirits is a term coined by the famous British economist, John Maynard
Keynes, to describe how people arrive at financial decisions, including buying and
selling securities, in times of economic stress or uncertainty. Today, animal spirits
describe the psychological and emotional factors that drive investors to take action
when faced with high levels of volatility in the capital markets.

Annual Information Statement (AIS)

Annual Information Statement (AIS) is a comprehensive statement containing details

of all the financial transactions undertaken by you in a financial year (FY).

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Annual Percentage Rate (APR)

Annual Percentage Rate (APR) refers to the yearly interest generated by a sum that's
charged to borrowers or paid to investors. APR is expressed as a percentage that
represents the actual yearly cost of funds over the term of a loan or income earned
on an investment. This includes any fees or additional costs associated with the
transaction but does not take compounding into account.

Annuity

Annuity is a series of payments of equal amounts made at fixed intervals for a

specified number of periods.

Annuity Certain

Annuity Certain is an insurance contract that provides an annuity for a certain number
of years, irrespective of whether the insured is alive or dead

Ante Dated Cheque

A Cheque bearing a date prior to actual date of signing the cheque (or opening of an
account) is called an Ante Dated Cheque.

Anticipatory Inventory

Anticipatory Inventory is the extra stock that a company maintains to account for
fluctuations in the demand of the product. A company keeps this type of stock on the
basis of future demand expectations. A company can maintain such a stock
seasonally. For example, companies keeping more stock of umbrellas during the rainy
season than any other season.

Anti-Dumping Duty

Anti-dumping Duty is a protectionist tariff that a domestic government imposes on

foreign imports that it believes are priced below fair market value. Dumping is a
process wherein a company exports a product at a price that is significantly lower
than the price it normally charges in its home (or its domestic) market.

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Anti-Dilution Clause

This clause protects investors from a decrease in share value due to the company
issuing more shares at a lower price than previously sold. It adjusts the conversion
rate for preferred shares to common shares to safeguard the investor’s initial
investment value.

Anti Selection

Anti-Selection (aka Adverse Selection) : An instance where an Insurer would not wish
to insure a person whose genetic condition is indicative of an illness which is
considered very expensive. For example, Colon Cancer. For insurance providers, this
means using information about a specific person’s genetic data to make decisions
about whether or not to insure them. If it is know that somebody has a genetic
predisposition towards colon cancer, for example, an insurer may then take a number
of different actions to negate this increased risk. They might exclude colon cancer
coverage from a policy, raise premiums substantially to cover potential costs, or
simply refuse to insure an applicant outright."

Anti Trust Laws

Antitrust Laws are regulations that encourage competition by limiting the market
power of any particular firm. This involves ensuring that mergers and acquisitions
don't overly concentrate market power or form monopolies and breaking up firms
that have become monopolies.

APIC

In accounting terms, APIC stands for Additional paid-in Capital. And it is an additional
amount the investors are ready to pay above the par value of the stock. Therefore,
the Issuance of APIC share capital occurs at the time of Initial Public Offerings (IPO)
or Follow on Public Offer (FPO). In other words, it is a difference between the bidding
values per share, bided by the investors, and the par values per share, set by the
issuing company. Thus it acts as an additional cash flow for the company, which is
directly collected by the company in the primary market.

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Appropriation

Appropriation is when money is set aside for a specific purpose. A company or a

government appropriates funds in order to delegate cash for the necessities of its
operations. A company might appropriate money for short-term or long-term needs
that include employee salaries, research and development, and dividends.

Appropriability Effect

Appropriability Effect is the ability of a firm or innovator to capture the social gains
from their innovation and retain the added value for their own benefit.

Approved Cheques

Approved Cheques means Cheques arising out of genuine transactions and not the
Cheques for Accommodation.

Arakunomics

Arakunomics is a new integrated economic model that ensures profits for farmers,
quality for consumers through regenerative agriculture.

Arbitrage

Arbitrage is the simultaneous buying and selling of foreign currencies with intention
of making profits from the difference between the exchange rate prevailing at the
same time in different markets.

Arbitrageur

Arbitrageur is an individual or business that exercises arbitrage seeking to earn risk-

free profits by taking advantage of simultaneous price differences in different
markets.

Ascending Triangle

An ascending triangle is a chart pattern used in technical analysis. It is created by

price moves that allow for a horizontal line to be drawn along the swing highs and a
rising trendline to be drawn along the swing lows. The two lines form a triangle.
Traders often watch for breakouts from triangle patterns. The breakout can occur to
the upside or downside.

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AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank

whose mission is to improve Asia's social and economic conditions. The parties to the
agreement make up the Bank's membership (57 founding members). It was
established in January 2016 and is based in Beijing, China.

Asian Option

Asian Option is an option whose expiration value depends on the average value of an
underlier over a specified period.

Ask

Ask is the price a seller is willing to accept for a security, which is often referred to as
the Offer Price. The Bid is the price a buyer is willing to pay for a security, and the Ask
will always be higher than the Bid.

Ask and Bid Rates

Both the terms together constitute a two-way price quotation. They represent the
best potential price at which a stock or a financial security can be bought or sold in
the market at a given time. Buyer and seller enter into a transaction after both agree
on a price that is not less than the ask price and not higher than the bid price. Bid is
the maximum price that a potential buyer is willing to spend for a specific share. Ask
price, on the other hand, is the minimum price that the seller is asking for a share.

Aspirational Districts

"Aspirational Districts are those districts in India, that are affected by poor socio-
economic indicators. The Government of India has launched the 'Transformation of
Aspirational Districts' initiative in January 2018 with a vision of a New India by 2022
wherein the focus is to improve India's ranking under the Human Development Index
(HDI), raising living standards of its citizens and ensuring inclusive growth of all."

Assemble-to-Order (ATO)

Assemble-to-order (ATO) is a business production strategy where products that are

ordered by customers are produced quickly and are customizable to a certain extent.

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Asset Allocation

Asset Allocation is an investment strategy that aims to balance risk and reward by
apportioning a portfolio's assets according to an individual's goals, risk tolerance,
and investment horizon. The three main asset classes—equities, fixed-income, and
cash and equivalents—have different levels of risk and return and behave differently
over time.

Asset Based Approach

An Asset-Based Approach is a type of business valuation that focuses on a company's

net asset value. The net asset value is identified by subtracting total liabilities from
total assets. There is some room for interpretation in terms of deciding which of the
company's assets and liabilities to include in the valuation and how to measure the
worth of each.

Asset Class

Asset Class is a grouping of investments that exhibit similar characteristics and are
subject to the same laws and regulations. The three main asset classes are equities
(stocks), fixed income (bonds), and cash equivalent or money market instruments.
Currently, most investment professionals include real estate, commodities, futures,
other financial derivatives, and even cryptocurrencies in the asset class mix.

ALM (Asset Liability Management)

ALM is a mechanism to address the risk faced by a bank due to a mismatch between
assets and liabilities either due to liquidity or changes in interest rates.

Asset Reconstruction Company (ARC)

An Asset Reconstruction Company is a specialized financial institution that buys the

NPAs or bad assets from banks and financial institutions so that the latter can clean
up their balance sheets.

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Assortment Strategy

An assortment strategy in retailing involves the number and type of products that
stores display for purchase by consumers. Also called a "product assortment
strategy," it is a strategic tool that retailers use to manage and increase sales. The
strategy is made up of two major components:

1.The depth of products offered, or how many variations of a particular product a

store carries (e.g. how many sizes or flavours of the same product).

2.The width (breadth) of the product variety, or how many different types of products
a store carries.

Assumable Mortgage

An assumable mortgage is a type of financing arrangement whereby an outstanding

mortgage and its terms are transferred from the current owner to a buyer. By
assuming the previous owner's remaining debt, the buyer can avoid obtaining their
own mortgage.

Asymmetric Behaviour

Asymmetric behaviour is the Unbalanced behaviour exhibited by financial

instruments, the rates or values of which do not change in proportion to changes in
market rates. For example, increases in the prime rate quickly reflect most or all of
increases in prevailing interest rates, while decreases in the prime rate are slow to
reflect decreases in prevailing interest rates.

At The Market

At the market refers to an order to buy or sell securities, executed by a broker at the
best price available, rather than at a predetermined price.

AT-1

AT-1, short for Additional Tier-1 bonds, are a type of unsecured, perpetual bonds that
banks issue to shore up their core capital base to meet the Basel-III norms.

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Alternative Names of ATMs

Alternate Names ATMs are known by a variety of names, including Automated

Banking Machine (ABM). Cash Point, Cash Machine, Minibank (the official name of
the Yorkshire Bank ATMs), and "Hole in the Wall" are most widely used. Other terms
include Any Time Money, Cashline, Minibank, Tyme Machine ("Take Your Money
Everywhere"), Cash Dispenser, Bankomat or Bancomat.

Attachment Order

Attachment Order with out mentioning the amount is invalid order.

Attrition

Attrition refers to a gradual but deliberate reduction in staff numbers that occurs as
employees retire or resign and are not replaced. It is commonly used to describe
downsizing in a firm's employee pool by human resources (HR) professionals. In this
case, downsizing is voluntary, where employees either resign or retire and are not
replaced by the company. Attrition happens for several reasons, including pay, lack
of growth, and poor workplace conditions. The term is also sometimes used to
describe the loss of customers or clients as they mature beyond a product or
company's target market without being replaced by a younger generation.

Augmented Product

Augmented Product has been enhanced by its seller with added features or services
to distinguish it from the same product offered by its competitors. Augmenting a
product involves including intangible benefits or add-ons that go beyond the product
itself. Examples of the features used to create augmented products might include free
delivery or in-home installation of a service. Cosmetics companies tend to offer free
makeovers and travel-size samples to augment their products.

Austerity

Austerity refers to a set of economic policies that a government implements in order

to control public sector debt. Governments put austerity measures in place when their
public debt is so large that the risk of default or the inability to service the required
payments on its obligations becomes a real possibility.

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Autarky

Autarky refers to a Nation that operates in a state of self-reliance. Nations that follow
a policy of Autarky are characterized by self-sufficiency and limited trade with global
partners. North Korea and Nazi Germany are two examples of Nations that have
pursued a Policy of Autarky.

Automatic Premium Loan (APL)

An Automatic Premium Loan (APL) is an insurance policy provision that allows the
insurer to deduct the amount of an outstanding premium from the value of the policy
when the premium is due. Automatic Premium Loan provisions are most commonly
associated with cash value life insurance policies, such as whole life, and allow a policy
to continue to be in force rather than lapsing due to nonpayment of the premium.

Autoregressive Mean

Autoregressive Mean is a statistical model that predicts future values based on past
values. For example, an autoregressive model might seek to predict a stock's future
prices based on its past performance.

Aval

Aval is a guarantee that a third party adds to a debt obligation. This third party, or
guarantor, is not the payee or the holder but ensures payment should the issuing
party default. The debt obligation avalled (guaranteed) could be a note, bond,
promissory note, bill of exchange, or draft.

Average Employee Pay

Average Employee Pay is the ratio of total staff cost to employee strength.

Average True Range

The average true range (ATR) is a technical analysis indicator that measures market
volatility by decomposing the entire range of an asset price for that period.

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 B
B2B

B2B (Business to Business) companies are supportive enterprises that offer the things
other businesses need to operate and grow. Payroll processors and industrial
suppliers are a couple examples.
B2C

B2C (Business to Consumer) refers to the process of selling products and services
directly between a business and consumers who are the end-users of its products or
services. Most companies that sell directly to consumers can be referred to as B2C
companies."
Baby Steps

Baby Steps - to make progress very slowly; to take small steps to achieve a goal. When
RBI increases or decrease Policy Rates (Bank Rate, Repo Rate etc.) by small basic
points (say 25 bps), it is known as “taking baby steps”. RBI typically take baby steps
– 25 basis points (bps) increase/decrease in policy rate at a time or even less, which is
known as interest rate smoothing by central banks.
Back Leverage (Holdco Loan or Mezzanine Financing)

Back Leverage Also referred to as a holdco loan or mezzanine financing, this is a

transaction in which a project sponsor or a project developer finances all or a portion
of its equity contribution in the project company or holding company with third party
loans.
Back Orders

"Back-orders are customer orders not fulfilled because of inventory shortages. In

general, a backorder is the list or group of orders that remain unsatisfied until the
organization is ready to deliver them."

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Backroom Costs

Backroom Costs are Indirect costs that do not add direct value to a product and may
or may not be necessary to support its production.
Bailment

A ‘Bailment’ is the delivery of goods by one person to another for some purpose,
upon a contract that they shall, when the purpose is accomplished, be returned or
otherwise disposed of according to the directions of the person delivering them.The
person delivering the goods is called the ‘Bailor’. The person to whom they are
delivered is called the ‘Bailee’. One of the requirements of bailment is delivery of
goods to the bailee.
Bail Out

Bail Out is the giving of financial assistance to a failing business to save it from
collapse. Providing money and/or resources (also known as a capital injection) to a
failing company is known as Bailout. These actions help to prevent that Entity’s
potential downfall which may include bankruptcy and default on its financial
obligations.

Baked the Cake

"Baked in the cake" is used to indicate that some material information, such as
unverified news reports or earnings projection, has already been taken into account
and included in a security's market price. An investor just learning the news is unlikely
to be at an advantage by acting on it, as the price has already moved to reflect the
upcoming information.
Baloon Loan

Balloon loan is a loan for which the final payment, larger than all of the previous,
regularly scheduled payments, is due in a lump sum. The final payment is called a
balloon payment.

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Ballpark

In business, "ballpark" refers to an estimate that is within the range of something

desired. Indicating that something is within the right ballpark tells others that they
are taking useful steps toward a certain goal for a project.

Bancassurance

Bancassurance means selling insurance product through banks. Banks and insurance
company come up in a partnership wherein the bank sells the tied insurance
company's insurance products to its clients.

Bank Deposits and Law of Limitations

Deposit of money in the Banks is distinct from a loan in the sense that Banks have to
keep the money till the customer asks / demands for it. The law is very clear that in
case of a Deposit, the Banks are obliged to pay only when there is a demand from the
customer. Limitation period in respect of repayment of a Deposit with the Bank would
start against the Bank not from the date of maturity of deposit but from the date of
demand by the customer and is enforceable within a period of 3 years.

Bank Float

Bank float is the time between the date a check is deposited in a bank and the date
it is charged to the drawer. It is also called bank collection float, check-clearing or
transit float.

Bank Rate

Bank Rate is the rate of interest which a Central Bank (RBI) charges on the loans and
advances to a commercial bank, without selling or buying any security.

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Banking Related Days

Bank Nationalization Day (India) - 19th July

National Savings Day 12th October
World Thrift Day 31st October. (In India, the day is celebrated on 30th October)
The International Day of Banks - 4th December.

Bank Run

A bank run occurs when a large number of customers of a bank or other financial
institution withdraw their deposits simultaneously over concerns of the bank's
solvency. As more people withdraw their funds, the probability of default increases,
prompting more people to withdraw their deposits. In extreme cases, the bank's
reserves may not be sufficient to cover the withdrawals.

Banking 4.0

Banking 4.0 is defined by four primary characteristics. Firstly, it encourages a

transition from product-based operations to service-based roles. Secondly, banking
4.0 requires BFSI companies to adopt a more customer-centric approach to banking.
Thirdly, banks succeeding in riding the 4.0 wave will need to embrace a major shift
toward digitization. Lastly, banking 4.0 requires banks to collaborate with fintech
companies on fronts like lending and creating co-branded products.

BaaS

Banking as a Service (BaaS) allows non-banks to offer core financial services to their
customers by integrating with banks via APIs. Non-banks (like fintech and non-
fintech businesses) build products on top of the traditional banking infrastructure.

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Baptism by Fire

Baptism by Fire is a phrase used to describe a person or employee who is learning

something the hard way through a challenge or difficulty. In many cases, someone
who starts a new job must undergo a baptism by fire, meaning they must immediately
deal with one or more difficult situations.

Barbell Strategy

Barbell Strategy is formed when a trader invests in long- and short-duration bonds
but does not invest in intermediate-duration bonds. This strategy is useful when
interest rates are rising; as the short-term maturities are rolled over, they receive a
higher interest rate, raising the value.

Base Currency and Quoted Currency

In a currency pair (in the Forex market) First one is known as the Base Currency. The
Second one is known as Quoted Currency.
Basel 3 Pillars

The Three Pillars are

1)Minimum Capital Requirements

2) Supervisory Review Process (SRP)
3) Market Discipline.
Basis Point (BPS)

A basis point (BPS) is used to indicate changes in the interest rates of a financial
instrument. Basis points are typically expressed with the abbreviations "bp," "bps,"
or "bips." One basis point is equal to 1/100th of 1%, or 0.01%. In decimal form, one
basis point appears as 0.0001 (0.01/100).

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Basis Risk

Basis risk is the financial risk that offsetting investments in a hedging strategy will
not experience price changes in entirely opposite directions from each other. This
imperfect correlation between the two investments creates the potential for excess
gains or losses in a hedging strategy, thus adding risk to the position.

Basis Trading

In the context of futures trading, the term basis trading refers generally to those
trading strategies built around the difference between the spot price of a commodity
and the price of a futures contract for that same commodity. This difference, in
futures trading, is referred to as the basis. If a trader expects this difference to grow,
the trade they will initiate would be termed "long the basis", and conversely, a trader
enters "short the basis" when they speculate that the difference will decrease.

BEAM

Bombay Stock Exchange (BSE) Ltd. has launched an electronic spot platform, “BSEE-
Agricultural Markets Ltd (BEAM)”, for agricultural commodities through its
subsidiary BSE Investments Ltd."
Bear Hug

Bear Hug is a type of acquisition where the acquiring company offers a higher
purchasing price than the current price of the target company. Under this acquisition,
a higher price is offered because the target company is unwilling to sell, preventing
the target company from escaping the deal quickly.
Bear Trap

A bear trap is a technical pattern that occurs when the price action of a stock, index
or another financial instrument incorrectly signals a reversal from an uptrend to a
downtrend. In other words, prices may move higher in a broad-based incline, only to
encounter significant fundamental resistance or change. This prompts bears to open
short positions, hoping to profit from an indication of falling prices.

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Bearer Demand Draft

DD is always drawn payable to 'Order' as drawing of DD payable to 'Bearer' is

prohibited under law.

Bell-Weather

Bell-weather is an event or indicator that shows the possible presence of a trend in

overall market or sector direction. The performance of certain companies/stocks and
bonds are considered by analysts to indicate the condition of the economy and
financial markets because their performance is well-correlated with a trend.
Bellwether companies are usually the market leaders in their respective sectors.
Benchmarking

Benchmarking is the process of comparing the products and services of a business

against its competitors in a market.

Beneficial Owner

The party that receives all of the benefits or rights of an owner of a security even
though the legal ownership of the security is recorded in the name of a broker is
known as Beneficial Owner.

Beneficial owner means.....>

1. Natural person entitled to >25 % share capital or profit in a company
2. >15 % capital in Partnership or in incorporated body.

Bermudan Option

Bermudan Option is an option that can be exercised on one of several different dates
before the expiry date.

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Best Finger Detection (BFD)

Best Finger Detection (BFD) is the process where the best finger of a resident is
identified based on the highest probability of matching. A resident can have one or
more best fingers, which are detected during the BFD process. The operator captures
all fingers from both hands (usually ten) to determine the best ones. Once the best
attempt is captured for all fingers, it is compared with the biometric data stored with
UIDAI CIDR. Based on the response, results are communicated, indicating the best
fingers of the resident with rankings in decreasing order.

BHASKAR

Bharat Startup Knowledge Access Registry (BHASKAR) is a central hub for startups,
investors, service providers, and government bodies to collaborate and share ideas.
The BHASKAR portal is aimed at connecting relevant stakeholders of the startup
ecosystem, such as mentors and investors among others to promote the industry’s
growth. BHASKAR meaning “Rising Sun‟.
Bhavishya

To overcome the problems of delay & clerical errors in processing the pension cases,
as well as financial loss and harassment to the pensioners, the DOPPW introduced, a
unique innovative centralized pension processing software called “Bhavishya‟ for all
central government Ministries/Departments.

Bid

Bid is the price a buyer is willing to pay for a security, and Ask is the price a seller is
willing to accept for a security, which is often referred to as the Offer Price, and the
Ask will always be higher than the Bid.

Big Board

Big board is the informal name for the New York Stock Exchange.

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Big Data

Big Data refers to a massive volume of both structured and unstructured data that is
too large to process using traditional database and software techniques.

Big Tech

Big Tech refers to the five major technology companies of influence, including
Amazon, Apple, Facebook, Google, and Microsoft.

Big Three Automotives

The Big Three in the automotive industry is a reference to the three largest car
manufacturers in the United States: General Motors Company (GM), Stellantis (STLA),
formerly known as Fiat Chrysler, and Ford Motor Company (F). The Big Three are
sometimes referred to as the "Detroit Three." All three companies have production
facilities in the Detroit area, so their performance has a significant effect on the city's
economy.
Big Box Retailer

Big-Box Retailer is a retail store that occupies an enormous amount of physical space
and offers a variety of products to its customers. These stores achieve economies of
scale by focusing on large sales volumes. Because volume is high, the profit margin
for each product can be lowered, which results in very competitively priced goods.
The term "big-box" is derived from the store's physical appearance.
Bilateral Monopoly

Bilateral Monopoly is a market situation in which a single seller faces a single buyer,
i.e., the seller is a monopolist and the buyer is a monopsonist.
Binder

Binder is a temporary insurance contract that provides proof of coverage until a

permanent policy is issued.

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Bitcoin Halving

One of the most pivotal events on Bitcoin's blockchain is a halving, when the reward
for mining is cut in half. Since 2020, the network participants validating transactions
have been awarded 6.25 bitcoins (BTC) for each block successfully mined. The next
halving is expected in April, when the block reward will fall to 3.125.
Bit Size or Sachet Size Insurance

Bite Size or Sachet Size Insurance refers to small-ticket insurance cover, also known
as Sachet or Bite-size insurance, which is a non-comprehensive plan, focusing on a
specific need and comes with a low premium and lower cover. An example of bite-
size insurance is the insurance you get with your train ticket on the IRCTC website,
which is supported by a public insurance company.
Black Box Trading (or Automated Trading)

Black Box Trading, also called automated trading, it refers to the use of computerized
systems that have buy and sell instructions generated by a proprietary software
program

Black Friday

Black Friday refers to the day after the U.S. Thanksgiving holiday, celebrated on the
fourth Thursday in November. It has become a day of special shopping deals and
discounts, and is said to mark the beginning of the holiday shopping season.

Black Swan Eve

"Black Swan or Bear Hug or a Teddy Bear Hug is a type of acquisition where the
acquiring company offers a higher purchasing price than the current price of the
target company. Under this acquisition, a higher price is being provided because the
target company is unwilling to sell. nt in the finance world refers to an extremely
negative rare event, which is impossible to predict. Such events are random and have
wide-spread ramifications. The term is inspired by the possibility of seeing a black
swan among a group of white swans."

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Black-out Period

Black-out Period is a duration of time when access to something usually available is

prohibited. In a financial context, a blackout period is a duration of time when a
company's executives and/or employees who are privy to inside information are
restricted from buying or selling any corporate securities. The purpose of blackout
periods is to prevent insider trading based on information that is not available to the
general public.

Blank Check Company

A blank check company is a publicly-traded, developmental stage company that has

no established business plan. It may be used to gather funds as a startup or, more
likely, it has the intent to merge or acquire another business entity.

Blanket Insurance

Blanket Insurance is a policy designed to provide coverage under a single limit for
two or more items (e.g. building and/or contents), two or more locations, or a
combination of items and/or locations.

Blanket Lien

Blanket lien is an informal term meaning a lien on all of the debtor's current and
subsequently acquired personal property assets.

Blended Rate

A blended rate is an interest rate charged on a loan that represents the combination
of a previous rate and a new rate. Blended rates are usually offered through the
refinancing of existing loans that are charged a rate of interest that is higher than the
old loan's rate, but lower than the rate on a brand-new loan.

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Block Deal

A Block Deal is a single transaction, of a minimum quantity of five lakh shares or a

minimum value of Rs 5 crore, between two parties which are mostly institutional
players. The transaction happens through a separate trading window. The deals
happen in the beginning of trading hours for a time span of 35 minutes.

Block Trade

Block Trade is a large, privately negotiated securities transaction arranged away from
public markets to lessen the effect on the security's price. Hedge funds, institutional
investors, and high-net-worth accredited investors usually participate in block trades,
often via investment banks and other intermediaries.

Blockchain

Blockchain is the record-keeping technology behind the Bitcoin network that stores
every Bitcoin transaction ever made. It is a type of database that collects information
together in groups, also known as blocks, that hold sets of information. Blocks have
certain storage capacities, and when filled, they are chained onto the previously filled
block, forming a chain of data known as the blockchain. All new information that
follows that freshly added block is compiled into a newly formed block that will then
also be added to the chain once filled. Blockchain is a technology that enables moving
of digital currency from one individual to other individual, whereas Bitcoins are
digital currency.
Blocked Account

A blocked account is a financial account with restrictions that limit or prevent the
account holder from withdrawing or transferring money. Blocked accounts can be
temporary or permanent, and can be caused by: internal bank policies, external
regulations, a court order or legal decision, government restrictions, and authorized
persons blocking the account. Blocked accounts are also sometimes called frozen
accounts.

Blocked accounts are to be categorized as High Risk.

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Blocked Currency

Blocked Currency is a currency that is not freely convertible to other currencies due
to exchange controls.

Blocked Funds

Blocked funds (in forex) are funds in one nation’s currency that may not be
exchanged freely due to exchange controls or other reasons.

Blue Aadhaar Card (Baal Aadhaar)

The Unique Identification Authority of India introduced the concept of a Blue

Aadhaar card (baal aadhaar) in 2018. It is specifically tailored for children under the
age of 5.The Blue Aadhaar card holds immense significance in simplifying the
Inclusion Of Young Children Into Government Welfare Programs. The Main Feature
Of This Aadhaar Card Is That Children Under The Age Of 5 Are Not Required To
Provide biometric data. Instead, their UID (Unique Identification) is processed using
demographic data and a facial image connected to the UID of their parents.

Blue Box Subsidy

Blue Box Subsidy refers to a category of domestic support or subsidies under the
WTO's Agreement on Agriculture. Blue box supports are subsidies that are tied to
programmes that limit production by imposing production quotas or encouraging
farmers to set aside land for other purposes.

Blue Bond

A Blue Bond is a relatively new form of a sustainability bond, which is a debt

instrument that is issued to support investments in healthy oceans and blue
economies.

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Blue Chip

A blue chip is a nationally or internationally recognized, well-established, and

financially sound company that is publicly traded. Blue chip companies have
reputable brands that have been built and maintained over many years.
Blue Finance

Blue finance is an emerging area in climate finance with increased interest from
investors, financial institutions, and issuers globally. It offers tremendous
opportunities to help safeguard our access to clean water, protect underwater
environments, and invest in a sustainable water economy.

Blue Ocean Strategy

Blue Ocean Strategy refers to a market for a product where there is no competition
or very little competition. This strategy revolves around searching for a business in
which very few firms operate and where there is no pricing pressure.
BOGO

BOGO is a slang acronym meaning “Buy One Get One” — as in buy one, get one free.
Normally, it is shopping move for necessities.
Boilerplate Language

Boilerplate language is standardized text that can be used repeatedly in similar

documents without major changes. Boilerplate language is used for efficiency and to
increase standardization in the structure, language, and content of written or digital
documents.
Bollinger Bands

Bollinger Bands, a popular tool among investors and traders, helps gauge the
volatility of stocks and other securities to determine if they are over- or undervalued.

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Bond Ratio

The Bond Ratio is a financial ratio that expresses the leverage of a bond issuer by
examining the value of bonds outstanding and when they come due. Leverage refers
to any borrowed capital, such as debt issued in the form of bonds or other debts.
Bonus Shares

"Bonus Shares are additional shares given to the current shareholders without any
additional cost, based upon the number of shares that a shareholder owns. These are
company's accumulated earnings which are not given out in the form of dividends,
but are converted into free shares. Bonus shares are given to the current shareholders
in lieu of a dividend pay-out. So, these are also called Stock Dividend. Instead of
paying out a cash dividend, the company converts a part of its reserves to equity
capital and issues additional shares."
Book Building

Book building is a process undertaken to elicit demand and to assess the value of
specified securities.

Book Runner

Book runner means a merchant banker appointed by the issuer to undertake the
book-building process.
Boom and Bust

Boom and Bust is a process of economic expansion and contraction, often in repeated
cycles.
Booster Cheque

A Booster Cheque is a fraudulent or bad cheque used to make a payment to a credit

card account in order to "bust out" or raise the amount of available credit on
otherwise-legitimate credit cards. The amount of the cheque is credited to the card
account by the bank as soon as the payment is made, even though the cheque has
not yet cleared. Before the bad cheque is discovered, the perpetrator goes on a
spending spree or obtains cash advances until the newly- raised" available limit on
the card is reached.

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Bootstrapping

Bootstrapping is building a company from the ground up with nothing but personal
savings, and with luck, the cash coming in from the first sales. The term is also used
as a noun: A bootstrap is a business an entrepreneur with little or no outside cash or
other support launches. Similarly, in the Computing World, Bootstrapping describes
a process that automatically loads and executes commands. The Most fundamental
form of Bootstrapping is the startup process that takes place when you start up a
computer. In fact, the term “boot” as in booting up a computer comes from the word
“bootstrap”.

BOSCARD

BOSCARD is a strategic planning tool used to give the terms of reference for new
projects. It originated with consulting company Cap Gemini in the 1980s. The
acronym stands for background, objectives, scope, constraints, assumptions, risks
and deliverables.
Bottleneck

Bottleneck is a point of congestion in a production system that occurs when

workloads arrive too quickly for the production process to handle. The inefficiencies
brought about by the bottleneck often creates delays and higher production costs.
The term "bottleneck" refers to the typical shape of a bottle and the fact that the
bottle's neck is the narrowest point, which is the most likely place for congestion to
occur, slowing down the flow of liquid from the bottle.
Bottom Line

The bottom line refers to a company's earnings, profits, net income, or earnings per
share (EPS). The term "bottom line" highlights the position of the net income figure
at the bottom of the income statement.

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Boutique

Boutique is an investment bank which offers some but not all banking services,
generally in corporate finance.
BPC (Best Practices Code)

BPC relates to Detailed Procedural Rules for entering into transactional relations
within the Banks. Also known as Manual of Instructions.
Brandy Bonds

Brady bonds are bonds issued by emerging countries under a debt-reduction plan
and are named after a former U.S. Secretary of the Treasury. They are traded on the
international bond market.

Branchless Banking (aka Direct Bank)

Branchless Banking, also called Direct Bank, is a bank that offers its services only via
the Internet, mobile app, email, and other electronic means, often including
telephone, online chat, and mobile check deposit.

Brand Loyalty

Brand Loyalty is a strongly motivated and long-standing decision of a consumer to

purchase a particular product or service. It denotes the preference of a consumer to
a particular brand.
Brand Positioning

Brand positioning is the way you differentiate yourself from your competitors and
how consumers identify and connect with your brand. It’s comprised of the key
qualities and values that are synonymous with your company.

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Brand Tribe

A brand tribe could be regarded as a group of people who collectively identify

themselves with the product and share similar views and notions about the brand.
They are not just consumers of the product, but play a major role in its promotion.
Break Out Economies

Break Out Economies are those that are digitalising very quickly and yet have a lot of
room to grow before matching in the developed economies such as Singapore, South
Korea, Hongkong."
Breakaway Gap

A breakaway gap is a term used in technical analysis which identifies a strong price
movement through support or resistance. A gap is the difference between the open
price and prior close price, where no trading activity takes place. The price breaks
away from the support or resistance via a gap, as opposed to an intraday breakout.

Breakdown

A breakdown is a downward move in a security's price, usually through an identified

level of support, that portends further declines. A breakdown commonly occurs on
heavy volume and the subsequent move lower tends to be quick in duration and
severe in magnitude.

Break-even Point

The Break-even point is the point at which gains equal losses. The basic idea behind
Break-even point is to calculate the point at which revenues begin to exceed costs.
Breakout

A breakout refers to when the price of an asset moves above a resistance area, or
moves below a support area. Breakouts indicate the potential for the price to start
trending in the breakout direction. For example, a breakout to the upside from a chart
pattern could indicate the price will start trending higher. Breakouts that occur on
high volume (relative to normal volume) show greater conviction which means the
price is more likely to trend in that direction.

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Breakup Fee

A breakup fee is used in takeover agreements as leverage on the seller. It is used to

discourage the seller from backing out of the deal to sell to the purchaser. A breakup
fee, or termination fee, is required to compensate the prospective purchaser for the
time and resources used to facilitate the deal. Breakup fees are normally 1% to 3% of
a deal's value.

Bretton Woods Agreement

The Bretton Woods Agreement was negotiated in July 1944 by delegates from 44
countries at the United Nations Monetary and Financial Conference held in Bretton
Woods, New Hampshire. Under the Bretton Woods System, gold was the basis for the
U.S. dollar, and other currencies were pegged to the U.S. dollar’s value. The system
ended in the early 1970s when President Nixon announced that the U.S. would no
longer exchange gold for U.S. currency.
Bretton Woods Trio

IMF (International Monetary Fund), the IBRD (International Bank for Reconstruction
and Development) later called the World Bank, and the ITO (International Trade
Organization) later replaced by GATT and WTO are known as Bretton Woods Trio.
Bretton Woods Twins

The World Bank and the International Monetary Fund (IMF) are referred to as the
Bretton Woods Twins. The International Bank for Reconstruction and Development
(IBRD) and International Development Agency (IDA) together are often referred to
as the World Bank.
Brick-and-Mortar

Brick-and-Mortar refers to a traditional street-side business that offers products and

services to its customers face-to-face in an office or store that the business owns or
rents. The local grocery store and the corner bank are examples of brick-and-mortar
companies. Brick- and-mortar businesses have found it difficult to compete with
mostly web-based businesses like Amazon because the latter usually have lower
operating costs and greater flexibility.

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Bridge Loan

A Bridge Loan is a short-term loan used until a person or company secures permanent
financing. It allows the user to meet current obligations by providing cash flow
immediately. Bridge loans are short-term, up to one year, have relatively high interest
rates, and are usually backed by some form of collateral, such as real estate or
inventory.
Broadening Formation

A broadening formation is a price chart pattern identified by technical analysts. It is

characterized by increasing price volatility and diagrammed as two diverging trend
lines, one rising and one falling. It usually occurs after a significant rise, or fall, in the
action of security prices. It is identified on a chart by a series of higher pivot highs
and lower pivot lows.
Brown Bag Meeting

Brown Bag Meeting is an informal meeting or training that generally occurs in the
workplace around lunchtime. This type of meeting is referred to as a brown bag
meeting or a Brown Bag Seminar because participants typically bring their lunches,
which are associated with being packed in brown paper bags.
Brownfield Investment

Brownfield Investment is a strategy where the company does not create its business
from scratch. Instead, they choose mergers or acquisitions. Recently, another US-
based company, Walmart Inc acquired Flipkart, an Indian company, thus acquiring all
its assets and liabilities.
Bubble

Bubble is an economic cycle that is characterized by the rapid escalation of market

value, particularly in the price of assets. This fast inflation is followed by a quick
decrease in value, or a contraction, that is sometimes referred to as a "Crash" or a
"Bubble Burst."

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Budgetary Slack

Budgetary Slack is the intentional overestimation of expenses & losses or

underestimation of incomes & profits in the budget . The business contains a slack if
the managers purposefully have set their targets easy then the estimated forecasts.
Hence, it becomes very certain to achieve targets.
Budgeted Balance Sheet

Budgeted Balance Sheet is similar to a regular balance sheet and has the same line
items as well. The only difference between the two is that the budgeted BS is for a
future period. In other words, we can say it is the projection of the balance sheet for
a future period.

Buffer Inventory

Buffer Inventory is the extra stock of either raw material or final product a company
maintains as a protection against unforeseen circumstances. In simple words, we can
say it is the excess inventory that a company keeps in reserves to protect itself against
an uncertain future. A company keeps this stock either in transit or at hand to ensure
there is no disruption in the production or supply or lead time. We may also call such
a stock as strategic stock, safety stock or buffer inventory. A company may apply the
concept of buffer inventory at all levels of the supply chain. The main objective is to
ensure that production or sales don’t stop.

Bulge

Bulge refers to a provision in a line of credit promissory note that allows for a
temporary increase in the maximum amount that can be borrowed under the line of
credit. A bulge is particularly suited to loans to firms with seasonal increases in sales.

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Bulk Deposit

RBI, vide it’s Amendment to Master Direction dated 7th June 2024 informed the
following: The term “Bulk Deposit” would now mean:
a) Single Rupee term deposits of Rupees three crore and above for Scheduled
Commercial Banks (excluding RRBs) and Small Finance Banks.
b) Single Rupee term deposits of Rupees one crore and above for Local Area Banks as
applicable in case of Regional Rural Banks.

Bull Trap

A bull trap is a false signal, referring to a declining trend in a stock, index, or other
security that reverses after a convincing rally and breaks a prior support level.

Bulldogs

Bulldogs are sterling-denominated bonds issued within the United Kingdom by a

foreign borrower. They are foreign bonds sold in the United Kingdom.

Bullish Engulfing Pattern

A bullish engulfing pattern is a white candlestick that closes higher than the previous
day's opening after opening lower than the previous day's close. It can be identified
when a small black candlestick, showing a bearish trend, is followed the next day by
a large white candlestick, showing a bullish trend, the body of which completely
overlaps or engulfs the body of the previous days candlestick.

Burn Rate (aka Cash Burn Rate)

Burn Rate, also called Cash Burn Rate, is how quickly a company uses up its capital to
finance operations before generating positive cash flow from operations. This rate is
a critical key to survival in the case of small, fast growing companies that need
constant access to capital.

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Business Agility

Business Agility refers to the ability of an organisation to anticipate change early ;

the ability to quickly shift its business system.

Business Connection

Business Connection is a criterion for determining the tax liability of a non- resident.
Business connection means a relation between a business carried on by a non-
resident, which yields profits or gains and some activity in India that contributes to
the earning of these profits or gains.

Business Consolidation

Business Consolidation refers to the combination of different business units or

companies into a single, larger organization, often initiated to improve operational
efficiency by reducing redundant personnel and processes. It can result in cost savings
and a concentration of market share, despite being expensive and complex in the
short term.

Business Decline (BD)

Business Decline (BD) is a Transaction declined due to a customer entering an invalid

pin, incorrect beneficiary account, insufficient funds etc. Or due to other business
reasons such as exceeding per transaction limit, exceeding permitted count of
transactions per day, exceeding amount limit for the day etc.

Business Incubation

Business Incubation is the name given to the process, wherein an individual or an

organization supports the establishment and growth of a start-up. Those supporting
the start-up or new companies are called business incubators.

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Buy and Hold

Buy and hold is a passive investment strategy in which an investor buys stocks (or
other types of securities such as ETFs) and holds them for a long period regardless of
fluctuations in the market. An investor who uses a buy-and-hold strategy actively
selects investments but has no concern for short-term price movements and technical
indicators. Many legendary investors such as Warren Buffett and Jack Bogle praise
the buy-and-hold approach as ideal for individuals seeking healthy long-term returns.
Buy Now, Pay Later (BNPL)

Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers
to make purchases and pay for them at a future date, often interest-free. Also referred
to as point of sale installment loans, BNPL arrangements are becoming an
increasingly popular payment option, especially when shopping online. Using BNPL
financing can be convenient for consumers, but there are some potential downsides
to consider.
Buy the Dips

Buy the Dips means purchasing an asset after it has dropped in price. The belief here
is that the new lower price represents a bargain as the "dip" is only a short-term blip
and the asset, with time, is likely to bounce back and increase in value.
Buyback

The term buyback refers to a strategy companies use to buy their outstanding shares.
Buybacks are used to reduce the number of shares available on the open market.
Companies buy back shares for different reasons, such as to increase the value of
remaining shares available by reducing the supply or to prevent other shareholders
from taking a controlling stake.
Buydown

Buydown is a lump sum payment made to a creditor by a borrower or a third party

to reduce the amount of some or all of the borrower's periodic payments to repay
the indebtedness.

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Buy-in

A buy-in in the financial markets is an occurrence in which an investor is forced to

repurchase shares of security because the seller of the original shares did not deliver
the securities in a timely fashion or did not deliver them at all.

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 C
C2B - Consumer-to-Business

C2B - Consumer-to-Business is a business model in which consumers (individuals)

create value and businesses consume that value. For example, when a consumer
writes reviews or when a consumer gives a useful idea for new product development
then that consumer is creating value for the business if the business adopts the input.

Cable

Cable is a term used by forex traders to refer to the exchange rate between the pound
and dollar.
Calendarization

Calendarization refers to the accounting process of standardizing full financial

statements of two or more different companies. This process aims to facilitate the
comparison of two or more companies' financial statements. Thus, Calendarization is
the process to conform to two or more companies' financial records to the same
accounting period.

Callable Deposit

A Callable deposit can be closed before maturity at any point of time without penalty
and the rate of interest will be payable at the rate prevailing on the date of opening
for the period that the deposit has run.

Callable Preferred Stock

Callable preferred stock is a type of preference share which gives the issuer or the
company a right to call or purchase back the share.

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CAMELS

CAMELS is a recognized international rating system that bank supervisory authorities

use in order to rate financial institutions according to six factors represented by its
acronym. Supervisory authorities assign each bank a score on a scale. A rating of 1 is
considered the best, and a rating of 5 is considered the worst for each factor. The
CAMELS acronym stands for ""Capital adequacy, Asset quality, Management,
Earnings, Liquidity, and Sensitivity.”
CAMPA

CAMPA (Compensatory Afforestation Fund Management and Planning Authority)

Act . To compensate the loss of forest area and to maintain the sustainability, the
Government of India came up with CAMPA. According to the Act’s provision, a
company diverting forest land must provide alternative land to take up compensatory
afforestation. For afforestation, the company should pay to plant new trees in the
alternative land provided to the state."
Candlestick

A Candlestick is a type of price chart used that displays the high, low, open, and
closing prices of a security for a specific period. The wide part of the candlestick is
called the "real body" and tells Investors whether the closing price was higher or
lower than the opening Price (black/red if the stock closed lower, white/green if the
stock closed Higher).
Capacity Cost

An expenditure incurred by a company in order to expand its business operations. In

other words, these are expenses incurred by an organization to increase its capacity
to conduct business operations.
CAPEX & OPEX

We can divide business expenses primarily into capital expenditure or CAPEX and
operation expenditure or OPEX. Both the expenses are related to business in a way
that capital expenditure is concerned with the heavy goods or property purchases
that has a long-term life. Operational expenses, on the other hand, are concerned
with the day-to-day operations of a company."

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Capital Asset Pricing Model (CAPM)

The capital asset pricing model (CAPM) describes the relationship between systematic
risk, or the general perils of investing, and expected return for assets, particularly
stocks. It is a finance model that establishes a linear relationship between the required
return on an investment and risk.
Capital Cost

Capital cost is the amount paid on acquisition of fixed assets, while Cost of capital is
the cost incurred through interest or other charges for raising equity or debt capital.
Capital Deepening

Capital deepening means that each worker is provided with a greater amount of
capital goods in order to be more productive.
Capital Flight

Capital Exports, also called, Capital Flight is outflows of funds out of a country for
fears of economic or political crisis. This may be the result of political or financial
crisis, tightening capital controls, tax increases, or fears of a domestic currency
devaluation.
Capital Injection

A capital injection is an investment of capital into a project, company, or investment,

typically in the form of cash, equity, or debt. Oftentimes, the word injection implies
that the company or organization receiving funding may be in financial distress.
Capital Market

The Capital Market is a system which provides for facilities and arrangements for
borrowing and loaning of long-term funds.
Capital Market versus Money Market

Capital Market provides long-term finance for business. A Money Market provides
short-term finance for business.

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Capital Mobility

Capital Mobility is ‘the phenomenon’ under financial globalisation. It denotes the

ease in which capital moves across borders.
Capital Requirements

Capital requirements are standardized regulations in place for banks and other
depository institutions that determine how much liquid capital (that is, easily sold
securities) must be held viv-a-vis a certain level of their assets. Also known as
regulatory capital, these standards are set by regulatory agencies, such as the Bank
for International Settlements (BIS), RBI.
Capital - Tier I

The term “Tier I Capital” refers to one of the components of regulatory capital. It
consists mainly of share capital and disclosed reserves (minus goodwill, if any). Tier I
items are deemed to be of the highest quality because they are fully available to cover
losses. Hence it is also termed as Core Capital.
Capital Widening

Capital widening is the term used when more workers are provided with capital
goods to increase their productivity.
Carbon Finance

Carbon Finance is a Generic term for financial services related to mitigation of and
adaptation to climate change. It specifically refers to investments in greenhouse gas
emission reduction projects and the related creation of CO2-certificates, financial
instruments that are tradable on carbon markets.
Card Not Present (CNP) Transaction

A Card Not Present (CNP) transaction does not require the card to be physically
presented at the point of transaction. A Card Not Present (CNP) is also called as a
remote transaction. An example is an online transaction or a mobile banking
transaction using the card.

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Card Present (CP) Transaction

A Card Present (CP) is also known as face-to-face or a proximity payment transaction.

An example is a transaction carried out at an ATM or a PoS terminal.
Carried Interest

Carried interest is a share of an investment's profits that's paid to the investment

manager in addition to their initial contribution. It's a performance fee that rewards
the manager for improving the fund's performance
Carry Trade

Carry Trade relates to when an investor borrows at a lower-than-average interest rate

in order to buy assets that can potentially produce higher interest rates.
Carrying Value (or Carrying Amount, or Book Value)

Carrying Value (or Carrying Amount, or Book Value) is the value of assets based on
figures in the balance sheet. It is the cost of an asset less any depreciation or
amortization or accumulated amount. The carrying amount is very different from the
market value, which depends on the supply and demand of the asset."
Carrying Cost

Carrying Cost is the expense associated with holding inventory over a period of time.
In other words, its the cost of owning, storing, and keeping inventory to be sold to
customers.
Carrying Costs of Sterilisation

Carrying Costs of Sterilisation - The RBI conducts Market Stabilisation Scheme to

withdraw excess liquidity from the financial system. As a part of this exercise, the RBI
issues government bonds or Market Stabilisation Bonds in the market. The proceeds
(money) from MSS cannot be used as it should be kept idle to check inflation. At the
same time, an interest payment is to be made to the bond holders. The interest
payment burden is the undesirable element of the MSS exercise. Here, the
government accommodates the interest payment expenditure under the budget
account and spends money out of the budget. This dead expenditure is called referred
as carrying cost of sterilisation.

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Cartel

Cartel is a share of any profits that the general partners of private equity and hedge
funds receive as compensation regardless of whether they contribute any initial
funds. Because carried interest acts as a type of performance fee, it acts to motivate
the fund's overall performance. However, carried interest is often only paid if the
fund’s returns meet a certain threshold. Because carried interest is considered a return
on investment, it is taxed at a capital gains rate, and not an income rate.
Cash Accounting

Cash accounting is a method of accounting that records financial transactions when

cash is received or paid out. It's also known as cash-basis accounting.
Cash Budget

Cash budget is a review or projection of cash inflows and outflows. It can be used as
a tool for analyzing the revenues and costs of a company or Individual.
Cash Burn Rate

Cash Burn Rate is an organization created from a formal agreement between a group
of producers of a good or service to regulate supply in order to regulate or
manipulate prices. In other words, a cartel is a collection of otherwise independent
businesses or countries that act together as if they were a single producer and thus
can fix prices for the goods they produce and the services they render, without
competition.
Cash Flow

Cash flow is the net cash and cash equivalents transferred in and out of a company.
Cash received represents inflows, while money spent represents outflows. A company
creates value for shareholders through its ability to generate positive cash flows and
maximize long-term free cash flow (FCF). FCF is the cash from normal business
operations after subtracting any money spent on capital expenditures (CapEx).

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Casino Banking

Casino Banking refers to practices of Commercial Banks engaging in unduly

speculative and risky financial and investment activities to record high profits.

Catch Up Effect (aka Theory of Convergence)

Catch up effect, alternatively called the theory of convergence, states that poor or
developing economies grow faster compared to economies with a higher per capita
income and gradually reach similar high levels of per capita income. Thus, all
economies, over time, may converge in terms of income per head. The poorer
economies will literally "catch-up" to the more robust economies.
Caveat Emptor

The principle of Caveat Emptor (let the buyer beware) lays down that it is the duty of
the buyer to satisfy himself before purchasing the article, that the article which he
buys, is the one he wants.
The CBOE Volatility Index (VIX)

The CBOE Volatility Index (VIX) is a real-time index that represents the markets
expectations for the relative strength of near-term price changes of the S&P 500
Index (SPX). Because it is derived from the prices of SPX index options with near-term
expiration dates, it generates a 30-day forward projection of volatility. Volatility, or
how fast prices change, is often seen as a way to gauge market sentiment, and in
particular the degree of fear among market participants. CBOE stands for Chicago
Board Options Exchange.
Census Town

According to the census approach, a census town is one which is not statutorily
notified and administered as a town, but whose population has attained urban
characteristics.

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Central Bank Digital Currency (CBDC)

Central Bank Digital Currency (CBDC) is a legal tender and liability of a nation's
central bank in digital form. It is denominated in sovereign currency and appears on
the balance sheet of a nation's central bank. CBDC is a digital currency which can be
converted/exchanged at par with similarly denominated cash and traditional central
bank deposits of a nation.
Certiorari

Certiorari is a writ issued by the Supreme Court or High Court to quash the order
already passed by an lower court, tribunal or quasi-judicial body.
Ceteris Paribus

Ceteris paribus is an economic term of Latin origin that means “all other things being
equal (constant)” or “all else equal.” In other words, it’s an assumption that
everything outside of a discussion is held constant and nothing interferes with the
subject at hand. This concept is important in both economics and finance, as it is
nearly impossible to isolate a range of different variables in the real world.

Charge Satisfaction (CERSAI)

Satisfaction of Bank’s Charge is filed with CERSAI, once the mortgage based loan
(Housing Loan etc) is closed and documents related to Mortgagor are returned.
Otherwise, it may create problems for property owner or his legal heirs in future. Bank
may be exposed to Reputation Risk.

Charge Registration with CERSAI

Registration of security interest in CERSAI within 30 days of creation of security

interest. CERSAI is empowered to condone delay beyond 30 days to 60 days.

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Chartered Accountants (CA) Reports – Authenticity Verification

Verify the authenticity of the documents/certificates/reports certified/attested by CA

by visiting the UDIN Portal at https://udin.icai.org.
Chain of Command

A chain of command is an organizational structure that documents how each member

of a company reports to one another. At the top of the chart would be the founder,
owner or CEO, and the people who report to them would appear directly below.

CHAMPIONS

(Creation and Harmonious Application of Modern Processes or Increasing the Output

and National Strength).To put up and promote a unified, empowered, robust,
bundled and technology Driven platform for helping and promoting the Micro, Small
And Medium Enterprises (MSMEs), CHAMPION Rooms are setup. As the Name
suggests it will aim at Creation and Harmonious Application of Modern Processes for
Increasing the Output and National Strength. Accordingly, the name of the system is
CHAMPIONS. Three basic objectives of the CHAMPIONS. This is basically for making
the smaller units big by helping and handholding. 1) To help the MSMEs in this
difficult situation in terms of finance, raw materials, labour, permissions, etc.2) To
help the MSMEs capture new opportunities including manufacturing of medical items
& accessories.3) To identify the sparks, i.e., the bright MSMEs who can withstand at
present and become national and international.

Chargeback

A chargeback is a charge that is returned to a payment card after a customer

successfully disputes an item on their account statement or transactions report. A
chargeback may occur on debit cards (and the underlying bank account) or on credit
cards. Chargebacks can be granted to a cardholder for a variety of reasons.

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Charge Off

Charge Off is a type of write-off. It is the amount that is considered a bad-debt when
the borrower fails to pay the creditor. Traditionally, a charge off is declared when no
payment against the loan is made for six-months.
ChatGPT

ChatGPT is an AI model that engages in conversational dialogue. It is an example of

a chatbot, akin to the automated chat services found on some companies’ customer
service websites. It was developed by OpenAI, a tech research company dedicated to
ensuring that artificial intelligence benefits all of humanity. The “GPT” in ChatGPT
refers to “Generative Pre-training Transformer,” referring to the way that ChatGPT
processes language.

Chattel

Any article of tangible property other than land, buildings, and other things annexed
to land (e.g., tractors, grain, livestock, vehicles) is known as Chattel.
Cheques bearing Non-Existent Date

Payment Cheques bearing non-existent date such as 31st April or 30th February etc.,
if otherwise in order may be paid on the preceding date. If such preceding date
happens to be a weekly holiday or a public holiday under the NI Act, payment should
not be made on the previous working day. It should be honoured only on the 1st day
of the succeeding month. They need not be returned only for the reason that the date
is non-existent.
Cheques signed by Guardian

Cheques signed by Guardian before Minor attains Majority but presented after Minor
becomes Major are invalid.

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Child mortality

Child mortality, that is death between the first and the fifth birthday, is measured by
a rate equal to the ratio of the deaths of this age and the average population in the
same age range. 38. Child Mortality is different from the infant mortality rate, which
is obtained by dividing the number of deaths by births.
Chinese Wall

Chinese Wall is an imaginary barrier restricting the flow of information between the
Public side of the Business (Sales and Trading) and the Private Side (Investment
Banking).
CHIPS

CHIPS stands for Clearing House Interbank Payment System. It is an electronic

payment system owned by twelve (12) private commercial banks constituting the
New York Clearing House Association. CHAPS is an arrangement similar to CHIPS that
exists in London. CHAPS stands for Clearing House Automated Payment System.
Christmas Club Account

A Christmas club account is a savings account that helps people save for the holidays.

Churn Rate (aka Attrition Rate)

Churn rate, sometimes known as attrition rate, is the rate at which customers stop
doing business with a company over a given period of time. Churn may also apply to
the number of subscribers who cancel or don't renew a subscription. The higher your
churn rate, the more customers stop buying from your business.
Churning

Churning is the process of making multiple transfers of funds in order to make the
analysis of bank accounts by an investigator more difficult.

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Circuit Breakers

Circuit breakers are interventions employed by exchanges to help maintain orderly

trading conditions. Both Limit up and Limit down prices are examples of circuit
breakers.
Circular Flow of Income

Circular flow of Income indicates flow of national income in an economy among

various agents – households, business people and the government. For example, in a
simple two sector economy, the business entities employ laborers who are from the
household sector. These household spends their income in the goods and services
produced by business entities. Hence an income goes from business firms to
households in the form of wage payment whereas a return income flow happens from
the households to business entities in the form of payments to goods and services.
Class Action

Class action is a legal proceeding in which one or more plaintiffs bring a lawsuit on
behalf of a larger group, known as the class. Any proceeds from a class-action suit
after legal fees, whether through a judgment or a settlement, are shared among all
members of the class.
Clawback

Clawback is a provision under which money that’s already been paid out must be
returned to the employer or the firm. This is a special contractual clause, used mostly
in financial firms, for money paid for services to be returned under special
circumstances or events as stated in the contract. Clawbacks involve a penalty,
making them different from simple repayments or refunds.

Clayton's Rule

In case of running accounts like current account /cash credit accounts, normally there
is no specific appropriation of funds to exact debit. In such cases it is the first item on
the debit side that is discharged or reduced by the first item on the credit side. This
principle was originally formulated in Devaynes v. Noble known as Clayton’s Case.
The same clause is incorporated in Section 61 of the Indian Contract Act, 1872.

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Clean Bill

Clean Bill is one which is not accompanied by Title to Goods such as LR, or RR.
Clearing Price

Clearing price is that price of a commodity or a security at which the market clears a
commodity or a security. Quantity supplied is equal to quantity demanded and buyers
and sellers conduct the trade.
Collateral Free Agricultural Loans

Vide Notification dated 6th December 2024, Keeping in view the overall inflation and
rise in agriculture input cost over the years, RBI has raises the limit for collateral free
agricultural loans including loans for allied activities from the existing level of ₹1.6
lakh to ₹2 lakh per borrower. Accordingly, banks are advised to waive collateral
security and margin requirements for agricultural loans including loans for allied
activities up-to ₹2 lakh per borrower.
Customer

A customer is someone who buys a product or service, but who does not represent
any potential for developing future sales. A client, however, is one with whom you
build an enduring relationship that generates business. A customer might provide a
quick sale, but you can rely on your clients for long term gain.

Climate Finance

The term climate finance has both broad and narrow uses. In its broad sense, it refers
to an enterprise that uses financial institutions or technologies to advance the cause
of environmental sustainability, such as by developing or deploying renewable
energy sources and technologies. In its narrow usage, climate finance refers to the
transfer of capital from developed to developing nations in adherence to the
recommendations laid out in international agreements such as the 2016 Paris
Agreement.

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Closed and Covered Position

A "closed position" in trading means a position that has been fully exited by
executing a trade in the opposite direction, essentially ending any exposure to that
security and realizing any profit or loss, while a "covered position" usually refers to a
situation where an investor has taken steps to mitigate risk by holding enough
underlying assets to offset potential losses on a derivative position, even though the
position itself might still be open; essentially, "closed" means the trade is completely
finished, while "covered" indicates risk management strategies to protect against
potential downside while maintaining an open position.

Cloud Computing

Cloud computing is the on-demand delivery of computing services such as servers,

storage, databases, networking, software, and analytics. Rather than keeping files on
a proprietary hard drive or local storage device, cloud-based storage makes it
possible to save remotely. Cloud computing is a popular option for people and
businesses, allowing for cost savings, increased productivity, speed and efficiency,
performance, and security.

CMR Transport Document

CMR Transport Document is an international consignment note used by drivers,

operators, and forwarders alike that governs the responsibilities and liabilities of the
parties to a contract for the carriage of goods by road internationally. The CMR
document is required for road transport. CMR stands for 'Convention Relative au
Contrat de Transport International de Marchandises par la Route'. In other words: an
international agreement that contains the rights and obligations of parties involved
in road transport: the shipper, carrier, and addressee.

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Cockroach Theory

The Cockroach Theory refers to a market theory that states when a company reveals
bad news to the public, many more related, negative events may be revealed in the
future.
Cocktail Swap

Cocktail Swap exists when assets and liabilities in a currency are identical.
Coffee Can Investing Approach

Coffee Can Investing Approach refers to “buy and forget” investing in shares of
companies that have performed well consistently. The concept of coffee can investing
has originated from the US markets, where it is highly successful.
Cognate

Cognate is a person related through females. Where a person is related through one
or more females, he or she is called a cognate. Thus, son’s daughter’s son or daughter,
sister’s son or daughter, mother’s brother’s son, etc., are cognates.
Cognovit Note

Cognovit Note is a combination of currency and interest rate swaps, often involving
a number of parties, currencies, and interest rates, which leaves the bank
unexposed—as long as no default exists or as long as no contract is otherwise
terminated prematurely.
Coinsurance

Coinsurance is the percentage that you must pay to share responsibility for your
medical claims after you meet your annual deductible. For example, your insurance
provider might pay 80% of your claim leaving you responsible for paying the
remaining 20%.

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Cold Wallet

A cold wallet is a device or method for storing cryptocurrency private keys offline to
protect them from unauthorized access, hacking, or theft. Cold wallets are also known
as offline storage or cold storage.
Collective Bargaining

The term “collective bargaining” refers to the negotiation of employment terms

between an employer and a group of workers. Employees are normally represented
by a labour union during collective bargaining.

Collusive Pricing or Price Collusion

Collusive Pricing or Price Collusion is a scenario when several companies agree to set
the price of the good or service unanimously. Their objective could be to earn more
profit or gain more market share. Price collusion is usually a non-competitive and
secretive tactic, which may also be illegal.
Combination

A combination is a mathematical technique that determines the number of possible

arrangements in a collection of items where the order of the selection does not
matter. In combinations, you can select the items in any order .
Combined Ratio

A combined ratio (CR) is a metric that measures an insurance company's financial

health and profitability. It's calculated by dividing the total sum of incurred losses
and expenses by the earned premium.
The combined ratio is also known as the Composite or Statutory Ratio. It's used in
both insurance and reinsurance.
Commercialization

Commercialization is the process of bringing new products or services to market.

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Commingled Fund

Commingled Fund is a promissory note that includes language in which the debtor
acknowledges liability and allows the creditor to obtain a judgment without suit.
Commingled Goods

Commingled Goods is a portfolio consisting of assets from several accounts that are
blended together. Commingled funds exist to reduce the costs of managing the
constituent accounts separately. Commingled funds are a type of pooled fund that is
not publicly listed or available to individual retail investors. Instead, these are used in
closed retirement plans, pension funds, insurance policies, and other institutional
accounts.
Commodification

Commodification are goods that become part of a product or mass of goods. An

example is the flour used to bake bread.
Common Size Financial Statement

A common size financial statement displays items as a percentage of a common base

figure, total sales revenue, for example. This type of financial statement allows for
easy analysis between companies, or between periods, for the same company.
Company Guidance

Company Guidance is an informal report a public company issues to shareholders

detailing the earnings it expects to achieve in the upcoming fiscal quarter or year
ahead. Guidance, also referred to as forward earnings guidance or a forward-looking
statement, typically includes internal projections for revenue, earnings, and capital
spending and is subject to revision in the interim. Guidance can be contrasted with
analysts' estimates, which are generated by external experts.
Comparative Advantage

Comparative advantage is an economy's ability to produce a particular good or

service at a lower opportunity cost than its trading partners.

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Compensatory Fiscal Policy

During recession, decline in aggregate demand will reduce consumption, investment,

employment etc. leading to down turn and recession in the economy. In this juncture,
effort by the government through additional expenditure (and reduced taxes) will fill
the gap in demand, consumption and investment. This is known as Compensatory
Fiscal Policy.
Concorde Fallacy (aka Sunk Cost Fallacy)

Concorde Fallacy also known as the Sunk Cost Fallacy means that we are making
decisions that are irrational and lead to suboptimal outcomes. We are focused on our
past investments instead of our present and future costs and benefits, meaning that
we commit ourselves to decisions that are no longer in our best interests.
Conditional or Contingent Debt

A debt is conditional or contingent if it becomes payable on the fulfillment of a

condition or contingency. It is called conditional debt when the stipulation is in
control of the parties. For example, an agreement between A and B that A will pay
Rs. 1000 if B buys C‟s house, then this is a conditional debt. Here, Rs. 1000 becomes
payable and B can claim it only after he fulfills the condition. On the other hand, when
the stipulation is beyond human control, then it is called a contingent debt. For
instance, if A promises to pay a particular amount to B if C‟s ship sinks, then since the
sinking of the ship is beyond the control of the parties, so it is a contingent debt.
Conditions Precedent [CP]

These are actions or events that must occur before a part of the contract can take
effect. Essentially, they are what needs to happen before an investor funds your
startup after agreeing to do so. These conditions ensure that certain criteria are met
to safeguard the interests of both parties.
Conditional Receipt

Conditional Receipt is a premium receipt given to an applicant that makes a life and
health insurance policy effective only if or when a specified condition is met.

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Conditions Subsequent [CS]

Conditions subsequent are certain conditions that, if they occur, could modify or
terminate the obligations initially set under the agreement. They outline what could
happen if certain events take place after the agreement has been execute.
Confidence Interval

A confidence interval, in statistics, refers to the probability that a population

parameter will fall between a set of values for a certain proportion of times. Analysts
often use confidence intervals that contain either 95% or 99% of expected
observations.

Conflict Diamonds

Conflict diamonds are Diamonds that originate from areas controlled by forces or
factions opposed to legitimate and internationally recognized governments, and are
used to fund military action in opposition to those governments, or in contravention
of the decisions of the Security Council. These are also called Blood diamonds, brown
diamonds, hot diamonds, or red diamonds.

Conflict of Interest (COI)

Conflict of Interest (COI) is a situation in which a person or organization is involved

in multiple interests, financial or otherwise, and serving one interest could involve
working against another. Typically, a conflict of interest arises when an individual
finds himself or herself occupying two social roles simultaneously, which generate
opposing benefits or loyalties.

Conflict of Laws

Conflict of laws refers to a situation in which two or more sets of laws that
appropriately apply to a particular transaction require different results.

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Conflict Theory

Conflict theory, first purported by Karl Marx, is a theory that society is in a state of
perpetual conflict because of competition for limited resources. Conflict theory holds
that social order is maintained by domination and power (rather than by consensus
and conformity). According to conflict theory, all individuals and groups try to
maximize their own wealth and power. Those who already have wealth and power
will try to hold on to it by any means possible, chiefly by suppressing the poor and
powerless.

Congeneric Merger

A congeneric merger is a type of merger where two companies are in the same or
related industries or markets but do not offer the same products. In a congeneric
merger, the companies may share similar distribution channels, providing synergies
for the merger. The acquiring company and the target company may have
overlapping technology or production systems, making for easy integration of the
two entities. The acquirer may see the target as an opportunity to expand their
product line or gain new market share.

Conglomerate

A conglomerate is a corporation that is made up of a number of different, sometimes

unrelated businesses. In a conglomerate, one company owns a controlling stake in a
number of smaller companies, all of whom conduct business separately and
independently.

Conglomerate FDI

Conglomerate FDI, a business undertakes unrelated business activities in a foreign

country. this type is uncommon as it involves the difficulty of penetrating a new
country and an entirely new market.

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Conservatorship

Conservatorship is a legal status whereby a court appoints a person to manage an

incapacitated person or minor's financial affairs. Such a person may also serve as a
guardian, who is responsible for establishing and monitoring the physical care of the
person, and managing their living arrangements. In some states, such as California,
both roles are called conservatorship, with the guardian role termed "conservator of
the person" and the financial role called "conservator of the estate."

Consignment Buying

Consignment Buying means that Goods provided by a manufacturer or wholesaler to

a retailer with the understanding that all unsold goods may be returned at no loss to
the retailer.
Consolidation

Consolidation in technical analysis refers to an asset oscillating between a well-

defined pattern of trading levels. Consolidation is generally interpreted as market
indecisiveness, which ends when the asset's price moves above or below the trading
pattern.
Consolidation Loan

Consolidation Loan is loan used to combine several debts into one, usually to reduce
the interest rate paid or to extend the life of a loan.
Conspicuous Consumption

Conspicuous consumption is an economic concept that describes the practice of

buying and using goods in a way that displays wealth, prestige, or social status.
Examples of conspicuous consumption include luxury cars, designer watches.

Constant Holiday

A holiday that occurs on the same date every year.

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Constructivism

Constructivism is the idea that reality is socially constructed. It is the view that reality
cannot be understood outside of the way humans interact and that the idea that
knowledge is constructed, not discovered. Constructivists believe that learning is
more active and self-directed than either behaviourism or cognitive theory would
postulate.
Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a measure that examines the weighted average of
prices of a basket of consumer goods and services, such as transportation, food, and
medical care. It is calculated by taking price changes for each item in the
predetermined basket of goods and averaging them. Changes in CPI are used to
assess price changes associated with the cost of living.

Consumer Sentiment

Consumer Sentiment means a security which is convertible into or exchangeable

equity shares of the issuer at a later date, with or without the option of the holder of
the security and includes convertible debt instrument and convertible preference
shares.
Consumer Staples

Consumer staples refers to a set of essential products used by consumers. This

category includes things like foods and beverages, household goods, and hygiene
products as well as alcohol and tobacco. These goods are those products that people
are unable—or unwilling—to cut out of their budgets regardless of their financial
situation. Consumer staples are considered to be non-cyclical, meaning that they are
always in demand, year-round, no matter how well the economy is—or is not—
performing. As such, consumer staples are impervious to business cycles. Also, people
tend to demand consumer staples at a relatively constant level, regardless of their
price.

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Consumer Surplus

Consumer surplus is an economic measurement of consumer benefits resulting from

market competition. A consumer surplus happens when the price that consumers pay
for a product or service is less than the price they’re willing to pay. It’s a measure of
the additional benefit that consumers receive because they’re paying less for
something than what they were willing to pay.
Consumption Smoothing

Consumption Smoothing refers to a process of achieving a balance between spending

for today's needs and saving for the future
Contagion

Contagion is the spread of an economic crisis from one market, sector, or region to
another and can occur at both a domestic or international level.
Contestable Period

Contestable Period is a period of up to two years during which a life insurance

company may deny payment of a claim because of suicide or a material
misrepresentation on an application.
Contingent Beneficiary

A contingent beneficiary in a life insurance policy is the one who gets proceeds from
the policy in the event of the demise of the primary beneficiary at the same time as
that of the insured. For instance, the owner of the policy chooses his/her spouse as
the primary beneficiary. However, if the spouse dies at the same time as that of the
insured, the children of the insured will become the contingent beneficiary.
Contingent Goods

The sale of certain goods which depend upon happening or non-happening of certain
events is termed as contingent goods. For instance, ‘A’ has agreed to sell ‘B’ certain
goods at a particular date if the former receives the goods from the manufacturer
before the said date. This agreement is based on contingencies, hence such goods are
called contingent goods.

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Contract Farming

An agreement between farmers and processing and/or marketing firms for the
production and supply of agricultural products at a specified time in the future, at
predetermined prices. Repayment of the credit is deducted when the farmer sells the
produce.

Contract Manufacturing

"Contract Manufacturing is a process in which a company outsources its production

to a third party in return for a mutually decided fee or remuneration. Production
outsourced might be just of a component of a bigger whole being manufactured by
the source company, or the complete product itself. A company can subcontract its
production to reduce costs and to reap the benefits of technologically advanced
machinery and the workforce of the manufacturing company."

Contrarian

Contrarian investing is an investment style in which investors purposefully go against

prevailing market trends by selling when others are buying and buying when most
investors are selling.

Contribution

Contribution is difference of Selling Price (SP) and Variable Cost (VC). It is also known
as Marginal Income.

Convenience Fee

A Convenience Fee is an extra charge that a business or service provider adds to a bill
when a customer uses a payment method other than cash or check. The fee is
intended to compensate for the flexibility and convenience of using electronic
payment methods. Convenience fees are often a fixed amount or a percentage of the
total bill. For example, a business might charge a 1.90% convenience fee for credit
card payments.

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Conversion

Conversion is illegal interference with rights of true owner of instrument inconsistent

with his rights of ownership.

Conversion Privilege

Conversion Privilege is the right to change (convert) insurance coverage from one
type of policy to another. For example, the right to change from an individual term
insurance policy to an individual whole life insurance policy.

Convertibility

The ability to freely use a currency for international transactions by the residents of
any country is known as Currency Convertibility.

Convertible Bond

Convertible Bond is a type of debt instrument which also has equity-like features. It
can be converted into the shares of the issuing company at a later date and at a pre-
determined conversion price.

Convertible Insurance

Convertible insurance is a type of life insurance that allows the policy owner to
change a term policy into a whole or universal policy without going through the
health qualification process again. Convertible insurance lets the policy owner
convert a term policy that only covers the insured individual for a predetermined
number of years into a policy that covers that individual indefinitely, as long as the
policyholder continues to pay the insurance premium.

Convertible security

Convertible security refers to the process of converting human, social or cultural value
into market value, applied to goods, services, ideas, and other forms and products of
human creativity that do not initially possess a market value.

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Cooling Off / Look-Up Period (in case of Digital Lending)

A borrower shall be given an explicit option to exit digital loan by paying the principal
and the proportionate APR without any penalty during this period. Such period shall
not be less than three days for loans having tenor of seven days or more and one day
for loans having tenor of less than seven days.

Coopetition

Coopetition is the act of cooperation between competing companies. "Co-opetition"

exists when a firm is cooperating with a competitor to achieve a common goal.

Core in CBS

“Core” in CBS : CBS stands for “Core Banking Solutions”. In CBS, “Core” , in turn, CORE
is an acronym for "Centralized Online Real-time Exchange", thus the bank's branches
can access applications from centralized data centers.

Core Competencies

Core Competencies are the resources and capabilities that comprise the strategic
advantages of a business. A modern management theory argues that a business must
define, cultivate, and exploit its core competencies in order to succeed against the
competition. Three conditions a business activity must meet in order to be a core
competency: The activity must provide superior value or benefits to the consumer. It
should be difficult for a competitor to replicate or imitate it. It should be rare.

Core inflation

Core inflation is the change in the costs of goods and services, but it does not include
those from the food and energy sectors. This measure of inflation excludes these
items because their prices are much more volatile. It is most often calculated using
the consumer price index (CPI), which is a measure of prices for goods and services.

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Core retail sales

The term core retail sales refers to an economic indicator that tracks the month-to-
month increase or decrease in consumer spending in most retail categories. Retail
sales reflect the monthly estimate of all consumer spending, while core retail sales
refer to all consumer spending excluding automobiles, gasoline, building materials,
and food services. Prices for these products tend to be more volatile and skew the
overall number.

Cornering the Market

"Cornering the market refers to the acquisition of shares or particular security in large
quantum. The quantum remains so large that the acquiring company or the Cornerer
gets a hold over the price movements of that security in the market. Here the security
can be a share, bond , commodity, foreign exchange , or any other asset. The Cornerer
gains control over the supply of security and thereby creates an artificial shortage of
that security. It will enable the Cornerer to sell that security at a higher profit by
consistently raising the prices of the security without the risk of losing considerable
business by raising prices."

Corporate & Retail Advances

All Loans and Advances to Borrowers where aggregate exposure of the Borrower is
Rs.5.00 Crore and above is treated as CORPORATE and remaining Advances treated
as RETAIL.

Corporate Borrower

Corporate Borrower as per BASEL-III norms is any Borrower availing Credit

Facilities more than ₹ 7.50 Crore.

Corporate Citizenship

Corporate citizenship involves the social responsibility of businesses and the extent
to which they meet legal, ethical, and economic responsibilities, as established by
shareholders.

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Corporate Family Rating

Corporate Family Rating means a credit rating assigned by a Credit Rating Agency to
reflect its opinion of the ability of a corporate group to honour all of its financial
obligations, as if there was a single class of debt and the corporate group was a single
legal entity, where the corporate group is as determined by the relevant Credit Rating
Agency.

Corporate Governance

Corporate governance is a system which oversees the affairs of a corporation. The

objective is to ensure that the corporation conducts its affairs ethically and as per the
provisions of the law.

Correction

Correction is a statistical measurement of the overall health of the economy as

determined by consumer opinion. It takes into account people's feelings toward their
current financial health, the health of the economy in the short-term, and the
prospects for longer-term economic growth, and is widely considered to be a useful
economic indicator. A correction is a decline of 10% or more in the price of a security
from its most recent peak. Corrections can happen to individual assets, like an
individual stock or bond, or to an index measuring a group of assets. In investing, a
correction is usually defined as a decline of 10% or more in the price of a security
from its most recent peak. Corrections can happen to individual assets, like an
individual stock or bond, or to an index measuring a group of assets.

Corridor in Monetary Policy of the RBI

Corridor in monetary policy of the RBI refers to the area between the reverse repo
rate and the MSF rate. Reverse repo rate will be the lowest of the policy rates whereas
Marginal Standing Facility is something like an upper ceiling with a higher rate than
the repo rate.

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Cost Benefit Analysis

Cost Benefit Analysis is a systematic approach that can be used to get an idea of the
strengths and weaknesses of business processes and other activities.

Counter Trend Strategy

A countertrend strategy attempts to make small gains by trading against the current,
broader trend. Traders also refer to the practice as countertrend trading.

Counterfeit Goods

Counterfeit Goods are phony products that are designed to mimic trade-marked
products without the consent of the original manufacturer. The products them-selves
are not illegal, but the way they are marketed is illegal.

Counterpart Funds

"Counterpart Funds :Local currency funds used in conjunction with foreign or donor
funds to finance special projects are known as Counterpart Funds. Often such funds,
in local currency, are derived from the sale of donated goods."

Countervailing Duties

"Countervailing Duties Duties that are imposed in order to counter the negative
impact of import subsidies to protect domestic producers are called Countervailing
Duties."

Courtesy Amount

The amount written in figures is called 'the” Courtesy amount' of the cheque.

Covariant Risk

Covariant Risk arises when many farms/households in one area are adversely affected
by a single phenomenon such as a natural disaster, epidemic, unexpected change in
world prices, macroeconomic crisis or civil conflict. This is distinct from individual
risks, which randomly affect individual households.

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Covenant

Covenant is a legal promise in a note, loan agreement, security agreement or

mortgage to do or not to do specific acts; or a promise that certain conditions do or
do not exist. A breach of a covenant can lead to the injured party pursuing legal
remedies and can be a basis for foreclosure.

Cover Note

Cover Note is a temporary document of evidence stating that the insurer has accepted
the risk.

Coverage Ratio

Coverage Ratio is a group of measures of a company's ability to service its debt and
meet its financial obligations such as interests payments or dividends. The higher the
coverage ratio, the easier it should be to make interest payments on its debt or pay
dividends.

Covered Calls

The term covered call refers to a financial transaction in which the investor selling call
options owns an equivalent amount of the underlying security. To execute this, an
investor who holds a long position in an asset then writes (sells) call options on that
same asset to generate an income stream. The investor's long position in the asset is
the cover because it means the seller can deliver the shares if the buyer of the call
option chooses to exercise.

Covered Interest Rate Parity

Covered interest rate parity refers to a theoretical condition in which the relationship
between interest rates and the spot and forward currency values of two countries are
in equilibrium.

Covered Position

Covered Position is a decline of 10% or more in the price of a security from its most
recent peak. Corrections can happen to individual assets, like a stock or bond, or to
an index measuring a group of assets.

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Covering

Covering exists when assets and liabilities in a currency are identical.

Cramming

Cramming is a memorisation technique or an emergency test-preparation strategy

that involves an attempt to absorb extensive amounts of information within a short
period of time, prior to an exam.

Creative Distribution

Creative destruction describes the deliberate dismantling of established processes in

order to make way for improved methods of production.

Credit Audit

"It examines as to whether all the laid down procedures at appraisal stage are
followed by the branches, proper terms and conditions are stipulated and the same
are complied with, proper documents duly executed and obtained, security is
created and charges are registered with ROC / CRESAI/ Sub-Registrar’s Office/"

Credit Crunch

Credit Crunch is a situation in which there is a sudden fall in the availability of loans
from banks and other lenders.

Credit Deficient Districts (Revised Definition)

Vide Notification dated 21st June 2024, RBI has advised modified definition of Credit
Deficient Districts. As per Revised definition CDDs are the districts across the country
with a per capita priority sector lending of less than ₹9,000. (earlier it was Rs 6000/-)

Credit Rationing

Credit rationing takes place when the banks discriminates between the borrowers.
Credit rationing empowers the bank to lend to some and to refuse to lend to others.
In this way credit rationing restricts lending on the part of bank.

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Credit to Deposit Ratio

Credit to Deposit Ratio is the ratio of how much a bank lends out of the deposits it
has mobilised. It indicates how much of a bank's core funds are being used for
lending, the main banking activity. A higher ratio indicates more reliance on deposits
for lending and vice-versa.

CRILC

The RBI has set up a Central Repository of Information on Large Credits (CRILC) to
collect, store, and disseminate credit data to lenders. Hence, banks will have to furnish
credit information to CRILC on all their borrowers having aggregate fund-based and
non-fund based exposure of Rs.5 crores and above. Similarly, banks will be required
to report, among others, the SMA status of the borrower to the CRILC.

Critical Infrastructure

Critical infrastructure makes up all the assets that are defined by the government as
being crucial to the functioning of an economy. It includes assets used for shelter and
heating, telecommunication, public health, agricultural facilities, etc. Examples of
such assets: natural gas, drinking water, medicine.

Critical Success Factor

Critical success factor is an element that must occur in order for a business to achieve
its ultimate goal.

Crop Loans for Small & Marginal Farmers - Cap on Interest Amount

The total interest debited in respect of crop production loans granted to Small and
Marginal Farmers should not exceed the principal amount.

Cross Collateralised Loan and Stand-alone Loan

In case of Cross Collateralised Loan two or more properties linked together to secure
one more loans by the same lender. Stand-alone Loans mean loans which are secured
solely by one property. Opposite of Stand-alone Loan is Cross Collateralised Loan.

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Cross Default

Cross Default can be defined as default with one lender that may trigger default with
another lender. It can also be defined as that default in particular debt of a borrower
at parent level, which would trigger a default in group/subsidiaries, vice versa.

Cross Exchange Rate

A cross rate is the currency exchange rate between two currencies when neither are
the official currencies of the country in which the exchange rate quote is given. The
cross rate is the currency exchange rate between currency A and currency C derived
from the exchange rate between currency A and currency B and between currency B
and currency C.

Cross Guarantee

Cross guarantee refers to an arrangement between two or more related companies

to provide a guarantee to each other’s obligations. Such a guarantee is commonly
made among companies trading under the same group or between a parent company
and its subsidiaries. A cross guarantee protects the company that incurred a liability
from losing its assets if it defaults on its obligations.

Cross Selling

Cross Selling refers to offering to existing and new customers, some additional
banking / financial products, intending to expanding the banking business, reducing
the per-customer cost of operations and providing more satisfaction and value to the
Customer.

Crowding Out Effect

Any displacement of private economic activities by the public sector which reduces
funds available to private borrowers, increases interest rates and causes a decrease in
the private sector economic activities is known as Crowding Out Effect.

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Crypto Lending

Crypto lending is the process of depositing cryptocurrency that is lent out to

borrowers in return for regular interest payments. Payments are made in the form of
the cryptocurrency that is deposited and typically compounded on a daily, weekly, or
monthly basis. There are two main types of crypto lending platforms: decentralized
crypto lenders and centralized crypto lenders. Both offer access to high interest rates,
sometimes up to 20% annual percentage yield (APY), and both typically require
borrowers to deposit collateral to access a crypto loan.

Cup and Handle Pattern

A cup and handle price pattern on a security's price chart is a technical indicator that
resembles a cup with a handle, where the cup is in the shape of a "u" and the handle
has a slight downward drift. The cup and handle is considered a bullish signal, with
the right-hand side of the pattern typically experiencing lower trading volume. The
pattern's formation may be as short as seven weeks or as long as 65 weeks.

Curb Trading (Kerb Trading)

The practice of trading outside an exchange’s regulation is known as Curb Trading or

Kerb Trading. Generally speaking, curb trading occurs online or over a telephone. It
is a form of Over-the-Counter (OTC) trading. It should not be confused with a trading
curb.

Currency Appreciation

Currency Appreciation- When a currency’s value rises against another, it will

commonly be addressed as “currency appreciation”.

Currency Carry Trade

A currency carry trade is a strategy whereby a high-yielding currency funds the trade
with a low-yielding currency. A trader using this strategy attempts to capture the
difference between the rates, which can often be substantial, depending on the
amount of leverage used.

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Currency War

Currency War refers to competitive devaluation (or arranged depreciation) by

countries to make their exchange rate competitive to encourage exports and
discourage imports.

Currency-Deposit Ratio

"The currency deposit ratio shows the amount of currency that people hold as a
proportion of aggregate deposits. An increase in cash deposit ratio leads to a
decrease in money multiplier. An increase in deposit rates will induce depositors to
deposit more, thereby leading to a decrease in Cash to Aggregate Deposit ratio. This
will in turn lead to a rise in Money Multiplier."

Current Account Deficit (CAD)

Current Account Deficit (CAD) occurs when a nation sends more money abroad than
it receives. A trade deficit is the largest component of a current account deficit, which
occurs when a country imports more than it exports in a given period of time.

Current Fallow Land

Current fallow land means the land on which the cultivation is being done for the last
times and soon the land will too be counted as barren.

Curvilinear Cost

Curvilinear Cost , also called a nonlinear cost, is an expense that increases at an

inconsistent rate as production volume increases. In other words, this is an irregular
cost that increases at different rates as total output increases.

Custodial Account

An account created for the benefit of a minor with an adult as the custodian is known
as Custodial Account.

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Custodian

Custodian is an entity, often a bank, that safekeeps and administers securities for its
customers and that may provide various other services, including clearance and
settlement, cash management, foreign exchange and securities lending.

Customer Centricity

Customer Centricity is a business philosophy where the customer’s experience and

relationship is valued as the first priority. It places the customer as the cornerstone
of the business model.

Customized Fertilizer

Customized Fertilizer is a concept around balanced plant nutrition. Such fertilizers are
based on the sound scientific plant nutrition principle and research, Customized
Fertilizer provide the best nutrition al package for premium quality plant growth and
yield.

Cyber Monday

Cyber Monday is an e-commerce term referring to the Monday following the U.S.
Thanksgiving weekend. As brick-and-mortar stores do with Black Friday, online
retailers usually offer special promotions, discounts, and sales on this day. Traditional
retailers generally offer exclusive, website-only deals on Cyber Monday. The result
suggests to some that Black Friday and Cyber Monday have merged into a
combination of in-store-and-online shopping experiences that blur the distinction
between the two days.

Cycle Inventory

Cycle Inventory or Cycle stock or working stock or lot size stock is that part of the
entire inventory that helps the company to meet the usual demand of the product. It
is essential because this is what a company uses first to fulfil the customer‘s order. It
is the inventory that a reseller or manufacturer or wholesaler uses for their day-to-
day business to meet the regular orders. The cycle stock or some part of it
automatically gets replaced as the company sells products. It is the inventory that a
company can sell and replenish if everything goes as per the plan.

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 D
Dark Horse & White Horse Stocks

There are two kinds of stocks: one is the dark horse, which is usually unknown
but occasionally breaks out and can surprise people. It is also called "black horse
stock." The other is sought after everywhere, and is the star of attention in the
stock market. It is called "white horse stock." Black horse stocks have the
potential to rise suddenly, while white horse stocks are generally favored by the
public.

Dark Pool

A dark pool is a privately organized financial forum or exchange for trading

securities. Dark pools allow institutional investors to trade without exposure
until after the trade has been executed and reported. They are a type of
alternative trading system (ATS) that give certain investors the opportunity to
place large orders and make trades without publicly revealing their intentions
during the search for a buyer or seller.

Data Breach

Data Breach (also known as data spill or data leak) is an unauthorized access and
retrieval of sensitive information by an individual, group, or software system. It
is a cybersecurity mishap which happens when data, intentionally or
unintentionally, falls into the wrong hands without the knowledge of the user or
owner.

Data Mining

Data Mining is the process of searching and analyzing a large batch of raw data
in order to identify patterns and extract useful information.

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Data Privacy

Data privacy or information privacy is a branch of data security concerned with

the proper handling of data – consent, notice, and regulatory obligations. It got
highlighted when identifiable data of about 50 million Facebook users was
breached by an analytics firm. Privacy is a basic human right, in the digital age
where life has so prominently got integrated with the digital world, data privacy
has become a human right too.
Data Protection

Data protection is the process of safeguarding important information from

corruption, compromise or loss. Data is the large collection of information that
is stored in a computer or on a network. The importance of data protection
increases as the amount of data created and stored continues to grow at
unprecedented rates.
Day Trader

A day trader refers to the market operator who indulges in day trading. A day
trader buys and subsequently sells financial instruments like stocks, currencies,
or futures and options within the same trading day, meaning all the positions
that he creates are closed on the same trading day.
DBFO (Design, Build, Finance and Operate)

DBFO (Design, Build, Finance and Operate) is a PPP model for the creation of
infrastructure facilities. In this model, the private party assumes the entire
responsibility for the design, construction, finance, and operate the project for
the period of concession.
Deadbeat

Deadbeat is a slang term for a credit card user who pays off their balance in full
and on time every month, thus avoiding the need to pay off the interest that
would have accrued on their accounts. A deadbeat is also called a "non-revolver"
or a "transactor." They'll get this derogatory name by being a potentially less
profitable customer for a credit card company than a revolver, or someone who
carries a balance from month to month.

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Dead-End Job

A dead-end job is a position that offers little to no opportunity for career

advancement or growth. Employees in dead-end jobs may feel stuck, and may
have limited prospects for promotions, increased responsibility, or skill
development.
Death Cross

The "death cross" is a market chart pattern reflecting recent price weakness.

Debt Avalanche

Debt Avalanche is a debt payment method, the debt with the highest interest
rate is paid off first, then the next highest interest rate, and so on. With the debt
avalanche, the debtor pays the least amount of interest.
Debt Bomb

A debt bomb is a situation occurring when a major financial institution, such as

a multinational bank, defaults on its obligations which, in turn, causes disruption
not only in the financial system of the institution's home country but also in the
global financial system as a whole.
Debt Mutual Fund

A debt fund is a mutual fund scheme that invests in fixed income instruments,
such as Corporate and Government Bonds, corporate debt securities, and money
market instruments etc. that offer capital appreciation. Debt funds are also
referred to as Income Funds or Bond Funds.

Debt Overhang

Debt overhang refers to a debt burden so large that an entity cannot take on
additional debt to finance future projects.

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Debt Snowball

Death Snowball is one of the different Debt Repayment Plans. In this method,
the smallest debt is paid off first, then then next largest, and so on, until all debts
are paid.

Decentralized Finance (DEFI)

Decentralized finance (DEFI) is an emerging financial technology based on secure

distributed ledgers similar to those used by cryptocurrencies. Decentralized
finance, or DEFI, uses emerging technology to remove third parties and
centralized institutions from financial transactions. DEFI eliminates the fees that
banks and other financial companies charge for using their services.

Decentralized Market

Decentralized Market are those markets wherein , technology enables investors

to deal directly with each other instead of operating from within a centralized
exchange. Virtual markets that use decentralized currency, or cryptocurrencies,
offer examples of decentralized markets.
Declinature

Refusal by the insurance company for acceptance of proposed risk or for renewal
of an existing policy is known as Declinature.
Decoupling Inventory

Decoupling inventory is a type of inventory that is of use to the manufacturing

firms. Moreover, this inventory comes handy if the production processes are
interdependent. In this, a company keeps some inventory of unfinished products
at each stage of production. If there is a breakdown or failure of one machine or
process, then the company uses decoupling inventory to make sure that the
production processes don‘t stop. In the meantime, the company fixes the issue
with the machine or process.

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Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)

Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) (previously

Aajeevika) is a programme with a mission to transform India’s poor rural youth
into an economically independent and globally relevant workforce.
Defensive Interval Ratio

The defensive interval ratio (DIR), also called the defensive interval period (DIP)
or basic defense interval (BDI), is a financial metric that indicates the number of
days that a company can operate without needing to access noncurrent assets,
long-term assets whose full value cannot be obtained within the current
accounting year, or additional outside financial resources.

Defensive Stock

Defensive stock is a stock that provides consistent dividends and stable earnings
regardless of the state of the overall stock market. There is a constant demand
for their products, so defensive stocks tend to be more stable during the various
phases of the business cycle. (Defensive stocks should not be confused with
Defense stocks, which are the stocks of companies that manufacture things like
weapons, ammunition, and fighter jets).
Deferral

Deferral is just the opposite of accrual and occurs before the due date of the
expense or revenue. Deferred expense is the expense that a company pays in
advance. For example, a company pays rent for a full two years in advance.
Deferred Payment

Payments put off to a future date or extended over a period of time. Interest will
usually still accumulate during deferment.

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Deferred Revenue Expenditure

Deferred Revenue Expenditure is unusually heavy expenditure of revenue

nature, the benefit of which would be available to the business for a period of
more than one year but no tangible asset has been created. For example, the
expenses incurred in connection with marketing of a product including
advertising, voluntary retirement scheme. These assets are written off over a
period of times (say 3-5 years).
Deferred Tax Asset

A deferred tax asset is an item on a company's balance sheet that reduces its
taxable income in the future. Such a line item asset can be found when a business
overpays its taxes. This money will eventually be returned to the business in the
form of tax relief. Therefore, the overpayment becomes an asset to the company.
A deferred tax asset usually is found when there are differences between tax
rules and accounting rules.
Deleveraging

In economic terms, leverage means to use a loan to acquire an asset.

Deleveraging, then, is the process of reducing the size of the loan.
Delinquency Ratio

Delinquency Ratio = [(Fresh Slippages during the current FY)/Standard

Assets outstanding as on the last day of previous FY] x 101
Delinquent Accounts

Delinquent accounts are those loan account instalments under a loan that are
not paid as per the terms of the agreement.
Delisting

Delisting is a method of financial trading in which share prices are hidden and
not openly available to the public.

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Delivery Versus Payment (DVP)

Delivery versus payment (DVP) is a securities industry settlement method that

guarantees the transfer of securities only happens after payment has been made.
DVP stipulates that the buyer's cash payment for securities must be made prior
to or at the same time as the delivery of the security.

Delphi Method

The Delphi Method is a forecasting process framework based on the results of

multiple rounds of questionnaires sent to a panel of experts.

Demand Destruction

Demand Destruction refers to a permanent or sustained decline in the demand

for a certain good in response to persistently high prices or limited supply.
Because of prolonged high prices, consumers may decide it is not worth
purchasing as much of that good, or they may seek out alternatives as
substitutes. Demand destruction is most often associated with the demand for
oil or other energy commodities.

Demand Shock

A demand shock is a sudden unexpected event that dramatically increases or

decreases demand for a product or service, usually temporarily. A positive
demand shock is a sudden increase in demand, while a negative demand shock
is a decrease in demand. Either shock will have an effect on the prices of the
product or service.

Demographic Dividend

Demographic Dividend (or Population Dividend) refers to the accelerated

economic growth that begins with changes in the age structure of a country’s
population as it transitions from high to low birth and death rates.

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Demonstration Effect

Demonstration Effect refers to the consumption habit and behaviours of the

people to imitate the consumption trends adopted by other people. In other
words when you don’t need something but you just buy it because you see the
other person with it , is called demonstration effect.
Demutualisation

Demutualisation is a process that changes a mutual or co-operative association

into a public company by converting the interests of the members into
shareholdings.
Denial-of-Service (DoS) Attack

Denial-of-service (DoS) Attack is an intentional cyberattack carried out on

networks, websites, and online resources to restrict access to its legitimate users.
This is usually done by overloading the target network or site with fake system
requests, preventing legitimate users from accessing it, sometimes crashing or
damaging a system outright. DoS attacks may last anywhere from a few hours
to many months. A common type of DoS attack that is prevalent on the web is
called the distributed-denial-of-service (DDoS) attack that relies on infected
computers or devices from around the world in a coordinated effort to block
access.
Depository Receipt

Depository Receipt is a source of raising foreign capital. It enables an already

listed company (in most cases) to raise further capital from international
markets. Also, the individual investors get an opportunity to invest in foreign
markets without hassle. A depository receipt is a negotiable instrument. The
local bank of a country issues a depository receipt. The exchange of the issuing
country lists the depository receipts. However, it represents shares, usually
equity, of a foreign company as its underlying. The most prevalent depository
receipts traded today include ADRs and GDRs.

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Descending Channel

A descending channel is drawn by connecting the lower highs and lower lows of
a security's price with parallel trendlines to show a downward trend. Officially,
the space between the trendlines is the descending channel, which falls under
the broad category of trend channels.
Diamond Top Formation

A diamond top formation is a technical analysis pattern that often occurs at, or
near, market tops and can signal a reversal of an uptrend. It is so named because
the trendlines connecting the peaks and troughs carved out by the security's
price action form the shape of a diamond.
Differentiated Banks

Differentiated Banks are banking institutions licensed by the RBI to provide

specific banking services and products. A differentiated license will allow a bank
to offer products only in select areas. The differentiated banks are of two types-
Payment Banks and Small Finance Banks.
DigiLocker

DigiLocker is a platform for issuance and verification of documents and

certificates in a digital way, thus eliminating the use of physical documents.
Digital Financial Inclusion

Digital financial inclusion can be defined broadly as digital access to and use of
formal financial services by excluded and underserved populations.

Digital Literacy

Digital Literacy is the ability of individuals and communities to understand and

use digital technologies for meaningful actions within life situations.

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Digital Saksharta Abhiyan (DISHA) or National Digital Literacy Mission (NDLM)

Digital Saksharta Abhiyan (DISHA) or National Digital Literacy Mission (NDLM)

Scheme is a digital literacy program that trains the trainers so that they can
provide digital literacy to citizens who have no digital literacy.

Digital Wallet

Digital Wallet is an electronic device or software that allows cashless purchases

to be made.

Dilutive Securities

Dilutive securities are those financial instruments that carry a right of conversion
into the common shares of a company. These instruments commonly take the
form of convertible preference shares, convertible debt or bonds, warrants, and
stock options. These securities have a major role in bringing the Earnings per
share (EPS) down in a company. The addition of these shares happens to the total
outstanding shares of the company. The EPS reduces upon conversion due to an
increase in the number of shares. The reason is so that market capitalization does
not change. But the number of shares outstanding of the company increases.
These shares are known so because of their “dilutive” nature. They dilute the
basic Earnings per share (EPS) in a company. The holders of dilutive securities
have conversion rights with them.
Dim Sum Bond

Dim Sum Bond is a slang term for bonds denominated in Chinese Renminbi and
issued in Hong Kong. Dim sum bonds are attractive to foreign investors who
desire exposure to renminbi-denominated assets, but are restricted by China's
capital controls from investing in domestic Chinese debt.

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DIPAM
Department of Investment and Public Asset Management (DIPAM) deals with all
matters relating to management of Central Government investments in equity
including disinvestment of equity in Central Public Sector Undertakings.
Direct Public Offering (DPO)

Direct Public Offering (DPO) is a type of offering in which a company offers its
securities directly to the public to raise capital. An issuing company using a DPO
eliminates the intermediaries—investment banks, broker-dealers, and
underwriters—that are typical in initial public offerings (IPO), and self-
underwrites its securities. Cutting out the intermediaries from a public offering
substantially lowers the cost of capital of a DPO.
Dirty Price

Dirty Price is the removal of a listed security from a stock exchange. The delisting
of a security can be voluntary or involuntary and usually results when a company
ceases operations, declares bankruptcy, merges, does not meet listing
requirements, or seeks to become private.
"Discontinued and Irregular Accounts (Recurring Deposit)

In the case of account where the stipulated number of instalments are not paid
up on or before the ostensible maturity date, the account becomes due for
payment on the ostensible maturity date. Such accounts are to be treated as
Discontinued Account. Accounts in which there are no remittances for a
continuous period of one year and not completed the agreed period are known
as Irregular Accounts.

Discouraged Worker

Discouraged worker is a person who is eligible for employment and can work,
but is currently unemployed and has not attempted to find employment.
Discouraged workers have usually given up on searching for a job because they
found no suitable employment options or failed to secure a job when they
applied.

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Discretionary Expense

A discretionary expense is a cost that a business or household can survive

without, if necessary. Discretionary expenses are often defined as nonessential
spending. This means a business or household is still able to maintain itself even
if all discretionary consumer spending stops. Meals at restaurants and
entertainment costs are examples of discretionary expenses.
Diseconomies of Scale

Diseconomies of Scale is the total price of a bond, including accrued interest.

Disposable Income

Disposable Income is the amount of income left after deductions such as income
tax, pension contributions and personal insurance. It is often known as 'take
home pay' - the actual pay a worker receives.

Distress Sales

Distress sales occur when the seller needs to sell an asset urgently, often to pay
debts or medical expenses or for other emergencies. Distress sales often result
in a financial loss for the seller because buyers realize that the seller is in a hurry
to obtain funds and will offer a lower price.

Distributive Negotiation

Distributive Negotiation is one in which one party wins, and the other loses.
Divergence

Divergence is when the price of an asset is moving in the opposite direction of

a technical indicator, such as an oscillator, or is moving contrary to other data
Divergence warns that the current price trend may be weakening, and in some
cases may lead to the price changing direction.

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Diversifiable Risk

Diversifiable Risk, is a company in the S&P 500 index that not only consistently
pays a dividend to shareholders, but annually increases the size of its payout. A
company will be considered a dividend aristocrat if it raises its dividends
consistently for at least the past 25 years.

Diversified Discount

The phenomenon that shares of stock in highly diversified companies are often
assigned a lower market valuation than shares of stock in less diversified
companies. This is known as Diversified Discount.

Diverted Profits Tax

Diverted Profits Tax, commonly known as ""Google tax"", refers to tax

provisions designed to counter the practice of profits being diverted to other
jurisdictions that have lower or zero tax rates.

Divestment

Divestment is the process of selling subsidiary assets, investments, or divisions

of a company in order to maximize the value of the parent company. Also known
as divestiture, divestment is effectively the opposite of an investment and is
usually done when that subsidiary asset or division is not performing up to
expectations.
Dividend Aristocrat

Dividend Aristocrat happen when the size of the company or firm increases so
large that the cost per unit increases. Once the production crosses a particular
point in production, the process efficiency reduces. Because of which the cost
increases due to the inefficiency in production. In economics jargon, the
diseconomies of scale happen when the average cost starts to increase.

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Dividend Signalling

Dividend Signalling is a theory which asserts that announcement of increased

dividend payments by a company gives strong signals about the bright future
prospects of the company. An announcement of an increase in dividend pay-out
is taken very positively in the market and helps building a very positive image of
the company regarding the growth prospects and stability in the future.
Generally, dividend signalling is done by the company when it changes the
amount of dividend to be paid to shareholders.

DOCDEX Rules

The DOCDEX Rules of the International Chamber of Commerce (the ICC) are for
use in proceedings called Documentary Instruments Dispute Resolution
Expertise (DOCDEX), which are administered by the ICC International Centre for
ADR, a separate administrative body within the ICC.

Doctrine of Frustration

The doctrine of frustration is a legal principle that allows parties to terminate a

contract when an unforeseen event makes it impossible, illegal, or significantly
different to perform:
Doctrine of Precedent

The Doctrine of Precedent, also known as Stare Decisis, is a legal doctrine that
obligates courts to follow historical cases when making a ruling on a similar case.
Stare decisis ensures that cases with similar scenarios and facts are approached
in the same way.
Door to Door Tenor

Door to Door Tenor is generally used to indicate the total period within which
the total debt borrowed is to be paid back by the borrower to the lender. This
total period also includes the period of moratorium.

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Doorbuster

Doorbuster is a marketing and sales strategy retailers use to get a high volume
of customers into their stores during opening hours. During a doorbuster sale, a
particular item or a selection of items is offered at a special discount price for a
limited time. The aim is to get customers in the door or "bust open the doors"
to buy the merchandise and look at other items for sale.
Double Bottom

A double bottom pattern is a classic technical analysis charting formation that

represents a major change in trend and a momentum reversal from a prior down
move in market trading. It describes the drop of a security or index, a rebound,
another drop to the same or similar level as the original drop, and finally another
rebound (that may become a new uptrend). The double bottom looks like the
letter "W." The twice-touched low is now considered a significant support level.
While those two lows hold, the upside has new potential.
Double-Declining Balance Depreciation (DDB) Method

The Double-Declining Balance Depreciation (DDB) Method, also known as the

reducing balance method, is one of two common methods a business uses to
account for the expense of a long-lived asset. The double-declining balance
depreciation method is an accelerated depreciation method that counts as an
expense more rapidly (when compared to straight-line depreciation that uses
the same amount of depreciation each year over an asset's useful life).
Double Top

A Double Top is an extremely bearish technical reversal pattern that forms after
an asset reaches a high price two consecutive times with a moderate decline
between the two highs. It is confirmed once the asset's price falls below a
support level equal to the low between the two prior highs.

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Dove

A dove is an economic policy advisor who promotes monetary policies that

usually involve low-interest rates.

Down-selling

To close a deal, the down-selling strategy attempts to sell a consumer a lower-

priced product or service. The consumer is either dissatisfied with the product or
does not have enough money to make the transaction. The seller recognizes this
and sells a lower-priced or higher-quality product within the same price range.
Down-selling is typically used when the prospect's likelihood of not purchasing
a product is high. Selling a lower-priced product allows you to avoid a total sale
loss.

Downstream Guarantee & Upstream Guarantee

Downstream and upstream guarantees are the main forms of cross guarantee
that involve a parent company and its subsidiaries. A downstream guarantee is
a guarantee provided by the parent company for its subsidiary company, to
assure lenders that the subsidiary will honour its financial obligations. In the
event that the subsidiary is unable to make its loan repayments, the parent
company commits to repay the loan on behalf of the subsidiary. On the other
hand, an upstream guarantee is a form of guarantee in which a subsidiary
guarantees its parent company’s debts. An upstream guarantee occurs when the
parent company does not own enough assets to pledge as collateral for a loan
and includes the subsidiary’s assets to expand its collateral.

Drag Along Rights

Drag Along Rights allow a majority shareholder to force minority shareholders

to join in the sale of a company. This ensures that a majority shareholder can sell
the company without being blocked by minority shareholders, by requiring that
all other shareholders also sell their shares at the same terms.

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Dragon Bond

A dragon bond is a long-term debt security issued by Asian corporations,

excluding Japan, in a foreign currency. The bonds are denominated in a stable
currency, like the US dollar or the Japanese yen, to help reduce foreign exchange
risk.

The Asian Development Bank (ADB) introduced dragon bonds in 1991 with the
first issue. The dragon bond market is a non-Asian currency public debt market
in Asia, where Asian investors are the primary buyers of debt issues.

Drawdown

When the price of a currency dips, the difference between the peak and the new
low is labelled the “drawdown”.
Drill Down

Drill Down is a method of exploring detailed data that was used in creating a
summary level of data. Drill Down levels depend on the granularity of the data
in the data warehouse.
Drop Shipping

Drop-shipping is when a person, or company, sells goods on their website that

they do not keep in stock. When an order is received, they send those orders to
another company to ship the goods directly to the buyer. Because they are
middlemen, they may charge more money.
Dry Powder

Dry Powder is a slang term referring to marketable securities that are highly
liquid and considered cash-like. Dry powder can also refer to cash reserves kept
on hand by a company, venture capital firm or individual to cover future
obligations, purchase assets or make acquisitions.

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Dual Currency Bond

A dual currency bond is a debt instrument where the bond's price and coupon
are in one currency, but the redemption value is in a different currency. The
bond's principal and coupon rate are denominated in two different currencies.
The currency in which the bond is issued is known as the base currency. The
interest payments are usually made in the weaker or lower-rate currency.
DUD loans

DUD loans refer to Distressed Underwater Debt. These are loans where the
borrower owes more on the loan than the underlying asset (such as a house) is
worth. This situation is also known as being "underwater" on a loan.
DUD loans typically occur when property values decline significantly, leaving the
borrower with a mortgage that exceeds the current market value of the home.
This can create financial hardship for the borrower and increase the risk of loan
defaults or foreclosures.
Due Diligence

Due diligence is a process where all proper steps are taken to reduce the risk of
making an uninformed decision. In other words, it is a research procedure that
provides enough information to issue an assessment.
Duopoly

A Duopoly is a market structure where two companies control most or all of a

market for a specific product or service. Some examples of duopolies include
Coca- Cola and Pepsi. Visa and Mastercard and Google and Meta (formerly
Facebook).
Dutch Auction

A Dutch auction (also called a descending price auction) refers to a type of

auction in which an auctioneer starts with a very high price, incrementally
lowering the price until someone places a bid.

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Dutch Disease

Dutch Disease is an economic term for the negative consequences that can arise
from an increase in the value of a nation’s currency. It is primarily associated
with the new discovery or exploitation of a valuable natural resource and the
unexpected repercussions that such a discovery can have on the overall economy
of a nation.

Dutch disease is an economic term that describes the negative consequences of

a country experiencing a sudden increase in income. It can be caused by a
number of factors, including: Natural resource discoveries, Foreign direct
investment, Foreign assistance, and Sharp increases in natural resource prices
Duty Credit Scrip

Duty Credit Scrip is the most important export promotion incentive provided by
the government to exporters. The approach of the scheme is to promote exports
by giving tax incentives. The duty credit scrip is a pass that allows the holder to
import commodities by not paying a specified amount in import duties.
Dwell Time

Dwell time is the time delay from the time the cargo arrives in the port and the
time the goods leave the port after obtaining permits and clearances.

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 E
EAG States

EAG States refer to Empowered Action Group States. EAG states are eight socio-
economically backward states of India, which include Bihar, Chattisgarh,
Jharkhand, Madhya Pradesh, Orissa, Rajasthan, Uttaranchal, and Uttar Pradesh
Earnings Multiplier

The earnings multiplier is a financial metric that frames a company's current

stock price in terms of the company's earnings per share (EPS) of stock, that's
simply computed as price per share/earnings per share. Also known as the price-
to-earnings (P/E) ratio, the earnings multiplier can be used as a simplified
valuation tool with which to compare the relative costliness of the stocks of
similar companies. It can likewise help investors judge current stock prices
against their historical prices on an earnings-relative basis.
Earnings Season

Earnings season refers to the months of the year during which most quarterly
corporate earnings are released to the public. Earnings season generally begins
in the month following most major companies' fiscal quarters: January, April,
July, and October.
e-BAAT

"e-BAAT (Electronic Banking Awareness And Training) : It is programme of RBI

for Creating awareness to the public on frauds associated with eBanking and
digital safety."
ECN Broker

ECN Broker is one who makes use of Electronic Communications Networks

(ECNs) to provide clients with access to liquidity providers.

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Economic Infrastructure

Economic infrastructure directly supports economic growth. It provides product

support services such as energy, transport, communication, etc. It improves the
productivity levels in productive sectors like agriculture and industry.
Economic Man

The term "economic man" (also referred to as "homo economicus") refers to an

idealized person who acts rationally, with perfect knowledge, and who seeks to
maximise profit.
Economic Moat

Economic Moat refers to a business's ability to maintain competitive advantages

over its competitors in order to protect its long-term profits and market share
from competing firms. Just like a medieval castle, the moat serves to protect
those inside the fortress and their riches from outsiders.
Economic Order Quantity (EOQ)

Economic Order Quantity (EOQ) is the optimum order size that should be placed
with a vendor to minimize blockage of funds and holding and ordering costs.
Economic Production Quantity (EPQ)

Economic Production Quantity (EPQ) is the optimum lot size that is to be

manufactured in a production unit to avoid unnecessary blockage of funds and
excess storage costs. This production quantity is adequate to ensure
uninterrupted work.
Economies of Scale

Economies of scale refers to the cost savings a company can earn by increasing
the size of their operation or number of units produced. In other words, the
production process becomes more efficient as more goods are produced.

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Economies of Scope

Economies of Scope refers to the decreasing of costs of overall operation and

performance by virtue of using the same existing resources for various
complementary operations.
Effective Exchange Rate

Effective Exchange Rate for India is the exchange rate of rupee derived from an
index that includes several currencies weighted by their trade importance for
India. Comparable currencies are assigned weight in the index in accordance with
the share of India’s trade with the respective countries while measuring effective
exchange rate. The index shows the strength of a rupee relative to a basket of
other currencies.
Effective Gross Income

Effective gross income (EGI) is the Potential Gross Rental Income plus other
income minus vacancy and credit costs of a rental property. EGI can be calculated
by taking the potential gross income from an investment property, add other
forms of income generated by that property, and subtract vacancy and collection
losses.
Effective Tax Rate

The term effective tax rate refers to the percent of income that an individual or
corporation owes/pays in taxes. The effective tax rate for individuals is the
average rate at which their earned income, such as wages, and unearned income,
such as stock dividends, are taxed. The effective tax rate for a corporation is the
average rate at which its pre-tax profits are taxed, while the statutory tax rate is
the legal percentage established by law.
Efficiency and Productivity

Efficiency focuses on minimizing waste, reducing costs, and optimizing

processes. Productivity emphasizes output quantity.

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Efficient Market Hypothesis

The efficient market hypothesis (EMH), alternatively known as the efficient

market theory, is a hypothesis that states that share prices reflect all available
information and consistent alpha generation is impossible. According to the
EMH, stocks always trade at their fair value on exchanges, making it impossible
for investors to purchase undervalued stocks or sell stocks for inflated prices.
Egalitarianism

Egalitarianism is a philosophical perspective that emphasizes equality and equal

treatment across gender, religion, economic status, and political beliefs.
E-Gopala

E-Gopala app will be a digital medium which will help livestock owners to choose
advanced livestock’s. This app will give all information related to productivity,
health and diet to the cattle owners.
e-Kranti

e-Kranti is an advanced e-governance programme to deliver governance services

through electronic mode. Public services related to health, education, farmers,
justice, security and financial inclusion etc will be administered electronically
under e-Kranti.

Elasticity

Elasticity refers to the measure of the responsiveness of quantity demanded or

quantity supplied to one of its determinants.

Electoral Bond

Electoral bonds are instruments/securities that are used to donate funds to

political parties. Electoral Bonds may be purchased by a person who is a citizen
of India or incorporated or established in India.

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Elliott Wave Theory

The Elliott Wave Theory in technical analysis describes price movements in the
financial market. Developed by Ralph Nelson Elliott, it observes recurring fractal
wave patterns identified in stock price movements and consumer behavior.
Investors who profit from a market trend are described as riding a wave.

Emancipated Minor

Emancipated minor is someone who has not yet reached the age of majority —
usually 18 — but has by court order or actions become independent of his
parents or other adult supervisors.
Embargo

An embargo is a trade restriction, typically adopted by a government, a group

of countries, or an international organization as an economic sanction.
Embargoes can bar all trade, or may apply only to some of it—for example, to
arms imports. They are designed to punish the targeted country for its actions,
and to deny it the means to carry out objectionable policies.

Embezzlement

Embezzlement is fraudulent use or taking of another's property or money which

has been entrusted to one's care.
Empire Building

Empire building is the act of attempting to increase the size and scope of an
individual or organization's power and influence. In the corporate world, this is
seen when managers or executives are more concerned with expanding their
business units, their staffing levels, and the dollar value of assets under their
control than they are with developing and implementing ways to benefit
shareholders.

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eNAM

National Agriculture Market (eNAM) is a pan-India electronic trading portal

which networks the existing APMC (Agricultural Produce Market Committee)
mandis (market yards) to create a unified national market for agricultural
commodities. Small Farmers Agri-business Consortium (SFAC) is the lead agency
for implementing eNAM under the aegis of Ministry of Agriculture and Farmers’
Welfare, Government of India. The market facilitate farmers, traders and buyers
with online trading in commodities. The market is helping in better price
discovery and provide facilities for smooth marketing of their produce.
Endorsement

Endorsement is a public indication of approval or support. Indorsement is a legal

signature on some financial documents, like checks.
Endowment

Endowment is a donation of money or property to a non-profit organization,

which uses the resulting investment income for a specific purpose. An
endowment can also refer to the total of a non-profit institution‘s investable
assets, also known as its ―principal or ―corpus, which is meant to be used for
operations or programs that are consistent with the wishes of the donor(s). Most
endowments are designed to keep the principal amount intact while using the
investment income for charitable effort.
Engel's Law

Engel's Law is an economic theory introduced in 1857 by Ernst Engel, stating that
the percentage of income allocated for food purchases decreases as income rises.
EPC

Engineering, Procurement and Construction (EPC) is a PPP model for the

development of infrastructure projects especially highways. Under this model,
the cost is completely borne by the government. Government invites bids for
engineering knowledge from the private players. Procurement of raw material
and construction costs are met by the government. The private sector’s
participation is minimum and is limited to the provision of engineering
expertise.

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ENSURE

“ENSURE” is an online portal launched to ease the subsidy payment in the

livestock sector through Direct Benefit Transfer. Ministry of Agriculture has
launched a portal “ENSURE‟ under Entrepreneurship Development and
Employment Generation (EDEG) component of National Livestock Mission. It is
developed by NABARD and operated under the Department of Animal
Husbandry, Dairying & Fisheries. “ENSURE” portal (ensure.nabard.org) is
launched so that the information related to beneficiary and processing of the
application can be made readily available.

ENSURE is an acronym for ElectroNic SUbmission of REturns.

Enterprise Risk Management (ERM)

Enterprise risk management (ERM) is a strategy or practice that businesses use

to identify all possible business risks and the best ways to mitigate or eliminate
them.
Enterprise Value (EV)

Enterprise Value (EV) measures a company's total value, often used as a more
comprehensive alternative to market capitalization. EV includes in its calculation
the market capitalization of a company but also short-term and long-term debt
and any cash or cash equivalents on the company's balance sheet.

Enterprise Value vs. Market Value

Enterprise value is the total value of a company, while market value is the value
of its shares on the stock market. Market capitalization is the total value of all
shares on the stock market.
Entity Theory

Entity Theory is a basic theoretical assumption that all of the economic activity
conducted by a business is separate from that of its owners.

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Equity Carveout

Equity Carveout is a type of corporate strategy wherein a company sells a part

of its business or one division through IPOs (initial public offering). To put it
simply, it is a process of separating a subsidiary from the parent company into a
standalone company. The subsidiary company works like a full company with its
own board of directors and financial statements.
Equity Compensation

Equity compensation is non-cash pay offered to executives and employees.

Equity compensation may include options, restricted stock, and performance
shares, all of which represent ownership in the firm.
Equity Kicker

An equity kicker is a financial arrangement where a lender receives an equity

stake in a borrower's company in exchange for providing credit at a lower
interest rate. Equity kickers are also known as equity sweeteners.
Equivalent Annual Cost

Equivalent annual cost (EAC) is the annual cost of owning, operating, and
maintaining an asset over its entire life. Firms often use EAC for capital
budgeting decisions, as it allows a company to compare the cost-effectiveness
of various assets with unequal lifespans in a process known as the replacement
chain method.

Era of Financial Repression

Era of Financial Repression - In the history of Indian banking, the pre-reform

period or pre-1991 is known as the era of financial repression. Here, the
government exerted big control over the banking system with commercially
hurting policies on the banking sector including high CRR, SLR, administrative
interest rate etc. These policies were started from 1969 onwards and most of
them were phased out with the launch of financial sector reforms of the 1990s.

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e-RMB "

The Renminbi (abbreviated RMB; literally: 'people's currency') is the official

currency of China , and one of the world's major reserve currencies. CNY is the
ISO code for Renminbi. The Yuan is the basic unit of the Renminbi, but is also
used to refer to the Chinese currency generally, especially in international
contexts where ""Chinese yuan"" is widely used to refer to the renminbi. The
distinction between renminbi and yuan is that renminbi is the name of the
currency and yuan refers to its primary unit. e-RMB is a digitalized version of
Chinese money."
Errors and Omissions Insurance (E & O Insurance)

Errors and Omissions Insurance (E & O Insurance) is a policy that covers liability
for errors and omissions, such as incorrect records or accounting.
Escape Clause (FRBM)

Escape Clause (FRBM) refers to the situation under which the central government
can flexibly follow fiscal deficit target during special circumstances. This
terminology was innovated by the NK Singh Committee on FRBM.

Escheat

Escheat refers to the right of a government to take ownership of assets or

unclaimed property. It most commonly occurs when an individual dies with no
will and no heirs. Escheat rights can also be granted when assets are unclaimed
for a prolonged period of time.

eShakthi

eShakthi is online digital platform for processing SHG loans. EShakti is a pilot
project for digitization of SHGs launched by NABARD in 250 identified districts.
Project aims at digitization of SHG accounts and enables them to submit the
online loan application to Bank Branches through EShakti portal.

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eSports

eSports is a type of spectator sport for online gaming, where people watch video
gamers compete against each other, similar to how they would watch a live
sporting event. There are leagues and tournaments, and there are often arena
events set up for viewers to watch them like traditional sports games.
Estemple

Estemple is an acronym to denote major macro-environmental pressures upon

business. It stands for Economic, Social, Technological, Media, Ecological,
Political, Legal, Ethical drivers of environmental change.
Estimated Long-Term Return

Estimated long-term return is a hypothetical measure that forecasts an investor's

expected return over the life of an investment and is typically quoted for fixed-
income investments with a fixed duration.
Ethereum

Ethereum is a decentralized global software platform powered by blockchain

technology. It is most commonly known by investors for its native
cryptocurrency, ether (ETH), and by developers for its use in blockchain and
decentralized finance application development. It has a token designed to pay
for work done supporting the blockchain, but participants can also use it to pay
for tangible goods and services if accepted. ETH is the second-largest
cryptocurrency by market capitalization, behind only Bitcoin.

Ethical Investment

Ethical Investment refers to a specific kind of financial operation hose purpose

is to deliver a social impact and gain an average or above-average financial
return. The investment can be made by individuals as well as private companies,
governments and so on.

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Eurobank

A eurobank is a financial institution that accepts deposits and makes loans in

foreign currencies. It is not necessary for a "eurobank" to be located in Europe;
it can in fact be located anywhere in the world. For example, an American bank
located in New York which holds deposits and issues loans in Japanese yen (JPY)
would be considered a eurobank.

Eurobanks may operate in their own country, such as the American bank in the
example above, or they may operate in a country outside their home.
Eurozone

Eurozone, officially known as the euro area, is a geographic and economic region
that consists of all the European Union (EU) countries that have fully
incorporated the euro as their national currency. As of 2022, the eurozone
consists of 19 countries in the European Union: Austria, Belgium, Cyprus, Estonia,
Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain.
e-Urvarak

e-Urvarak Dashboard is and integrated Fertiliser Management System (iFMS) for

effective monitoring of fertiliser movement in accordance with the state-wise
requirement to ensure timely availability of fertilisers to the farmers.
Evergreen Clause

Evergreen clause is one used in contracts to agree to automatically renew.

Evergreen clauses are commonly used in subscriptions and service contracts,
sometimes hidden in confusingly worded fine print.
Exchange Rate Mechanism (ERM)

An exchange rate mechanism (ERM) is a set of procedures used to manage a

country's currency exchange rate relative to other currencies. It is part of an
economy's monetary policy and is put to use by central banks.

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Exclusions or Limitations

Exclusions or Limitations are the provisions that exclude or limit coverage of

certain named diseases, medical conditions, or services, as well as some
sicknesses or accidents that occur under specified circumstances.

Exculpatory Clause

Exculpatory Clause is a provision that protects a party involved in a contractual

relationship from a given liability. It is a stipulation where a party is relieved of
its responsibility if a particular negative situation or outcome takes place.

Executor of an Estate

Executor of an estate is an individual appointed to administer the last will and

testament of a deceased person. The executor's main duty is to carry out the
instructions to manage the affairs and wishes of the deceased. The executor is
appointed either by the testator of the will (the individual who makes the will)
or by a court, in cases wherein there was no prior appointment.

Existent Debt

Existent Debt is the kind of debt that has already become due, and is payable
and enforceable in the present. For instance, if Mr. A sells a house to Mr. B in
present, and the monetary consideration has to be paid then and there, then the
consideration becomes payable right then, and this is existent debt.

Expenditure Tax

Expenditure tax is a taxation plan that replaces the income. Instead of applying
a tax based on the income earned, tax is allocated based on the rate of spending.
This is different from a sales tax which is applied at the time the goods or services
are provided and is considered a consumption tax.

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Expense Ratio

The Expense Ratio measures how much of a fund's assets are used for
administrative and other operating expenses. For investors, the expense ratio is
deducted from the fund's gross return and paid to the fund manager.
Expiration Time

The expiration time of an options contract or other derivative is the exact date
and time when it is rendered null and void. Derivatives contracts that finish out
of the money (OTM) at the time of expiration will become worthless, while in-
the-money (ITM) contracts will be evaluated based on the settlement price upon
expiry. The expiration time is more specific than the expiration date and should
not be confused with the last time to trade that option.

Ex-Post

Ex-post is another word for actual returns and is Latin for "after the fact." The
use of historical returns has customarily been the most well-known approach to
forecast the probability of incurring a loss on investment on any given day. Ex-
post is the opposite of ex-ante, which means "before the event."

Exposure Netting

Exposure netting is a technique that involves offsetting exposures in one

currency with exposures in another currency to protect against exchange rate
risks. The goal is to offset gains and losses from one exposure with gains and
losses from another exposure.
Expression of Interest (EOI)

Expression of Interest (EOI) is an opportunity to present yourself in a clear,

professional document. It is an opportunity to provide important information
and to demonstrate your suitability, interest, availability in relation to the
position.

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Expropriation

Expropriation is the act of a government claiming privately owned property

against the wishes of the owners, ostensibly to be used for the benefit of the
overall public. In the United States, properties are most often expropriated in
order to build highways, railroads, airports, or other infrastructure projects.

Expropriation is the forced seizure or takeover of the host government of

property rights or assets owned by a foreigner or foreign corporation without
compensation (or with inadequate compensation). Such an action is not in
violation of international law if it is followed by prompt, adequate, and effective
compensation. If not, it is called confiscation.
Extensive Farming

Extensive Farming is a farming system, in which large farms are being cultivated,
with moderately lower inputs, i.e. capital and labour. Extensive agriculture is a
farming technique in which low amounts of labour and capital is used to cultivate
land.
External Commercial Borrowings

The money which is used for the financing of commercial activities in our country
through foreign sources is called External Commercial Borrowing. They can be
any form namely loans, credits or even security instruments. They are not
allowed to trade through any stock exchanges. The loan availed from foreign
sources is of the minimum average maturity of 3 years.
External Failure Cost

External failure cost is one of the three types of cost of quality. It includes the
cost a company incurs after a defective product or service reaches the customer
and it malfunctions. Two common examples of this cost are warranty cost, cost
of the return, and cost of return and replacement.

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Externalities

Externalities are the positive or negative economic impact of consuming or

producing a good on a third party who isn’t connected to the good, service, or
transaction. In other words, they are unforeseen consequences to economic
activities.

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 F
FAANG & GAFAM

“FAANG” is an acronym that refers to the stocks of five prominent American

Technology companies Facebook , Amazon , Apple , Netflix and Google.
“GAFAM” is an acronym for the five most popular U.S. tech stocks
Faceless Assessment Scheme

Faceless Assessment Scheme for tax administration was launched to ensure

transparency in tax administration by avoiding the direct contact between the
tax official and the taxpayer.
Face-to-Face (or Proximity) Mode Payments

Face-to-Face (or Proximity) Mode Payments are mobile payments in which the
payer and the payee are in the same location and where the communication
between their devices takes place through a proximity technology (such as Near
Field Communication (NFC), Quick Response (QR) codes, Bluetooth technology,
etc.).
Facultative Reinsurance

Facultative reinsurance is coverage purchased by a primary insurer to cover a

single risk or a block of risks held in the primary insurer's book of business.
Facultative reinsurance is one of two types of reinsurance (the other type of
reinsurance is called treaty reinsurance).
Fair Value Through Profit and Loss Account (FVTPL)

Fair Value Through Profit and Loss Account (FVTPL) means that at each balance
sheet date the asset or liability is re-measured to fair value and any movement
in that fair value is taken directly to the income statement.

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Fallen Angel

A fallen angel is a bond that was initially given an investment-grade rating but
has since been reduced to junk bond status. The downgrade is caused by a
deterioration in the financial condition of the issuer.

Fallout Risk or Borrower Fallout

Fallout Risk or borrower fallout is one of the two components of pipeline risk,
the other being price risk. The risk can simply be defined as the probability of a
prospective borrower failing to complete his/her mortgage loan transaction.

False Signal

In technical analysis, a false signal refers to an indication of future price

movements that gives an inaccurate picture of the economic reality. False signals
may arise due to a number of factors, including timing lags, irregularities in data
sources, smoothing methods, or the algorithm by which the indicator is
calculated.

FATF

The Financial Action Task Force (FATF) is the global money laundering and
terrorist financing watchdog. It sets international standards to prevent illegal
activities and the harm they cause to society.
Featherbedding

Featherbedding is a labor practice where unions or labor agreements require

employers to hire more workers than necessary or maintain certain job positions
that are no longer needed. This practice is often aimed at protecting jobs and
ensuring employment for union members, even if the work is redundant or
inefficient.

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Feedback 360

Feedback 360 is a feedback process where not just your superior but your peers
and direct reports and sometimes even customers evaluate you. You get an
analysis of how you perceive yourself and how others perceive you.

Fiat Money

Fiat Money is a government-issued currency that is not backed by a physical

commodity, such as gold or silver.

FICO Score

A FICO score is a credit score created by the Fair Isaac Corporation (FICO).
Lenders use borrowers’ FICO scores along with other details on borrowers’ credit
reports to assess credit risk and determine whether to extend credit. FICO scores
take into account data in five areas to determine creditworthiness: payment
history, current level of indebtedness, types of credit used, length of credit
history, and new credit accounts.

Fidelity Bond

Fidelity Bond is a form of protection which reimburses an employer for losses

caused by dishonest or fraudulent, acts of employees.

Fiduciary

A fiduciary is a person or organization that acts on behalf of another person or

persons, putting their clients' interest ahead of their own, with a duty to preserve
faith and trust.

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Financial Engineering

Financial engineering is the use of mathematical techniques to solve financial

problems. Financial engineering uses tools and knowledge from the fields of
computer science, statistics, economics, and applied mathematics to address
current financial issues as well as to devise new and innovative financial
products. Financial engineering is sometimes referred to as quantitative analysis
and is used by regular commercial banks, investment banks, insurance agencies,
and hedge funds.
Financial Health

Financial Health is a term used to describe the state of one's personal monetary
affairs. There are many dimensions to financial health, including the amount of
savings you have, how much you’re putting away for retirement, and how much
of your income you are spending on fixed or non-discretionary expenses.
Financial Inclusion

Financial Inclusion may be defined as the provision of banking/financial services

to the vast disadvantaged and low-income sections of the society at an
affordable cost.
Financial Independence, Retire Early (FIRE)

Financial Independence, Retire Early (FIRE) is a movement of people devoted to

a program of extreme savings and investment that aims to allow them to retire
far earlier than traditional budgets and retirement plans would permit.
Financial Literacy

Financial Literacy is the ability to understand and effectively apply various

financial skills, including personal financial management, budgeting, and
investing. Financial literacy helps individuals become self-sufficient so that they
can achieve financial stability.

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Financial Safety Net

Financial Safety Net is arrangements where the stress of a financial institution

especially that of a private sector one is managed through a public policy
instrument. In India the major financial safety nets available is the lender of last
resort facility provided by the RBI, Deposit Insurance from Deposit Insurance
Corporation of India. Besides, the ownership of government of PSBs also has a
component of safety net against any crisis.
Financial Shenanigans

Financial shenanigans are actions designed to misrepresent the true financial

performance or financial position of a company or entity. Financial shenanigans
can range from relatively minor infractions involving merely a loose
interpretation of accounting rules to outright fraud perpetuated over many
years.

Financial Technology (Fintech)

Financial technology (Fintech) is used to describe new tech that seeks to improve
and automate the delivery and use of financial services. At its core, fintech is
utilized to help companies, business owners and consumers better manage their
financial operations, processes, and lives by utilizing specialized software and
algorithms that are used on computers and, increasingly, smartphones. Fintech,
the word, is a combination of "financial technology."

First Mover

A first mover is a service or product that gains a competitive advantage by being

the first to market. Being first enables a company to establish strong brand
recognition and customer loyalty before competitors enter the arena.

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Fiscal Consolidation

Fiscal consolidation is a process where government’s fiscal health is getting

improved and is often indicated by declining fiscal deficit. Improved tax revenue
realization and better aligned expenditure are the components of fiscal
consolidation that brings fiscal deficit to a manageable level. Improved tax
revenue realization and controlled expenditure are the crucial components of
fiscal consolidation.
Fiscal Quarter

A fiscal quarter is a three-month period on a company's financial calendar that

acts as a basis for periodic financial reports and the paying of dividends. A
quarter refers to one-fourth of a year and is typically expressed as Q1 for the
first quarter, Q2 for the second quarter, and so forth.
Fiscal Squeeze

A fiscal squeeze is a type of austerity policy where a government tries to improve

its public finances by increasing revenue, decreasing spending, or both. The goal
of a fiscal squeeze is to impose losses on some people.

Fisher Effect

The Fisher Effect is an economic theory created by economist Irving Fisher that
describes the relationship between inflation and both real and nominal interest
rates. The Fisher Effect states that the real interest rate equals the nominal
interest rate minus the expected inflation rate. Therefore, real interest rates fall
as inflation increases, unless nominal rates increase at the same rate as inflation.
Fitch Ratings

Fitch Ratings is an international credit rating agency that provides ratings on the
creditworthiness of debt issuers, indicating the likelihood of default and yielding
solid returns.

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Five Cs of Credit

The Five Cs of Credit is a system used by lenders to assess the creditworthiness

of potential borrowers. The system weighs character, capacity, capital, collateral,
and conditions to estimate the risk of default.

Flag

In the context of technical analysis, a flag is a price pattern that, in a shorter time
frame, moves counter to the prevailing price trend observed in a longer time
frame on a price chart. It is named because of the way it reminds the viewer of a
flag on a flagpole.

Flash Crash

A flash crash is a sudden fall in stock prices.

Flash Sale

Flash Sale refers to the sale of goods at greatly reduced prices, lasting for only a
short period of time, typically in online stores.

Flea market (or Swap Meet)

Flea market is a type of street market that provides space for Vendors to sell
previously-owned (second hand) merchandise.

Flexi Deposit (Auto Sweep)

Flexi Deposit is a special kind of deposit which is a combination of Demand

Deposit and Fixed Deposits. The depositor is able to enjoy both the liquidity of
Savings/ Current accounts as well as the high returns of Fixed Deposits.

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Float

Float is money within the banking system that is briefly counted twice due to
time gaps in registering a deposit or withdrawal. These time gaps are usually due
to delays in processing paper checks.
Floating Interest Rate

A floating interest rate is an interest rate that changes periodically. The rate of
interest moves up and down, or "floats," reflecting economic or financial market
conditions. Often, it moves in tandem with a particular index or benchmark, or
with general market conditions. A floating interest rate can also be referred to
as an adjustable or variable interest rate because it can vary over the term of a
debt obligation.

Floating Rate Bond (FRB)

Rate Bond (FRB) is a bond that has a variable interest rate, vs. a fixed-rate note
that has an interest rate that doesn't fluctuate. The interest rate is tied to a short-
term benchmark rate, such as LIBOR.

Floor Limit

Floor limit is the maximum amount

Flotation

Flotation, also known as "going public," is the process of converting a private

company into a public company by issuing shares available for trading on the
stock market.

Flotation Cost

Flotation Costs are incurred by a publicly-traded company when it issues new

securities and incurs expenses, such as underwriting fees, legal fees, and
registration fees. Companies must consider the impact these fees will have on
how much capital they can raise from a new issue. Flotation costs, expected
return on equity, dividend payments, and the percentage of earnings the
business expects to retain are all part of the equation to calculate a company's
cost of new equity.

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Focus Market Scheme (FMS)

Focus Market Scheme (FMS) is a scheme introduced by the government of India

to encourage exports to certain foreign markets in order to enhance the
country's export competitiveness in those markets. It compensates for high
freight costs and other disadvantages to encourage exports to certain foreign
countries under Focus Market Scheme.

Follow-on Public Offer (FPO)

Follow-on Public Offer (FPO) is issuance of stock shares following a company's

initial public offering (IPO). This may be done to raise more money for their
expansion projects or reduce the company's debts. This type of additional
offering is known as the Dilutive follow-on public offer. Another approach a
company adopts is when the directors and promoters sell their privately held
shares. This type of additional offering is known as the Non-dilutive follow-on
public offering.

For Sale By Owner (FSBO)

For Sale By Owner or FSBO is a method of listing a property for sale. When a
house has an FSBO listing, it means the owner is selling the property without the
help of a listing agent or broker. One reason sellers choose this option is to avoid
paying the real estate agent a commission on the sale.

Forbearance

Forbearance is a temporary postponement of loan re-payment. It is a form of

repayment relief granted by the lender or creditor in lieu of forcing a property
into foreclosure.

Forbearance Agreement

Forbearance Agreement is a verbal or written agreement that stipulates a lender

will delay exercising his/her rights (such as foreclosing on a loan) so long as the
borrower performs certain agreed upon actions.

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Force Majeure

Force majeure is a concept used to excuse a party to a contract from performing

its obligations when prevented from doing so by events or circumstances beyond
its control.

Foreclosure

Foreclosure is a procedure where creditors like banks, are authorized to obtain

the title of the landed property that has been mortgaged as collateral.
Foreclosure is a legal process in which property that is collateral or security for a
loan may be sold to help repay the loan when the loan is in default.

Foreign Direct Investment (FDI)

FDI is an investment made by a company or individual who us an entity in one

country, in the form of controlling ownership in business interests in another
country. FDI could be in the form of either establishing business operations or
by entering into joint ventures by mergers and acquisitions, building new
facilities etc.

Foreign Institutional Investment (FII)

FII is an investment by foreign entities in securities, real property and other

investment assets. Investors include mutual fund companies, hedge fund
companies etc. The intention is not to take controlling interest, but to diversify
portfolio ensuring hedging and to gain high returns with quick entry and exit.

Foreign Portfolio Investment (FPI)

FPI is an investment by foreign entities and non-residents in Indian securities

including shares, government bonds, corporate bonds, convertible securities,
infrastructure securities etc. The intention is to ensure a controlling interest in
India at an investment that is lower than FDI, with flexibility for entry and exit.

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Forensic Audit

A Forensic Audit is an examination of a company's financial records to derive

evidence which can be used in a court of law or legal proceeding. It is the process
used to examine an individual's or a company's financial information for use as
evidence in court. It helps detect diversion of funds, wilful defaults and window
dressing of financial statements.

Forex - Methods of Quoting Rate

There are two methods of quoting rates -by keeping the home currency either
as the fixed (base) unit or as the variable unit. Direct quotations (Home currency
quotation): In this method the Foreign currency as the fixed unit and Home
currency as the variable unit. Example : : 1 USD - Rs. 62.24/25.Indirect quotation
(Foreign currency quotation): In this method the home currency is the fixed unit
and the foreign currency is the variable currency. Example: Rs. 100 =
USD1.6182/6177

Form Factor

A form factor is a device or application that can be used to access an open-end

credit card account. It can be either provided by the account issuer or a third
party. The form factor can be virtual or actual, and it can be accessed through
any mode or site. For example, a mobile device or e-wallet could be used as a
form factor.

Form 60

The term 'Form 60' means an official document that is submitted by individuals
who do not have a PAN card to conduct financial transactions or create bank
accounts as specified in Rule 114B of the Income-tax Rules, 1962. Form 60 is also
used when financial assets are bought and sold or to file tax returns. 60 is to be
retained for a period of 6 years from the end of Financial Year in which the
transaction was undertaken.

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Forward Auction

This type of auction is where many buyers bid for single sellers products and
services.

Foul Bill of Lading

A Receipt for goods issued by a Carrier with an indication that the goods were
damaged or short in quantity when received is known as Foul Bill of Lading.

Four Asian Tigers

Four Asian Tigers are the high-growth economies of Hong Kong, Singapore,
South Korea, and Taiwan. Fuelled by exports and rapid industrialization, the Four
Asian Tigers have consistently maintained high levels of economic growth since
the 1960s and have collectively joined the ranks of the world's wealthiest
nations.

Four Eyes Concept (aka Two-Person Rule)

Four Eyes Concept (aka Two-Person Rule) means that a certain activity, i.e. a
decision, transaction, etc., must be approved by at least two people. This
controlling mechanism is used to facilitate delegation of authority and increase
transparency.

Fourth Industrial Revolution (IR 4.0)

Fourth Industrial Revolution (IR 4.0) is a term that describes present

technological age. It is the fourth industrial era since the inception of the initial
Industrial Revolution of the 18th century. The key elements of the fourth
revolution are the fusion of technologies ranging from the physical, digital to
biological spheres.

Fractional currency

Fractional currency, also referred to as shinplasters, refers to low-denomination

banknotes.

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Fractional Reserve Banking

Fractional Reserve Banking means that banks keep less than 100% of their
deposits in cash, placing the rest in income-earning investments. Such a policy is
built on laws of probability, which protect the bank from having all its depositors
come in at the same time and demand cash. In India, RBI controls the percentage
of total deposits which must be kept as reserves by member banks. (These are
called SLR and CRR) In the end, the government now stands behind the fractional
cash reserve policy, ready even to print up new money in the case of a run on the
banks, in order to avoid a wave of bankruptcies, a collapse of the banking
system, and massive deflation of the money supply.

Fractional Share

Less than one full share of equity is called a Fractional Share. Such shares may be
the result of stock splits, dividend reinvestment plans (DRIPs), or similar
corporate actions. Fractional shares don't trade on the open market; the only
way to sell fractional shares is through a major brokerage.

Franchise

A Franchise is a type of license that grants a franchisee access to a franchisor's

proprietary business knowledge, processes, and trademarks, thus allowing the
franchisee to sell a product or service under the franchisor's business name. In
exchange for acquiring a franchise, the franchisee usually pays the franchisor an
initial start-up fee and annual licensing fees.

Franchise Insurance

Franchise Insurance is a form of insurance in which individual policies are issued

to the employees of a common employer or the members of an association under
an arrangement by which the employer or association agrees to collect the
premium and remit them to the insurer.

Franchising

Franchising is the arrangement between two parties where the first party (the
franchiser) grants the second party (the franchisee) the right to utilize its
business processes, produce and market a service or goods or simply use its
trademark. The franchiser collects a one-time payable franchisee fee as well as a
percentage of sales from the franchiser.

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Franked Investment Income

Franked investment income is a company's investment income which has tax

credits relating to it. Franked investment income is income distributed as
dividends to a company from earnings on which corporate tax has already been
paid by the distributing company. The goal is to avoid the double taxation of
dividends. Double taxation occurs when the issuing company and a shareholder
pay tax on the same income.

FRBMA

The Fiscal Responsibility and Budget Management Act, 2003 is an Act to

institutionalize financial discipline, reduce India's fiscal deficit, improve macro-
economic management and the overall management of the public funds by
moving towards a balanced budget and strengthen fiscal prudence. The main
purpose is to eliminate revenue deficit of the country (building revenue surplus
thereafter) and bring down the fiscal deficit to a manageable 3% of the GDP.

Freakonomics

Freakonomics is a field of study that uses economic tools to explore

unexpected topics. Freakonomics has become synonymous with out-of-the-box
approaches to economics, psychology, and sociology.

Free Cash Flow (FCF)

Free cash flow (FCF) represents the cash that a company generates after
accounting for cash outflows to support its operations and maintain its capital
assets.

Free Float

Free Float, also called Minimum Public Shareholding (MPS) rule requires all listed
companies in India to ensure that at least 25% of their equity shares are held by
non-promoters, i.e. public. Public shareholders could be individual or financial
institutions and they normally buy shares through public offer or secondary
markets.

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Freelance Economy

Freelance Economy also known as the Gig Economy, is a labor market consisting
of a growing number of short-term contracts. Companies hire self-employed
workers to undertake specific jobs in return for an agreed-upon payment, rather
than offering them permanent positions. The people who do these temporary
jobs are called freelancers . They may find jobs through classified ads, temporary
staffing agencies, or other means.

Free-Look Period

Free-Look Period is a period of 15 days or 30 days, allowed to a new policyholder,

from the date of receipt of policy documents, to enable him to review the terms
and conditions of the policy and cancel the policy, if it does not meet his
requirement.

Freemium

Freemium - a combination of the words "free" and "premium," the term

freemium is a type of business model that offers basic features to users at no
cost and charges a premium for supplemental or advanced features.

Free-trade Agreement (FTA)

Free-trade Agreement (FTA) is a pact between two or more nations to reduce

barriers to imports and exports among them. Under a free trade policy, goods
and services can be bought and sold across international borders with little or
no government tariffs, quotas, subsidies, or prohibitions to inhibit their
exchange.

Fringe Benefits

Fringe Benefits are benefits which are provided by the employer to an employee
over and above the normal salary and wages, which may be in the form of cash-
support or assistance in daily needs of life or financial support for retirement age
or any other form with the objective to retain the high-quality people within the
organization.

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Front-end Interest

If the interest is deducted from the principal amount and only the net amount is
disbursed, it is called front-end interest. For example when the bank discounts a
bill, the interest applicable for the tenure of the bill is calculated and is deducted
from the bill amount along with other charges and the net amount is paid to the
customer.

Front-Running

Front-running is trading stock or any other financial asset by a broker who has
inside knowledge of a future transaction that is about to affect its price
substantially. A broker may also front-run based on insider knowledge that their
firm is about to issue a buy or sell recommendation to clients that will almost
certainly affect the price of an asset. This exploitation of information that is not
yet public is illegal and unethical in almost all cases. Front-running is also called
tailgating.

Froth

Froth refers to market conditions preceding an actual market bubble, where

asset prices become detached from their underlying intrinsic values as demand
for those assets drives their prices to unsustainable levels. A frothy market is one
where investors begin to ignore market fundamentals and bid up an asset's price
beyond what the asset is objectively worth. Froth in the marketplace is often
characterized by overconfident investors and is a sign that investor behaviour
and investment decisions are being driven by emotions.

Fugitive Economic Offender

A fugitive economic offender is one who is involved in fraud of Rs 100 Crores

and above.

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Full Age

Full age refers to the age at which a person becomes an adult and gains all legal
rights and responsibilities.

In most places, this age is 18 years old. At this age, a person can vote, sign
contracts, and make important decisions for themselves.

Full Employment

Full employment is an economic situation in which all available labour resources

are being used in the most efficient way possible. Full employment embodies the
highest amount of skilled and unskilled labour that can be employed within an
economy at any given time. True full employment is an ideal and probably
unachievable situation in which anyone who is willing and able to work can find
a job, and unemployment is zero.

Fund

A fund is a pool of money that is allocated for a specific purpose. A fund can be
established for many different purposes: a city government may set aside money
to build a new civic center, a college may set aside money to award a scholarship,
or an insurance company may set aside money to pay its customers claims.

Fund of the Funds

Fund of the Funds Scheme (FFS) is a part of Start-up Action Plan for supporting
start-ups using the budget allocation of Rs 10000 crores. The Fund will be
established at SIDBI. SIDBI, as the main lending institution for SMEs, will
contribute to various Alternative Investment Funds (AIF) registered with
Securities and Exchange Board of India (SEBI). These AIFs will extend funding
support to Start- ups.

Funding

Funding is the act of providing resources to finance a need, program, or project.

While this is usually in the form of money, it can also take the form of effort or
time from an organization or company. Generally, this word is used when a firm
uses its internal reserves to satisfy its necessity for cash, while the term financing
is used when the firm acquires capital from external sources.

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Fungible Tokens

Fungible Tokens, akin to traditional currencies, boast interchangeability,

divisibility, and replaceability. Something described as fungible can be
exchanged for something else of the same kind. Fungible things, or fungible
assets, are items or goods that can be exchanged because they are effectively
identical and carry the same value.

Future Goods

The goods which are not in existence and to be manufactured or produced or

acquired by the seller after entering into the contract of sales are considered as
future goods. It must be noted that there can only be an agreement to sell
contracts as there can be no actual sale in respect of future goods. Example –
Amit is a manufacturer of chairs. Shyam ordered Amit to manufacture 200 units
of chairs of specific design and they made an agreement for the same. This is the
sale with respect to future goods.

FX4U

"FX4U : Canara Bank has announced the launch of forex remittance through
internet banking through a new tech product – FX4U. This product enables
internet banking users to handle forex transactions seamlessly. With the
introduction of this facility, all eligible individual customers can undertake
remittance facilities as per FEMA regulations. Corporate customers can make and
submit LC applications along with documents through internet banking (IB).
Transactions submitted through IB will flow seamlessly to CPCFT (Centralised
Process Centre – Forex Transactions), wherein compliance and accounting will be
done and transmitted through SWIFT."

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 G
G4 Central Banks

G4 Central Banks are the Bank of England (BOE), the Bank of Japan (BOJ), the
Federal Reserve (FED), and the European Central Bank (ECB). Other central banks
are important; however, the G4 comprises the four central banks managing the
currency blocks of nearly 85% of the capital markets that trade in the world.
Gadfly

Gadfly is a colloquial term for an investor who attends the annual shareholders
meeting to criticize the corporation's executives. A gadfly addresses many issues
for the shareholders, often raising questions to management about specific
company policies or corporate governance.
Gazumping

A process in which a seller who has already accepted one buyers offer goes on
to take a higher offer, pushing the first buyer out of the picture.
GDP Price Deflator

The gross domestic product (GDP) price deflator is a formula that measures the
amount that the real value of an economy's total output is reduced by inflation.
The GDP deflator formula takes into account the value of all final goods
including exports. It does not factor in the prices of imports.

Government eMarketplace (GeM).

Government of India had set up a dedicated market for different goods &
services called Government e Marketplace (GeM). All Government
Organizations‟ / Departments‟ / PSUs‟ have to ensure that the goods / services
as required by them are to be procured through GeM, if the same is available in
GeM portal."

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Gender Budgeting

Gender Budgeting is a gender-based assessment of budgets. It includes a gender

perspective at all stages of the budgetary process and allocates expenditure and
revenues to promote gender equality. Gender Budgeting is concerned with
gender-sensitive laws, programs, and schemes; resource allocation;
implementation and execution; program and scheme audit and impact
assessment; and follow-up remedial action to alleviate gender inequities.

Gender Development Index (GDI)

Gender Development Index (GDI) measures differences in male and female

achievements in three basic dimensions of human development: health,
education and command over economic resources.

The Gender Empowerment Measure (GEM)

The Gender Empowerment Measure (GEM) is a measure of inequalities between

men and women in areas of Economic participation and decision making.

Generation X

"Generation X is the label given to people who were born after the so-called
“baby boomers” but before the “millennials”, between the 1960s and the 1970s.
Because of features that seemed common to this group of people, Generation X
is supposed to be unique in terms of attitudes and preferences.

Generation Y

"Generation Y is a term that identifies individuals born between the early 1980s
and the late 1990s. It was named this way because it is the generation that came
after Generation X.

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GIFT City

(Gujarat International Finance-Tec)A Global Financial Hub is supposed is to be

India’s first smart city with next class infrastructure. It is a business district
promoted by Government of Gujarat through a Joint-Venture Company. The
objective behind the set-up of GIFT city is to tap into India’s huge potential for
proving financial services by offering world-class infrastructure and facilities to
leading global financial institutions. The idea is to establish a first of its kind
global financial and IT services hub in India on the lines of financial centers like
Shinjuku, Tokyo, Lujiazui, Shanghai, La Defense, Paris, London Dockyards etc.

Gift Cards

Gift cards are a form of prepaid debit cards loaded with funds for future use.
There are generally two types of gift cards: open loop and closed loop cards.
Both types can typically be used online and in person. Open loop gift cards can
be used at many merchants, like regular debit cards; closed loop gift cards are
good at just one retailer.
Gift in Trust

Gift in Trust is a special legal and fiduciary arrangement that allows for an
indirect bequest of assets to a beneficiary. The purpose of a gift in trust is to
avoid the tax on gifts that exceed the annual gift tax exclusion limit. This type
of trust is commonly used to transfer wealth to the next generation.
Gini Index

The Gini index determines a nation's level of income inequality by measuring the
income distribution or wealth distribution across its population. The coefficient
of the Gini index ranges from 0 (or 0%) to 1 (or 100%), with 0 representing
perfect equality and 1 representing perfect inequality. A higher Gini index
indicates greater inequality, with high-income individuals receiving much larger
percentages of the populations total income. A country in which every resident
has the same income would have an income Gini coefficient of 0. A country in
which one resident earned all the income, while everyone else earned nothing,
would have an income Gini coefficient of 1.

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Giving Tuesday

Giving Tuesday is a global initiative that encourages people and organizations

to donate their time and money to charitable causes on the Tuesday following
Thanksgiving in the United States. The initiative was created in 2012 as a joint
project between New York Citys 92nd Street Y and the United Nations
Foundation. As the Giving Tuesday movement focuses on giving and the
awareness of those in need, it acts as a counterweight to the retail shopping
events that immediately precede it on the calendar: Black Friday and Cyber
Monday.
GKRA

(Garib Kalyan Rojgar Abhiyaan)GKRA (Garib Kalyan Rojgar Abhiyaan)-The

Govt of India launched the Garib Kalyan Rojgar Abhiyaan (GKRA) initiative to
tackle the impact of COVID-19 on Shramik (migrant) workers. It is a rural public
works scheme aims to give 125 days of employment to 670,000 migrant workers,
approximately two-thirds of the total migrant labourer force that has gone back
to rural areas. The scheme covers 116 districts in six states, Bihar, Uttar Pradesh,
Madhya Pradesh, Rajasthan, Odisha and Jharkhand. The scheme is a joint effort
by 12 different Ministries/Departments and covers 25 categories of works/
activities.
Glide Path

Glide path refers to a formula that defines the asset allocation mix of a target-
date fund, based on the number of years to the target date. The glide path
creates an asset allocation that typically becomes more conservative (i.e.,
includes more fixed-income assets and fewer equities) as a fund gets closer to
the target date.

Global Village

The term "Global Village" means all parts of the world as they are being brought
together by the internet and other electronic communication interconnections.
Other forms of communication such as Skype allows easier communication and
connection with others, especially in other countries.

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Globalization

Globalization is a systematic process of removing the barriers to the

international capital flow and the international trade in goods and services.
Therefore, this results in the greater integration of a country's economy with the
economy of the rest of the world.

Going Concern

The concept of Going Concern, in terms of carrying on a business, refers to the

assumption that the company will continue its business indefinitely or at least
until the foreseeable future and will not be forced to discontinue its operations
on account of any reason.
Gold Option

A gold option is an options contract that utilizes either physical gold or gold
futures as its underlying asset. A gold call option would give the holder the right,
but not the obligation, to buy bullion at a future date at a set price, while a put
option would grant the holder the right to sell it at a predetermined price level.
The option agreement terms will list details such as the delivery date, quantity,
and strike price, which are all predetermined.

Gold Standard

Gold Standard was a ( now obsolete) exchange whereby the value of a currency
is defined by gold.
Golden Handcuffs

Golden handcuffs are a collection of financial incentives that are intended to

encourage employees to remain with a company for a stipulated period of time.
Golden handcuffs are offered by employers to existing key personnel as a means
of holding onto them as well as to increase employee retention rates.

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Golden Cross

A golden cross is a chart pattern in which a relatively short-term moving average

crosses above a long-term moving average. The golden cross is a bullish
breakout pattern formed from a crossover involving a security's short-term
moving average (such as the 50-day moving average) crossing above its long-
term moving average (such as the 200-day moving average) or resistance level.
As long-term indicators carry more weight, the golden cross indicates the
possibility of a long-term bull market emerging. High trading volumes generally
reinforce the indicator.
Golden Hello

"Golden Hello is a signing bonus, offered to executive-level employees, as an

inducement to join from a rival company."

Golden Parachute

At the time of the Mergers and Acquisition process, many top executives of the
target company, lose their job post-acquisition. In order to compensate for their
loss, they are given substantial benefits, which are popularly known as „Golden
Parachute‟. Compensation can be in monetary or/and non-monetary terms."

Golden Rule in Fiscal Policy

Golden Rule in Fiscal Policy means that the government should borrow to finance
investment so that it can benefit future generations.

Golden Rule of Banking

Short term transactions should be financed with short term money, and long
term transactions with long term funds.

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Goldilocks Economy

A Goldilocks economy is not too hot or too cold but just right to steal a line from
the popular children's story Goldilocks and the Three Bears. The term describes
an ideal state for an economic system. In this perfect state, there is full
employment, economic stability, and stable growth. The economy is not
expanding or contracting by a large margin.

Good Governance Day ( Sushasan Divas)

Good Governance Day ( Sushasan Divas )-India, observed Good Governance Day
(Sushasan Divas) on 25th December. On this day nation celebrates the birth
anniversary of Bharat Ratna and former-Prime Minister Atal Bihari Vajpayee.

Goodness-of-Fit

The term goodness-of-fit refers to a statistical test that determines how well
sample data fits a distribution from a population with a normal distribution. Put
simply, it hypothesizes whether a sample is skewed or represents the data you
would expect to find in the actual population. Goodness-of-fit establishes the
discrepancy between the observed values and those expected of the model in a
normal distribution case. There are multiple methods to determine goodness-of-
fit, including the chi-square.

Gordon Growth Model

The Gordon growth model (GGM) is a formula used to determine the intrinsic
value of a stock based on a future series of dividends that grow at a constant
rate. It is a popular and straightforward variant of the dividend discount model
(DDM).

Go-Shop Period

A go-shop period is a provision that allows a public company to seek out

competing offers even after it has already received a firm purchase offer. The
original offer then functions as a floor for possible better offers. The duration of
a go-shop period is usually about one to two months.

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Grandfathering

Grandfathering is a clause under the General Anti-avoidance Rule (GAAR).

Grandfathering is a situation in which an old rule continues to apply to some
existing situations, while a new rule will apply to all future situations.

Graphics Processing Unit (GPU)

A Graphics Processing Unit (GPU) is a chip or electronic circuit capable of

rendering graphics for display on an electronic device.

Gray Market (or “grey”)

Gray Market is an unofficial market for financial securities. The gray market is an
unofficial one but is not illegal. The term “gray market” also refers to the import
and sale of goods by Unauthorized Dealers.

Green Banking

Green Banking refers to the banking business conducted in such areas and in
such a manner that helps the overall reduction of external carbon emissions and
internal carbon footprint.

Green Box Subsidy

Green Box Subsidy refers to the subsidies that contain fixed payments to
producers for environmental programs, so long as the payments are
“decoupled” from current production levels. Green Box is domestic support
measures that doesn't cause trade distortion or at most causes minimal
distortion. The Green box subsidies are government funded without any price
support to crops.

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Green Channel

State Bank of India introduced 'Green Channel Counter' facility is a step towards
paperless 'Green Banking' for deposit, withdrawal and remittance transactions.
The customers need not fill up any pay-in slips or draw cheques for depositing
or withdrawing money from their accounts, saving paper, and thereby
contributing to the concept of 'Green Banking'. This facility reduce process time,
as duplication in writing/feeding account details and transaction details by the
customer as well as the person behind the counter is avoided by simply capturing
these details by swiping the SBI Shopping cum ATM Card.

Green Deposit Framework

A green deposit is an interest-bearing instrument received by banks for a fixed

period, the proceeds of which are earmarked for green-financing, such as
funding of renewable energy projects.

Green Field Site

Green Field Site is an area of land, usually in the edge of a town or city or away
from substantial urban areas, hitherto undeveloped but for which development
is now proposed.

Green Gold

"Bamboo" is called as Green Gold. Bamboo is commonly called as the Poor

Man's Timber.

Green Infrastructure

Green infrastructure is an approach to water management that protects,

restores, or mimics the natural water cycle. It means planting trees and restoring
wetlands, rather than building a costly new water treatment plant. It means
choosing water efficiency instead of building a new water supply dam.

Green Marketing

Green Marketing is the marketing of environmentally friendly products and

Services.

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Green Monday

Green Monday refers to one of the retail industry's most profitable days,
occurring on the second Monday in December. Green Monday has gained
notoriety because it represents the day many online shoppers rush to purchase
last-minute gifts and take advantage of deals.

Green PIN

Green Pin is instant PIN generation / regeneration functionality available for

Debit Card through ATM with One Time Password (OTP) sent to the customer's
mobile number registered with bank. Using the OTP, customer can set debit card
PIN through Bank’s ATMs.

Green Shoe Option

Green Shoe Option means an option of allotting equity shares in excess of the
equity shares offered in the public issue as a post-listing price stabilizing
mechanism.

Greenback

Greenback is a slang term for U.S. paper dollars. The term originated during the
mid-1860s, when these notes were printed in green ink. Congress had limited
taxing authority, and used paper currency to help finance the civil war. The word
"greenback" was a negative term because these notes did not have secure
financial backing and banks were reluctant to give customers the full value of
the dollar.

Greenfield Investment

Greenfield Investment is a strategy where the company starts its business

operation in another country from scratch. For example, Domino s and
McDonald s are US-based companies that started their business in India from
zero. Currently, they are leading in their segments.

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Green-Light Subsidies

Subsidies that are neither prohibited nor subject to countervailing measures are
called “Green-Light Subsidies”.

Greenmail

"Greenmail is an exercise of buying a large number of shares in the target

company, so as to threaten them with hostile takeovers and later make the target
company repurchase the same shares at a premium. The target company, in
order to avoid such hostile takeovers, repurchases those shares at a premium.
Under this practice, the acquiring company is not willing to have a hostile
takeover at all. Their main target is to threaten the target company and earn
profits out of the premium received above the market value."

Greenwashing

Greenwashing refers to deceptive and misleading marketing tactics used by

brands to make false or exaggerated claims related to the environment. This is
done by often using vague or unsubstantial terms. Greenwashing is the process
of conveying a false impression or providing misleading information about how
a company's products are more environmentally sound. Greenwashing is
considered an unsubstantiated claim to deceive consumers into believing that a
company's products are environmentally friendly.

Grey Money

Money one derives from Tax evasion is known as Grey Money. It is earned
Legally.

Grey Goods

Grey Goods are legitimate goods that come from the correct manufacturer, but
they are sold through unauthorized channels. Sellers who use the grey market
will usually sell products that have been improperly discarded due to damage or
product recall.

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Grey Knight

During a business takeover, Grey Knight is a bidder who has no clearly stated
intentions

Grey Market Premium (GMP)

"Grey market premium or GMP is a premium amount paid at which initial public
offering (IPO) shares are traded before it is listed on the stock exchanges. For
instance, LIC fixes its IPO price at Rs 90 per share and its IPO GMP is 50, then the
organisation will get listed at Rs 140.90. Eventually, investors will receive up to
55 per cent of the profit on listing day."

Gridlock

Gridlock is the political stalemate that occurs when the government is unable to
act or pass laws because rival parties control different parts of the executive
branch and the legislature. The term refers to the phenomenon of traffic
gridlock, a circumstance in which traffic is unable to flow through an intersection
because of the number of vehicles trying to get through.

Gross Merchandise Value (GMV)

Gross Merchandise Value (GMV) is the total value of merchandise sold over a
given period of time through a customer-to-customer (C2C) exchange site. It is
a measure of the growth of the business or use of the site to sell merchandise
owned by others.

Gross-Up

"A gross-up is an additional amount of money added to a payment to cover the

income taxes the recipient will owe on the payment. The gross- up is most often
seen in executive compensation plans. For example, a company may agree to pay
an executive's relocation expenses plus a gross-up to offset the expected income
taxes that will be owed on the salary payment."

Ground Rent

Ground rent is a rent created by a long-term lease of land.

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Growth Stock

Growth stock is any share in a company that is anticipated to grow at a rate

significantly above the average growth for the market. These stocks generally
do not pay dividends. This is because the issuers of growth stocks are usually
companies that want to reinvest any earnings they accrue in order to accelerate
growth in the short term. When investors invest in growth stocks, they anticipate
that they will earn money through capital gains when they eventually sell their
shares in the future.

G-Sec Acquisition Programme (G-SAP)

G-Sec Acquisition Programme (G-SAP) is an additional instrument introduced by

RBI for liquidity management. It is a structured Open Market Operation (OMO)
with a distinct character with RBI upfront committing to buy G-secs irrespective
of the market sentiment. This programme is to supplement the other liquidity
management operations like OMO, LAF, TLTROs, etc.

GUARD

The number, frequency and impact of cyber incidents and attacks have increased
manifold in the recent past, more so in the case of the financial sector, including
Urban Coop Banks (UCBs). It has, therefore, become essential to enhance the
security posture of UCBs to prevent, detect, respond to and recover from cyber-
attacks. In this context, RBI has advised the five-pillared strategic approach
'GUARD' comprises Governance Oversight, Utile Technology Investment,
Appropriate Regulation and Supervision, Robust Collaboration and Developing
necessary IT and cybersecurity skills set.

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 H
Habendum Clause

Habendum clause is section of a contract that deals with rights, interests, and
other aspects of ownership given to one of the parties in land deals.
Haggling

Haggling occurs when two parties involved in a transaction negotiate until a

common ground is met. Common ground is met when the two parties involved
make back-and-forth offers until a price is agreed upon. The price agreed upon
is generally fair and equitable for both parties involved. Haggling is another
word for negotiating, bartering, and bargaining.
Haircut

The margin or difference between the actual market value of a security and the
value assessed by the lending side of a transaction is known as Haircut.
Hallmarking

Hallmarking is the accurate determination and official recording of the

proportionate content of precious metal in precious metal articles. Hallmarks are
thus official marks used in many countries as a guarantee of purity or fineness
of precious metal articles. The principal objectives of the Hallmarking Scheme
are to protect the public against adulteration and to obligate manufacturers to
maintain legal standards of fineness.
Halloween Strategy

Halloween strategy, Halloween effect, or Halloween indicator, is a market-

timing strategy based on the hypothesis that stocks perform better between Oct.
31 (Halloween) and May 1 than they do between the beginning of May through
the end of October.

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Hammer Candlestick

A hammer is a price pattern in candlestick charting that occurs when a security

trades significantly lower than its opening, but rallies within the period to close
near the opening price. This pattern forms a hammer-shaped candlestick, in
which the lower shadow is at least twice the size of the real body. The body of
the candlestick represents the difference between the opening and closing
prices, while the shadow shows the high and low prices for the period.
Handle

In trading, the handle has two meanings. In most markets, it means the whole
numbers involved in a price quote, without the decimals included. In forex, the
handle refers to that part of the quote that appears in both numbers of the
spread.
Hara-Kiri Swap

A Swap offering no profit for the offering party is known as Hara-kiri Swap. In
general, hara-kiri swaps are advantageous only if they build a client base or if
they allow one to enter a profiting position that one could not have entered
previously. It derives its name from hara-kiri, Japanese ritual suicide, because it
is seen as a slow death for a company.

Hard Assets

Hard Assets are physical assets (land, buildings, equipment) and financial assets
(cash, credit, financial instruments). Hard assets are usually on the records of
account in an organization and subjected to inventory and/or custodial
safeguards.

Hard Bankers

Hard bankers are asset-based lenders. They almost entirely revolve their
decision based on the collateral associated with the debt. While, traditional
banks focus on the borrowers credit and cash in hand. Hard money lenders focus
on short term loans that generate a significant ROI.

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Hard costs

Hard costs refer to those costs directly related to the construction of the building
or incurred for its development.

Hard Infrastructure

Hard infrastructure comprises all the physical systems that are crucial to running
a modern, industrialized economy. It includes transport systems such as roads
and highways and telecommunication services such as telephone lines and
broadband systems.

Hard Landing

Hard landing is often seen as a result of tightening economic policies that bring
high-flying economies that run into a sudden, sharp check on their growth, such
as a monetary policy intervention meant to curb inflation. Economies that
experience a hard landing often slip into a stagnant period or even recession.

Hard Loan

Hard loan is a foreign loan that must be paid in hard currency, which is the
currency of a nation that has political stability and a reputation for economic
strength. For example, a country classified as a developing country may borrow
via a hard loan denominated in U.S. dollars.

Hard NPA & Soft NPA

Accounts classified as NPA recently (normally during current financial year) are
known as Soft NPA. If we target them, it is easy to recover compared to old NPAs,
which are known as Hard NPAs.

Harvest strategy

A harvest strategy is a business or marketing strategy that involves reducing or

ending investments in a product, line of business, or product line to maximize
profits. Harvest strategies are often used when a product is near the end of its
life cycle and further investment won't increase revenue.

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Havala Transaction

Havala Transaction, an Indian term, refers to a mode of transferring funds out

of India or into the country, bypassing official and legal channels. As an example,
an individual may transfer his ill-gotten cash to a discreet bank in a foreign
country. Using the havala route, he gives the rupees to an intermediary in India,
who then arranges a reciprocal deposit of an equivalent amount to his account
in the chosen bank. At a later date, the funds could be brought into India through
another havala transaction. Since such deals circumvent official channels, there
is a loss to the nation in terms of the net inflow of foreign exchange.

Hawthorne Effect

Hawthorne Effect refers to the inclination of some people to work harder and
perform better when they are being observed as part of an experiment.

Head and Shoulders Pattern

A head and shoulders pattern is used in technical analysis. It is a specific chart

formation that predicts a bullish-to-bearish trend reversal. The pattern appears
as a baseline with three peaks, where the outside two are close in height, and the
middle is highest.

Head-Fake Trade

A head-fake trade occurs when a security's price moves in one direction, but then
reverses course and moves in the opposite direction.

Headhunter

Headhunter is a company or individual that provides employment recruiting

services on behalf of the employer. Headhunters are hired by firms to find talent
and to locate individuals who meet specific job requirements. Headhunters may
also be referred to as executive recruiters and the function they perform is often
called executive search. Headhunters may have a pool of candidates for specific
positions or may act aggressively to find talent by looking at competitors'
employees. Employers tend to enlist headhunters when there is a sense of
urgency and they are unable to find the right person to fill a role on their own.

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Headline Inflation

Headline inflation is the raw inflation figure reported through the Consumer
Price Index (CPI) that is released monthly by the Bureau of Labor Statistics (BLS).
The CPI calculates the cost to purchase a fixed basket of goods to determine how
much inflation is occurring in the broad economy. The CPI uses a base year and
indexes the current year's prices, according to the base year's values.

Headline rate

Headline rate refers to information which is easy to publish but which may be
over-simplified and, as a result, possibly inaccurate.

Headline Risk

Headline Risk is the possibility that a news story will adversely affect the price of
an investment, such as a stock or commodity. Headline risk can also impact the
performance of a specific sector or the entire stock market.

Hedge Ratio

The hedge ratio compares the value of a position protected through the use of a
hedge with the size of the entire position itself. A hedge ratio may also be a
comparison of the value of futures contracts purchased or sold to the value of
the cash commodity being hedged. Futures contracts are essentially investment
vehicles that let the investor lock in a price for a physical asset at some point in
the future.

Hedonic Pricing

Hedonic pricing is a model that identifies price factors according to the premise
that price is determined both by internal characteristics of the good being sold
and external factors affecting it. A hedonic pricing model is often used to
estimate quantitative values for environmental or ecosystem services that
directly affect market prices for homes.

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Helicopter Money Vs Quantitative EASING

Helicopter Money is basically means non-repayable money transfer from the

central bank to the government. Quantitative easing also involves the use of
printed money by central banks to buy government bonds. But not everyone
views the money used in QE as helicopter money. It sure means printing money
to monetise government deficits, but the govt has to pay back for the assets that
the central bank buys. It's not the same as bond-buying by central banks "in
which bank-owned assets are swapped for new central bank reserves.
"Helicopter money is also different from a central bank directly financing the
debt of a government.

Hell or High Water Clause

Hell or High Water Clause is a provision in a contract directing the buyer to

continue making the payment to the seller. The buyer must make the payment
irrespective of any difficulties. In other words, the payment to the Lessor or Seller
should continue as per the stipulated terms of the contract regardless of any
issues or problems. A buyer may encounter difficulties such as failure or damage
to equipment, financial losses, cash flow issues, and more. The basic purpose of
this clause is to protect the seller by lowering the chances of the buyer breaching
the payment terms by giving excuses.

Herd Instinct

Herd Instinct refers to a phenomenon where people join groups and follow the
actions of others under the assumption that other individuals have already done
their research. Herd instincts are common in all aspects of society, even within
the financial sector, where investors follow what they perceive other investors
are doing, rather than relying on their own analysis.

Herfindahl-Hirschman Index (HHI)

The Herfindahl-Hirschman Index (HHI) is a common measure of market

concentration and is used to determine market competitiveness, often pre- and
post-merger and acquisition (M&A) transactions. The index measures the size of
companies relative to the size of the industry they are in and the amount of
competitiveness.

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Heuristic

Heuristic, or a heuristic technique, is any approach to problem solving that uses

a practical method or various shortcuts in order to produce solutions that may
not be optimal but are sufficient given a limited timeframe or deadline.
Heuristics methods are intended to be flexible and are used for quick decisions,
especially when finding an optimal solution is either impossible or impractical
and when working with complex data.

Heuristics are mental shortcuts that help people make quick decisions. They are
rules or methods that help people use reason and past experience to solve
problems efficiently.

Hiccup

Hiccup is a slang term for a short-term disruption within a longer-term plan,

goal, or trend. A hiccup can be used to describe the near-term business outlook
of a particular company, a stock price downturn, or a blip in the stock market as
a whole. Generally, a hiccup is not indicative of a larger trend but is considered
an aberration.

Hidden Factory

Hidden Factory is the set of activities in the process that result in reduction of
quality or efficiency of a business process or manufacturing department, and is
not known to managers or others seeking to improve the process. Six Sigma
focuses on identifying "hidden factory" activities to eliminate the root causes.

High Earners, Not Rich Yet (HENRYs)

High Earners, Not Rich Yet (HENRYs) are individuals who currently have
significant discretionary income and a strong chance of being wealthy in the
future. The term HENRYs was coined in a 2003 Fortune Magazine article to refer
to a segment of families earning between $250,000 and $500,000, but not having
much left after taxes, schooling, housing, and family costs—not to mention
saving for an affluent retirement.

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High Net-worth Individuals - Crietria

1) Average balance of Rs 100 lakh and above in all deposit accounts

(SB+CA+TD).

2) Enjoying Fund based credit facilities exceeding Rs 100 lakh."

High Water or Hell Clause

High Water or Hell Clause is a provision in a contract directing the buyer to

continue making the payment to the seller. The buyer must make the payment
irrespective of any difficulties. In other words, the payment to the Lessor or Seller
should continue as per the stipulated terms of the contract regardless of any
issues or problems. A buyer may encounter difficulties such as failure or damage
to equipment, financial losses, cash flow issues, and more. The basic purpose of
this clause is to protect the seller by lowering the chances of the buyer breaching
the payment terms by giving excuses.

High-low Method Accounting

In the cost accounting terminology, there are three types of costs - Fixed Cost,
Variable Cost, and Semi-variable Cost. The High-low method is a cost accounting
term that helps to separate the fixed and variable cost in case the company lacks
enough data. The method considers the highest and lowest level of activity and
then compares the costs at the two levels. This method helps determine the
variable and fixed cost if the variable cost is fixed per unit and fixed cost is the
same for all volume levels.

Hindenburg Omen

The Hindenburg Omen is a technical indicator that was designed to signal the
increased probability of a stock market crash. It compares the percentage of new
52-week highs and new 52-week lows in stock prices to a predetermined
reference percentage that is supposed to predict the increasing likelihood of a
market crash.

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Holdco

Holdco is an abbreviation for "Holding Company," which is a firm that exercises

control over one or more additional firm(s). The Holdco accomplishes this
through the acquisition of stock that is sufficient to control or influence the
voting by shareholders.

Holding Company

A parent corporation, limited liability company or limited partnership that owns

enough voting stock in another company to control its policies and
management. This means the holding company is protected against the other
company's losses or liabilities, but reaps the rewards of its profits. It can also be
based in jurisdiction with lower tax rates while allowing the other company to
continue to operate wherever.

Holdovers

Holdovers are transactions that have not yet been processed by banks. The most
common example are checks which have yet to be deposited. Holdovers can give
rise to a phenomenon known as holdover float, during which money temporarily
exists in two accounts simultaneously. However, this duplication is quickly
corrected by the banks once the associated checks have been processed.

Holiday Club Account,

Holiday Club Account, also called a Christmas Club Account, is a type of savings
account in which people make routine deposits throughout the year. The
accumulated savings are then withdrawn before the holiday season to provide
funds for holiday shopping and other expenses, like travel.

Holidays

Holidays which are not known at least seven days before the due date are to be
treated as subsequently or suddenly declared holidays.

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Holistic risk assessment or 360-degrees risk assessment

Holistic risk assessment or 360-degrees risk assessment is a Risk assessment

including all hazards to the system under assessment (eg. cyber, terrorism,
natural, etc.

Hollywood accounting (also known as Hollywood bookkeeping)

Hollywood accounting (also known as Hollywood bookkeeping) is the term used

for the opaque or creative accounting methods used by the film, video, and
television industry to budget and record profits for film projects.

Holographic will

Holographic will (aka a handwritten will) is simply a will that a Testator writes
and signs completely in his/her own handwriting. (A person who writes a Will is
called a testator).

Home banking

Home banking is the most common way of concluding the monetary exchange
from ones own home as opposed to using a banks branch.

Home Bias

Home Bias is the tendency for investors to invest the majority of their portfolio
in domestic equities, ignoring the benefits of diversifying into foreign equities.
This bias was originally believed to have arisen as a result of the extra difficulties
associated with investing in foreign equities, such as legal restrictions and
additional transaction costs.

Honeypot

A honeypot is a network-attached system set up as a decoy to lure cyber

attackers and detect, deflect and study hacking attempts to gain unauthorized
access to information systems.

Horizontal balance

Horizontal balance refers to the fair distribution of tax resources and other
revenues among the states and UTs.

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Horizontal FDI

Horizontal type of FDI, a business expands its inland operation to another

country. The business undertake the same activities but in foreign country.

Horizontal Integration

Horizontal integration is the acquisition of a business operating at the same level

of the value chain in the same industry—that is, they make or offer similar goods
or services. Horizontal integration is when a business grows by acquiring a
similar company in their industry at the same point of the supply chain.

Hot Hand

Hot Hand is the notion that because one has had a string of successes, an
individual or entity is more likely to have continued success. When there is a
series of failures, the same concept works as the "cold hand."

Hot Issue

In finance, the term “Hot Issue” is used to describe an upcoming initial public
offering (IPO) that is particularly popular among the investing public. Hot issues
are typically oversubscribed by investors, meaning that their demand outstrips
their supply. In those instances, many speculators may be attracted by the
prospect of short-term speculative gains as opposed to being convinced of the
company’s long-term prospects.

Hot Wallet & Cold Wallet

Hot Wallet is a tool that allows a cryptocurrency owner to receive and send
tokens. Unlike traditional currencies, there are no dedicated banks or physical
wallets that can be used to keep cryptocurrency holdings secure. Cryptocurrency
wallets are tools that are commonly used to store and protect these holdings,
and they come in many different forms and varieties. One of the most popular
kinds of cryptocurrency wallets is called a hot wallet. The difference between a
hot wallet and a cold wallet is that hot wallets are connected to the internet,
while cold wallets are not.

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House Money Effect

House Money Effect is a theory used to explain the tendency of investors to take
on greater risk when reinvesting profit earned through investing than they
would when investing their savings or wages. People will often think about
investment income as separate from money they earned in other ways, which
distorts their mental accounting. Because that money is incorrectly considered
somehow "extra" or "separate" from money earned in other ways, investors will
invest it with a much higher risk tolerance than they would otherwise, thereby
skewing their investment decisions.

HUF Account – Stop Payment

In case of HUF Accounts, Coparcener cannot stop payment of cheque unless he

is authorized to operate the account.

Human Development Index

"The Human Development Index (HDI) is a statistical tool used to measure a

country's overall achievement in its social and economic dimensions. The social
and economic dimensions of a country are based on the health of people, their
level of education attainment and their standard of living. Calculation of the
index combines four major indicators: life expectancy for health, expected years
of schooling, mean of years of schooling for education and Gross National
Income per capita for standard of living."

Hurdle rate

Hurdle rate is the minimum rate of return on a project or investment required

by investor. It allows companies to make important decisions on whether or not
to pursue a specific project. In order to determine the rate, the following are
some of the areas that must be taken into consideration: associated risks, cost of
capital and the returns of other possible investments or projects.

Hybrid Financing

Hybrid Financing is the financial instrument that partakes some characteristics

of debt and some characteristics of equity. Simply, it is the financial security that
possesses the characteristics of both the debt and equity.

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 I
Identity Theft

Identity Theft in this type , fraudsters attempt to obtain important personal

information such as date of birth, passport number, Aadhaar details, PAN details
etc. to gain access to your bank account, and then carry out fraudulent
transactions.

Idiosyncratic Risk

Idiosyncratic risk is a type of investment risk that is endemic to an individual

asset (like a particular company's stock), a group of assets (like a particular
sector), or in some cases a very specific asset class (like collateralized mortgage
obligations). Idiosyncratic risk is also referred to as a specific risk or unsystematic
risk.

Illegitimate Debt

Illegitimate Debt, also known as Odious Debt, occurs when a country's

government changes, and the successor government does not want to pay debts
incurred by the previous government. Usually, successor governments argue
that the previous government misappropriated borrowed funds, and they should
not be held responsible for the previous regime’s misdeeds.

Impact Investing

Impact investing refers to investments made into companies, organizations, and

funds with the intention to generate a measurable, beneficial social or
environmental impact alongside a financial return. To its core, impact investing
is about an alignment of an investor's beliefs and values with the allocation of
capital to address social and/or environmental issues.

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Impairment in Accounting

Impairment is a permanent reduction in the value of a company asset. It may be

a fixed asset or an intangible asset. When testing an asset for impairment, the
total profit, cash flow, or other benefits that can be generated by the asset is
periodically compared with its current book value. If the book value of the asset
exceeds the future cash flow or other benefits of the asset, the difference
between the two is written off, and the value of the asset declines on the
company's balance sheet.
Importer-Exporter Code (IEC)

An Importer -Exporter Code (IEC) is a key business identification number which

mandatory for export from India or Import to India. No export or import shall
be made by any person without obtaining an IEC unless specifically exempted.
For services exports however, IEC shall be not be necessary except when the
service provider is taking benefits under the Foreign Trade Policy.

Impossible Trinity

"The ""Impossible Trinity"" is referred to the balancing act of (1) inflation (price
stability), (2) floating exchange rates (currency appreciation) and (3) capital
inflows (capital mobility). Economic theory says, a country can only attain two
of the three objectives and it is impossible to balance or control all the three
parameters simultaneously, hence it is called as impossible trinity.
Impulse Buy

Impulse Buy is a purchase transaction that is mostly driven by emotions. It is a

situation where there is little rationality to explain the reason why the purchase
is being made. Impulsive Buying is the tendency of a customer to buy goods and
services without planning in advance. When a customer takes such buying
decisions at the spur of the moment, it is usually triggered by emotions and
feelings.

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Impulse Goods

Impulse goods are items that customers buy without originally planning to when
they entered the store. Customers may enter a store with a shopping list and a
budget, but they may also add an extra item or two after seeing it on a shelf.
Customers often see these goods and pick them up without significantly thinking
about them.
Imputation Tax

Imputation tax is a system that helps to avoid double taxation in the case of a
dividend. We can also call it Dividend Imputation or Franking-credit. Basically,
the system ensures that the investors who get dividends are not taxed twice. One
while receiving the dividend and the other when reporting their dividend income
in their individual tax returns.
Imputed Cost

Imputed Cost , also known as a hidden or implicit cost, is the price of factors of
production that a firm owns and utilizes. It is called “imputed” because the firm
does not report it on its financial statements as a separate cost.
In The Black

In The Black means making money.

In The Red

In The Red means losing money.

Inactivity fee

A fee charged for not using credit card for a certain period of time.
Inchoate Instrument

As per Section 20 of Negotiable Instruments Act, Inchoate Instrument is

instrument on which date, payee or amount is not mentioned.

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Incoterms

Incoterms is a trademark of International Chamber of Commerce. A series of

three-letter trade terms related to common contractual sales practices, the
Incoterms rules are intended to clearly communicate the tasks, costs, and risks
associated with the global or international transportation and delivery of goods.

Ind AS

Ind AS is also known as Indian Accounting Standards or Indian version of IFRS.

Ind AS has been evolved as a compromise formula that tries to harmonize Indian
accounting rules with the IFRS. India followed accounting standards from Indian
Generally Acceptable Accounting Principle (IGAAP) prior to adoption of the Ind-
AS.

Index Rebalancing

Index rebalancing is the periodic adjustment of an index’s asset weights to

ensure it accurately reflects its purpose. An index is a collection of stocks and
other assets representing a financial market segment. Just like a music service
occasionally swaps out tracks in its playlists to stay up to date, rebalancing often
results in index reconstitution, the sorting, adding, or removing of component
stocks.

Indexed Universal Life Insurance (IUL)

Indexed Universal Life (IUL) insurance policies can help you to build wealth while
leaving behind a death benefit for your loved ones. These policies put a portion
of the policyholder’s premium payments toward annual renewable term life
insurance, with the remainder added to the cash value of the policy after fees are
deducted. On a monthly or annual basis, the cash value is credited with interest
based on increases in an equity index.

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India Ratings and Research (Ind-Ra)

India Ratings and Research (Ind-Ra) is India's most respected credit rating
agency, committed to providing India's credit markets with accurate, timely, and
prospective credit opinions. Built on a foundation of independent thinking,
rigorous analytics, and an open and balanced approach towards credit research,
Ind-Ra has grown rapidly during the past decade, gaining significant market
presence in India's fixed income market.
Indian Financial System Code (IFSC)

Indian Financial System Code (IFSC) is an alpha-numeric code that uniquely

identifies a bank-branch participating in the NEFT system. It is an 11-digit code.
Indirect Quotation

Exchange Rate Mechanism - Buy High, Sell low

Quoting of a price wherein the home currency is kept constant for a given unit
and the foreign currency is expressed as variable in a given number of units of
foreign currency. (e.g. Rs 100 = USD 1.676 - 1.671) (Principle : Buy High - Sell
Low).Indian rupee is kept as fixed & foreign currency as variable. Indirect Quote
is also known as Foreign currency quotation.
Indirect Shareholding

Indirect Shareholding is when one entity directly holds shares of another entity
that owns shares of a third but different entity, for example, Shareholder A
would have an indirect shareholding of Company C if Shareholder A directly
owns shares of Company B while Company B owns shares of Company C.
Individual Investor

Individual Investor, also known as Retail Investor, is a non-professional investor

who buys and sells securities. Retail investors execute their trades through
brokerage firms. Retail investors purchase securities for their own personal
accounts and often trade in smaller amounts as compared to institutional
investors.

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Indorsement

Indorsement is a legal signature on some financial documents, like checks.

Endorsement is a public indication of approval or support.

Industry Outlook

Industry Outlook is applicable to the accounts with exposure of above Rs 25

crore and for accounts less than Rs 25 crore, outlook shall be treated as
―Neutral.

Infant Mortality Rate (IMR)

Infant Mortality Rate (IMR) is the number of deaths per live birth of children
under one year of age per one thousand live births.

Infinite India

“Infinite India” - ICICI Bank has launched an online platform „Infinite India‟ to
support Foreign companies to establish or expand business in India. This is a
one-stop portal which offers banking solutions as well as value-added services
such as the incorporation of a business entity, corporate filings, licences and
registrations, HR services, compliances and taxation among others.

Inflation Hedge

An inflation hedge is an investment that is considered to protect the decreased

purchasing power of a currency that results from the loss of its value due to
rising prices either macro-economically or due to inflation.
Inflation Targeting

Inflation targeting is a central banking policy that revolves around adjusting

monetary policy to achieve a specified annual rate of inflation. This is known as
the target rate, which is normally set at around 2% to 3%. The principle of
inflation targeting is based on the belief that long-term economic growth is best
achieved by maintaining price stability, and price stability is achieved by
controlling inflation.

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Informal Micro Enterprises (IME)

IMEs are those enterprises that are unable to get registered on the Udyam
Registration Portal (URP) due to lack of mandatory required documents such as
Permanent Account Number (PAN) or Goods and Services Tax Identification
Number (GSTIN).
Infomercial

Infomercial is a form of advertisement which is aimed at educating the customer

about a product or a series of products via television in the form of a program.
Infomercial typically lasts longer than a regular advertisement and thus is more
detailed.
Information privacy

Information privacy or Data privacy is a branch of data security concerned with

the proper handling of data – consent, notice, and regulatory obligations. It got
highlighted when identifiable data of about 50 million Facebook users was
breached by an analytics firm. Privacy is a basic human right, in the digital age
where life has so prominently got integrated with the digital world, data privacy
has become a human right too.
Inheritance tax

Inheritance tax is charged on certain gifts, and on the value of the estate left by
someone who has died.
Initial Public Offer (IPO)

Initial Public Offer (IPO) means an offer of specified securities by an unlisted

issuer to the public for subscription and includes an offer for sale of specified
securities to the public by any existing holders of such securities in an unlisted
issuer.
Inoperative Accounts

Current and Savings Bank accounts in which there are no operations for a period
of 2 years and above from the date of last operation except by way of any
charges debited or interest credited (Bank induced transactions) are to be
treated as inoperative accounts.

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Input Subsidy or Price Subsidy

Input Subsidy or Price Subsidy is a payment from public funds paid to

agricultural enterprises when they buy certain inputs (e.g. fertilisers, feed,
pesticides, seed and fuel). Subsidising seeds of certain basic foods, such as maize,
can be an effective measure for improving supplies of these foods.

Inside Day

Inside Day means a day in which the total range of price is within the range of
the previous days price range.

Insourcing

Insourcing means that instead of outsourcing business activities to other parties,

activities and tasks are now conducted in-house.

Institutional unemployment

Institutional unemployment is unemployment that results from long-term or

permanent institutional factors and incentives in the economy. Government
policies, such as high minimum wage floors, generous social benefits programs,
and restrictive occupational licensing laws; labor market phenomena, such as
efficiency wages and discriminatory hiring; and labor market institutions, such
as high rates of unionization, can all contribute to institutional unemployment.

Institutional Investor

Institutional Investor is a term for larger-scale investments by professional

portfolio and fund managers who might manage a mutual fund or pension fund

Insurable Interest

Insurable Interest is any financial interest a person has in the property or person
insured. In life insurance, a person´s or party´s interest - financial or emotional -
in the continuing life of the insured.

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Insurance Churning

Insurance Churning is When an insurance policy is purchased for a client, the

insurance company pays a commission to the agent. The agent is supposed to
select the policy that provides the best coverage at the best price to the client
who is buying the coverage. If an agent instead continually switches a client’s
insurance coverage to earn a commission, rather than provide better coverage,
this is considered insurance churning.

Insurance Grace Period

An insurance grace period is a defined amount of time after the premium is due
in which a policyholder can make a premium payment without coverage lapsing.
The insurance grace period can vary depending on the insurer and policy type.
Depending on the insurance policy, the grace period can be as little as 24 hours
or as long as 30 days. The amount of time granted in an insurance grace period
is indicated in the insurance policy contract. Paying after the due date may
attract a financial penalty from the insurance company.

Intangible Assets

Items that are valuable to the company but not physical objects like patents,
copyrights, trademarks, etc. are intangible assets. These assets usually do not
appear on the financial reports.
Integrative Negotiation

Integrative Negotiation is a negotiation in which both parties find a mutually

acceptable solution and both win something.
Intellectual Property

Intellectual Property is intangible products of human intelligence, especially as

one may be entitled to the commercial proceeds of such products, such as
patents or copyrights.
Intensive Farming

Intensive Farming refers to an agricultural system, wherein there is high level use
of labour and capital, in comparison to the land area.

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Intergovernmental Organizations (IGOs)

To differentiate themselves from international non-governmental organizations

(INGOs), which are non-governmental organizations (NGOs) that operate
globally, international organizations are often referred to as intergovernmental
organizations (IGOs). International charitable organizations such as the World
Organisation of the Scout Movement, the International Committee of the Red
Cross, as well as lobbying groups representing global corporations, fall into this
category.

Interlining

Transportation of cargo by two or more carriers (for example, two motor carriers
or two airlines) is known as Interlining.

Interlocutory Appeal

Interlocutory Appeal is an appeal allowed before final judgment.

Intermodal

Transportation of cargo by two or more types of carriers—for example, motor,

rail, air, ocean is known as Intermodal.
Intermodal Freight

Intermodal Freight consists of products and raw materials that are transported
in a container by a variety of vehicles, such as container ships, semi-trailer trucks,
and trains.

International Liquidity

International Liquidity is a situation where adequate reserve currency (like the

US Dollar) are available to settle international payments.
Internationalisation of Rupee

Internationalisation of Rupee means that the rupee could become widely

acceptable for trade and payments across countries, similar to major currencies
like the US dollar or Euro.

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Internet of Things (IoT)

Internet of Things (IoT) — collectively refers to the everyday devices that are
connected in some way to the Internet. Many of these devices are referred to as
"smart" devices: smartphones, smart homes (Internet-capable thermostats,
appliances, and so on), smart televisions, and many more devices. Through
Bluetooth, Wi-Fi, and other means of wireless communication, users of smart
devices are able to control them and often times connect them functionally with
other smart devices.

Internet-only Banks

Internet-only Banks or "virtual banks" did not have a traditional banking

infrastructure, such as a branch network, a cost-saving feature that allowed
many of them to offer savings accounts with higher interest rates and loans with
lower interest rates than most traditional banks.

Interpleader

Interpleader is a procedure when conflicting claims are made on a life insurance

policy by two or more people. Using this procedure the insurance company pays
the policy proceeds to a court, stating the company cannot determine the correct
party to whom the proceeds should be paid.
Intervention

Intervention is the term used to describe a central bank's purchase or sale of

foreign exchange in the market in order to influence the exchange rate.

Intestate Disposition/ Succession

When a person dies without leaving any Will, the property will be distributed
/inherited by the legal heirs as per the Succession Law by which the deceased
was governed. Disposition of property in this manner is known as Intestate
Disposition or Intestate Succession.

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Intrapreneurship

Intrapreneurship is the system wherein the principles of entrepreneurship are

practiced within the boundaries of the firm. An intrapreneur is a person who
takes on the responsibility to innovate new ideas, products and processes or any
new invention within the organization.
Intrinsic Value

Intrinsic value is the inherent worth of a company, investment, or asset based on

its fundamental characteristics and earning power.
Inventory Shrink

Inventory Shrink is reduction in physical inventory caused primarily by

shoplifting and employee theft.
Inverse Head and Shoulders

In the dynamic world of trading, the inverse head and shoulders chart pattern
stands as a notable indicator for identifying bullish reversals. Characterized by
three (3) distinct troughs: a lower "head" between two (2) higher "shoulders",
this pattern signals a potential shift from a bearish to a bullish trend when the
price breaks above the "neckline."

Investee

Investee is the legal entity into which an investor has made an equity investment.
Investing for Sustainability Impact (IFSI)

Investing for Sustainability Impact (IFSI) refers to an investing strategy where an

investor emphasizes positive behaviour changes among companies,
corporations, or policymakers with the goal of benefitting broader social or
environmental aims. This could include influencing these entities to reduce or
eliminate behaviour that results in negative sustainability outcomes or increase
positive outcomes.
Investment Entry Point

An entry point refers to the price at which an investor initiates a position in a

security. A trade entry can be initiated with either a buy order for a long position,
or sell order for a short position.

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Investment-Credit

Investment-Credit is a tax credit given to a company for making a certain type

of investment. The investment may be in building a new plant, purchasing
certain equipment, or undertaking other investments that the government wants
to encourage.

Invisible Account

Invisible Account of the Balance of Payments is a subcategory of the current

account. The invisible account includes three sub categories – services, transfers
and income. Here, the invisible account registers receipts and payments from
exports and imports of services, transfers and income.

Inward Oriented Strategy

Inward Oriented Strategy is the trade strategy adopted by a country to restrict

international trade. Import restriction and import substitution are the two
components of inward oriented strategy. Import restriction is limiting imports
by imposing high tariff etc. Import substitution is producing importable goods
domestically.

IP Address (Internet Protocol address)

IP Address (Internet Protocol address) is a numerical label assigned to each

device connected to a computer network that uses the Internet Protocol for
communication.

IP Masking

IP Address is the identifier that allows information to be sent between devices

on a network. IP Masking is hiding your original (Dynamic /Static) IP address so
that you can not be traced.

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Iron Butterfly

An iron butterfly is an options trade that uses four different contracts as part of
a strategy to benefit from stocks or futures prices that move within a defined
range. The trade is also constructed to benefit from a decline in implied volatility.
The key to using this trade as part of a successful trading strategy is forecast a
time when option prices are likely to decline in value generally. This usually
occurs during periods of sideways movement or a mild upward trend.

Irrational Exuberance

Irrational Exuberance refers to investor enthusiasm that drives asset prices

higher than those assets' fundamentals justify.
Irregular and Discontinued Accounts (Recurring Deposit)

Accounts in which there are no remittances for a continuous period of one year
and not completed the agreed period are known as Irregular Accounts. In the
case of account where the stipulated number of instalments are not paid up on
or before the ostensible maturity date, the account becomes due for payment
on the ostensible maturity date. Such accounts are to be treated as Discontinued
Account.
ISIN

An International Securities Identification Number (ISIN) is a 12-digit

alphanumeric code that uniquely identifies a specific security. The organization
that allocates ISINs in any particular country is the country's respective National
Numbering Agency (NNA).
Islamic Banking

Islamic banking is a banking system in accordance with the Shariat. In Islam,

money has no intrinsic value – money, therefore, cannot be sold at a profit and
is permitted to be used as per shariat only. The Islamic Law or Shariat prohibits
paying any fee for renting of money (called riba) for specific periods of time. It
also prohibits any sort of investment in businesses that are considered haraam
or against the principles of Islam.

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Isolationism

Isolationism is a country’s decision to separate itself from international affairs to

focus solely on its own interests. It is a foreign policy that mandates zero
involvement in other nation’s issues.
ITC (HS)

ITC (HS) refers to Indian Trade Classification (Harmonized System). It is a system

of classification of products for the purposes of export and import. Indian
custom uses an eight digit ITC-HS Codes to suit the inter-national trade
requirements.

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 J
Jaivik Kheti Portal

Jaivik Kheti (Organic Farming) is a system which avoids the use of synthetic
inputs (such as fertilizers, pesticides, hormones, feed additives etc) and to the
maximum extent feasible rely upon crop rotations, crop residues, animal
manures, off-farm organic waste, mineral grade rock additives and biological
system of nutrient mobilization and plant protection Jaivik kheti portal is a one
stop solution for facilitating organic farmers to sell their organic produce and
promoting organic farming and its benefits. This portal caters various
stakeholders like local groups, individual farmers, buyers and input suppliers.
Jackson Hole Economic Symposium

The Jackson Hole Economic Symposium is an exclusive event that gathers central
bankers, finance ministers, academics, and market experts from around the
world. Known for in-depth discussions of economic challenges and policy
responses, the event can have significant implications for financial markets.
Jal Jeevan Mission

Jal Jeevan Mission, is envisioned to provide safe and adequate drinking water
through individual household tap connections by 2024 to all households in rural
India. The programme will also implement source sustainability measures as
mandatory elements, such as recharge and reuse through grey water
management, water conservation, rain water harvesting. The Jal Jeevan Mission
will be based on a community approach to water and will include extensive
Information, Education and communication as a key component of the mission.
JAM Trinity

JAM is an abbreviation for Jan Dhan Yojana, Aadhar and Mobile Number. JAM
Trinity is technology-enabled Direct Benefit Transfer Scheme.

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January Barometer

The term “January Barometer” refers to the belief held by some traders that the
investment performance of the S&P 500 in January can predict its performance
for the rest of the year. (The Standard and Poor's 500, or simply the S&P 500, is
a stock market index tracking the stock performance of 500 of the largest
companies listed on stock exchanges in the United States. It is one of the most
commonly followed equity indices.)
January Effect

January Effect is the belief that the stock market has a tendency to rise in
January more than any other month. While there are many potential causes, it's
often said to be a result of investors re-entering the market after selling off their
stocks at year end to lock in their losses for tax purposes.
J-Curve

A J-curve is a trendline that shows an initial loss immediately followed by a

dramatic gain. In a chart, this pattern of activity would follow the shape of a
capital "J". The J-curve effect is often cited in economics to describe, for
instance, the way that a country’s balance of trade initially worsens following a
devaluation of its currency, then quickly recovers and finally surpasses its
previous performance.
Jekyll and Hyde

Jekyll and Hyde is a pop culture reference to a famous novel that is sometimes
used to describe a stock market with a split personality. Jekyll represents the
"Good" in a market – predictable, while Hyde is the "Bad" character who is
volatile, unstable, unpredictable, and causes harm to investors.

Jettison

Jettison refers to throwing the cargo overboard - step taken by the captain of
the ship for saving the vessel and/or interests during any unforeseen eventuality.

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Jitney

Jitney refers to a broker who does not have direct access to any exchange and,
therefore, relies on another broker with exchange access in order to execute their
trades.
Jitter

Jitter is an anti-skimming technique that distorts the readout of the magnetic

strip by altering the speed or motion of the card as it is swiped or pulled into a
card reader or ATM. Jitter is designed to make any information copied by a card
skimmer unreadable, and thus unusable.

Job Family

Job Family is a series of related job titles with progressively higher levels of
impact, knowledge, skills, abilities (competencies), and other factors, providing
for promotional opportunities over time.

Johari Window

Johari is a business model that illustrates the dynamics of productive, cohesive

relationships. It calls for, first, opening yourself up to your prospects by sharing
your thoughts, experiences and feelings. Then, it says, show curiosity about your
clients and listen when they open up to you. Apply these basic principles to build
long term relationships that translate into more sales and increased client
retention.

Judgment Lien

Judgment Lien is a court ruling that gives a creditor the right to take possession
of a debtor's real or personal property if the debtor fails to fulfill their
contractual obligations. A plaintiff who obtains a monetary judgment is called a
Judgment Creditor, while the defendant becomes a Judgment Debtor.

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Judicial Foreclosure

Judicial Foreclosure refers to foreclosure proceedings on a property in which a

mortgage lacks a power of sale clause and so proceeds through the courts. Power
of sale is a clause written into a mortgage authorizing the lender to sell the
property in the event of default in order to repay the mortgage debt,
sidestepping legal proceedings. Power of sale is permitted in many states as part
of a lender’s rights to seek a foreclosure.
Judo Business Strategy

Judo Business Strategy is a plan for managing a company by using its speed and
agility to mitigate the effect of its competitors. The strategy anticipates and
leverages changes in the market through new product offerings.

Juice Jacking

Juice jacking is a form of cyberattack where hackers tamper with public USB
charging ports, infecting them with malware or making hardware changes that
allow them to steal data from devices connected to them.

Junk Bond

Risky investments which can offer higher yields than safer bonds are known as
Junk Bonds. Often issued by companies with a low credit rating as investors
demand higher rewards as compensation for the risk of investing in them.

Jurisdiction risk

Jurisdiction risk refers to the risk that arises when operating in a foreign
jurisdiction. This risk can come by simply doing business or by lending money in
another country. In recent times, jurisdiction risk has focused increasingly on
banks and financial institutions that are exposed to the volatility that some of
the countries where they operate may be high-risk areas for money laundering
and terrorism financing.

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 K
Kaizen

Kaizen is a Japanese term meaning "change for the better" or "continuous

improvement." It is a Japanese business philosophy regarding the processes that
continuously improve operations and involve all employees. The concept of
kaizen encompasses a wide range of ideas. It involves making the work
environment more efficient and effective by creating a team atmosphere,
improving everyday procedures, ensuring employee engagement, and making a
job more fulfilling, less tiring, and safer.
Kangaroo Bonds

Kangaroo Bonds are Australian dollar-denominated bonds issued within

Australia by a foreign firm.
KAPILA

KAPILA is an acronym for Kalam Program for IP (Intellectual Property) Literacy

and Awareness. The KAPILA programme was launched virtually on 15th October
2020 (89th birth anniversary of APJ Abdul Kalam) by the Union Education
Ministers, Shri Ramesh Pokhriyal Nishank. Through the KAPILA Kalam
Programme, the government will spread awareness with the help of educational
programs about the importance of patenting an invention, to lead India towards
self-reliance. It aims to tap the resources in the field of Intellectual Property to
come ahead with their inventions and blend it towards Patents.

Karmayogi Mission

Karmayogi Mission is a Programme to bring comprehensive reforms in civil

services. Under the scheme, a Capacity Building Commission will be set up. The
focus of the programme will be to transition from “Rules-based” to “Roles-
based” HR Management and aligning of work allocation of civil servants by
matching their competencies to the requirements of the post.

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KDM Gold

KDM Gold is a type of gold alloy where 92 per cent gold and 8 per cent cadmium
alloy is mixed; this is where the term KDM gold came from. This mixture was
used to attain a high standard of purity in gold. Now cadmium is replaced with
advanced solder metal such as Zinc and other metals.

Kerb Trading (Curb Trading)

The practice of trading outside an exchange’s regulation is known as Curb

Trading or Kerb Trading. Generally speaking, curb trading occurs online or over
a telephone. It is a form of Over-the-Counter (OTC) trading. It should not be
confused with a trading curb.

Key Currency

A key currency refers to a currency which is stable, does not fluctuate much, and
provides the foundation for exchange rates for international transactions.
Because of their global use, key currencies tend to set the value of other
currencies.

Key Money

Key Money is a fee paid to a manager, a landlord, or even a current tenant to

secure a lease on a residential rental property. The term is sometimes used to
refer to a security deposit. However, in some competitive rental markets, key
money is simply a gratuity or a bribe.

Keynesian Economics

Keynesian economics is an economic theory of total spending in the economy

and its effects on output and inflation. Keynes advocated for increased
government expenditures and lower taxes to stimulate demand and pull the
global economy out of the depression.

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Kickback

Kickback is an illegal payment intended as compensation for preferential

treatment or any other type of improper services received. The kickback may be
money, a gift, credit, or anything of value. Paying or receiving kickbacks is a
corrupt practice that interferes with an employee's or a public official’s ability to
make unbiased decisions. Kickbacks are often referred to as a type of bribery.

Kicking the Tires

Kicking the Tires is a colloquial expression that refers to performing minimal

research into an investment, as opposed to conducting a thorough and rigorous
analysis. The process usually includes a cursory reading of the company's annual
report, looking at its historical earnings and revenue performance, considering
the company's competitive strengths and weaknesses, and reading news articles
or headlines about the company.

Kill

Kill is a request to cancel a trade between its placement and its fulfillment.

Killer Bees

Killer Bees are companies or individuals—such as investment bankers,

accountants, attorneys, and tax specialists—that help target firms avoid being
taken over by an unwanted suitor. Their job is to devise and implement anti-
takeover defense strategies, which generally consist of making the target less
attractive or more difficult or costly to acquire.

Kimchi Premium

Kimchi Premium is the gap in cryptocurrency prices in South Korean exchanges

compared to other exchanges located globally. The kimchi premium is
predominantly seen in the price of the cryptocurrency Bitcoin (BTC). In other
words, the price of Bitcoin might be listed at a higher price on a South Korean
exchange than an exchange located in the United States or Europe. The name
"kimchi premium" is a reference to the fermented cabbage dish that is a staple
in Korean cuisine.

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Kiosk Banking

Kiosk Banking refers to doing Banking Business sitting in a cubicle from which
food, news papers, tickets, etc are also sold.

Kisan Diwas

Kisan Diwas (National Farmer’s Day ) is observed every year on 23 December in

India to remember the role of Indian farmers in the economy to mark the birth
anniversary of former Prime Minister Chaudhary Charan Singh.

Knockout Option

Knockout Option, also known as Barrier Option is an option that is cancelled (i.e.,
knocked out) if the exchange rate crosses, even momentarily, a predefined level
called the out-strike.

Known Holiday

As per FEDAI rules, Known Holiday is one which is known at least 3 working days
before the date. A holiday that is not a ‘known holiday’ is defined as a ‘suddenly
declared holiday’.

Knuckle-Buster

Knuckle-Buster is a slang term for a manual credit card imprinter, a device

merchants used to record credit card transactions before the advent of electronic
point-of-sale terminals.

KPCS ( The Kimberley Process Certification Scheme)

KPCS is an international certification scheme that regulates trade in rough

diamonds. It aims to prevent the flow of conflict diamonds, while helping to
protect legitimate trade in rough diamonds. The Kimberley Process Certification
Scheme outlines the rules that govern trade in rough diamonds.

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Krishi Udaan (UDAN) Government of India had launched Udan (Ude Desh
ka Aam Naagrik) Scheme in 2016 to improve regional connectivity.

UDAN is a regional airport development and "Regional Connectivity Scheme"

(RCS) with the objective of "letting the common citizen of the country fly",
aimed at making air travel affordable and widespread, to boost inclusive national
economic development, job growth and air transport infrastructure of all regions
and states of India. Under the scheme, financial incentives in terms of
concessions from the Centre, State Governments and Airport Operators are
extended to selected airlines to encourage operations from unserved and
undeserved airports, and keep airfares affordable. In Budget 2020, Krishi Udaan
Scheme is announced for tie-up with the Civil Aviation Ministry to help farmers
transport grains and produce by air on both national and international routes.

Kurtosis

Kurtosis is a statistical measure used to describe a characteristic of a dataset.

When normally distributed data is plotted on a graph, it generally takes the form
of a bell. This is called the bell curve. The plotted data that are furthest from the
mean of the data usually form the tails on each side of the curve. Kurtosis
indicates how much data resides in the tails.

KYC

KYC stands for "Know Your Customer" and is a process that verifies the identity
of a customer to prevent illegal activities like fraud or money laundering. It's an
important step in the banking and financial sector.

Kyoto Protocol

Kyoto Protocol is an international agreement that aimed to reduce carbon

dioxide (CO2) emissions and the presence of greenhouse gases (GHG) in the
atmosphere. The essential tenet of the Kyoto Protocol was that industrialized
nations needed to lessen the amount of their CO2 emissions.

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 L
Laggard

Laggard is a stock or security that is underperforming relative to its benchmark

or peers. A laggard will have lower-than-average returns compared to the
market. A laggard is the opposite of a leader.

Land Fragmentation

Land Fragmentation can be defined as a situation where a farming household

possesses several non-contiguous land plots, often scattered over a wide area.

Lapping Scheme

Lapping Scheme is a fraudulent practice that involves altering accounts

receivables to hide stolen cash. The method involves taking a subsequent
receivables payment from a transaction (for example, a sale) and using that to
cover the theft. The receivable from the second transaction is covered by money
from the third transaction, and so on.

Lapse

If the owner of the property mentions a person as beneficiary to his property,

and if the beneficiary dies before the owner dies, then the property gets reversed
back to the owner or to immediate successor of the deceased. This is known as
“lapse”.

Large Corporate Industrial Business House (LCIBH)

Large Corporate Industrial Business House (LCIBH) means a group having total
assets of Rs.50,000 crore or more, where the non-financial business of the group
accounts for more than 40% in terms of total assets or gross income.

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Latent Defect

Hidden flaws or defects within the structure of machinery that are not readily
discoverable by competent individual/s using reasonable skills in ordinary
inspection are known as Latent Defects.

Law of Limitation and Bank Deposits

Deposit of money in the Banks is distinct from a loan in the sense that Banks
have to keep the money till the customer asks / demands for it. The law is very
clear that in case of a Deposit, the Banks are obliged to pay only when there is a
demand from the customer. Limitation period in respect of repayment of a
Deposit with the Bank would start against the Bank not from the date of maturity
of deposit but from the date of demand by the customer and is enforceable
within a period of 3 years.

Layaway

Layaway is a purchasing method in which a consumer places a deposit on an item

to "lay it away" for later pick-up when they are financially positioned to pay off
the balance. Layaway also lets customers make smaller payments on the product
until the purchase is paid in full. A layaway plan ensures the consumer will get
their chosen merchandise once it's fully paid.

Layaway Plans

Layaway Plans are an old shopping tool. Instead of going into debt to purchase
something from a retailer, consumers pay for the item over time by paying the
retailer a regular payment. They pick up the item when They make final payment.
Nowadays, many jewellery shops, formulated schemes on these lines. Customer
has to pay monthly instalment for certain period and after completion of the
certain period he/she has to take the jewellery item worth his contribution plus
interest.

Lease-Develop-Operate (LDO)

Lease-Develop-Operate (LDO) is a PPP model in the infrastructure sector. Here,

the government or the public sector entity retains ownership of the newly
created infrastructure facility and receives payments in terms of a lease
agreement with the private promoter. This approach is mostly followed in the
development of airport facilities.

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Legacy

Legacy is a gift left to someone in a will, but it does not include land.

Legal Amount

The amount written in words is called 'legal amount' of the cheque

Legal Capital

Legal capital is the amount of capital that can’t leave the company. This means
a company can’t use or disburse this capital by the way of dividends or any other
purpose. It is basically the common stock’s par value and preference shares’
stated value that a company sells or issues to the shareholders.

Legal Tender

Legal Tender is anything recognized by law as a means to settle a public or

private debt or meet a financial obligation, including tax payments, contracts,
and legal fines or damages. The national currency is legal tender in every
country. A creditor is legally obligated to accept legal tender toward repayment
of a debt.

Legislative Risk

Legislative risk is the potential that regulations or legislation by the government

could significantly alter the business prospects of one or more companies. These
changes can adversely affect investment holdings in that company. Legislative
risk may occur as a direct result of government action or by altering the demand
patterns of the company's customers.

Lehman Brothers

Lehman Brothers was a bank whose bankruptcy and collapse signalled the
beginning of the 2008 credit crunch.

Letter of Intent

Letter of Intent is a collection of key points of an agreement between two parties

that are negotiating a contract

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Leverage Ratio

Leverage Ratio is a financial ratio which gives us an idea or a measure of a

company’s ability to meet its financial losses.

Leveraged Buyout

A leveraged buyout (LBO) is the acquisition of another company using a

significant amount of borrowed money (bonds or loans) to meet the cost of
acquisition. The assets of the company being acquired are often used as
collateral for the loans, along with the assets of the acquiring company.

Libel

Libel involves the act of publishing a statement about an individual, either in

written form or by broadcast over media platforms such as radio, television, or
the Internet, that is untrue and threatens to harm the reputation and/or
livelihood of the targeted person. Libel is considered a civil wrong (tort) and can,
therefore, be the basis of a lawsuit.

LIBID vs. LIBOR

LIBID is The London Interbank Bid Rate and LIBOR is The London Interbank
Offered Rate . Both LIBID and LIBOR are reference rates set by banks in the
London interbank market, which is a place where banks exchange currencies
either directly or through electronic trading platforms. While LIBOR is the rate
at which funds are sold in the London interbank market, LIBID is the rate at which
funds are purchased in the market.

Limit Down

Limit Down refers to the maximum permitted decline in one trading day. The
term is often used in relation to the commodities futures markets, where
regulators seek to prevent volatility from reaching extreme levels.

Limit Up

Limit up is the maximum amount a price is permitted to increase during one

trading day. The term is often used in relation to the commodities futures
markets, where regulators seek to prevent volatility from reaching extreme
levels.

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Limitation and SARFAESI Act

Action under SARFAESI Act will not save Limitation.

Line of Credit

Line of Credit is a preset borrowing limit that can be tapped into at any time. The
borrower can take money out as needed until the limit is reached, and as money
is repaid, it can be borrowed again in the case of an open line of credit. A LOC is
an arrangement between a financial institution—usually a bank—and a client
that establishes the maximum loan amount the customer can borrow. The
borrower can access funds from the line of credit at any time as long as they do
not exceed the maximum amount (or credit limit) set in the agreement.

Liquidated Damages

A clause, which is commonly found in Contracts, wherein the parties agree to

pay a fixed amount, in case of any breach of the contractual provisions. The
party, who violates the provisions has to pay the amount to the aggrieved party.

Liquidation

Liquidation is the process of closing a business and distributing its assets to

claimants.

Liquidation Preference Rule

Liquidation Preference Rule is a rule that determines the order of the payments
to creditors and shareholders of the company. The other name of Liquidation
Preference Rule is Absolute Priority Rule. It is applicable in cases of bankruptcies
for settlement of payment of the outstanding amount in the preferential order
of claimants.

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Liquidity Preference

Liquidity Preference is the fact that people, for example, who are making
investments, prefer to have liquid assets such as cash, or Bank Deposits that can
be quickly exchanged for cash.

# Liquidity preference is different from Liquidation

Liquidity

Liquidity is the ability of converting an investment quickly into cash with no loss
in value.

Liquidity Adjustment Facility (LAF) - [Repo & Reverse Repo ]

"LAF is a monetary policy tool, primarily used by the RBI, to LAF is a monetary
policy tool, primarily used by the RBI, to manage liquidity and provide economic
stability. LAF include both Repo and Reverse Repo Agreements.

LAF can manage inflation by increasing and reducing money supply.

Listing

Listing means the admission of securities of a company to trading on a stock

exchange. Only listed shares are quoted on the stock exchange. Stock exchange
provides transparency in transactions of listed securities and equality and
competitive conditions. Listing is beneficial for the company, to the investor, and
to the public at large.

Litecoin (LTC)

Litecoin (LTC) is an alternative cryptocurrency created in October 2011 by

Charles "Charlie" Lee, a former Google engineer. Litecoin was adapted from
Bitcoin's open-source code but with several modifications. Like Bitcoin, Litecoin
is based on an open-source global payment network that is not controlled by
any central authority. Litecoin differs from Bitcoin in aspects like faster block
generation rate and use of Scrypt as a proof-of-work scheme.

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Lloyds Certificates

Lloyds Certificate is a certificate issued by Lloyds Registry of Shipping certifying

the age, classification and seaworthiness of the vessel in order to ensure marine
insurance cover under Institute Classification Clause .

Load Fund

A load fund is a mutual fund that comes with a sales charge or commission. The
fund investor pays the load, which goes to compensate a sales intermediary, such
as a broker, financial planner, or investment advisor, for his time and expertise
in selecting an appropriate fund for the investor.

Loan Forgiveness

Loan forgiveness means a debt (or part of a debt) is eliminated or cancelled -

relieving the borrower of the obligation to repay it.

Lock In Profits

Locking in profits refers to the realization of previously unrealized gains accrued

in a security by closing all or a portion of the holdings. When an investor holds
an open position, they may accrue unrealized or paper gains or losses that aren't
realized until the position is closed.

Lockbox Banking

Lockbox Banking is a service provided by banks to companies for the receipt of

payment from customers. Under the service, the payments made by customers
are directed to a special post office box instead of going to the company. The
bank goes to the box, retrieves the payments, processes them and deposits the
funds directly into the company's bank account.

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Locker - Nomination

In the case of lockers/safe custody articles hired/deposited by sole hirer /

depositor, nomination can be made in favour of one individual only. In the case
of lockers hired jointly by two or more individuals, nomination can be made in
favour of more than one person.

Lockers - Minor

"Safe Deposit Locker can be opened by the minor individually duly represented
by the natural guardian or jointly with the natural guardian. No locker should be
hired to a minor jointly with anybody other than the guardian. Similarly, no letter
of authority to operate the locker can be accepted where the minor is a hirer or
one of the hirers. Operations of the locker should not be allowed to the guardian
from the date the minor attains majority.

Lockers in Joint Names

In the case of jointly hired lockers, on the death of one of the joint hirers, no
further operations should be allowed. The locker is to be vacated and contents
handed over to the nominee and the surviving hirers jointly.

Lockers in Joint Names - Nomination

Nomination facility is available in respect of lockers hired singly as well as jointly.

In respect of lockers in joint names, nomination rules are applicable only if
lockers are operated jointly.

Lockers-Conversion of solely hired lockers into joint hired lockers

Lockers held solely cannot be converted into lockers in joint names In case of
any such request advise Hirer to surrender the locker and hire a locker afresh in
joint names.

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Lock-Up Period

A lock-up period is a window of time when investors are not allowed to redeem
or sell shares of a particular investment. This feature may be in place to protect
other investors, preserve market integrity, or make sure certain securities are
liquid.

Logistics

Logistics refers to the overall process of managing how resources are acquired,
stored, and transported to their final destination. Logistics management involves
identifying prospective distributors and suppliers and determining their
effectiveness and accessibility. Logistics managers are referred to as logisticians.

Lok Adalat

Lok Adalat is a system of alternative dispute resolution developed in India. It

means "People's Court". Lok Adalat is a non-adversarial system where by Courts
(aka Lok Adalats) are held by different authorities at different levels. (Taluk level,
State level and National level). These are usually presided over by retired
judges/social activists or other members of the legal profession. The Lok Adalats
can deal with all Civil Cases - Matrimonial Disputes, Land Disputes, Partition /
Property Disputes, Labour Disputes etc. and compoundable criminal Cases. The
focus in Lok Adalats is on compromise. If a compromise is reached, an award is
made and is binding on the parties. It is enforced as a decree of a civil court. The
award is final and cannot be appealed, because it is a judgement by consent.

Look-Through Earnings

Look-through earnings take the current period earnings of a company (as

reported in a quarterly or annual report) and add to that figure all sources of
earnings expected in the long run. Look-through earnings are not necessarily a
quantity; instead, look-through earnings are based on the concept that a firm's
value is ultimately determined by how retained earnings are invested in future
years by the firm to produce more earnings.

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Long Tail

The long tail is a business strategy that allows companies to realize significant
profits by selling low volumes of hard-to-find items to many customers, instead
of only selling large volumes of a reduced number of popular items.

Loss Aversion

Loss Aversion refers to a phenomenon where a real or potential loss is perceived

by individuals as psychologically or emotionally more severe than an equivalent
gain.

Loss Leaders

Loss Leaders are high-volume, high-profile brands or products that are sold by
retailers with the intention to attract customers into their premises, with the
hope that those customers will end up buying other goods as well, once inside.
Loss leader brands or products are sold at very slim margins or at a loss, with the
conscious understanding that other products in the retail outlet will make up for
the loss.

Love Money

Love money refers to seed capital that has been extended by family or friends to
an entrepreneur to start a business venture. The decision to lend money and the
terms of the agreement are usually based on the relationship between the two
parties, instead of risk analysis.

Love Money Vs. Sweat Equity

Sweat Equity ,normally not monetary and in most cases, comes in the form of
physical labour, mental effort and time. Sometimes, it may be in monetary form
also but not from family and friends, but from outsiders with a lower rate of
interest. Love Money is in monetary form and only from family and friends with
no interest or with nominal rate of interest).

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Luddite Fallacy

Luddite Fallacy is the fear that technological unemployment may happen in the
context of technical change . Luddites were a group of English textile workers
lived during first industrial revolution period. They feared that machines will
destroy their jobs and livelihoods and hence destroyed machines. The notion of
the Luddites about the fear of unemployment in the context of technological
change is described as Luddite Fallacy.

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 M
Machine Learning

Machine learning is the concept that a computer program can learn and adapt
to new data without human intervention. Machine learning is a field of Artificial
Intelligence (AI) that keeps a computer’s built-in algorithms current regardless
of changes in the worldwide economy.
Making Peace With Nature

Making Peace With Nature is a scientific blueprint to tackle the climate,

biodiversity and pollution emergencies serves to translate the current state of
scientific knowledge into crisp, clear and digestible facts-based messages that
the world can relate to and follow up on.
Man in the Browser (MitB)

"Man in the Browser (MitB) is a cybersecurity attack where the perpetrator

installs a Trojan horse on the victim's computer that is capable of modifying that
user's web transactions. The purpose of a man-in-the-browser attack includes
eavesdropping, data theft or session tampering."
Managed Floating

Managed Floating is an exchange rate system that has the features of both the
flexible and fixed exchange rate systems. Under managed floating, exchange
rate is basically determined by the market forces but in the case of extreme
fluctuations, central bank makes interventions.
Management by Wandering Around (MBWA)

Management by Wandering Around (MBWA) is a management style that uses

an unstructured approach and direct manager participation by managers in the
work of their subordinates.

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Management by Exception

Management by Exception, shortly called as MBE is a management style or

philosophy that empowers the manager to concentrate on the exceptionally
important or critical matters and taking important decisions while facilitating
the front line workers to complete the day to day activities. It aims at keeping
the focus of the management on extremely important tasks and problems or
areas in need of action.
MANI

Mobile Aided Note Identifier (MANI), is a mobile application for aiding visually
impaired persons to identify the denomination of Indian Bank Notes.(This is
launched on 01-01-2020 by RBI Governor)
Man-in-the-Middle (MitM)

Man-in-the-Middle (MitM) attacks secretly intercept and relay messages

between two parties who believe they are communicating directly with each
other.
Man-in-the-Middle Fraud

A “Man-in-the-middle” attack is a type of fraud that attacks mobile payment

systems. In man-in-the-middle attacks, fraudsters intercept financial
information as it gets transmitted wirelessly. For example, if you order a product
online using a wireless network at a coffee shop, your credit card data could be
snatched and used.

Man-Year

A man-year, or person-year, is a unit of measurement for the amount of work

done by an individual throughout the entire year, expressed in the number of
hours. The man-year takes the number of hours worked by an individual during
the week and multiplies it by 52.

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Marginal Cost

Marginal Cost is the change in total cost that arises when the quantity produced
changes by one unit. That is, it is the cost of producing one more unit of a good.
Mark to Maturity (MTM)

Mark to Maturity (MTM) is an accounting method that helps in measuring the

fair or reasonable value of an asset. Mainly, we use this method for the assets
whose prices are constantly fluctuating. The objective of this method is to get a
realistic estimate of the assets’ worth. It helps in determining the asset’s price if
you were to sell it now. Because of this, this method is also known as Fair Value
Accounting or Market Value Accounting.
Marked Cheque

Certification of a Cheque is the writing “Good for Payment “ on a cheque by the

drawee banker that it would be honoured when it is duly presented for payment.
In certain countries, a cheque is marked or certified by the banker on whom it is
drawn as “good for payment’. Such a certification or marking is strictly
prohibited by Banking in India.
Market Capitalization

Market capitalization refers to the total dollar market value of a company's

outstanding shares of stock. The investment community uses this figure to
determine a company's size instead of sales or total asset figures. In an
acquisition, the market cap is used to determine whether a takeover candidate
represents a good value or not to the acquirer.
Market Challenger

Market challenger is a company which tries to expand its market share by

aggressively flooding the market with its products at competitive prices. A
market challenger is a firm or a company which is usually at the No. 2 or No. 3
position.

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Market Maker

Market Maker is a financial intermediary which will provide both bid and offer
prices.
Market Sentiment

Market sentiment refers to the overall attitude of investors toward a particular

security or financial market. It is the feeling or tone of a market, or its crowd
psychology, as revealed through the activity and price movement of the
securities traded in that market. In broad terms, rising prices indicate bullish
market sentiment, while falling prices indicate bearish market sentiment.
Market Stabilisation Scheme (MSS)

Under RBI’s Market Stabilisation Scheme (MSS), the RBI issues Market
Stabilisation Bonds (MSBs)to withdraw the excess liquidity in the economy.
These bonds are government bonds provided by the central government to the
RBI for the dedicated purpose of withdrawing excess liquidity under the MSS.
The value of bonds in rupees will be treated as net RBI debt to the government.
This is because the proceeds from MSS will not go to the government, though it
is the government who provided the bonds.
Market Value

Market Value (also known as OMV, or "open market valuation") is the price an
asset would fetch in the marketplace, or the value that the investment
community gives to a particular equity or business.
Market-on-Close (MOC) Order

A market-on-close (MOC) order is a non-limit market order, which traders

execute as near to the closing price as they can—either exactly at, or slightly
after the market close. The purpose of a MOC order is to get the last available
price of that trading day. MOC orders are not available in all markets or from all
brokers.

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Marking Off

When it is difficult to recover Long Pending Non Credit Dues from Customers,
Bank may waive such dues. For example, Service Charges for maintenance of
minimum balance, Cheque Return Charges etc. When the Bank is unable to trace
the customer, the Bank may waive such Non Credit Items. Waiver of such Non
Credit Items is known as Marking Off.
Masala Bonds

The bonds listed on the London Stock Exchange ( LSE ) are known as Masala
Bonds.
Maternal Mortality Rate (MMR)

Maternal Mortality Rate refers to the number of maternal deaths for every one
lakh live births. Maternal Mortality refers to the annual number of female deaths
from any cause related to or aggravated by pregnancy or its management during
pregnancy and childbirth.
Matrix Organisation

Matrix organisation is a structure in which there is more than one line of

reporting managers. Effectively, it means that the employees of the organisation
have more than one boss.
MDR (Merchant Discount Rate)

MDR (Merchant Discount Rate) is a fee that a merchant is charged by their

issuing bank for accepting payments from their customers via credit and debit
cards. ⌠MDR compensates the bank issuing the card, the bank which installs
the PoS (Point of Sale) terminal and network providers (MasterCard and Visa),
and payment gateways for their services.
Measuring Principle

The measuring principle is a theoretical method for targeting the minimum price
of securities for traders in order to determine entry and exit points.

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Medium-Term Note (MTN)

Medium-Term Note (MTN) is a note that usually matures in five to 10 years. A

corporate MTN can be continuously offered by a company to investors with
differing maturities, ranging from nine months to 30 years, though most MTNs
range in maturity from one to 10 years.
Meme Stocks

A meme stock refers to the shares of a company that have gained viral popularity
due to heightened social sentiment. This social sentiment is usually due to
activity online, particularly on social media platforms.
Mense (pronounced “Mean”)

Profit Mense (pronounced “Mean”) Profit is compensation that a person in the

unlawful possession of other’s property has to pay for such illegal occupation to
the owner of the property.
Mercantilism

Mercantilism was an economic system of trade that spanned from the 16th
century to the 18th century. Mercantilism was based on the principle that the
world's wealth was static, and consequently, many European nations attempted
to accumulate the largest possible share of that wealth by maximizing their
exports and by limiting their imports via tariffs.
Merchant Business

The foreign exchange dealing of a bank with its customer is known as Merchant
Business‘ and the exchange rate at which the transaction takes place is the
Merchant Rate”.
Merit Goods and Demerit Goods

Merit goods are items that many people consider healthy, while demerit goods
are those that most consider unhealthy. These goods can be private or public
goods.

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Metaverse

Metaverse is a digital reality that combines aspects of social media, online

gaming, augmented reality (AR), virtual reality (VR), and cryptocurrencies to
allow users to interact virtually. Augmented reality overlays visual elements,
sound, and other sensory input onto real-world settings to enhance the user
experience. In contrast, virtual reality is entirely virtual and enhances fictional
realities.
Mezzanine

It is a type of financing which combines debt and equity financing. It is debt

capital which gives the lender the right to ownership and equity if the loan is not
paid. It is often quite high risk so it can also be high yield for the lender. The
word is derived from the Latin for "middle" as the risk is medium.

MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)

"MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) -

National Rural Employment Guarantee Act 2005, later renamed as the
""Mahatma Gandhi National Rural Employment Guarantee Act"", is an Indian
labour law and social security measure that aims to guarantee the 'right to work'
in rural areas of India. The key tenet of this social measure and labour law is that
the local government will have to legally provide at least 100 days of wage
employment in rural India to enhance their quality of life."

MIBOR

The full form of MIBOR is Mumbai Interbank Offered Rate. It is the interest rate
at which funds are borrowed by banks in marketable size, from other banks in
the Mumbai interbank market.

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MICR Code

MICR (Magnetic Ink Character Recognition) Code contains 15 digits.(Numbers).

a) First 6 numbers indicate the Cheque Number

b) Next 3 numbers indicate City Code

c) Next 3 numbers indicate Bank Code

d) Next 3 numbers indicate Branch Code

Micro ATM

Micro ATM are not any special type of ATMs. It is the advanced version of Point
of Sale (PoS) having an additional feature of Biometric scanning. It is also known
as a mini version of ATMs. These machines are connected with the GPRS (General
Packet Radio Service) mobile internet and it uses the Core Banking Solution
(CBS) platform to perform the different types of services.

Microfinance Loan

A microfinance loan is defined as a collateral-free loan given to a household

having annual household income up to ₹3,00,000. For this purpose, the
household shall mean an individual family unit, i.e., husband, wife and their
unmarried children.

Minimum Public Shareholding (MPS)

Minimum Public Shareholding (MPS) - also called free float) rule requires all
listed companies in India to ensure that at least 25% of their equity shares are
held by non-promoters, i.e. public. Public shareholders could be individual or
financial institutions and they normally buy shares through public offer or
secondary markets.

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Minimum Support Price (MSP)

MSP in India is a price floor set by the government to ensure that farmers receive
a minimum price for their agricultural produce, thereby safeguarding their
income and encouraging agricultural production. The government announces
MSPs for 22 mandated crops and Fair and Remunerative Prices (FRP) for
sugarcane. The mandated crops are 14 crops of the kharif season, 6 rabi crops
and two other commercial crops. Presently, MSPs are notified for 23 crops, but
procurement is done for wheat and paddy, which meets the requirements of the
public distribution system.

Minsky Moment

The term Minsky Moment refers to the onset of a market collapse brought on by
the reckless speculative activity that defines an unsustainable bullish period.
Minsky Moment is named after economist Hyman Minsky and defines the point
in time when the sudden decline in market sentiment inevitably leads to a market
crash. A Minsky Moment is based on the idea that periods of bullish speculation,
if they last long enough, will eventually lead to crisis, and the longer the
speculation occurs, the more severe the crisis will be.

Misery Index

The misery index is meant to measure the degree of economic distress felt by
everyday people, due to the risk of (or actual) joblessness combined with an
increasing cost of living. The misery index is calculated by adding the
unemployment rate to the inflation rate.

Mission

Every company has a Mission statement which defines its present scope of
business. It is the answer to the questions: Who we are? and What we do? Hence,
mission statements describe an organization’s present capabilities, customer
focus, activities, and business makeup.

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Mission Indradhanush

Mission Indradhanush is a health mission seeks to drive towards 90% full

immunisation coverage of India and sustain the same by year 2022.

Mission Karmayogi

Mission Karmayogi is a Programme to bring comprehensive reforms in civil

services. Under the scheme, a Capacity Building Commission will be set up. The
focus of the programme will be to transition from “Rules-based” to “Roles-
based” HR Management and aligning of work allocation of civil servants by
matching their competencies to the requirements of the post.

Mission versus Vision

Mission and Vision statements, usually, summarize an organization's goals and

objectives. A mission statement describes the current focus of the company and
the level of performance that it desires. On the other hand, a vision statement
describes what the company wants to be in the future. It also talks about the
future of the industry, society, or world that the company wants to change.

Mixed Cost

Mixed Cost is an expense that has attributes of both fixed and variable costs. In
other words, it’s a cost that changes with the volume of production like a variable
cost and can’t be completely eliminated like a fixed cost. Wage costs for
employees who are paid a monthly salary plus commissions are a good example
of mixed costs. This is a common compensation package for salesmen and sales
reps. They usually receive a small base salary and commissions based on how
many sales they make during the period. The monthly salary is a fixed cost
because it can’t be eliminated. Even if the salesperson doesn’t sell anything
during the month, the company still has to pay the base salary.

Mixer Company Term

Mixer Company Term used to designate an intermediate holding company the

purpose of which is to "mix" income from various foreign sources in order to
maximize the benefit of foreign tax credits. The mixer company receives income
both from countries with a higher tax rate than that of the destination country
and from countries with a lower tax rate, which it then pays out as a dividend.
This structure has the effect of averaging out the rate of foreign tax paid.

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Momentum

Momentum is the rate of acceleration of a security's price or volume—that is,

the speed at which the price is changing. Simply put, it refers to the rate of
change on price movements for a particular asset and is usually defined as a rate.
In technical analysis, momentum is considered an oscillator and is used to help
identify trends.

Monetised Fiscal Deficit (MFD)

Monetised Fiscal Deficit (MFD) is that part of the fiscal deficit financed out of
borrowing from the RBI. It indicates borrowings form the RBI to run the budget.
This practice was phased out in 1997. Hence, the MFD is not relevant now. MFD
is highly inflationary.

Money Laundering

Money Laundering refers to converting illegally earned money into legitimate

money.

Money Market

Money Market is the market for trading in short- term securities. In most cases,
the banking system handles these transactions. The most important institutions
of this market are central banks, commercial banks and money-exchange
companies.

Money Market & Capital Market

A Money Market provides short-term finance for business. A Capital Market

provides long-term finance for business.

Money Mule

A Money Mule, sometimes called a "smurfer" is a person who transfers money

acquired illegally in person or through a courier service, or electronically on
behalf of others. Money mules are often dupes recruited on-line for what they
think is legitimate employment, not aware that the money they are transferring
is the product of crime. The money is transferred from the mule's account to the
scam operator, typically in another country.

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Monitoring and Follow-up

Monitoring gives more emphasis on proper end-use. Follow-up gives more

emphasis on the timely recovery of advances.

Monopoly

A single firm dominates an entire market without any close substitutes or

competitors. In a monopoly, entry barriers are very high due to legal restrictions
or other ownership of resources. Monopoly is a market condition in which there
is only one seller, the monopolist.

Monopsony

Monopsony is a market condition in which there is only one buyer, the

monopsonist.

Moral Hazard Problem

The Moral Hazard Problem arises when a party has a tendency to embrace
more risk knowing that the cost of taking such a risk will not be borne by him.
The knowledge that the cost of risk taking will be paid partly or wholly by
others incentivizes risk taking.

Morbidity Rate

Morbidity Rate is a measure of the number of persons belonging to a particular

group, categorised according to age or some other factors such as occupation,
that are expected to suffer a disease, illness, injury, or sickness.

MRO Inventory

"MRO Inventory means maintenance, repair, and operations inventory. It

includes an inventory of all items that are useful to keep a company running. Or,
we can say, it includes maintaining inventories to continue manufacturing the
end product. For example, it includes keeping inventories of spare parts, tools,
equipment, and more."

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MSF (Marginal Standing Facility)

MSF is a window for banks to borrow from Reserve Bank of India in emergency
situation when inter-bank liquidity dries up completely. Banks borrow from the
Central Bank by pledging government securities at a rate higher than the Repo
Rate. Under MSF, banks can borrow funds up to one percentage of their Net
Demand and Time Liabilities (NDTL).

Multibaggers

Multibaggers are stocks that give returns that are several times their costs. These
are essentially stocks that are undervalued and have strong fundamentals, thus
presenting themselves as great investment options.

Multichannel Selling

Selling same Product using selling channels owned by different persons and
firms is called Multichannel Selling. There are different sales channels that can
form part of Multichannel Selling Strategy.

Multiplier Effect

The multiplier effect is an economic term, referring to the proportional amount

of increase, or decrease, in final income that results from an injection, or
withdrawal, of capital. In effect, Multipliers effects measure the impact that a
change in economic activity like investment or spending will have on the total
economic output of something. This amplified effect is known as the multiplier.

Mutation

Mutation means transfer or change of title in the records of the local municipal
body for the concerned property.

Mystery Shopping

Mystery Shopping, also known as secret shopping, is a research and evaluation

method that businesses use to gather information about their customer service
and overall customer experience.

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 N
Naked Call

A Naked Call is an options strategy in which an investor writes (sells) call options
on the open market without owning the underlying security. This strategy,
sometimes referred to as an uncovered call or an unhedged short call, stands in
contrast to a covered call strategy, where the investor owns the underlying
security on which the call options are written. A naked call can be compared with
a naked put.
Naked Short Selling

Naked shorting is when a trader sells shares in some asset without first
borrowing them or ensuring they could be borrowed. The aim is to profit from
a decline in the asset's price by later buying the shares at a lower cost to cover
the short position. This is different from traditional short selling, when you
borrow the shares before selling them.

NAMASTE Scheme
(National Action for Mechanized Sanitation Ecosystem or the NAMASTE Scheme)

NAMASTE scheme is implemented by the National Safai Karamcharis Finance

and Development Corporation (NSKFDC) for a period of three years from FY
2023-24 to FY 2025-26. The scheme has a range of entitlements for Sewer and
septic tank workers(SSWs). There is a provision of Capital Subsidy up to Rs. 5.00
lakh for procurement of Sanitation Related Vehicles/ Equipment.

Named Driver Exclusion

Named Driver Exclusion is an endorsement to an auto insurance policy that

provides that a policy does not cover accidents when a specifically named person
is the driver.

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Named Driver Policy

Named Driver Policy is an auto insurance policy that doesn't provide coverage
for an individual residing in a named insured 's household specifically unless the
individual is named on the policy. The term includes an auto insurance policy
that has been endorsed to provide coverage only for drivers specifically named
on the policy.
Nasdaq

Nasdaq was initially an acronym for the National Association of Securities

Dealers Automated Quotations. Nasdaq, is an American Stock Exchange located
in New York City . Nasdaq is a global electronic marketplace for buying and
trading securities. It was the world's first electronic exchange. Most of the
world's technology giants, including Apple and Facebook, are listed on the
Nasdaq.
Nash Equilibrium

Nash equilibrium is a concept in game theory where the optimal outcome is

when there is no incentive for players to deviate from their initial strategy. The
players have knowledge of their opponents strategy and still will not deviate
from their initial chosen strategies because it remains the optimal strategy for
each player.
NASSCOM

The National Association of Software and Service Companies is an Indian non-

governmental trade association and advocacy group, focused mainly on the
technology industry of India.
National Bank for Financing Infrastructure and Development (NBFID)

National Bank for Financing Infrastructure and Development (NBFID) is the

principal development financial institution (DFIs) for infrastructure financing.
DFIs are set up for providing long-term finance for such segments of the
economy where the risks involved are beyond the acceptable limits of
commercial banks and other ordinary financial institutions. Unlike banks, DFIs
do not accept deposits from people. They source funds from the market,
government, as well as multi-lateral institutions, and are often supported
through government guarantees.

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National Consumer Rights Day

National Consumer Rights Day is observed on 24th December every year. On this
day the Consumer Protection Act 1986 came into force. “Jago Grahak Jago‟,
which means “Be aware consumer‟, is a consumer awareness program launched
by the Department of Consumer Affairs.

National Farmer’s Day

National Farmer’s Day (Kisan Diwas) is observed every year on 23 December in

India to remember the role of Indian farmers in the economy to mark the birth
anniversary of former Prime Minister Chaudhary Charan Singh.

National Skills Qualification Framework (NSQF)

National Skills Qualification Framework (NSQF) was formed by as a national

effort to integrate general and vocational streams of education and training. It
makes a strong focus on vocationalisation of school education.

Near Field Communication (NFC) Technology

Near Field Communication (NFC) technology establishes a connection between

two smart devices and transfers information using electromagnetic signals. Here,
two devices must remain close to each other.

Near Miss Event

Near Miss Event is (a) an incident that has been detected that may or may not
result in financial losses.

Near Money

Near Money refers to liquid assets easily convertible into money as needed, such
as marketable securities, money market funds, and time deposits.

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NEER and REER

The Nominal Effective Exchange Rate (NEER) is a trade-weighted currency index

which is calculated keeping in mind the bilateral nominal exchange rates of the
home currency in terms of foreign currencies.

The Real Effective Exchange Rate (REER) is the weighted average of a country's
currency in relation to an index or basket of other major currencies.
The weights are determined by comparing the relative trade balance of a
country's currency against each country within the index. This exchange rate is
used to determine an individual country's currency value relative to the other
major currencies in the index."

Negative Amortization

Negative amortization refers to situation when the principal amount on a loan

increases gradually because the loan repayments do not cover the total amount
of interest costs for the period. It occurs because borrowers are allowed to make
reduced payments for a certain period within the term of the loan. Therefore,
the payments received are used to pay the accruing interest on the loan, and the
balance of the unpaid interest costs is added to the principal amount.
Negative Assurance

Negative Assurance or a limited assurance is a written document issued by

Auditors during an assignment. In this type of engagement, the auditor issues a
statement in writing that during the course of his limited review, he could not
smell or find any facts or evidence that is susceptible to assume or indicate that
the financial statements or subject matters of audit contain a wrong or
misleading statement.
Negative CRR

Negative CRR takes place when the return on the CRR balance is zero. Negative
carry arises when the actual return is less than the cost of the funds. This will
impact the mandatory SLR balance, which is the reserve every commercial bank
must maintain. Negative carry on CRR and SLR balances arises because the return
on CRR balances is nil, while the return on SLR balances is lower than the cost of
deposits.

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Negative Gearing

The process of using borrowed money to fund an investment where the returns
from the investment are less than the repayments on the borrowed funds,
allowing a deduction of losses against taxed income.

Negative Interest Rate

Negative interest rate refers to interest paid to borrowers rather than to lenders.
Central banks typically charge commercial banks on their reserves as a form of
non-traditional expansionary monetary policy, rather than crediting them. This
is a very unusual scenario that generally occurs during a deep economic recession
when interest rates have already reached the nominal zero bound. This tool
encourages lending, spending, and investment rather than hoarding cash, which
will lose value.

Negative Interest Rate Policy (NIRP)

NIRP is the policy of charging below zero interest rate by the apex bank to the
other banks of a country on the deposits kept by them with the apex bank. NIRP
is applied when there is deflationary spiral in the economy. Banks tend to lend
more to encourage consumer spending. Japan, Sweden, Denmark, Switzerland
and Euro area have Zero Lower Bound interest rates.

Negotiation

When Bank extend finance against Bills drawn under LC (both Demand and
Usance) it is known as Negotiation.

Neo Bank

Neo Bank is a virtual bank. A bank that is entirely online rather than being
physical. Neo banking provides complete digital banking experience through
mobile applications. Neobanks can be called fintech firms that provide digital
and mobile-first financial solutions, such as payments, money transfers, money
lending, and more.

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Net Borrower

Net Borrower is an entity that borrows more than it saves or lends out. Because
many business entities both borrow and loan funds through various financial
instruments and other means, it is the net difference between the amount
borrowed and lent that is important and determines whether one is a net
borrower or net lender.
Net Interest Margin (NIM)

Net Interest Margin is a measurement comparing the net interest income a

financial firm generates from credit products like loans and mortgages, with the
outgoing interest it pays holders of savings accounts and certificates of deposit
(CDs). Expressed as a percentage, the NIM is a profitability indicator that
approximates the likelihood of a bank or investment firm thriving over the long
haul.
Net Operating Loss (NOL)

A net operating loss (NOL) occurs when a company’s allowable deductions

exceed its taxable income within a tax period.
Net Worth

Net worth is the value of the assets a person or corporation owns, minus the
liabilities they owe. It is an important metric to gauge a company's health,
providing a useful snapshot of its current financial position.
Net Zero

Net Zero refers to the balance between the amount of greenhouse gas produced
and the amount removed from the atmosphere.

New Development Bank (NDB)

The New Development Bank (NDB), formerly known as the BRICS Development
Bank, is established by the BRICS countries (Brazil, Russia, India, China, and
South Africa).It was created to promote infrastructure and sustainable
development efforts in the BRICS and other developing emerging economies,
with a focus on innovation and cutting-edge technology, to boost growth.
Shanghai, China is where the headquarters is located.

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New Oil (or New Gold)

New Oil (or New Gold) refers to the idea that in the age of the digital economy,
data is considered the "new oil" and the "new gold." Many apps generate value
not by revenue but through the data they collect. This business model is called
Surveillance Capitalism, where companies like Google, Facebook, and Amazon
make money by collecting and monetizing user data.

NIFTY

National Stock Exchange (NSE) is the leading stock exchange of India. Full form
of NIFTY is “National Stock Exchange Fifty” NIFTY normally comprises of 50
stocks. It is known as NIFTY 50 or CNX Nifty. It is owned and managed by India
Index Services and Products Ltd. (IISL).

NINJA Loan

NINJA Loan is a slang term for a loan extended to a borrower with little or no
attempt by the lender to verify the applicant's ability to repay. It stands for "no
income, no job, and no assets." Whereas most lenders require loan applicants to
provide evidence of a stable stream of income or sufficient collateral , a NINJA
loan ignores that verification process.

NIRVIK

Ministry of Commerce & Industry has introduced a new Export Credit Insurance
Scheme called NIRVIK - “Niryat Rin Vikas Yojana” in tie up with the Export Credit
Guarantee Corporation to enhance loan availability to exporters and to ease the
lending process. Under the scheme, up to 90% of the principal amount and
interest will be covered through insurance.

NNN Lease

A Triple Net Lease, also called an NNN lease or net, is a real estate lease that
transfers the obligation to pay for all operating expenses to the tenant. In other
words, the tenant will be solely responsible for paying the real estate taxes,
insurance, and utilities of the property.

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Noise

In a broad analytical context, noise refers to information or activity that confuses

or misrepresents genuine underlying trends. In the financial markets, noise can
include small price corrections in the market as well as price fluctuation is “called
volatility“ that distorts the overall trend. However, market noise can make it
challenging for investors to discern what's driving the trend and whether a trend
is changing or merely experiencing short-term volatility.
Non-adversarial

Non-adversarial means working together co-operatively to reach the best

resolution for everyone. Everyone is on the same side, aiming for a "win-win"
outcome.

Non Callable Depositm – Closure Before Maturity

A Non Callable Deposit is for period of 46 days and above and other than
Individual and HUF and cannot be closed before maturity.

Non-discretionary Expenses

Non-discretionary expenses are considered mandatory housing, taxes, debt, and

groceries .Nondiscretionary expenses are usually referred to as needs.

Non Interest Earning Inoperative Accounts(NIEI)

Among the inoperative accounts, such of those accounts in which balances are
less than Rs.50/- (i.e., accounts which do not earn any interest) should be
segregated and grouped separately classifying them as "Non-Interest Earning
Inoperative account" (NIEI accounts).

Non Recourse Loan

A loan which is secured by collateral and for which the borrower is not personally
liable, is called a Non Recourse Loan.

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Non-Compete Agreement

A non-compete agreement is a legal agreement or clause in a contract specifying

that an employee must not enter into competition with an employer after the
employment period is over. These agreements also prohibit the employee from
revealing proprietary information or secrets to any other parties during or after
employment.
Non-Cooperative Borrower

Non-Cooperative Borrower is one who does not engage constructively with his
lender by defaulting in timely repayment of dues while having the ability to pay,
thwarting Lender’s efforts for recovery of their dues by not providing necessary
information sought, denying access to assets financed/collateral securities
obstructing sale of securities, etc. In fact, a Non-Cooperative Borrower is
a defaulter who deliberately stonewalls legitimate efforts of the lenders to
recover.

Non-core Assets

Non-core assets are assets that are either not essential or simply no longer used
in a company's business operations. Non-core assets are often sold when a
company needs to raise cash. Some businesses sell their non-core assets in order
to pay down debt. Although non-core assets are not critical to a company's core
operations, they do have value and can generate a return on investment.

Non-Fungible Tokens

Non-Fungible Tokens are unique, irreplaceable & non-divisible. Non-Fungible

Tokens (NFTs) represent unique assets, unexchangeable and indivisible, opening
new avenues for ownership and trading in the digital realm. For Example, a house
or a car, we cant ask someone to exchange his/her house with us and end up
having the same value as before or we cant ask someone to exchange cars
because these assets are one-of-a-kind.

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Non-Governmental Organizations (INGOs)

Non-Governmental Organization (NGO) refers to an organization that is not a

part of the government and is not considered a convention for-profit business.
Most NGOs are formed by ordinary citizens.

Non-Institutional Credit Sources

The Non-Institutional Credit Sources comprise of professional and non-

professional moneylenders, agricultural money lenders, friends, relatives,
traders/shopkeepers, employers, landlord etc.

Non-owners Policy

Non-owners Policy is Auto insurance coverage that offers liability, uninsured

motorist, and medical payments to a named insured who does not own a vehicle.
Non-price Competition

Non-price competition is competitive practices adopted by a firm using

strategies/instruments like advertising, product differentiation, sales campaign
etc.

Non-recourse Loan

Non-recourse loan : A loan which is secured by collateral and for which the
borrower is not personally liable, is called a non-recourse loan.

Non-Sterilised Intervention

Non-Sterilised Intervention is the Intervention which does not affect the short-
term interest.

Normalized Financial Statements

Normalized Financial Statements are Financial statements adjusted for non-

operating assets and liabilities and/or for nonrecurring, non-economic, or other
unusual items to eliminate anomalies and/or facilitate comparisons.

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Not Negotiable Crossing

In a Cheque, Not Negotiable Crossing takes away an important characteristic of

Negotiability. It can be transferred, but the transferee does not get better title.
(Sec 130 of NI Act).

Notarization

Notarization is also referred as “notarial acts”. It includes a three-part process by

a Notary Public that includes vetting, certifying and record keeping. It is basically
the official process to prevent fraud and assure the parties in the transaction that
the document notarized, is genuine.

Novation

Novation is the act of substituting a valid existing contract with a replacement

contract, where all concerned parties mutually agree to make the switch. In most
novation scenarios, one of the two initial contracting parties is replaced outright
by an entirely new party, where the original party willingly agrees to forgo any
rights originally afforded to them. Novations are most frequently used in
corporate takeovers and the sales of businesses.

NRE Account of Pakistan National

Opening of NRE accounts in the names of Pakistani nationals of Indian origin

/Pakistani Entities/Bangladesh Entities requires prior approval of Reserve Bank
of India.

NRO Deposits - TDS not waived

TDS at applicable rate should be deducted on the interest on NRO deposit

irrespective of up-dation of PAN in the Customer Master. There is no waiver of
TDS on interest in the case of deposit made by the non residents in NRO
Deposits.

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NSFR Norms

Net stable funding ratio (NSFR) norms, as per which Banks to maintain a stable
funding profile vis-à-vis the composition of their assets and off-balance sheet
activities. NSFR is the amount of available stable funding relative to the amount
of required stable funding. After the global financial crisis of 2007, the Basel
Committee on Banking Supervision (BCBS) proposed certain reforms to
strengthen global capital and liquidity regulations for promoting a more
resilient banking sector. NSFR is one of such reforms.

NUE (New Umbrella Entity)

NUE (New Umbrella Entity) is a digital platform which will be for-profit and be
allowed to charge fees for online transactions, unlike the existing system. This,
the banking regulator believes, has been necessitated for the prevention of
“concentration risk” in India’s burgeoning digital payment landscape where the
mandate of issuing and governing payment channels is largely monopolized by
the National Payments Corporation of India (NPCI).

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 O
Obamanomics

Obamanomics is a popular neologism used to describe the economic policies of

the administration of former U.S. President Barack Obama. The term is
commonly associated with the economic stimulus programs enacted by the
Obama Administration in response to the Great Recession of 2008.
OBM (Open Book Management)

OBM is defined as empowering every employee of an organisation with required

knowledge about the processes, adequate training and powers to make decisions
which would help them in running a business. It is all about team work and
moving forward together.
Obsolescence Risk

Obsolescence risk is the risk that a process, product, or technology used or

produced by a company for profit will become obsolete, and thus no longer
competitive in the marketplace. This would reduce the profitability of the
company.
OCR (Optical Character Recognition)

OCR is the use of technology to distinguish printed or handwritten text

characters inside digital images of physical documents, such as a scanned paper
document. The basic process involves examining the text of a document and
translating it into code that can be used for data processing.
October Effect

October effect is a perceived market anomaly that stocks tend to decline during
the month of October. The October effect is considered to be more of a
psychological expectation than an actual phenomenon, as most statistics go
against the theory.

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Odious Debt

Odious debt, also known as Illegitimate Debt, is when a country's government

changes and the successor government does not want to pay debts incurred by
the previous government. Usually, successor governments argue that the
previous government misappropriated money it had borrowed and that they
should not be held responsible for the previous regime’s alleged misdeeds.
Off Balance Sheet Exposures

The Business activities of a Bank that generally do not involve booking assets
(loans) and taking deposits are called Off Balance Sheet Exposure. For example,
issuing Guarantees, Letters of Credit.
Off-balance Sheet (OBSF) Financing

Off-balance sheet (OBSF) financing is an accounting practice whereby companies

record certain assets or liabilities in a way that prevents them from appearing on
the balance sheet. It is used to keep debt-to-equity (D/E) and leverage ratios low,
especially if the inclusion of a large expenditure would break negative debt
covenants. Examples of off-balance-sheet financing (OBSF) include joint
ventures (JV), research and development (R&D) partnerships, and operating
leases
OHLC Chart

An OHLC chart is a type of bar chart that shows open, high, low, and closing
prices for each period. OHLC charts are useful since they show the four major
data points over a period, with the closing price being considered the most
important by many traders.
Old Fallow Land

Old fallow land means the land which was unfit for cultivation in terms of
fertility, water holding capacity etc. It is no longer used for cultivation.
Old Lady

Old Lady is Bank of England’s Nickname.

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Oligopoly

Only a few large firms control most of the market. In an oligopoly, entry barriers
are high due to the need for a huge capital investment.
Omni Channel Selling

In this case, the Company sells its product using different channels owned by it.
For example, Lenskart sells its product online, through its own outlets located at
various places and other channels. Sales come from any of these channels is
Revenue of Lenskart.
One Percent Rule

One Percent Rule sometimes stylized as the "1% rule," is used to determine if the
monthly rent earned from a piece of investment property will exceed that
property's monthly mortgage payment. The goal of the rule is to ensure that the
rent will be greater than or—at worst—equal to the mortgage payment, so the
investor at least breaks even on the property.
One Sun One World One Grid (OSOWOG)

OSOWOG is a transnational electricity grid supplying power all over the world.
Onerous Contract

An onerous contract is an accounting term that refers to a contract that will cost
a company more to fulfill than what the company will receive in return. The term
is used in many countries worldwide, where international regulators have
determined that such contracts must be accounted for on balance sheets.
One-Tailed Test

A one-tailed test is a statistical test in which the critical area of a distribution is

one-sided so that it is either greater than or less than a certain value, but not
both. If the sample being tested falls into the one-sided critical area, the
alternative hypothesis will be accepted instead of the null hypothesis. Financial
analysts use the one-tailed test to test an investment or portfolio hypothesis.

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Online Dispute Resolution

Online Dispute Resolution or ODR is a process to settle disputes outside courts,

combining technology and alternative dispute resolution (“’ADR’’) mechanisms.
ODR covers disputes that are settled over the internet having been initiated in
cyberspace but with a source outside it i.e. offline.
Online Shoplifting

Online Shoplifting is the theft of goods from an Internet-based merchant. Online

shoplifting might seem harmless since the shoplifter never interacts with the
victim and executes the fraud with a few keystrokes and mouse clicks.
On-Us Transaction & Off-Us Transaction.

A transaction carried out at an ATM of the card issuing bank is called an On-Us
transaction. A transaction carried out at any other ATM is called an Off-
Us transaction.
Opaque Pricing

Opaque pricing is a way that companies can sell their merchandise at hidden,
lower prices. Opaque pricing is a type of price discrimination, with the target
customer being the one who will purchase a product or service primarily based
on price (price-conscious customer)—and not based on the company’s
amenities, reputation, etc.
Open Banking

In financial services, open banking allows for financial data to be shared between
banks and third-party service providers through the use of application
programming interfaces (APIs). Open Banking is also known as " Open Bank Data
Open banking is a banking practice that provides third-party financial service
providers open access to consumer banking, transaction, and other financial data
from banks and non-bank financial institutions through the use of application
programming interfaces (APIs). Open banking will allow the networking of
accounts and data across institutions for use by consumers, financial institutions,
and third-party service providers.

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Open Cheque

When a cheque is not crossed, it is known as an "Open Cheque" or an Uncrossed

Cheque. The payment of such a cheque can be obtained at the counter of the
bank. An open cheque may be a bearer cheque or an order one.

Open Network

For Digital Commerce (ONDC)The Open Network for Digital Commerce (ONDC)
acts as a middleman in the world of online shopping, connecting buyers and
sellers. It functions similarly to the Unified Payment Interface (UPI), a popular
mobile payment system that allows people to make mobile payments regardless
of the specific payment app they use.

Open Outcry

Open outcry was a popular method for communicating trade orders in trading
pits before 2010. The verbal and hand signal communication used by traders at
stock, option, and futures exchanges have been largely replaced by faster
electronic systems.

Open Position

When the firm has greater assets than liabilities (or greater liabilities than assets)
in one currency the position is known as Open Position.

Open Term Loan

An open term loan is a loan without a maturity date, where the borrower has the
option to prepay and the lender has the option to call. Open-ended loans
are similar to open term loans, and include credit cards and lines of credit. With
an open-ended loan, you can borrow money when you need it and pay it back
over time, without a set end date.

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Operation Green

"Operation Green : It is a price fixation scheme that aims to ensure farmers are
given the right price for their produce. It aims to promote Farmer Producers
Organizations (FPO), Agri-logistics, processing facilities and professional
management of agri-produce. It focuses on organized marketing of Tomatoes,
Onions and Potatoes (TOP vegetables) by connecting farmers with consumers.
However, as part of Economic Relief Package for “Aatmanirbhar Bharat Abhiyan”
Government of India has extended the Operation Greens from Tomatoes, Onion
& Potatoes (TOP) to All Fruit & Vegetables (TOTAL).
Operation Twist

Operation Twist is a monetary policy intervention by the central bank, conducted

through Open Market Operations (OMOs), where the central bank is buying long
term bonds of the government and at the same time selling short term securities
of the government. Buying long term securities and selling short term securities
will reduce the yield of long term securities compared to that of the short term
ones. This yield impact is the objective of Operation Twist.
Operational Efficiency

Operational efficiency is primarily a metric that measures the efficiency of profit

earned as a function of operating costs. The greater the operational efficiency,
the more profitable a firm or investment is. This is because the entity is able to
generate greater income or returns for the same or lower cost than an
alternative.
Operational Holding

Operational Holding is defined as “all land, which is used wholly or partly for
agricultural production and is operated as one technical unit by one person alone
or with others without regard to title, legal form, size or location”
Opportunity Costs

Opportunity costs represent the potential benefits missed when choosing one
alternative over another.

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Optimal Capital Structure

The optimal capital structure of a firm is the best mix of debt and equity
financing that maximizes a companys market value while minimizing its cost of
capital. In theory, debt financing offers the lowest cost of capital due to its tax
deductibility. However, too much debt increases the financial risk to
shareholders and the return on equity that they require. Thus, companies have
to find the optimal point at which the marginal benefit of debt equals the
marginal cost.
Oracle of Omaha

The Oracle of Omaha is a nickname for Warren Buffett, who is arguably one of
the greatest investors of all time. He is called the Oracle of Omaha because the
investment community very closely follows his investment picks and comments
on the market, and he lives and works in Omaha, Nebraska.
Ordinal Numbers

Ordinal numbers are those that establish a rank or order among the things to
which they have been assigned, such as first, second, and third. These numbers
do not say anything about the absolute difference or any other relationship
between them, other than "first" is greater than "second" if we are viewing the
numbers in descending order.
Organic Farming

Jaivik Kheti Portal Jaivik Kheti (Organic Farming) is a system which avoids the
use of synthetic inputs (such as fertilizers, pesticides, hormones, feed additives
etc) and to the maximum extent feasible rely upon crop rotations, crop residues,
animal manures, off-farm organic waste, mineral grade rock additives and
biological system of nutrient mobilization and plant protection Jaivik kheti
portal is a one stop solution for facilitating organic farmers to sell their organic
produce and promoting organic farming and its benefits. This portal caters
various stakeholders like local groups, individual farmers, buyers and input
suppliers.

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Organic Growth

Organic Growth is the growth a company achieves by increasing output and

enhancing sales internally. This does not include profits or growth attributable
to mergers and acquisitions but rather an increase in sales and expansion
through the company's own resources. Organic growth stands in contrast to
inorganic growth, which is growth related to activities outside a business's own
operations.
Organisation for Economic Co-operation and Development (OECD)

OECD is a group of 38 countries that work together to promote economic

development. It gives its member countries a place to share policy experiences,
look for solutions to common challenges, discover and share best practices, and
coordinate domestic and international policies. OECD is a thinktank or
monitoring group that is an official Permanent Observer to the United Nations.
The OECD's headquarters are located in Paris, France.
Original Issue Discount (OID)

An original issue discount (OID) is the discount in price from a bond's face value
at the time a bond or other debt instrument is first issued. Bonds can be issued
at a price lower than their face value is known as a discount. The OID is the
amount of discount or the difference between the original face value and the
price paid for the bond.
OSMOS

OSMOS refers to Off-Site Surveillance and Monitoring System. The RBI requires
banks to submit detailed and structured information periodically under OSMOS.
On the basis of SMOS, RBI analyzes the health of the banks.
OTC

Over-the-counter (OTC) or off-exchange trading is done directly between two

parties, without the supervision of an exchange. It is contrasted with Exchange
Trading , which occurs via exchanges.

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Outcome Budget

Outcome Budget is Outcome Budget is a progress card on what various

departments have done with the amount assigned in the previous annual
Budget. It measures the outcomes of all government programmes and whether
the money has been spent for the purpose it was sanctioned.
Outlay Cost

An outlay cost is a cost incurred in order to execute a strategy or acquire an asset.

Outlay costs are also paid to vendors to acquire goods such as inventory or
services, such as consulting or software design. They are concrete expenses that
are actually incurred in order to achieve a goal.

Overbought

Overbought is a term used when a security is believed to be trading at a level

above its intrinsic or fair value. Overbought generally describes recent or short-
term movement in the price of the security, and reflects an expectation that the
market will correct the price in the near future.

Overheated Economy

Overheated economy is one that has experienced a prolonged period of good

economic growth and activity that has led to high levels of inflation, triggered
by increased consumer wealth.

Oversold

The term oversold refers to a condition where an asset has traded lower in price
and has the potential for a price bounce. An oversold condition can last for a
long time, and therefore being oversold doesn't mean a price rally will come
soon, or at all.

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Overweight

An overweight investment is an asset or industry sector that comprises a higher-

than-normal percentage of a portfolio or an index. An investor might choose to
devote a greater portion of the portfolio to a sector that seems particularly
promising, or an investor might go overweight on defensive stocks and bonds at
a time when prices are volatile.
Overweight Stock Rating

Financial analysts give their opinions of the future performance of a security.

They can give performance ratings of underweight, overweight, or market
perform to a security. If analysts give a stock an overweight rating, they expect
the stock to outperform its industry in the market. Analysts may give a stock an
overweight recommendation due to a steady stream of positive news, good
earnings, and raised guidance. An overweight rating indicates that an analyst has
a high conviction that a stock can outperform a market benchmark or its peers
over the next.six.to.12.months.
Own Account Enterprises (OAEs)

Own Account Enterprises (OAEs) comprise of tiny firms which are not even hiring
one worker. A major portion of unorganised/informal sector firms is OAEs. Own
Account Enterprises (OAEs) are enterprises that do not employ any hired worker
on a fairly regular basis.
Owner Financing

When the seller loans the whole sum or a part of it to a buyer, it is called owner
financing.

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 P
P2P ( Peer-to-Peer)

"P2P ( Peer-to-Peer) lending is a platform which directly connects both types of

individuals, the ones, who need finance with those having money with an
appetite to take higher risk, without the intervention of traditional financial
institution. As the name suggests it is a person to person lending where lender
knows to whom he is borrowing his money. It is different from banks, where the
deposits are received from various customers and then credit is offered to some
borrowers, which are not known to depositors. P2P platforms come under the
non- banking financial company category and are regulated by the RBI."

P2P Fund Transfer through IMPS P2P fund transfer through IMPS is done using
mobile numbers and Mobile Money Identifiers (MMID), a 7-digit code used for
mobile payments.

P2P Lending Peer-to-Peer lending is a form of crowd-funding which can be

defined as the use of an on-line platform that matches lenders with borrowers
in order to provide unsecured loans, without intermediary. It may also be termed
as Social Lending or Marketplace Lending. It involves more time, effort and risk
than the general brick-and-mortar lending scenarios.
Pandora Papers

The Pandora Papers are a release of over 12 million leaked documents that reveal
the hidden and sometimes unethical dealings of the global wealthy and elite,
including prominent leaders and celebrities. The papers expose their offshore
interests and tax sheltering schemes.
Panic Buying

Panic Buying is a type of behavior marked by a rapid increase in purchase

volume, typically causing the price of a good or security to increase. Fear of a
shortage of the good is the potential reason for panic buying.

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Panic Saturday

Panic Saturday,” also known as Super Saturday, is the last Saturday before
Christmas, a major revenue-generating day for retailers, and an opportunity for
shoppers to purchase last-minute gifts. As such, Super Saturday features big
discounts, extended store hours, and for many retailers, one of the best sales
days of the year.
Par Value

Par value, also known as nominal or original value, is the face value of a bond or
the value of a stock certificate, as stated in the corporate charter. Stock
certificates issued for purchased shares show the par value. The par value of
shares, or the stated value per share, is the lowest legal price for which a
company sells its shares. Par value is required for a bond or a fixed-income
instrument and shows its maturity value and the dollar value of the coupon, or
interest, payments due to the bondholder.
Para Banking Activities

Para banking activities are undertaken by a bank apart from its core activities
like deposits and withdrawals. These activities include portfolio management,
insurance, and underwriting of bonds.
Paradigm Shift

The term Paradigm Shift refers to a major change in the worldview, concepts,
and practices of how something works or is accomplished. Paradigm Shift is a
change in the previous understanding of a particular subject. It is the
transformation of an earlier concept.

Pareto's Efficiency

Pareto's efficiency is defined as the economic situation when the circumstances

of one individual cannot be made better without making the situation worse for
another individual.

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Parity Price

Parity price refers to the price level that sets two assets or securities equal in
value. It is used in markets such as fixed income, equities, and convertible bonds
to determine when it is beneficial to convert a bond into shares.
Participating Policy

A Participating Policy is an insurance contract that pays dividends to the

policyholder. Dividends are generated from the profits of the insurance company
that sold the policy and are typically paid out on an annual basis over the life of
the policy. Most policies also include a final, or terminal, payment when the
contract matures. An insurance dividend is not guaranteed and depends on the
annual performance of the insurance company. A participating policy is also
referred to as a "with-profits policy."
Passive income

Passive income is income generated from someone other than an employer or a

contractor. It can be generated by earning interest on savings, getting cash back
or rewards on a credit card, renting out a space, purchasing dividend-paying
stocks, and so on.
Patent

Patent is the granting of a property right by a sovereign authority to an inventor.

This grant provides the inventor exclusive rights to the patented process, design,
or invention for a designated period in exchange for a comprehensive disclosure
of the invention.

Payback Period

Payback Period is the time required to recover the initial cost of an investment.
It is the number of years it would take to get back the initial investment made
for a project.

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Payday Loan

Payday Loan is a type of short-term borrowing where a lender will extend high
interest credit based on a borrower’s income and credit profile. A payday loan’s
principal is typically a portion of a borrower’s next pay-check. These loans charge
high-interest rates for short-term immediate credit. These loans are also called
cash advance loans or check advance loans.
Payment Gateways

Payment Gateways are the technology platforms that facilitate the secure
transfer of transaction data between the business’s systems such as their online
store, point-of-sale (POS) system, or mobile app and the PSP or acquiring bank.
Payment System Operators (PSOs)

Payment System Operators (PSOs) are entities that facilitate the movement of
funds between payers and payees in electronic payment systems.
Payment under Reserve

In a Letter of Credit, payment made against a discrepant document for which the
beneficiary agree to repay if reimbursement is not received from the opening
bank within specified time is called "Payment under Reserve ".
PCA (Prompt Corrective Action)

PCA is a system under which RBI can initiate a corrective action in case of a Bank
which is found to be having Low CAR (Capital Adequacy Ratio) or Profits or High
NPAs - called Trigger Points.

Peer Appraisal

Peer appraisal is a type of feedback system in the performance appraisal process.

It is usually done by colleagues who are a part of the same team. This type of
appraisal system excludes supervisors or managers.

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Pent Up Demand

Pent-up demand is when an economy experiences consumer demand for goods

and services that has been building up over time, typically due to a recession.
After delaying the purchasing of goods and services due to uncertainty
surrounding economic downturns, people typically are eager to spend money on
consumer goods.
Performance Bond

A performance bond is a financial guarantee to one party in a contract against

the failure of the other party to meet its obligations. It is also referred to as a
contract bond. A performance bond is usually provided by a bank or an insurance
company to make sure a contractor completes designated projects.
Performance Outcome Budget

A performance outcome budget, also known as a performance-based budget

(PPB), is a budgeting method that links an organization's resources and services
to measurable outcomes is a progress card on what various departments have
done with the amount assigned in the previous annual Budget. It measures the
outcomes of all government programmes and whether the money has been
spent for the purpose it was sanctioned.
Permanent Life Insurance

Permanent life insurance provides coverage for the full lifetime of the insured
person. While permanent life is more expensive than term insurance, permanent
policies combine a death benefit with a savings component that earns interest
on a tax-deferred basis. The two primary types of permanent life insurance are
whole life and universal life. The cash value of whole life insurance grows at a
guaranteed rate. Universal life insurance also contains savings and a death
benefit, but it features more flexible premium options and its earnings are based
on market interest rates. Variable life and variable universal life also provide
expanded options to invest the cash value in mutual funds and other financial
instruments.

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Permutation

The term permutation refers to a mathematical calculation of the number of

ways a particular set can be arranged. Put simply, a permutation is a word that
describes the number of ways things can be ordered or arranged. With
permutations, the order of the arrangement matters.
Personal Finance

Personal finance encompasses managing money, saving, and investing,

including budgeting, banking, insurance, mortgages, investments, and tax
planning. It often refers to the entire industry that provides financial services to
individuals and households.
PEST Analysis

PEST Analysis is a measurement tool which is used to assess markets for a

particular product or a business at a given time frame. PEST stands for Political,
Economic, Social, and Technological factors. Once these factors are analysed
organisations can take better business decisions.
Peter Principle

The Peter Principle observes that employees rise through a firm's hierarchy
through promotion until they reach incompetence. According to the Peter
Principle, promoted employees may not have the skills required for their new
position. To solve the problem posed by the Peter Principle, companies must
provide adequate skill training for employees who receive a promotion.
Petrodollars

Petrodollars are crude oil export revenues denominated in U.S. dollars.

Petrodollars are the primary source of revenue for many OPEC members and
other oil exporters.

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Phantom Banking
The withdrawal of funds from bank accounts through automated teller machines
(ATMs) by unauthorized means and without the knowledge or consent of the
account holder is known as Phantom Banking.
Phishing

Phishing is the fraudulent attempt to obtain sensitive information or data, such

as usernames, passwords and credit card details or other sensitive details, by
impersonating oneself as a trustworthy entity in a digital communication.
Phygital Banking

Phygital banking is a combination of physical and digital banking that blends

the advantages of digitalization with the comfort of physical bank branches. It
employs both human staff and disruptive technology for a personalized banking
experience.
Physical Infrastructure

Physical infrastructure refers to the physical availability and quality of public

facilities.
PIK (Payable in Kind)

Payable in Kind interest is a periodic form of payment in which the interest

payment is not paid in cash but rather by increasing the principal amount by the
amount of the interest. (e.g. a Rs.100 million bond with an 8% PIK interest rate
will have a balance of Rs.108 million at the end of the period but will not pay
any cash interest).

Pink Collar Worker

Pink-collar worker is one who is employed in a job that is traditionally considered

to be women's work.

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Pipeline Risk Analysis

Pipeline Risk Analysis provides an effective means for owners and regulators to
judge the safety of existing and proposed pipelines, and to make cost–effective
decisions on whether improvements are required.

Pit

Pit refers to a physical area at a stock exchange where securities are traded, using
the open outcry system of communication with verbal and hand signals.
PITI

PITI is acronym for principal, interest, taxes, and insurance—used when

describing the monthly charges on a mortgage.
Platform FDI

Platform type of FDI, a business expands into another country but the output
from the business is then exported to a third country.
Platformification of Banking

Platformification is a new type of business model for banks. It is a kind of plug-

and-play business model that allows multiple participants (producers and
consumers) to connect to it, interact with each other, and create and exchange
value. Rather than consumers having to interact individually with a host of
vendors and companies, platformification will help synthesize this into one
relationship.

Pledge - Registration

In case of Advances to Companies, no need to Register a Charge by way of a

Pledge with the Registrar of Companies. As such there is no need to file details
of loans to Companies against Deposits with RoC.

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PLI Scheme

Production Linked Incentive or PLI scheme is a scheme that aims to give

companies incentives on incremental sales from products manufactured in
domestic units and aims to encourage local companies to set up or expand
existing manufacturing units and also to generate more employment and cut
down the country’s reliance on imports from other countries.

PM -AASHA

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) to ensure fair

prices for farmers and to regulate price fluctuations in essential commodities for
consumers.
PM Gati Shakti

PM Gati Shakti is a government initiative aimed at improving logistics

infrastructure, driven by seven engines: Road, Railways, Airports, Ports, Mass
Transport, Waterways, and Logistics Infrastructure.
PM KUSUM

Ministry of New and Renewable Energy (MNRE) has launched the Pradhan
Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) Scheme for
farmers for installation of solar pumps and grid connected solar and other
renewable power plants in the country.

PM YASASVI

PM YASASVI (PM Young Achievers Scholarship Award Scheme for a Vibrant

India) is a Scholarship scheme for Other Backward Class (OBCs), Economically
Backward Class (EBC) and De-notified Nomadic Tribes (DNT) Students. Under
this Scheme students can avail Pre-Matric Scholarship from Class 9 to 10 and
Post Matric Scholarship for their higher studies at post-matriculation or post-
secondary stage.

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PMBJP

Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) is a campaign

launched by Govt. Of India, to provide quality medicines at affordable prices to
the masses through special kendra’s known as Pradhan Mantri Bhartiya Jan
Aushadhi Kendra.
POEM - The Acronym POEM used in two contexts as under.
01. Place of Effective Management (POEM)

A term used in the Income Tax Act, 1961 to apply special provisions for taxing
shipping companies.

02. Paid, Owned, and Earned Media (POEM)

A marketing methodology used by digital marketing experts to formulate social

media marketing strategies.
Population Momentum

Population Momentum shows that replacement level fertility is a long-term

concept rather than an indication of current population growth rates. This
population momentum and the prospect of rising population will be a future
demographic challenge for India. Population momentum shows that high
proportion of the young people may delay population stabilization for India.
Population Pyramid

Population Pyramid is a graphical representation of the distribution of various

age groups in a country’s population. Usually it also indicates the male-female
category wise age structure of the population. Because of this, population
pyramids are also referred to as age-sex pyramids.
Portability

Portability refers to an employee's option to retain certain benefits when

switching employers. Some pension plans and health insurance have portability.

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Porter's Five Forces

Porter's Five Forces is a model that identifies and analyzes five competitive
forces that shape every industry and helps determine an industry's weaknesses
and strengths. Five Forces analysis is frequently used to identify an industry's
structure to determine corporate strategy. Porter's model can be applied to any
segment of the economy to understand the level of competition within the
industry and enhance a company's long-term profitability. The Five Forces model
is named after Harvard Business School professor Michael E. Porter.

Portfolio

A portfolio is a grouping of financial assets such as stocks, bonds, commodities,

currencies, and cash equivalents, as well as mutual funds, exchange-traded
funds, and non-publicly traded securities like real estate and private
investments.

Position Trading

Position trading is an approach to trading in which the trader either buys or sells
contracts and holds them for an extended period of time.

Poverty Line

The Poverty Threshold, Poverty Limit, Poverty Line, or Breadline is the minimum
level of income deemed adequate in a particular country. The Poverty Line
determines the amount of money required to provide a person's fundamental
requirements, such as housing and food.

Poverty Line Basket

The basket of goods and services necessary to satisfy basic human needs is the
Poverty Line Basket (PLB).

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Poverty Trap

Poverty Trap is a spiraling mechanism which forces people to remain poor. It is

so binding in itself that it doesn't allow the poor people to escape it. Poverty
trap generally happens in developing and under-developing countries, and is
caused by a lack of capital and credit to people.
PRAVAAH

The Reserve Bank of India (RBI) on May 28 launched three major initiatives
namely, PRAVAAH portal, RBI Retail Direct mobile application and FinTech
Repository. The PRAVAAH portal will make it convenient for any individual or
entity to apply online for various regulatory approvals and enhance the
efficiency of various processes related to granting of regulatory approvals and
clearances by the RBI.
Predatory Dumping

Predatory Dumping is a type of anti-competitive behaviour in which a foreign

company prices its products below market value in an attempt to drive out
domestic competition. The practice is also referred to as predatory pricing.

Predatory Lending

Predatory Lending is any lending practice that imposes unfair or abusive loan
terms on a borrower. It is also any practice that convinces a borrower to accept
unfair terms through deceptive, coercive, exploitative or unscrupulous actions
for a loan that a borrower doesn’t need, doesn’t want or can’t afford.

Predicate Offence

Predicate Offence is any serious/underlying offence that is the root of money

laundering offence, e.g., drug trafficking, extortion, robbery, illegal arms
trafficking, etc.

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Pre-emptive Pricing

Pre-emptive Pricing is a methodology of selling a product at a price which is

below the normal or market price for a short period of time to boost sales, beat
competition or bring awareness in consumers. Pre-emptive Purchase is the
purchase of any property by one person, before it is offered to others; or prior
action before another acts (such as pre-emptive attack).
Pre-emptive Rights

Pre-emptive rights ensure that existing shareholders have the first chance to buy
new shares before they are offered to others.
Preferential Issue

Preferential Issue means an issue of specified securities by a listed issuer to any

select person or group of persons on a private placement basis. It does not
include an offer of specified securities made through a public issue, rights issue,
bonus issue, employee stock option scheme, employee stock purchase scheme
or qualified institutions placement or an issue of sweat equity shares or
depository receipts issued in a country outside India or foreign securities.
Preferred Stock

The term "stock" refers to ownership or equity in a firm. There are two types of
equity - common stock and preferred stock. Preferred stockholders have a
higher claim to dividends or asset distribution than common stockholders. The
details of each preferred stock depend on the issue.

Pre-IPO Placement

Pre-IPO Placement is a private sale of large blocks of shares before a stock is

listed on a public exchange. The buyers are typically private equity firms, hedge
funds, and other institutions willing to buy large stakes in the firm. Due to the
size of the investments being made and the risks involved, the buyers in a pre-
IPO placement usually get a discount from the price stated in the prospective for
the IPO.

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Presidential Election Cycle Theory

The presidential election cycle theory posits that equity market returns follow a
predictable pattern each time a new U.S. president is elected. The theory was
developed by "Stock Trader's Almanac," a book and newsletter series originally
founded by Yale Hirsch.
Prestige Pricing

Prestige Pricing is a marketing strategy that involves keeping a high price for a
product or service to communicate high quality or luxury. It is a technique often
employed for high-end products since low prices can be translated into low
quality by target consumers.
Pretax Profit Margin

The pretax profit margin is a financial accounting tool used to measure the
operating efficiency of a company. It is a ratio of the percentage of revenues that
are turned into profits or how many cents a business pockets from each dollar
of sale, before deducting taxes. The pretax profit margin is widely used to
compare the profitability of companies within the same industry.
Preventive Costs

Preventive Costs are the costs that a company incurs to prevent defects from
occurring in a product or service. For example, a company investing in training
employees to continuously monitor products for faults or defects.

Price Action

Price action is the movement of a security's price plotted over time. Price action
forms the basis for all technical analyses of a stock, commodity or other asset
charts. Many short-term traders rely exclusively on price action and the
formations and trends extrapolated from it to make trading decisions. Technical
analysis as a practice is a derivative of price action since it uses past prices in
calculations that can then be used to inform trading decisions.

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Price Discovery

Price discovery is the generation of information about "future" cash market

prices through the futures markets.

Price Discrimination

Price discrimination is a selling strategy that charges customers different prices

for the same product or service based on what the seller thinks they can get the
customer to agree to. In pure price discrimination, the seller charges each
customer the maximum price they will pay. In more common forms of price
discrimination, the seller places customers in groups based on certain attributes
and charges each group a different price.

Price Target

A price target is an analyst's projection of a security's future price. Price targets

can pertain to all types of securities, from complex investment products to stocks
and bonds. When setting a stock's price target, an analyst is trying to determine
what the stock is worth and where the price will be in 12 or 18 months.
Ultimately, price targets depend on the valuation of the company that's issuing
the stock.

Price-to-Rent Ratio

The price-to-rent ratio is the ratio of home prices to annualized rent in a given
location. This ratio is used as a benchmark for estimating whether it's cheaper to
rent or own property. The price-to-rent ratio is used as an indicator for whether
housing markets are fairly valued, or in a bubble.
Primary Market

Primary Market also called the IPO‟s market, is the market where the securities
issued for the first time are sold.

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Prime Loans

Lenders categorize loans by a variety of categories for risk management

purposes. Prime loans offer the lowest risk to lenders and are typically issued by
traditional financial institutions that manage a variety of credit products on their
balance sheet.
Principal shareholder

Principal shareholder is a Shareholder owning 10% or more voting stock in a

publicly listed company.
Principles for Responsible Investment (PRI)

PRI is an international organization that promotes the incorporation of

environmental, social, and governance (ESG) factors into investment decision-
making. Financial institutions can participate by signing the PRI's six principles
and filing regular progress reports.
Private Brand

A private brand is a good that is manufactured for and sold under the name of a
specific retailer, competing with brand-name products. Also referred to as
"private label" or "store brand," prices for private brands tend to be less than
those of nationally recognized name brand goods. Private brand items can
provide retailers, such as supermarkets, with a better margin than the brand-
name goods they also carry.
Pro Rata

Pro rata is a Latin term used to describe a proportionate allocation. It essentially

translates to "in proportion," which means a process where whatever is being
allocated will be distributed in equal portions. If something is given out to
people on a pro rata basis, it means assigning an amount to one person
according to their share of the whole. While a pro rata calculation can be used
to determine the appropriate portions of any given whole, it is often used in
business finance.

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Probate

Probate refers to the legal process of determining the validity of a will and
administering the estate of a deceased person. It includes collecting assets,
paying liabilities, and distributing assets to beneficiaries.
Producer Company

A “Producer Company” is a corporate entity designed for farmers and producers,

primarily involved in agriculture and related activities. As a legal entity, they are
recognised as a company under the Companies Act, facilitating more accessible
credit, and better post-harvest management. Ownership and membership of
such entities is held only by “Primary Producers‟ or “Producer Institution‟, and
member equity cannot be publicly traded.
Producer Surplus

Producer surplus is defined as the difference between the amount the producer
is willing to supply goods for and the actual amount received by him when he
makes the trade. Producer surplus is a measure of producer welfare.
Product Recall

Product Recall is the process of retrieving defective and/or potentially unsafe

goods from consumers while providing those consumers with compensation.
Recalls often occur as a result of safety concerns over a manufacturing defect in
a product that may harm its user.

Production Possibility Frontier

Production possibility frontier is the graph which indicates the various

production possibilities of two commodities when resources are fixed. The
production of one commodity can only be increased by sacrificing the
production of the other commodity. It is also called the production possibility
curve or product transformation curve.

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Proforma NPA

Loans required to be classified as NPA as per RBI guidelines, but not classified in
view of Supreme Court Order are known as Proforma NPAs.
Progressive Tax

A progressive tax involves a tax rate that increases or progresses as taxable

income increases. It imposes a lower tax rate on low-income earners and a higher
rate on those with higher incomes.
Property Marking

When One is signing a cheque in representative capacity (i.e. as Proprietor or

Partner or Director or PA Holder etc.), One has to affix Rubber Stamp of the firm
wherein the capacity in which the One has signed the cheque is indicated.
Affixing such Rubber Stamp is known as “ Property Marking”. Such Stamp is
commonly known as “For.....Seal/Stamp.”
Proprietary Trading

Proprietary trading refers to a financial firm or bank that invests for direct
market gain rather than earning commissions and fees by trading on the behalf
of clients.
Proration

Proration is a type of corporate action that may arise during an event such as an
acquisition, where a company splits its original cash and equity offer in response
to shareholder preferences.
Prospect Theory

Prospect theory assumes that losses and gains are valued differently, and thus
individuals make decisions based on perceived gains instead of perceived losses.
Also known as the "loss-aversion" theory, the general concept is that if two
choices are put before an individual, both equal, with one presented in terms of
potential gains and the other in terms of possible losses, the former option will
be chose.

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Protectionism

Protectionism refers to government policies that restrict international trade to

protect domestic industries. These policies are often implemented to improve
economic activity, safety, or quality within a country.
Protest

When a Promissory Note or Bill of Exchange has been dishonoured by non-

acceptance or non-payment, the holder may, within a reasonable time, cause
such dishonour to be noted and certified by a notary public. Such certificate is
called a protest. Protest for better security.

Provision for Credit Losses (PCL)

The provision for credit losses (PCL) is an estimation of potential losses that a
company might experience due to credit risk. The provision for credit losses is
treated as an expense on the company's financial statements. They are expected
losses from delinquent and bad debt or other credit that is likely to default or
become unrecoverable. If, for example, the company calculates that accounts
over 90 days past due have a recovery rate of 40%, it will make a provision for
credit losses based on 40% of the balance of these accounts.

Provisioning Coverage Ratio (PCR)

PCR is the ratio of provisioning to gross non-performing assets, showing the

extent of funds a bank has kept aside to cover potential loan losses.

Proximity (or Face-to-Face) Mode Payments

Proximity mode payments refer to mobile payments made when the payer and
payee are in the same location, using technologies like NFC, QR codes, or
Bluetooth.

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Proxy

A proxy is a person appointed by a shareholder to attend a meeting and vote on

their behalf.
Prudential (or Technical ) Write-off

Technical or prudential write-off is the amount of non-performing loans which

are outstanding in the books of the branches, but have been written-off (fully
or partially) at Head Office level.
PSBA

Public Sector Bank Alliance (PSBA) Pvt Ltd. is an umbrella organisation formed
by 12 public sector banks and acts as a nodal body to deliver end-to-end
technology-enabled banking services to them.
Public Credit Registry (PCR)

The Public Credit Registry is an information repository that stores data on both
corporate and retail borrowers, including outstanding loans and repayment
history.
Public Infrastructure

Public infrastructure refers to state construction, facilities, systems, concrete,

and other structures owned and maintained by the government or it’s agency.
Public infrastructure is infrastructure owned or available for use by the public.

Pull Migration

People are migrating to other countries for better career opportunities known
as Pull Migration.
Pull payments

Pull payments describe any method where the business can take money from the
customer without approval for every single transaction.

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Purchase

When Bank extend finance against Demand Bill it is known as Purchase.

Purchasing Power

Purchasing power is the value of a currency expressed in terms of the number of

goods or services that one unit of money can buy. It can weaken over time due
to inflation. That's because rising prices effectively decrease the number of
goods or services you can buy. Purchasing power is also known as a currency's
buying power.
Purchasing Power Parity (PPP)

The PPP model refers to a method used to work out the money that would be
needed to purchase the same goods and services in two countries.
Pure Expectations Theory

Pure Expectations Theory states the idea that long-term interest rates predict
what short-term rates will do in the future. So when the market expects short-
term rates to fall, we expect to see lower long-term rates.
Push Migration

Push Migration is when due to lack of facilities, social and economic conditions
are pushing people away, to other countries.
Push payments

Push payments describe any method where the customer must take the action
to initiate payment.

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 Q
QOS & HOS

Quarterly / Half yearly Operating System (QOS / HOS) are applicable to borrowal
accounts enjoying fund based and non-fund based working capital limits of Rs.5
crore and above from the banking system.
QR (Quick Response) Code

QR Code is a two-dimensional barcode that stores information both horizontally

and vertically, making it more efficient than a regular barcode. Quick Response
(QR) Code can be scanned into and read by electronic devices.

Qualified Institutional Buyers (QIB)

Qualified Institutional Buyers (QIB) are those institutional investors who are
generally perceived to possess expertise and the financial muscle to evaluate and
invest in the capital markets. These entities are not required to be registered with
SEBI as QIBs. Any entities falling under the categories specified above are
considered as QIBs for the purpose of participating in primary issuance process.

Qualified Institutional Placement (QIP)

Qualified Institutional Placement (QIP)-A Qualified Institutional Placement (QIP)

is a way for listed companies to raise capital without having to submit legal paper
work to market regulators. The Securities and Exchange Board of India (SEBI)
created the rule to avoid the dependence of companies on foreign capital
resources.

Qualifying Event

A Qualifying Event is a change in life circumstances that allows you to alter an

existing health insurance policy, or sign up for a new one, outside of open
enrollment periods. Without a qualifying event, you would need to wait until the
next open enrollment period before making any changes. Common examples of
qualifying events include the birth or adoption of a child, death of a spouse, or
a change in marital status.

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Quality Creep

Quality Creep refers to Counter productive aspect of quality, it occurs when a

product improved over time, increasing its price beyond what is acceptable to
its customers and, thus, diminishing the product's appeal instead of enhancing
it.

Quality Discrimination

Quality discrimination is the ability to judge the quality of something by

comparing it to similar things. Discrimination can also refer to the unfair or
prejudicial treatment of people or groups based on characteristics such as race,
gender, age, or sexual orientation. Quality Discrimination is also known as
prejudiced or prejudicial outlook, action, or treatment.

Quality Spread Differential (QSD)

Quality spread differential (QSD) is used to calculate the difference between

market interest rates that two parties potentially entering into an interest rate
swap are able to achieve. It is a measurement that companies can use to gauge
counterparty risk in an interest rate swap.

Quant Fund

A quant fund is an investment fund whose securities are chosen based on

numerical data compiled through quantitative analysis. These funds are
considered non-traditional and passive. They are built with customized models
using software programs to determine investments. Proponents of quant funds
believe that choosing investments using inputs and computer programs helps
fund companies cut down on the risks and losses associated with management
by human fund managers.

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Quantitative Easing

Quantitative Easing is an occasionally used monetary policy, which is adopted by

the government to increase money supply in the economy in order to further
increase lending by commercial banks and spending by consumers. The central
bank (Read: The Reserve Bank of India) infuses a pre-determined quantity of
money into the economy by buying financial assets from commercial banks and
private entities. This leads to an increase in banks' reserves.

Quanto

Quanto is an option in which the foreign exchange risk in the underlying asset
has been removed.

Quarter on Quarter

Quarter on quarter (QOQ) is a measuring technique that calculates the change

between one fiscal quarter and the previous fiscal quarter. The term is similar to
the year-over-year (YOY) measure, which compares the quarter of one year (such
as the first quarter of 2020) to the same quarter of the previous year (the first
quarter of 2019). The measure gives investors and analysts an idea of how a
company is growing over each quarter.

Quasi Contract

A quasi contract is an obligation enforced by the law on one party to avoid unjust
enrichment of that party.

Quasi-Public Goods

Quasi Public Goods are goods that are somewhat between a private good and a
public good. They can be partially excludable and somewhat non-rival.
Examples include bridges, highways, and digital media.

Quaternary Sector

The quaternary sector of the economy is based upon the economic activity that
is associated with either the intellectual or knowledge-based economy.

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Quick Mortality of Borrowal Accounts.

All Loan Accounts of borrowers where the aggregate liability is Rs.15.00 lakhs
and above, becoming NPAs within a period of 12 months from the date of First
Disbursement in respect of loans/limits sanctioned to the concerned borrowers
for the first time shall be henceforth defined as suffering Quick Mortality. Now
this definition is changed. Presently reference period is “Date of Commencement
of Repayment” not “Date of First Disbursement”.

Quid

Quid is a slang expression for the British pound sterling, or the British pound
(GBP), which is the currency of the United Kingdom (U.K.).

Quiet Period

Quiet Period is the mandated embargo on promotional publicity prior to a

company’s Initial Public Offering (IPO). This prohibits management teams or
their marketing agents from making forecasts or expressing any opinions about
the value of their company.

Quinary Sector

The quinary sector is also an extension of the tertiary sector and is responsible
for services provided by the highest levels of organization in a society, including
publicly supported services such as government, military, education, and
healthcare.

Quote Stuffing

Quote Stuffing is the practice of quickly entering and then withdrawing large
orders in an attempt to flood the market with quotes, causing competitors to
lose time in processing them.

Quoted Currency & Base Currency

In a currency pair (in the Forex market) First one is known as Base Currency. The
Second one is known as Quoted Currency.

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Quoting Rates - Methods

Whenever a bank quotes a rate of exchange it quotes a two-way price i.e. its
buying rate and the selling rate for the currencies involved in the quote.
Whenever a bank quotes a rate of exchange it quotes a two-way price i.e. its
buying rate and the selling rate for the currencies involved in the quote.

Example: 1 USD = Rs. 62.24/62.25USD is the base currency - Rupee is the variable
currency.

The first rate, i.e. 62.24 is the price at which the quoting bank is prepared to buy
one Dollar i.e. its buying (Bid) rate.

The second number i.e. 62.25 is the price at which the quoting bank is prepared
to sell one Dollar i.e. selling (Offer) rate.

Whether it is a direct quote or indirect quote, it will be two-way. That's why

principles such as ""Buy Low Sell High"" or ""Buy High Sell Low"" have come
into practice.

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 R
Racketeering

Racketeering refer to the act of acquiring a business operation through illegal

activity, operating a business with illegally-derived income, or using a business
operation to commit illegal acts. Crimes of racketeering include bribery, various
fraud offenses, gambling offenses, money laundering, a number of financial and
economic crimes, obstructing justice or a criminal investigation, murder for hire,
and sexual exploitation of children.

RAFA Account

RAFA Account stands for Recurring Deposit Account Fixed Deposit Account. The
RAFA ratio shows how much deposit a bank has in the form of Recurring and
fixed deposits.
Ramp Up Period

Ramp Up Period is the period from completed initial product development to

maximum capacity utilization, characterized by product and process
experimentation and improvements.
Range-Bound Trading

Range-bound trading is a trading strategy that seeks to identify and capitalize

on securities, like stocks, trading in price channels. After finding major support
and resistance levels and connecting them with horizontal trendlines, a trader
can buy a security at the lower trendline support (bottom of the channel) and
sell it at the upper trendline resistance (top of the channel).
Rate Ramp

Rate Ramp is a scenario in which interest rates are changed gradually over a
period of time.

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Rate Shock

Rate Shock is a scenario in which interest rates are changed instantaneously.

Rated Policy

Rated Policy is a policy issued at a higher premium to cover a person classified

as a greater-than- average risk, usually due to impaired health or a dangerous
occupation.
RBI Hackathon HARBINGER 2024Innovation for Transformation:

The third edition of the global hackathon, HaRBInger 2024 - Innovation for
Transformation will be launched with two overarching themes viz., Zero
Financial Frauds and Being Divyang Friendly. Solutions aimed at enhancing
safety and security of digital transactions with focus on detecting, preventing
and combating financial frauds, as also prioritising inclusivity for persons with
physical disabilities, will be invited as part of HaRBInger 2024.
Real Accounts

Real Accounts are the accounts relating to Tangible & Intangible assets. These
are also known as 'Permanent Accounts'. E.g., Land & Building, Plant &
Machinery, Furniture, Copy Rights, Patent Rights etc.
Real Body

The real body is the wide part of a candle on a candlestick chart. The real body
covers the area between the opening price and the closing price for a period of
time. If the open is below the close the candle is often colored green or white. If
the close is below the open, for the time period, the candle is usually colored red
or black.
Real Interest Rate

A real interest rate is an interest rate that has been adjusted to remove the effects
of inflation. A real interest rate reflects the rate of time preference for current
goods over future goods. For an investment, a real interest rate is calculated as
the difference between the nominal interest rate and the inflation rate: Real
interest rate = nominal interest rate - rate of inflation (expected or actual).

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Really Simple Syndication (RSS)

Really Simple Syndication (RSS) feeds on a website help users to receive

automatic site updates without having to check back periodically. An RSS feed
is an actual web page consisting of simple headlines and brief summaries of
recently added or updated content (e.g., press releases, notifications). Each item
is linked to the full document at the main website.
Rebalancing

Rebalancing refers to the process of returning the values of a portfolio's asset

allocations to the levels defined by an investment plan. Those levels are intended
to match an investor's tolerance for risk and desire for reward. Over time, asset
allocations can change as market performance alters the values of the assets.
Rebalancing involves periodically buying or selling the assets in a portfolio to
regain and maintain that original, desired level of asset allocation.
Receivership

A Receivership is a court-appointed tool that can assist creditors in recovering

funds in default and can help troubled companies avoid bankruptcy.

Recession

Recession is two consecutive quarters of declining gross domestic product

(GDP). Example Let's assume that there has been a significant decline in
industrial production, employment, and wholesale or retail trade. These things
may cause GDP to decline for a three-month period (a quarter). If the situation
continues in the next quarter, most economists will declare that the economy is
in a recession.

Recession proof

Recession proof is a term used to describe an asset, company, industry or other

entity that is believed to be economically resistant to the effects of a recession.

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Recessionary Gap

Recessionary Gap is a situation wherein the real GDP is lower than the potential
GDP at the full employment level. The economy operates below the full
employment level in a recessionary gap. Recessionary gap is also termed as
contractionary gap. An economy doesn't necessarily operate at the full
employment level. So the difference that exists between the potential full
employment equilibrium and the actual ones is the recessionary gap.

Reconveyance versus Repossession

Reconveyance is transfer of property to its real owner, once the loan or the
mortgage is paid off. Repossession is taking back of property by a seller or a
lender from the buyer or the borrower due to default of payment.

Record High

A record high is the highest historical price level reached by a security,

commodity, or index during trading. The record high is measured from when the
instrument first starts trading and updates whenever the last record high is
exceeded. The values for record highs are usually nominal, which means they do
not account for inflation.

Red Clause LC

A Letter of Credit in which a provision exists for allowing pre-shipment credit to

the Beneficiary for procurement/manufacturing of the goods to be exported is
known as Red Clause LC.

Red Flagged Account

A Red Flagged Account (RFA) is one where suspicion of fraudulent activity is

raised by the presence of one or more Early Warning Signals (EWS). The
threshold for EWS and RFA is an exposure of ₹50 crore or more.

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Red Herring

Red herring is initial prospectus filed by a company with the regulator, usually
in connection with its initial public offering (IPO) is known as a red herring.
Information related to the operations of a company is contained in the red
herring prospectus. Such a prospectus is issued to potential investors. A red
herring prospectus does not consist of information about the price of securities,
the number of securities to be issued and the amount of issue.

Red Ribbon Club (RRC)

Red Ribbon Club (RRC) is a movement started by the Government of India in

schools and colleges through which, students will spread awareness over HIV /
AIDS.

Redemption

Redemption refers to the process of paying off all the money borrowed under
an agreement.

Redistribution

Redistribution is the process of taking away some part of the income from the
rich in the form of taxes and giving it to the poor through welfare schemes.
Effectively, redistribution is an important part of the government’s fiscal policy.

Red-Light Subsidies

Subsidies that are prohibited outright are called “Red-Light Subsidies”.

Registrar of Companies (ROC)

Registration of Charge - In all cases where a corporate entity (Public Ltd./Pvt.

Ltd. Co.) has been financed, ensure the following:

a) The bank’s charge is noted in the records of the Registrar of Companies.

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b) Obtaining a search report every year to verify our charges, even if the
exposure has not changed. Normal period: 30 days from the date of creation of
charge on payment of the normal fee.

Extended period: 60 days from the date of creation of charge with the registrar's
permission on payment of an additional fee as prescribed.

After expiry of the prescribed period: A further period of 60 days (i.e., 120 days
from the date of creation of charge) with the registrar's permission on payment
of an ad valorem fee as prescribed.

Registration of Documents

Purpose of Registration is notice to public. Registered document becomes public

document, such document can be inspected and certified true copy of the same
can be obtained from registration office by anybody on payment of necessary
fees and by observing the prescribed procedure. Certain registered document
prevails over unregistered document. Some important documents require
compulsory Registration under Indian Registration Act 1908.

Regressive Tax

Under this system of taxation, the tax rate diminishes as the taxable amount
increases. In other words, there is an inverse relationship between the tax rate
and taxable income.

Regret Theory

Regret theory states that people anticipate regret if they make the wrong choice,
and they consider this anticipation when making decisions. Fear of regret can
play a significant role in dissuading someone from taking action or motivating a
person to take action. Regret theory can impact an investor's rational behaviour,
impairing their ability to make investment decisions that would benefit them as
opposed to harming them.

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Regtech

Regtech is the management of regulatory processes within the financial industry

through technology. The main functions of regtech include regulatory
monitoring, reporting, and compliance. RegTech helps institutions remain
compliant through digitalization of data and processes to prevent
noncompliance, improve risk management policies, and reduce compliance
costs.

Regular trading hours (RTH)

Regular trading hours (RTH)The trading day or regular trading hours (RTH) is
the time span that a stock exchange is open, as opposed to electronic or
Extended Trading Hours (ETH). Trading days are usually Monday through Friday.
When a trading day ends, all trading ends and is frozen in time until the next
trading day begins.

Regulatory Sandbox (RS)

Regulatory Sandbox (RS) refers to live testing of new products or services in a

controlled environment for which regulators may permit certain regulatory
relaxations for the limited purpose of testing. The objective of the sandbox is to
foster responsible innovation in financial services, promote efficiency, and bring
benefits to consumers.

Rehabilitate-Operate-Transfer (ROT)

Rehabilitate-Operate-Transfer (ROT) is a PPP (Public Private Partnership) model

for infrastructure sector. Under this approach, the governments/local bodies
allow private promoters to rehabilitate and operate a facility during a concession
period. After the concession period, the project is transferred back to
governments/local bodies.

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Reinstatement

Reinstatement means if an insured person fails to pay the premium due to

various circumstances and as a result the insurance policy gets terminated, then
the insurance coverage can be renewed. This process of putting the insurance
policy back after a lapse is known as reinstatement.

Relative Strength Index

The relative strength index (RSI) is a momentum indicator used in technical

analysis. RSI measures the speed and magnitude of a security's recent price
changes to evaluate overvalued or undervalued conditions in the price of that
security. The RSI is displayed as an oscillator (a line graph) on a scale of zero to
100.

Remotely Created Check (RCC)

An RCC is a Demand Draft (issued by a bank) that functions as a remotely created

check.

Renege

Renege refers to the situation that a signed or a verbal contract is not met. In
other words, this occurs when one party breaks his or her agreement with
another party.

Replacement Level Fertility

Replacement Level Fertility is the level of fertility at which a population exactly

replaces itself from one generation to the next.

Repo rate

Repo Rate is the discount rate at which the central bank (RBI) repurchases
government securities from commercial banks, depending on the level of money
supply it decides to maintain in the country's monetary system. Repo is short for
Repossession.

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Repo Rate Vs Bank Rate

"Both are similar in respect of the nature of transactions involved and are related
to funds lent/invested by RBI to commercial banks.

Bank Rate: Related to long-term transactions; no collateral is involved.

Repo Rate: Related to short-term transactions; backed by collateral with a

repurchase agreement.

Normally, the Bank Rate is higher than the Repo Rate."

Reschedule and Restructuring

Reschedule: When a borrower fails to repay the loan installments, they can
request a reschedule of their loan. Rescheduling includes revising interest rates
and loan tenure. Rescheduling and rephasement are the same.

Restructuring: A more comprehensive process that includes all aspects of

rescheduling, lowering the repayment amount (EMI), and enhancing the loan
amount. Restructuring essentially creates a new loan as it requires modification
of all documents.

Rescission

Rescission, in the context of Insurance is the termination of an insurance contract

by the insurer when material misrepresentation has occurred.

Reserve Currency

Reserve Currency is the foreign currency held by a Government or Central Bank

of a Country as part of a country’s Reserves. Outside the United States the dollar
is the most widely used reserve currency. Everywhere the EURO is increasingly
widely used.

Reserved Matters

Reserved Matters are specific decisions that require approval from either a
certain number of shareholders or a specific type of shareholder. (like investors
holding preferred shares) before they can be actioned. These are typically crucial
decisions that could affect the fundamental aspects of the company’s operations
and future.

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Resilience

Resilience is the capacity of a system, community or society potentially exposed

to hazards to adapt, by resisting or changing in order to reach and maintain an
acceptable level of functioning and structure.

Resistance

Resistance is one of the foundational elements of technical analysis (along with

its corollary: support). Resistance is a price or price zone above the current
market that contains the upside movement of an asset. Resistance is where
selling interest appears over time, blocking further upside progress.

Restatement

A Restatement is an act of revising one or more of a company’s previous financial

statements to correct an error. Restatements are necessary when it is determined
that a previous statement contained a "material" inaccuracy. This can result from
accounting mistakes, non-compliance with generally accepted accounting
principles (GAAP), fraud, misrepresentation, or a simple clerical error.

Restricted Cash

Restricted Cash is money that is not freely available for immediate investment
use. In other words, it’s the amount of money that a firm puts aside and holds
for a particular purpose.

Retail Borrower (Regulatory Retail)

As per BASEL-III norms any advance up to ₹7.50 crore will be classified

under Regulatory Retail.

Retail Individual Investor

Retail Individual Investor refers to an investor who applies or bids for specified
securities for a value of not more than Rs 2 lakhs. Retail Investor also known as
an Individual Investor, is a non-professional investor who buys and sells
securities. Retail investors execute their trades through brokerage firms. Retail
investors purchase securities for their own personal accounts and often trade in
smaller amounts as compared to institutional investors.

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Retained Earnings

Retained Earnings refer to the portion of net income which is retained by the
rather than distributed to its owners as dividends.

Retention Limit

The maximum amount of risk retained by an insurer per life is called retention.
Beyond that, the insurer cedes the excess risk to a reinsurer. The point beyond
which the insurer cedes the risk to the reinsurer is called retention limit.

Retracement

A retracement is a technical term used to identify a minor pullback or change in

the direction of a financial instrument, such as a stock or index. Retracements
are temporary in nature and do not indicate a shift in the larger trend.

Return on Capital Employed (ROCE)

ROCE computes percentage return in the company on the funds invested in the
business by its owners. A high ratio represents better the company is.

Return on Invested Capital (ROIC)

Return on invested capital (ROIC) assesses a company's efficiency in allocating

capital to profitable investments. It is calculated by dividing net operating profit
after tax (NOPAT) by invested capital. ROIC gives a sense of how well a company
is using its capital to generate profits. Comparing a company's ROIC with its
weighted average cost of capital (WACC) reveals whether invested capital is
being used effectively.

Return On New Invested Capital (RONIC)

Return On New Invested Capital (RONIC is a calculation used by firms or

investors to determine the expected rate of return for deploying new capital. A
high RONIC indicates a more efficient use of capital, whereas a lower figure may
reflect the poor allocation of resources.

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Returned Item Fee

In case a cheque has bounced due to insufficient funds or another reason, the
account holder will be penalized with a fee. This fee is called returned item fee.

Revalidation

Revalidation is duly authenticated extension of the validity period for

negotiation /payment of cheque/draft or a negotiable instrument.

Revenge Shopping

Revenge Shopping is the act of shopping extravagantly after a period where one
has been denied the opportunity to shop. It usually refers to overindulgence to
celebrate an occasion or to overcome frustration.

Revenue Per Available Seat Mile (RASM)

RASM is a unit of measurement commonly used to compare the efficiency of

various airlines. It is obtained by dividing operating income by available seat
miles (ASM). Generally, the higher the RASM, the more profitable the airline
under question. Revenue is represented in cents and is not solely limited to ticket
sales, as other factors of efficiency and profitability are taken into account.

Reversal

A reversal is a change in the price direction of an asset. A reversal can occur to

the upside or downside. Following an uptrend, a reversal would be to the
downside. Following a downtrend, a reversal would be to the upside. Reversals
are based on overall price direction and are not typically based on one or two
periods/bars on a chart. Certain indicators, such a moving average, oscillator, or
channel, may help in isolating trends as well as spotting reversals. Reversals may
be compared with breakouts.

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Reverse Auction

In this type of auction many types of seller bid for a single buyers order. This
process of the auction is said to be complete when the buyer and the seller of
the product accept the bid.

Reverse Repo Rate

Reverse Repo Rate is the rate at which RBI borrows money from the commercial
banks.

Reverse Stock Split

A reverse stock split is a type of corporate action that consolidates the number
of existing shares of stock into fewer (higher-priced) shares. A reverse stock split
divides the existing total quantity of shares by a number such as five or 10, which
would then be called a 1-for-5 or 1-for-10 reverse split, respectively. A reverse
stock split also is known as a stock consolidation, stock merge, or share rollback
and is the opposite of a stock split, where a share is divided (split) into multiple
parts.

Reverse Sweep ( Sweep-Out )

In the case of Flexi Deposits, if there is a shortfall in the Savings Account to

honour any debit, the balance in the FD to the extent needed for meeting the
shortfall is automatically withdrawn. The remaining balance in the FD continues
to earn higher interest at the original Term Deposit rate. This process is called
Reverse Sweep or Sweep-Out.

Reversion

Reversion refers to the owner's right to retake possession of property when a

lease ends.

Revolving Credit

A credit agreement that allows consumers to pay all or part of the outstanding
balance on a loan or credit card. As credit is paid off, it becomes available again
to use for another purchase or cash advance.

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Revolving LC - Protective Clause

"The following protective clause should invariably be incorporated in the

Revolving Letter of Credit:

“The amount utilised under this credit shall be again available for utilisation only
on receipt by the negotiating branch/bank of the advice that the draft already
drawn by the beneficiary has been reimbursed by the opener.”"

Rider

Rider is the add-on benefits which are in addition to the benefits under a basic
policy The add-on benefits which are in addition to the benefits under a basic
policy. A rider is also referred to as an insurance endorsement. It can be added
to policies that cover life, homes, autos, and rental units.

Right of Recompense

The bank has the right to recover the sacrificed amount during restructuring
once the unit has become viable and sufficient cash flows are generated by the
unit. This is known as the Right of Recompense.

Right of Set-off

Combining 2 or more accounts having debit and credit balance in same or

different branches of the same Customer is called Right to Set-off. Right to Set
Off can be exercised on FDRs, available on maturity only and not during tenancy.

Ring Fence

The term ring-fence refers to the creation of a virtual barrier that segregates a
portion of a company's financial assets from the rest. This may be done to
reserve money for a specific purpose, to reduce taxes on the individual or
company, or to protect the assets from losses incurred by riskier operations.
Moving a portion of assets offshore to reduce an investor's net worth or lower
the taxes due on income is one example of ring-fencing.

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Risk and Control Self-Assessment (RCSA)

RCSA is a process used by banks and financial institutions to identify and assess
their operational risks systematically.

Risk Averse

Risk Averse describes investors who prioritize the preservation of capital over
seeking higher-than-average returns, as volatile investments may lead to large
losses.

Risk-free Rate

The risk-free rate of return is the theoretical rate of return of an investment with
zero risk. The risk-free rate represents the interest an investor would expect from
an absolutely risk-free investment over a specified period of time.

Right of First Offer [ROFO]

The Right of First Offer obligates shareholders wishing to sell their shares to first
offer them to the company or to existing shareholders before approaching
external buyers. This right allows current shareholders or the company the
chance to acquire these shares before they are made available to others.

Right of First Refusal [ROFR]

The Right of First Refusal allows existing shareholders or the company to buy
shares from a shareholder who wishes to sell, but only after the shareholder has
received an offer from an outside buyer. This right is beneficial as it prevents
shares from being sold to potentially unwanted third parties.

RNOR

RNOR is an acronym for Resident but Not Ordinarily Resident. It is a transitional

residential status given to returning NRIs before they become a resident of India.
RNORs are treated on par with NRIs for Indian income tax purposes.

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Robosigning

Robosigning is the practice of signing large number of documents without

checking that they are accurate , often done by people without proper authority.

Robotic Process Automation (RPA)

RPA in finance is the use of robotic applications to automate repetitive

processes, allowing employees to focus on more critical tasks.

Rogue Trading

Rogue trading refers to traders engaging in fraudulent practices, while trading

on behalf of their institutions with a view of deliberately violating an institution’s
trading related rules / mandates, with the intention of deriving superior
monetary benefits for themselves.

Role Ambiguity

Role ambiguity is a confusing situation that emerges because of a vague job

description where responsibilities and boundaries are not clearly defined. It is a
circumstance where an individual doesn’t understand adequately what his job
actually is.

Routing

Routing Number is a number that can identify your bank based on the
geographical location of the institution. Bigger banks may have several routing
numbers while smaller ones have only one.

Rule of '69'

Rule of 69 says that period during which the amount will double will be
calculated by dividing 69 by the rate of interest +0.35. To illustrate with 9% rate
of interest the period will be 69/9+0.35 i.e. 7.67+0.35 years i.e. around 8.02
years.

Rural Non-Farm Sector (RNFS) The Rural Non-Farm Sector (RNFS)

encompasses all non-agriculture activities: mining and quarrying, household and
non-household manufacturing, processing, etc.

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Run-off Factor

A run-off factor in banking is the likelihood that deposits will be withdrawn or

transferred from a bank, especially during stressful situations.

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 S
S4A Scheme

The Scheme for Sustainable Structuring of Stressed Assets (S4A) was a program
launched by the Reserve Bank of India (RBI) in 2016 to help corporate entities
facing debt issues. The S4A scheme ended in February 2018.

Sachet (Hindi for “Alert”)

Sachet website is an initiative to curb illegal acceptance of deposits by

unscrupulous entities. The website enables public to obtain information
regarding entities that are allowed to accept deposits, lodge complaints and also
share information regarding illegal acceptance of deposits by unscrupulous
entities. The website is an initiative of the State Level Coordination Committee
(SLCC). SLCC is the joint forum formed in all States to facilitate information
sharing among the Regulators viz. RBI, SEBI, IRDA, NHB, PFRDA, Registrar of
Companies (RoCs) etc. and Enforcement Agencies of the States viz Home
Department, Finance Department, Law Department, Economic Offences Wing
(EOW) etc., with the objective to control the incidents of unauthorized
acceptance of deposits by unscrupulous entities.

Safe Deposit Locker – Death of Hirer - Pracautions

On receipt of notice of the death of a sole hirer or the last survivor of joint hirers,
the locker should be sealed with the Bank’s seal, and a note to this effect should
be made in all respective records.

Safe Harbor

Safe Harbor is a provision in law that protects individuals or entities from liability
or penalties if certain conditions are met.

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Safe Haven

A safe haven is a type of investment that is expected to retain or increase in value

during times of market turbulence. Investors seek out safe havens in order to
limit their exposure to losses in the event of market downturns. However, what
assets are actually deemed safe havens can vary depending on the specific nature
of the down market. That means in order for an investment to act as a safe haven,
investors must perform ample due diligence. A safe haven is an investment
expected to retain or increase in value during market turbulence, providing
security during market downturns.
Sahamati

Sahamati is a frame-work developed by Aadhar architect Mr. Nandan Nilekani

which aims to make bank account operations paperless. Sahamati is a Collective
of Account Aggregator (AA) ecosystem being set up as a non-Government,
private limited company. AA is a process by which information from all of an
individual's or household’s accounts are collected in one place. The architecture
of AA is based on the Data Empowerment and Protection Architecture (DEPA)
framework.
Salvage value

Salvage value also called residual or scrap value is the estimated worth of an
asset at the end of its useful life. In other words, salvage value is the price
management believes it can sell an asset for after the asset is deemed unusable
because of time, abuse, and obsolescence.
Samurai Bonds

Samurai Bonds are Yen-denominated bonds issued in Japan by a foreign

borrower.
Santa Claus Rally

Santa Claus rally describes a sustained increase in the stock market that occurs
in the last week of December through the first two trading days in January.

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SARFAESI Act and Limitation

Action under SARFAESI Act will not save Limitation.

Satisficing

Satisficing is a decision-making strategy that aims for a satisfactory or adequate

result, rather than the optimal solution. Instead of putting maximum exertion
toward attaining the ideal outcome, satisficing focuses on pragmatic effort when
confronted with tasks.
Scalability

Scalability refers to the ability of a company to sustain or better its performance

in terms of profitability or efficiency when its sales volume increases.
SCOMET Item

SCOMET item is an acronym for Special Chemicals, Organisms, Materials,

Equipment, and Technologies and these are dual-use items that can be used for
both civilian and military applications. India's Foreign Trade Policy regulates the
export of items in the SCOMET list.
SCORES

SCORES is related to SEBI's online platform that provides a centralised database

of all complaints.
Search Engine Optimisation (SEO)

SEO or Search Engine Optimisation is a method used to increase a Web

property’s (or a website’s) searchability.
Seasonal Effects Versus Cyclical Effects

Seasonal effects are different from cyclical effects, as seasonal cycles are
observed within one calendar year, while cyclical effects, such as boosted sales
due to low unemployment rates, can span time periods shorter or longer than
one calendar year.

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Seasonal Industry

Seasonal Industry refers to a group of companies related by their common

business activities that earn the majority of their income during a fairly small
number of weeks or months each calendar year. The annual business cycle for
these firms is fairly predictable. Seasonal industries have only one or two high
points during which customer activity ramps significantly.
Seasonality

Seasonality is a characteristic of a time series in which the data experiences

regular and predictable changes that recur every calendar year. Any predictable
fluctuation or pattern that recurs or repeats over a one-year period is said to be
seasonal.
Secured Bill

A Secured Bill is one accompanied by the Title to Goods, such as LR or RR.

Securities Premium Account

Securities Premium Account can be used for writing off any preliminary expenses
of the company. To write off expenses of issue of shares and debentures, such
as commission paid or discount given on the issue of shares. This account is
credited for money paid, or promised to be paid, by a shareholder for a share,
but only when the shareholder pays more than the cost of a share. This account
can be used to write off equity-related expenses, such as underwriting costs, and
may also be used to issue bonus shares.

Security Receipt (SR)

Security Receipt (SR) means a receipt or other security, issued by an ARC to any
Qualified Buyer (QB) pursuant to a scheme, evidencing the purchase or
acquisition by the holder thereof, of an undivided right, title or interest in the
financial asset involved in securitisation.

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Seigniorage

Seigniorage is the difference between the value of currency/money and the cost
of producing it. It is essentially the profit earned by the government by printing
currency.
Sell in May and Go Away

Sell in May and go away is a well known saying in finance. It is based on stocks'
historical underperformance during the six-month period from May to October.
Seller's Market

Seller's Market is a market in which the seller seems to have the upper hand and
so can charge a higher Price.
Sell-off

Sell-off occurs when a large volume of securities are sold in a short period of
time. Due to the law of supply and demand, this causes a corresponding decline
in the price of the security. In the stock market, common causes include the
release of disappointing earnings reports, fears of increased competition, or the
threat of technological disruption. Broader causes, such as macroeconomic
concerns or natural disasters, can also trigger sell-offs. Although sell-offs are
dramatic to behold, they are generally short-lived declines which stabilize or
reverse themselves relatively quickly.
Semi-Variable Costs

Semi-Variable Costs are costs which can’t be classified strictly as fixed cost or
variable cost and are termed as Semi Variable cost. They increase with increase
in volume of production but not in same proportion. Examples of Semi Variable
costs are Telephone charges, Selling expenses, electricity and some other Selling
General and Administrative expenses (SGAs). In practice Banks consider Semi
variable costs as fixed cost for calculation of BEP and in some cases 50% of the
Semi Variable cost are taken as Fixed Cost and 50% as variable cost.

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SENSEX

Full Form of Sensex is Sensitive Index. Sensex is the stock market index of the
Bombay Stock Exchange (BSE) – it is also called BSE Sensex.
Separation

Separation is the technique of reducing risk through separating parts of business

or assets or liabilities. Separation is the technique of reducing risk through
separating parts of business or assets or liabilities.
September Effect

The September Effect refers to the historically weak stock market returns
observed during the month of September. In fact, September has been the worst
performing month, on average, going back nearly a century.
Sequential Growth

Sequential growth is a measure of a company's short-term financial performance

that compares the results in a recent period to those of the period immediately
preceding it. In financial reporting, sequential growth often compares results
between two quarters. A company might report 3% sequential sales growth,
meaning that its revenue has increased by 3% since the previous quarter.

SETU (Self-Employment and Talent Utilization)

SETU (Self-Employment and Talent Utilization) has a building up approach to

strengthen start-ups, and other self-employment initiatives, especially in
technology-driven areas. The Programme is administered by NITI Ayog.

SFMS

SFMS stands for “Structured Financial Messaging System”. It is an Electronic

Data Interchange (EDI) system (like SWIFT) to exchange of structured messages.

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SGS Certificate

SGS Certificate of Pre-shipment Inspection of merchandise by Well-known

International inspection agencies like Societe Generale De Surveillance (SGS) or
its subsidiary or Lloyds Inspection. Agency certifying that the quality, Quantity
and description of merchandise loaded on the vessel conform to the sale
Contract/FL Inspection agencies also undertake supervision while loading the
cargo on Board the vessel.
Shadow Banking

Shadow Banking refers to often high-yield lending undertaken by NBFCs that

takes place outside the regular banking sector. They are not subject to strict
regulation and can sometimes be risky.
Shadow Credit

Credit given to a customer with a lien marked, preventing the customer from
using the amount until the lien is released.
Shakeout

A shakeout is a situation in which many investors exit their positions in a stock

or market segment at the same time, often at a loss. A shakeout is usually caused
by uncertainty or recent bad news circulating around a particular security or
industry. Shakeouts can be quite variable in duration, but they are usually sharp
in terms of the amount lost from recent highs.

Share Turnover

Share turnover is a measure of stock liquidity, calculated by dividing the total

number of shares traded during some period by the average number of shares
outstanding for the same period. The higher the share turnover, the more liquid
company shares are.

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Shinplasters

Shinplasters, also referred to as Fractional currency, refer to low-denomination

banknotes. Shinplasters, also referred to as Fractional currency, refer to low-
denomination banknotes.
Shogun Bonds

Shogun Bonds are Foreign currency-denominated bonds issued within Japan by

Japanese companies.
Short Dates

Short dates refer to wholesale deposits with maturities of less than one month.
(A short date is a foreign exchange swap or outright transaction for value less
than 1 month after spot.)
Short Selling

Short selling is an investment or trading strategy that speculates on the decline

in a stock or other security's price. It is an advanced strategy that should only be
undertaken by experienced traders and investors.
Showrooming

Shoppers now combine smartphone technology and old fashioned frugality into
a practice called showrooming. In showrooming, a customer will go to a store
and shop for a product, then use the smartphone to search the Web to see
whether the store’s price is the best or can be bettered elsewhere.

Shrinkflation

Shrinkflation is the practice of reducing the size of a product while maintaining

its sticker price. Raising the price per given amount is a strategy employed by
companies, mainly in the food and beverage industries, to stealthily boost profit
margins or maintain them in the face of rising input costs.

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Shut Out Shipment

Sometimes, after the customs authorities have passed the goods for shipment,
the goods might not be loaded onto the ship due to lack of space or a diversion
in voyage. This is called a Shut Out Shipment. In such cases, the exporter must
obtain a necessary certificate from the customs authorities and submit the
duplicate copy of the GR form to the bank along with the certificate obtained.

Side-Pocketing

Segregation of bad debts or illiquid debt instruments from Standard Assets

(liquid portfolio) is known as “Side-pocketing”.
Sideways Market

A sideways market, or sideways drift, occurs when the price of a security trades
within a fairly stable range without forming any distinct trends over some period
of time. Price action instead oscillates in a horizontal range or channel, with
neither the bulls nor bears taking control of prices.

Silk Road

Silk Road is an online market open for the sale of goods and named after the
ancient road used to bring goods from the Orient to the West. Silk Road was an
online black market and the first modern darknet market, best known as a
platform for selling illegal drugs.

Silo Mentality

Silo Mentality is a reluctance to share information with employees of different

divisions in the same company. This attitude is seen as reducing the
organization's efficiency and, at worst, contributing to a damaged corporate
culture.

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Simple Interpolation

Interpolation means estimating an unknown value from other known values in a

range. Simple interpolation is based on the assumption that the unknown value
we are trying to calculate lies on a straight line, graphically, between two known
values.

Single-Premium Life Insurance

Single-Premium Life (SPL) insurance charges the policyholder a single up-front

premium payment to fully fund the policy. It is a popular tax shelter. Single-
premium life (SPL) is insurance in which a policyholder pays a lump sum of
money upfront in exchange for a guaranteed death benefit. The policy requires
that the holder has access to a large sum of money up front, meaning it's not
financially feasible for many individuals.
Sinking Fund

A fund created, by gradual periodic deposits, with the objective of getting a

targeted amount to pay off future debts, is called a sinking fund.
Six Sigma

Six Sigma is a business methodology to increase customer satisfaction and

profitability by streamlining operations, improving quality, and eliminating
defects in every organization-wide process. The word Six Sigma is related to
statistical quality control. Sigma stands for deviation (standard deviation).
According to normal probability distribution, a spread of –six times sigma— is
equal to a probability of 99.7% (or 3.4 defects per million opportunities).
Sin Tax

As the name suggests, this kind of tax is levied on goods and services which are
considered harmful to society. Tobacco, alcohol, and gambling are some of the
examples of the products that attract 'sin tax' on them.

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Slander

Slander is harming a person's reputation by telling one or more other people

something untrue about that person.
Sleeper Hit

Sleeper Hit is a product that is initially unsuccessful but becomes a big success
later on. A sleeper hit may have little promotion or lack a successful launch, but
then garner a fan following that rewards it with media attention, which in turn
increases its public exposure and public interest in the product.
Slippage

Slippage refers to the difference between the expected price of a trade and the
price at which the trade is executed. Slippage can occur at any time but is most
prevalent during periods of higher volatility when market orders are used. It can
also occur when a large order is executed but there isn't enough volume at the
chosen price to maintain the current bid/ask spread.
Small Account

A small account is a savings account with the following restrictions:

Balance: The maximum balance in the account cannot exceed ₹50,000 at any
time
Credits: The total credits in a financial year cannot exceed ₹100,000
Withdrawals and transfers: The total withdrawals and transfers in a month
cannot exceed ₹10,000
If any of these limits are exceeded, further transactions will not be permitted
until the limits are met.
Small and Marginal Farmers

Farmers with agricultural holdings of up to 2.50 acres are considered Marginal

Farmers. Farmers with holdings above 2.50 acres but up to 5.00 acres are
considered Small Farmers.

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For Priority Sector loans, “Small and Marginal Farmers" include landless
agricultural labourers, tenant farmers, oral lessees, and share-croppers, whose
share of landholding falls within the prescribed limits."

Smart Banker

Smart Banker is a comprehensive banking software solution targeted at medium

and large-sized banks.
Smart Money

Smart Money is the capital that is being controlled by institutional investors,

market mavens, central banks, funds, and other financial professionals. Smart
money was originally a gambling term that referred to the wagers made by
gamblers with a track record of success.
Smishing

Smishing is a combination of the terms "SMS" and "Phishing". It refers to

fraudulent messages sent over SMS (text messaging).
Smurf

Money launderer, or one who seeks to evade scrutiny from government agencies
by breaking up a transaction involving a large amount of money into smaller
transactions that are below the reporting threshold.

Smurfing

Smurfing is a common placement technique. Cash from illegal sources is divided

between 'deposit specialists' or 'smurfs' who make multiple deposits into
multiple accounts (often using various aliases) at any number of financial
institutions. In this way, money enters the financial system and is then available
for layering. Suspicion is often avoided as it is difficult to detect any connection
between the smurfs, deposits and accounts.

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SNRR Account

Any person resident outside India, having a business interest in India, may open
a Special Non-Resident Rupee Account (SNRR account) with an authorised
dealer for the purpose of putting through bona fide transactions in rupees.
Social Audit

Social audit is a formal review of a company's endeavours, procedures, and code

of conduct regarding social responsibility and the company's impact on society.
A social audit is an assessment of how well the company is achieving its goals or
benchmarks for social responsibility. In the era of corporate social responsibility,
corporations are often expected to deliver value to consumers and shareholders
as well as meet environmental and social standards. Since social audits are
voluntary, any release of the findings to the general public is also voluntary.
Social Control

Social Control is described as a certain set of rules and standards in society that
keep individuals bound to conventional standards as well as to the use of
formalized mechanisms.
Social Infrastructure

Social infrastructure includes the construction and maintenance of facilities that

support social services. Social infrastructure include healthcare (medical facilities
and ancillary infrastructure), education (schools, universities and student
accommodation), and housing.
Social Media Marketing (SMM)

Social media—especially influencer content—significantly impacts buying

decisions. marketers across industries are driving the evolution of social media
marketing (SMM) from a stand-alone tool to a multipronged source of
marketing intelligence on an increasingly important—and growing—audience.
As the use of social media trends upward, marketers are perfecting strategies to
capture the significant competitive advantage that engagement with this key
audience can deliver even more rapidly and more effectively than traditional
marketing.

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Social Mobility

Social mobility refers to how a person's socioeconomic situation improves or

declines relative to that of their parents or throughout their lifetime. It can be
measured in terms of earnings, income, social class, and well-being dimensions
such as health and education.
Social Stratification

Social stratification refers to a society's categorization of its people into groups

based on socio-economic factors like wealth, income, race, education, gender,
occupation, social status, derived power (social and political).
Soft Assets

Soft Assets are human resources (people, skills and knowledge) and intangible
assets (information, brands, and reputation). Soft assets are hard to value and
are not usually reflected in the books of account, nor are they typically subjected
to periodic inventory.
Soft Bullet

Soft bullet refers to a flexible range of maturity dates in Securitisation.

Soft Commodities

Soft Commodities are perishable commodities, or commodities which are hard

to store, are known as soft commodities, softs, or agricultural items such as
grains, coffee or sugar.
Soft Costs

Soft Costs refer to those costs which are not directly related, i.e., they are
indirectly related to the construction of the building or its development.
Soft Currency

Soft Currency, also called weak currency, a currency for which there is not much
demand and whose values often fluctuate.

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Soft Infrastructure

Soft infrastructure refers to all the institutions that help maintain a healthy
economy. These usually require extensive human capital and are service-
oriented toward the population. Soft infrastructure includes all educational,
health, financial, law and order, governmental systems (such as social security),
and other institutions that are considered crucial to the well-being of an
economy.
Soft Landing

A soft landing is a cyclical slowdown in economic growth that avoids recession.

Soft landing may also refer to a gradual, relatively painless slowdown in a
particular industry or economic sector. It describes attempts by central banks to
raise interest rates just enough to stop an economy from overheating and
experiencing high inflation, without causing a significant increase in
unemployment, or a hard landing. It may also refer to a sector of the economy
that is expected to slow down without crashing.
Soft loan

Soft loan is basically a loan on comparatively lenient terms and conditions as

compared to other loans available in the market. These easier conditions might
be in the form of lower interest rates, prolonged repayment duration, etc.
Soft NPA & Hard NPA

Accounts classified as NPA recently (normally during current financial year) are
known as Soft NPA. If we target them, it is easy to recover compared to old NPAs,
which are known as Hard NPAs.
Sovereign Default

Sovereign default is the failure by a government to repay its national debts.

Countries are typically hesitant to default on their national debt since doing so
will make borrowing funds in the future more difficult and more expensive.
However, sovereign nations are not subject to normal bankruptcy laws and
always have the power to escape responsibility for their debts, often without
legal consequences.

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Sovereign Wealth Fund (SWF)

A sovereign wealth fund is a state-owned investment fund comprised of money

generated by the government, often derived from a country's surplus reserves.
SWFs provide a benefit for a country's economy and its citizens.
Special Employer

The term Special Employer refers to a person, company, or another organization

that receives an employee on loan from another employer. Corporations may
need to hire employees at certain times and are able to borrow individuals from
another company through a joint employer program. The original employer
relinquishes responsibility for the employee, which means the special employer
assumes the liability for the employee's actions. Despite this, the special
employer doesn't become the employee’s actual employer.

Special Mention Accounts

Special Mention Accounts are those assets/accounts that shows symptoms of

bad asset quality in the first 90 days itself or before it being identified as NPA.
Special Purpose Acquisition

A Special Purpose Acquisition Company (SPAC) is a company without

commercial operations and is formed strictly to raise capital through an initial
public offering (IPO) for the purpose of acquiring or merging with an existing
company. These are Also known as "blank check companies”.

Specific Performance Clause

Specific performance clause is a specialized type of contractual equitable relief

that may require the defendant to complete the terms of a contract when the
court believes no other remedy (such as money) will adequately compensate the
injured party. Parties to an agreement may insert a specific performance clause
into the contract to protect their interests in the event of a breach of contract by
either party, especially when the awarding of a monetary award may be deemed
insufficient.

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Speculative Attack

Speculative Attack is massive selling of domestic currency by foreign and

domestic investors to acquire foreign currencies. Often this type of behaviour by
players in the foreign exchange market is aimed to make gain from exchange
rate movements. Usually, speculative attack is associated with fixed exchange
rate systems where the central banks intervene in the foreign exchange market
by supplying foreign currencies.

Speed Limit

Speed Limit is the rate at which the economy can grow without triggering
inflation.

Spillover Effect

Spillover effect refers to the impact that seemingly unrelated events in one
nation can have on the economies of other nations. Although there are positive
spillover effects, the term is most commonly applied to the negative impact a
domestic event has on other parts of the world such as an earthquake, stock
market crisis, or another macro event.

Spinoff

When a company creates a new independent company by selling or distributing

new shares of its existing business, this is called a spinoff. A spinoff is a type of
divestiture. A company creates a spinoff expecting that it will be worth more as
an independent entity. A spinoff is also known as a spin-out or starburst.

Split Rating

Split rating is divergence between the ratings assigned to a single issuer by two
ratings agencies.

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Spoofing

Spoofing is using a variety of techniques for misrepresenting legitimate user

authorization. It is impersonating a legitimate customer through use of his/her
account number, password, personal identification number, and/or email
address.

Spot Date

The spot date refers to the day when a spot transaction is typically settled,
meaning when the funds involved in the transaction are transferred. The spot
date is calculated from the horizon, which is the date when the transaction is
initiated. In forex, the spot date for most currency pairs is usually two business
days after the date the order is placed.

Spot Market

The spot market is where financial instruments, such as commodities, currencies,

and securities, are traded for immediate delivery. Delivery is the exchange of
cash for the financial instrument. A futures contract, on the other hand, is based
on the delivery of the underlying asset at a future date.

Spot Price

The spot price is the current price in the marketplace at which a given asset—
such as a security, commodity, or currency—can be bought or sold for immediate
delivery. While spot prices are specific to both time and place, in a global
economy the spot price of most securities or commodities tends to be fairly
uniform worldwide when accounting for exchange rates. In contrast to the spot
price, a futures price is an agreed upon price for future delivery of the asset.

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Spread & Burden

Bank Spread (Interest Spread) is the difference between the interest rate that a
bank charges a Borrower and the interest rate a bank pays a Depositor. The bank
spread tells how much money the bank earns versus how much it gives out.
Interest Spread” & “Net Interest Income” are one and the same. The difference
between ‘non-interest expenditure’ and non-interest income’ is defined as
“Burden”. “Interest Spread’ less ‘Burden’ determines “ Operating Profit’ “.
Square Position

In the context of Forex Markets, position where cash inflows match cash
outflows in a given currency for a certain date or period of time is known as
Square Position.
Stable Coin

Stable coin is a class of cryptocurrencies that attempt to offer price stability and
are backed by a reserve asset.
Stagflation

Stagflation is a combination of stagnant growth and rising inflation. Typically,

inflation rises when the economy is growing fast. This is because as people earn
more, they become capable of paying higher prices for the same quantity of
goods. When the economy stalls, inflation tends to dip as well. This is again due
to the fact that there is less money now chasing the same quantity of goods. In
contrast, stagflation is said to happen when an economy faces stagnant growth
as well as persistently high inflation. With stalled economic growth,
unemployment tends to rise.
Stalking Horse Bid

A Stalking Horse Bid is an initial bid on the assets of a bankrupt company. The
bankrupt company will choose an entity from a pool of bidders who will make
the first bid on the firm’s remaining assets. The stalking horse sets the low-end
bidding bar so that other bidders can’t underbid the purchase price.The term
“stalking horse” originates from a hunter trying to be concealed behind either a
real or fake horse.

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Stand-alone Loan & Cross Collateralised Loan

Stand-alone Loans mean loans which are secured solely by one property.
Opposite of Stand-alone Loan is Cross Collateralised Loan. In case of Cross
Collateralised Loan two or more properties linked together to secure one or more
loans by the same lender.
Standalone Risk

Standalone risk is the risk of loss on a single loan or other contract, ignoring
portfolio effects.
Star (*) Series Currency Notes

The Star symbol is inserted in the number panel of a banknote that is used as a
replacement for defectively printed banknotes in a packet of 100 pieces of
serially numbered currency notes, the central bank said. Fresh banknotes issued
by the Reserve Bank of India till August 2006 were serially numbered. Each of
these notes have a distinctive serial number along with a prefix consisting of
numerals and letters.
Stare Decisis

Stare Decisis (also known as The Doctrine of Precedent) is a legal doctrine that
obligates courts to follow historical cases when making a ruling on a similar case.
Stare decisis ensures that cases with similar scenarios and facts are approached
in the same way. Simply put, it binds courts to follow legal precedents set by
previous decisions. Stare decisis is a Latin term meaning "to stand by that which
is decided."
Start-up Ecosystem

Start-up Ecosystem is a supportive environment comprised of entrepreneurs,

start-ups in various stages of development and different types of organizations
in a location; interacting as a system to create new start-ups. The supportive
organizations or institutions are spread into different sectors- educational
institutions, firms, financial institutions, semi-government entities, and social
organizations.

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Sterilisation

Sterilisation in the context of monetary policy refers to the activity of the RBI of
taking away the excess money supply created due to its foreign exchange market
intervention. Here, excess money supply has been occurred when the RBI bought
dollars (foreign exchange/currency) from the foreign exchange market while
giving rupee.
Sterilised Intervention

Sterilised Intervention is the intervention which has no impact on the short term
interest rate.
Stimulus Package

Stimulus Package is a package of tax rebates and incentives used by the

governments of various countries to stimulate economy and save their country
from a financial crisis.
Stochastic

Stochastic is the random occurrence of a given event. It is a statistical term that

refers to situations that can’t be expected or predicted.
Stock Gap

A stock gap is an area discontinuity in a security's chart where its price either
rises or falls from the previous days close with no trading occurring in between.
Gaps are common when news causes market fundamentals to change during
hours when markets are typically closed, for instance, an earnings call after-
hours.
Stock Option

Stock Option gives an investor the right, but not the obligation, to buy or sell a
stock at an agreed upon price and date. There are two types of options: Puts &
Calls. Put option is a bet that a stock will fall, whereas Call Option is a bet that a
stock will rise.

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Stock Split

Stock split occurs when a company increases the number of its shares to boost
the stock's liquidity. Although the number of shares outstanding increases by a
specific multiple, the total dollar value of all shares outstanding remains the
same because a split does not fundamentally change the company's value.

Stock Symbol

Stock Symbol is a unique series of letters assigned to a security for trading

purposes. Stocks listed on the New York Stock Exchange (NYSE) can have four or
fewer letters. Nasdaq-listed securities can have up to five characters. Symbols
are just a shorthand way of describing a company's stock, so there is no
significant difference between those that have three letters and those that have
four or five. Stock symbols are also known as ticker symbols.

Stoozing

Stoozing also called arbitrage, is the practice of taking a free or low Interest loan
from a bank, depositing it in a high-yield deposit account, making profit.

Stop Orders

Stop orders are types of order that instruct your broker to execute a trade when
it reaches a particular level: one which is less favorable than the current market
price. They can also be known as stop-loss orders.

Straddle

A straddle is a neutral options strategy that involves simultaneously buying (long

position) both a put option (leg one) and a call option (leg two) for the
underlying security with the same strike price and the same expiration date.

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Strategic Alliance

Strategic Alliance is an agreement between two entities to pool their resources

for achieving a common business goal. They are generally entered when each
entity to the agreement possess some kind of an expertise. This expertise, when
combined makes them complete and provides a distinct competitive advantage
to both the entities. Unlike Joint Venture, SA doesn’t necessitate the creation of
the new entity. As a result, the entities involved in SA can continue to operate as
an independent entity.
Strategic Debt Restructuring (SDR)

Strategic Debt Restructuring (SDR) is a scheme designed to recover bad assets

of banks. Or in other words, it aims to convert bad assets into performing assets.
Under SDR, banks who have given loans to a corporate borrower gets the right
to convert the full or part of their loans into equity shares in the loan taken
company.
Stress Testing

Stress Testing is a practice widely adopted by central bankers to measure the

capacity of individual institutions and the system as a whole to withstand shocks.
Structuring

Structuring involves splitting transactions into separate amounts to avoid the

transaction reporting requirements. Many money launderers rely on this
placement technique because numerous deposits can be made without
triggering the cash reporting requirements. Structuring is a criminal offence
itself, as well as an indicator of other potentially illegal activity.
Subordinated Debt

Subordinated debt (also known as a subordinated debenture) is an unsecured

loan or bond that ranks below other, more senior loans or securities with respect
to claims on assets or earnings. Subordinated debentures are thus also known as
junior securities. In the case of borrower default, creditors who own
subordinated debt will not be paid out until after senior bondholders are paid in
full.

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Subprime Loan

Subprime Loan is a type of loan offered at a rate above prime to individuals who
do not qualify for prime-rate loans. Quite often subprime borrowers have been
turned down by traditional lenders because of their low credit ratings or other
factors that suggest they have a reasonable chance of defaulting on the debt
repayment.
Subrogation

Subrogation is the substitution of one person or thing for another, especially the
placing of a surety who has paid the debt in the place of the creditor, entitling
him or her to payment from the original debtor. In Insurance, Subrogation is the
transfer of legal rights of the insured to recover, to the Insurer.
Subsidy

Subsidy is a transfer of money from the government to an entity. It leads to a

fall in the price of the subsidised product. Description: The objective of subsidy
is to bolster the welfare of the society. It is a part of non-plan expenditure of the
government. Major subsidies in India are fertiliser subsidy, food subsidy,
interest subsidy, etc.
Subvention

Subvention refers to a grant of money in aid or support, mostly by the

government. In the Indian context, for instance, the government sometimes asks
financial institutions to provide loans to farmers at below market rates. The loss
is usually made good through subventions. Aajeevika - Interest Subvention
Scheme is a type of subvention scheme introduced by the government for the
welfare of the rural livelihoods.
Sudden Stop

Sudden stop describes a swift reversal of international capital flows; either a

stopping of capital inflows or sharp capital outflows. The sudden stop problem
is characteristic to emerging market economies that tends to depend on capital
inflows.

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Sundry Assets – Need for Least Balance

The amount outstanding under Sundry Assets should be maintained at the

minimum level possible, as it attracts 100% Risk Weight for the Capital Adequacy
Ratio.
Sunk Cost – Fallacy & Dilemma

Sunk costs are those irrevocable costs which have already been occurred and
cannot be retrieved. Here, the costs can be in term of your money, time or any
other resource. Sunk cost fallacy, also known as Concorde fallacy, is an emotional
situation where the individuals take sunk costs into consideration while making
the decisions.

Suppose you went to watch a movie in the theatre, but you find the movie
terrible. Then you have two options - walk out of the theatre or continued
watching it till the end because you have already paid for the ticket. If you choose
the latter, you have fallen for the sunk cost fallacy. Another example can be when
you eat foods that you do not like because you have already bought that food
and cannot revoke that sunk cost.
Similarly, overeating after ordering foods in restaurants because food has been
already ordered is also an example of sunk cost fallacy. Here, the dilemma is that
the person cannot easily walk away from the project as he has already spent a
lot of time and energy. On the other hand, continuously pouring more money,
time and resources in the project also do not seem a good idea because the
outcomes are uncertain. This dilemma of deciding whether to proceed further or
to quit is called sunk cost dilemma.
Sunrise Industry

Sunrise Industry Sunrise industry is a term used for a sector that is just in its
infancy but shows promise of a rapid boom. The industry is typically
characterized by high growth rates, high degree of innovation and generally has
plenty of public awareness about the sector, and investors get attracted to its
long-term growth prospects.

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Super Saturday

Super Saturday also known as “Panic Saturday,” is the last Saturday before
Christmas, a major revenue-generating day for retailers, and an opportunity for
shoppers to purchase last-minute gifts. As such, Super Saturday features big
discounts, extended store hours, and for many retailers, one of the best sales
days of the year.
Supply Bottlenecks

Supply Bottlenecks refers to the difficulties of supply of a commodity to take

place even if there is demand for it. Main reason for supply bottleneck is poor
production and productivity, primitive technology etc. The supply bottlenecks
are a major reason for rising prices or inflation in developing countries.
Supply Chain

Supply chain is a network between a company and its suppliers to produce and
distribute a specific product to the final buyer. This network includes different
activities, people, entities, information, and resources. The supply chain also
represents the steps it takes to get the product or service from its original state
to the customer.
Supply Shock

Supply shock is an unexpected event that suddenly changes the supply of a

product or commodity, resulting in an unforeseen change in price. Supply shocks
can be negative, resulting in a decreased supply, or positive, yielding an
increased supply; however, they're often negative. Assuming aggregate demand
is unchanged, a negative (or adverse) supply shock causes a product's price to
spike upward, while a positive supply shock decreases the price.
Support

Support, or a support level, refers to the price level that an asset does not fall
below for period of time. An asset's support level is created by buyers entering
the market whenever the asset dips to a lower price.

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SupTech

SupTech, short for supervisory technology, is the application of emerging

technology to improve how supervisory agencies conduct supervision. SupTech
has emerged to help regulatory agencies digitize data, operational procedures,
and automate the regulatory process. As a result, SupTech may someday be able
to proactively monitor a financial institution’s transactions or client;s data to
prevent noncompliance or at the very least respond to a compliance violation in
far less time than is being done today.

Surrender Value

Surrender Value is the value payable to the policy holder in the event of his
deciding to terminate the policy before the maturity of the policy.
Surveillance

Surveillance refers to a monitoring system that alerts banking regulators to

sudden changes in a bank's condition.
Survival Benefit

Survival Benefit is the payment of sum assured to the incurred person which has
become due by instalments under a money back policy.
Sushasan Divas (Good Governance Day)

India, observed Good Governance Day (Sushasan Divas) on 25th December. On

this day nation celebrates the birth anniversary of Bharat Ratna and former-
Prime Minister Atal Bihari Vajpayee.

Sushi Bonds

Sushi Bonds are Eurodollars or other non-yen-denominated bonds issued by a

Japanese firm for sale to Japanese investors.

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Sustainable Business 20 (SB20)

Sustainable Business 20 (SB20) ranking contains a group of stocks that are

chosen according to the companies' ability to provide products and services
while contributing to a sustainable economy. The SB20 are selected yearly by a
panel of judges with experience in analyzing sustainable stocks. The list attempts
to identify innovative and progressive companies with the potential to positively
contribute to the goal of a more sustainable society.

Sustainable Finance

Sustainable Finance refers to any form of financial service integrating

environmental, social and governance (ESG) criteria into the business or
investment decisions for the lasting benefit of both clients and society at large.

Sustainable Growth Rate (SGR)

The sustainable growth rate (SGR) is the maximum rate of growth that a
company or social enterprise can sustain without having to finance growth with
additional equity or debt. In other words, it is the rate at which the company can
grow while using its own internal revenue without borrowing from outside
sources. The SGR involves maximizing sales and revenue growth without
increasing financial leverage. Achieving the SGR can help a company from
avoiding being over- leveraged and financial distress.

SVAMITVA

SVAMITVA (Survey of Villages and Mapping with Improvised Technology in

Village Areas) : This is a Central Sector Scheme, which was launched in April 2020
to provide the record of rights of the residential properties‟ to village household
owners in rural areas and issue Property Cards.

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SWAMIH

SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund was
established in November 2019, the GoI acting as Sponsor and SBICAP Ventures
Limited has been engaged as the investment manager. Purpose of estabishment
of this Special Window is provide priority debt financing for the completion of
stalled housing projects across the country that are in the affordable and middle-
income housing sector.

Swap

Swap means simultaneous sale of spot currency for the Forward purchase of the
same currency or the purchase of spot for the forward sale of the same currency.
Swap Meet (or Flea Market)

Swap Meet is a type of street market that provides space for vendrs to sell
previously-owned (second hand) merchandise.
Swap Rate

Swap rate is the fixed interest rate in a coupon swap.

Sweat Equity Shares

Shares which are issued by a company to its Directors or Employees at a discount

or for a consideration other than cash for providing their knowhow, or
intellectual property or value addition.
Sweep-In -- Auto Sweep Facility

In the case of Flexi Deposits, any balance exceeding a stipulated amount is

automatically transferred to a Fixed Deposit for a default term. This allows the
excess balance in a CASA Account to earn a substantially higher rate of return.
The process is called Sweep-In.

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Sweep-Out (Reverse Sweep)

In the case of Flexi Deposits, if there is a shortfall in the Savings Account to

honour any debit, the balance in the FD to the extent needed for the shortfall is
automatically withdrawn. The remaining FD balance continues to earn interest
at the original Term Deposit rate. This process is called Reverse Sweep or Sweep-
Out.
Swing High

The term swing high is used in technical analysis. It refers to a peak reached by
an indicator or a securitys price before a decline. A swing high forms when the
high reached is greater than a given number of highs positioned around it. A
series of consecutively higher swing highs indicates that the given security is in
an uptrend. A swing high can occur in a rangebound or trending market.
Swing Low

Swing low is a term used in technical analysis that refers to the troughs reached
by a security’s price or an indicator during a given period of time, usually fewer
than 20 trading periods. A swing low is created when a low is lower than any
other surrounding prices in a given period of time. A swing lows opposite
counterpart is a swing high. Swing lows and swing highs are used a number of
different ways to identify trading strategies, trend directions and volatility
ranges.
Swing pricing

Swing pricing is a mechanism to apportion the costs of redemption and purchase

requests on the shareholders whose orders caused the trades. It is designed so
that remaining shareholders don’t bear all the costs (including dilution) caused
by first movers.
Swingline Loan

Swingline Loan is a type of loan which will be used to pay the existing debt. It is
a large amount of loan, but for a very short duration (average of 15 days) and
on shorter notice. The interest rate on such loans is higher than the usual loan

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Swiss Challenge Method

Under the Swiss Challenge method, a candidate makes a proposal for a project,
which the government puts before the public to seek more proposals. Once these
are received, the original candidate is allowed to match the best bid. Applied to
the ongoing bankruptcy cases, a Swiss Challenge may entail two rounds of
bidding for a distressed company or its assets. Assume that Company A wins the
first round of bidding by a quoting a price of Rs 5,000 crore for a power plant.
This will be made public and a second set of bids invited. If Company B quotes
Rs 5,500 crore, Company A will be offered a second opportunity to match it. If it
refuses, Company B would be declared the winning bidder. If Company A steps
up, then it will bag the power plant at Rs 5,500 crore.

Symbolic Delivery

Symbolic Delivery is made wherein the goods are heavy and bulky and it is
difficult to hand over the goods to the buyer physically. In this situation, the
delivery is made by indicating or giving a symbol that the goods are under the
possession of the buyer. For example, the delivery of the keys of the warehouse
where the goods are kept is considered to be the symbolic delivery. A document
like a bill of lading must be given to the buyer to make him entitled to hold the
delivered goods.

Symmetrical Triangle

A symmetrical triangle is a chart pattern characterized by two converging

trendlines connecting a series of sequential peaks and troughs. These trend lines
should be converging at a roughly equal slope. Trend lines that are converging
at unequal slopes are referred to as a rising wedge, falling wedge, ascending
triangle, or descending triangle.

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Systematic Risk (“Systematic Risk” is different from “Systemic Risk”)

Systematic risk refers to the risk inherent to the entire market. Systematic risk,
also known as “undiversifiable risk,” “volatility” or “market risk,” affects the
overall market, not just a particular stock or industry. This type of risk is both
unpredictable and impossible to completely avoid. It cannot be mitigated
through diversification, only through hedging or by using the correct asset
allocation strategy.

Systemic Risk is the possibility that an event at the company level could trigger
severe instability or collapse an entire industry or economy. Systemic risk was a
major contributor to the financial crisis of 2008. Companies considered to be a
systemic risk are called "too big to fail." ( “Systemic Risk” is different from
“Systematic Risk”).Systemic Risk describes an event that can spark a major
collapse in a specific industry or the broader economy. Systematic Risk is the
pervasive, far-reaching, perpetual market risk that reflects a variety of troubling
factors.
Systemically Important Banks

Systemically Important Banks are the one with big size, network, and their ability
to provide complex financial products on their own. Because of their importance,
central banks have to take more precautions for their health. Hence the Basel III
sets criteria for the identification of such banks globally and domestically and
recommends advanced regulations form them.

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 T
Tail Period

Tail Period is the time difference between the end of planned debt amortization
period and the end of operating period. The debt should be planned to be repaid
well before the completion of operating period. It is better to have longer Tail
Period in Infrastructure project financing.
Tailgating

Tailgating is trading stock or any other financial asset by a broker who has inside
knowledge of a future transaction that is about to affect its price substantially.
This exploitation of information that is not yet public is illegal and unethical in
almost all cases. Tailgating is also called Front-running.
Take a flier

Take a flier is a colloquial term referring to the risk an investor takes when they
knowingly make an investment that may result in a significant loss. It is a slang
term describing the actions of a person who knowingly engages in a risky
activity.
Tap-to-Pay

Tap-to-Pay (also tap-and-go) refers to a system for making payments in which a

smart card, mobile phone, etc., is tapped onto a contact point that connects it to
an electronic reader.
Tare Weight

Tare Weight is the weight of an empty container employed for transportation

purposes. It can also be obtained from subtracting the weight of the cargo
content from the container gross weight.

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Target-Zone Arrangement

Target-Zone Arrangement is an international monetary arrangement in which

countries vow to maintain their exchange rates within a specific band around
agreed-upon, fixed, central exchange rates.
Tariff

Tariff is a tax imposed by one country on the goods and services imported from
another country. Governments impose tariffs to raise revenue, protect domestic
industries, or exert political leverage over another country.
Tax Haven

A tax haven is a country that offers foreign businesses and individuals minimal
or no tax liability for their bank deposits in a politically and economically stable
environment. They have tax advantages for corporations and for the very
wealthy, and obvious potential for misuse in illegal tax avoidance schemes.
Companies and wealthy individuals may use tax havens legally as a means of
stashing money earned abroad while avoiding higher taxes in the U.S. and other
nations.
Tax-Equivalent Yield

The tax-equivalent yield is the return that a taxable bond would need to equal
the yield on a comparable tax-exempt municipal bond. The calculation is a tool
that investors can use to compare the returns between a tax-free investment and
a taxable alternative.

Tax-loss Harvesting

Tax-loss Harvesting is the selling of securities at a loss to offset a capital gains

tax liability. This strategy is typically employed to limit the recognition of short-
term capital gains, which are too high.

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Taxpayer Information Summary (TIS)

Taxpayer Information Summary (TIS) contains information relating to income

earned from various sources such as salary, dividend, interest from savings
accounts, recurring deposits, sale and purchase of equity shares, bonds, mutual
funds, etc. The TIS is a generation of Taxpayer Information available in AIS in a
simplified format.
Taylorism

Taylorism is a production system that divides the manufacturing process in small

steps that reduce the degree of skills required to perform each activity. The aim
of Taylorism is to increase productivity and to reduce training times to increase
output level.
Technical forecasting

Technical forecasting involves the use of historical exchange rates to predict

future values.
Technical write-off

Technical write-offs refer to cases where the non-performing assets remain

outstanding at borrowers’ loan account level, but are written-off (fully or
partially)
Teddy Bear Hug

Teddy Bear Hug or a Bear Hug is a type of acquisition where the acquiring
company offers a higher purchasing price than the current price of the target
company. Under this acquisition, a higher price is being provided because the
target company is unwilling to sell.
Teeming and Lading

Teeming and Lading is a term used to describe attempts to hide the loss of cash
received from one customer by using cash from another customer or customers
to replace it. It also involves using other customers' money in the same way, and
so on.
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Temporal method

Temporal method translates assets valued in a foreign currency into the home
currency using the exchange rate that exists when the assets are purchased.
Term Sheet

A Term Sheet is a preliminary agreement sets the stage for investment deal,
outlining the basic terms. It isn’t legally binding but guides future legal
documents.
Termination Option or Abandonment Termination Option

Abandonment is an optional clause in a contract or an agreement. This option

allows either party to cease or abandon the project any time before the maturity.
Or, we can say it gives all parties in a contract the right to end or leave the
agreement, without fulfilling their obligations.
Testamentary Guardian

Guardian appointed by father of a minor, is called as Testamentary Guardian and

testamentary guardian will come into picture only after death of father.
Testator

A Person who makes Will is known as Testator.

Thalinomics

Thalinomics is the economics of a plate of food in India” is an attempt to figure

out how much a meal costs in India. The price of a meal, both egetarian and non-
vegetarian, is modelled for 25 States /UTs, taking into account the price of
cereals, vegetables, pulses and the cost of fuel. The survey found that since 2015-
16, there was a change in the dynamics of ‘thali’ prices and it is observed that
cost of meal has come down moderately. The Survey claims that the reforms
undertaken a year ago to enhance agricultural productivity as well as efficiency
and effectiveness of agricultural markets for better and more transparent price
discovery led to the change in prices of thali.

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Too Big To Fail” (TBTF)

Too Big To Fail” (TBTF) indicates that some financial institutions like banks are
having big size so that if they fail, it will be catastrophic for the economy. Hence,
the central bank or government should come at their rescue if they face any
crisis.

Times-Revenue Method

The times-revenue method is a valuation method used to determine the

maximum value of a company. The times-revenue method uses a multiple of
current revenues to determine the "ceiling" (or maximum value) for a particular
business. Depending on the industry and the local business and economic
environment, the multiple might be one to two times the actual revenues.
However, in some industries, the multiple might be less than one.

TIBOR

TIBOR is an acronym for the Tokyo Inter-bank Offered Rate, which is the daily
reference rate derived from the interest rates that banks charge to lend funds to
other banks in the Japanese inter-bank market.

Tick

Tick is the smallest movement in the prices of a commodity when the market is
in an upward or downward trend.

Ticker symbol

Ticker symbol is a unique series of letters assigned to a security for trading

purposes. Stocks listed on the New York Stock Exchange (NYSE) can have four or
fewer letters. Nasdaq-listed securities can have up to five characters. Symbols
are just a shorthand way of describing a company's stock, so there is no
significant difference between those that have three letters and those that have
four or five. Ticker symbols are also known as Stock symbols.

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Tier I Capital

Tier I Capital refers to one of the components of regulatory capital. It consists

mainly of share capital and disclosed reserves (minus goodwill, if any). Tier I
items are deemed to be of the highest quality because they are fully available to
cover losses Hence it is also termed as Core Capital.

Tier II Capital

Tier II capital refers to one of the components of regulatory capital. Also known
as supplementary capital, it consists of certain reserves and certain types of
subordinated debt. Tier II items qualify as regulatory capital to the extent that
they can be used to absorb losses arising from a bank's activities. Tier II's capital
loss absorption capacity is lower than that of Tier I capital.

Tiger Team

Tiger Team is a term used for a team of specialists formed to work on specific
goals or to solve particular problems.

Time Value of Money (TVM) (aka Present Discounted Value)

Time Value of Money (TVM) is the concept that money available at the present
time is worth more than the equal sum in the future due to its potential earning
capacity. This core principle of finance holds that, provided money can earn
interest, any amount of money is worth more the sooner it is received. TVM is
also sometimes referred to as Present Discounted Value.

Timeliness Risk

Timeliness risk is the risk caused due to delays in processing information (wrong
time).

Tithi Bhojan

Tithi Bhojan is a community participation programme in which people provide

special food to children on special occasions/festivals.

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TLR (Triple Lock Receptacle)

To suit public convenience, the exchange facility for Mutilated Notes is also
offered by RBI through TLR covers. We can obtain a TLR cover from the Enquiry
Counter of the Reserve Bank and put our Soiled Notes in the cover with
particulars, such as, name, address, denominations of notes deposited, etc. filled
in the columns provided on the cover, close it and deposit it in a box called Triple
Lock Receptacle against issue of a paper token. The admissible exchange value
of the mutilated notes will be remitted by means of a bank draft or a pay order.
Mutilated notes can also be sent to any of the RBI offices by registered/insured
post. Receptacle is a container used for putting objects in.

Tobashi Scheme

A tobashi scheme is a financial fraud through creative accounting where a

client's losses are hidden by an investment firm by shifting them between the
portfolios of other (genuine or fake) clients. Any real client with portfolio losses
can therefore have their accounts flattered by this process. This cycling cannot
continue indefinitely and so the investment firm itself ends up picking up the
cost. As it is ultimately expensive there must be a strong incentive for the
investment firm to pursue this activity on behalf of their clients.

Tobin Tax

Tobin tax is applicable to financial sector participants to control the stability of

a country's currency. It is also called the Financial Transactions Tax (FTT), or
less formally a Robin Hood tax. This tax is also imposed on spot currency trades
to penalize short-term currency trading, stabilize markets, and disincentivize
speculation risks. Tobin tax is a tax on the international flow of short-term
capital.

Tombstone

Tombstone is a written advertisement of a public offering placed by investment

bankers who are underwriting the issue. It gives basic details about the issue and
lists each of the underwriting groups involved in the deal. The tombstone
provides investors with some general information and directs the prospective
investors to a link where they can obtain a prospectus.

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Tom-Next

Tom-next is short for 'tomorrow-next day', which is a short-term forex

transaction that enables traders to simultaneously buy and sell a currency over
two separate business days: tomorrow, and the next day.

Top Line

The top line refers to gross figures reported by a company, such as sales or
revenue. It is called the top line because it appears at the top of a company's
income statement. A company that increases its revenue or sales is said to be
achieving top-line growth.

Tort Liability

Tort Liability is a legal duty to compensate someone for damages caused. It is

the result of a court’s sentence where the wrongdoer has to pay for the injury
committed against the victim.

Trade Finance

Trade Finance covers different activities such as issuing letters of credit, lending,
forfeiting, export credit and financing and factoring.

Trade War

Trade War is an economic conflict resulting from extreme protectionism in which

countries raise or create tariffs or other trade barriers against each other in
response to trade barriers created by the other party.

Trading Halt

Trading Halt is a temporary suspension of trading for a particular security or

securities at one exchange or across numerous exchanges. Trading halts are
typically enacted in anticipation of a news announcement, to correct an order
imbalance, or due to regulatory concerns. When a trading halt is in effect, open
orders may be cancelled, and options still may be exercised.

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Trading on Equity

Trading on equity refers to the use of borrowed funds to maximize the return to
owners.

Trafficking

Trafficking means illegal or improper commercial activity.

Tragedy of the Commons

A common resource or "commons" is any resource, such as water or land, that

provides users with tangible benefits but which nobody has an exclusive claim.
The tragedy of the commons is an economic problem where the individual
consumes a resource at the expense of society. If an individual acts in their best
interest, it can result in harmful over-consumption to the detriment of all. This
phenomenon may result in under-investment and total depletion of a shared
resource.

Trailing 12 Months (TTM)

Trailing 12 Months (TTM) is a term used to describe the past 12 consecutive

months of a company’s performance data, that’s used for reporting financial
figures. The 12 months studied do not necessarily coincide with a fiscal year
ending period. Analysts and investors use TTM to dissect a wide swath of
financial data, such as balance sheet figures, income statements, and cash flows.
The methodology for calculating TTM data may differ from one financial
statement to the next.

Tranche

Tranche is a French word for slice. It is used widely to mean a portion, allocation,
or installment.

Tranches

Tranches are a collection of securities that are separated and grouped based on
various characteristics and sold to investors.

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Transaction Banking

Transaction Banking is the Banking business that deals with the day to day
transactions of corporate and institutional customers including international
trade finance, domestic and cross border payments. It comprises of mainly three
services - Cash Management, Trade Finance and Trust and Securities Services.

Transfer and Receipt

Transfer and Receipt - A transfer is a receipt of money without making anything

reciprocal. An example for transfer is the government transfer in the form of a
subsidy. Here, the receiver of the subsidy gets it freely. The world Direct Benefit
Transfer contains this meaning. The opposite word for transfer is receipt. Here,
we get a payment for the services or goods we sold.

Transparent Market

Transparent market is a market in which there is open communication between

stakeholders, investors, and company officials, and current trade and quote
information is readily available to the public.

Travel Rule

Travel Rule requires all financial institutions to pass on certain information to

the next financial institution, in certain funds transmittals involving more than
one financial institution.

TReDS

TReDS (Trade Receivables Discounting System) is an automated platform

designed to benefit Micro, Small, and Medium Enterprises (MSMEs). It facilitates
the auctioning of trade receivables at competitive market rates through a
transparent bidding process involving multiple financiers.

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Trickle-down Effect

Trickle-down Effect refers to the phenomenon of fashion trends flowing from

the upper class to lower class in society. It also refers to how new consumer
products, when first introduced into the market, are costly and only affordable
by the wealthy, but as the product matures its price begins to fall so it may be
more widely adopted by the general public. Trickle-down economics, also known
as trickle-down theory or the horse and sparrow theory, is the economic
proposition that taxes on businesses and the wealthy in society should be
reduced as a means to stimulate business investment in the short term and
benefit society at large in the long term.

Trickle-down theory

Trickle-down theory is an economic theory that suggests that economic policies

that benefit the wealthy and businesses will eventually benefit the economy as a
whole. The theory is based on the idea that tax cuts, deregulation, and other
policies that favour the wealthy will lead to increased investment, job creation,
and economic growth.

Triple Bottom Line (TBL)

Businesses today evaluate performance based on three critical aspects:

Attaining profits.

Caring for people or communities.

Caring for the planet or environment.

TBL focuses on balancing these three elements. At the macro level, it promotes
a more holistic approach to the development of a country’s economy, society,
and ecology.

Triple Constraint

All the projects are brought about under some constraints. Triple constraint is a
four components group (time, scope, cost and quality of the product)
represented by a triangle with time, scope and cost at corner side and quality at
the central theme. There must a balance among all these components as the
change in any one will impact the other components.

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Trite Law

Trite Law points or things that are obvious and that are of common knowledge
are known as Trite Law.

Trojan Horse

Trojan horse means someone or something intended to defeat or subvert from

within usually by deceptive means. In computing, a Trojan horse is a program
downloaded and installed on a computer that appears harmless, but is, in fact,
malicious.

Troubled Debt Restructure

Troubled Debt Restructure is a restructuring in which the lender, for economic

or legal reasons related to the borrower's financial difficulties, allows the debtor
certain concessions that would not normally be considered. The concessions are
made to maximize recovery of the investment.

True Cost Economics

True cost economics is an economic model that includes the cost of negative
externalities associated with goods and services.

Truncated cheque

Truncation refers to stopping the physical flow of cheques issued by the drawer
to the drawee branch. Instead, during the clearing process, the physical cheque
is retained at a point, and an electronic image along with details such as MICR
fields, date of presentation, and presenting bank, is sent to the drawee bank for
payment.

Trust Account

Trust Account is one which is set up to hold funds for a third party with specific
purposes. In other words, it is an account set up by an institution with a
predetermined reason and beneficiary.

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Trustee

Trustee is a person or firm that holds and administers property or assets for the
benefit of a third party. A trustee may be appointed for a wide variety of
purposes, such as in the case of bankruptcy, for a charity, for a trust fund, or for
certain types of retirement plans or pensions. Trustees are trusted to make
decisions in the beneficiary's best interests and often have a fiduciary
responsibility to the trust beneficiaries.

Turnaround

A turnaround occurs when a company recovering from prolonged poor

performance begins to improve financially. An effective turnaround requires:

Acknowledging and identifying the problems.

Considering management changes.

Developing and implementing a problem-solving strategy

Two-tier Foreign Exchange Market

Two-tier Foreign Exchange Market is an arrangement of two exchange

markets— a formal market (at the official rate) for certain transactions and a free
market for remaining transactions.

Tying

Tying is an often illegal arrangement where, in order to buy one product, the
consumer must also purchase another product that exists in a separate market.

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 U
UCPDC – Time for Negotiation

Under UCPDC, the issuing and negotiating banks are allowed five banking days
following the date of receipt of documents to scrutinize them.
Ultra Vires

Ultra vires is an action outside the proper authority or power of a corporation or

corporate officer as established in the corporate charter. (Latin for "beyond the
power.")
Ultra-High Net-Worth Individual (UHNWI)

UHNWI are defined as people with investable assets of at least $30 million
(approx Rs 230 Crores), usually excluding personal assets and property such as a
primary residence, collectibles, and consumer durables. UHNWIs comprise the
wealthiest people in the world and control a dis- proportionate amount of lobal
wealth. Although they constitute only 0.003% of the world’s total population,
they hold approximately 13% of the world's total wealth.

Umpire Clause

Umpire Clause refers to language in an insurance policy that provides for a

means of resolution by an unbiased third party if an insurer and an insured
cannot agree on the amount of a claim payment. An umpire clause is the same
thing as an arbitration clause.

Unbanked

Unbanked is an informal term for adults who do not use banks or banking
institutions in any capacity. While often an issue in the developing world, there
are also pockets of unbanked adults in developed countries, including the United
States.

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Unbundling

Unbundling is the process of breaking a financial transaction down into several

components that can be provided separately.
Unclaimed Deposits

Unclaimed deposits are categorized as High Risk.

Undercast

Undercast is a type of forecasting error that occurs when estimates turn out to
be below realized values. Undercast estimates can occur because of a
conservative management team or a volatile or unpredictable market.
Continuous under casting indicates that a company is ineffectively deploying its
resources based on poor estimates.
Underwriter

Underwriter is a mediator between the securities issuer and the public investor;
mostly an investment company authorized to raise capital from investors on be-
half of companies and governments that issue securities (shares and bonds). It
undertakes to buy the shares that have not been sold to the public.
Undervalued Currency

An undervalued currency is a currency that has a market value that is lower than
its intrinsic buying power. This can happen due to a number of factors, including:
Economic indicators: Weak economic indicators can make a currency less
appealing to investors .
Unearned Revenue

Unearned Revenue is the money that the individual or company receives prior to
providing or delivering the services and goods. It can be the prepayment for the
goods and services that a person or a company is to provide to the purchaser in
the future. This prepayment is the liability for the seller equal to the revenue
earned until the company provides the services. The unearned revenue is also
called as deferred revenue and advance payments.

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Unemployment Trap

Unemployment Trap is a situation when unemployment benefits discourage the

unemployed to go to work. People find the opportunity cost of going to work
too high when one can simply enjoy the benefits by doing nothing.
Unholy Trinity

Unholy Trinity (also known as Impossible Trilemma or Impossible Trinity) is one

of the challenges faced by the central bank. It deals with three problem areas –
exchange rates, the inflow of capital, and monetary policy independence.
Unified Pension Scheme (UPS)

Unified Pension Scheme (UPS), which will provide government employees

with assured pension after retirement. The scheme will be effective from 1st
April, 2025 with central government employees shifting to UPS from the
current National Pension System (NPS). State governments will also have the
option to adopt the Unified Pension Scheme.

Uniform Bill of Lading

The uniform bill of lading provides standardized basic information about a

shipment such as the shipper and recipient's names and the shipment's origin
and destination. In addition, the document establishes the terms of the carrier's
liability, transport time frame, how to file a claim for a lost or damaged
shipment, how insurance will be applied in the event of a claim, and how the
shipment may be stored or disposed of if the shipment is refused or is not
deliverable.

Unique Transaction Reference (UTR)

Unique Transaction Reference (UTR) number is a 22-character code used

to uniquely identify a transaction in RTGS system.

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Unitranche Debt

Unitranche Debt is a hybrid model combining different loans into one, with an
interest rate for the borrower that sits in between the highest and lowest rate on
the individual loans.

Units Per Transaction

Units per transaction (UPT) is a sales metric often used in the retail sales sector
to measure the average number of items that customers are purchasing in any
given transaction. The higher the UPT, the more items customers are purchasing
for every visit.

Universal Basic Income (UBI)

Universal Basic Income (UBI) is a social welfare proposal in which all the
beneficiaries regularly receive a guaranteed income in the form of an
unconditional transfer payment.

Unlevered Free Cash Flow

Unlevered free cash flow (UFCF) is a company's cash flow before taking interest
payments into account. Unlevered free cash flow can be reported in a company's
financial statements or calculated using financial statements by analysts.
Unlevered free cash flow shows how much cash is available to the firm before
taking financial obligations into account.

Unpublished Price Sensitive Information (UPSI)

Unpublished Price Sensitive Information means any information, relating to a

Company or its securities, directly or indirectly, that is not generally available
which upon becoming generally available, is likely to materially affect the price
of the securities.

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Unrealized Gain

An unrealized gain occurs when the current market value of an asset exceeds its
original purchase price or book value, but the asset has not been sold. It is
sometimes called a "paper" gain, since it only exists as an accounting entry until
it is realized. A paper loss is similarly an unrealized loss. An unrealized gain
becomes realized once the position is ultimately sold for a profit. It is possible
for an unrealized gain to be erased if the asset's value drops below the price at
which it was bought.

Unrealized Loss

An unrealized loss is a "paper" loss that results from holding an asset that has
decreased in price, but not yet selling it and realizing the loss. An investor may
prefer to let a loss go unrealized in the hope that the asset will eventually recover
in price, thereby at least breaking even or posting a marginal profit. For tax
purposes, a loss needs to be realized before it can be used to offset capital gains.
Unrealized gains and losses can be contrasted with realized gains and losses.

Unrecognised NPA

Unrecognised NPA refer to standard accounts that are prima facie not
expected to be tagged as NPA, even though the borrower may have been
labelled so by other lender/s. These are also known as ‘Imminent NPA’.

Unsecured Exposure

Unsecured exposure is defined as an exposure where the realizable value of the

security, as assessed by the bank/approved valuers /Reserve Bank’s
inspecting officers, is not more than 10%, ab-initio, of the outstanding exposure.

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Unsought Products

Unsought products are those that consumers typically don't buy or wouldn't
consider purchasing regularly. Most people who purchase unsought products do
not plan the purchase ahead of time. Often, a consumer doesn't even know that
the product exists until the need arises to purchase it. Prices of unsought
products can vary greatly and they typically are not offered by a wide variety of
sellers.

Unsystematic Risk

Unsystematic risk is the unique risk which is specific to a particular portfolio and
which can be eliminated by diversification. It is also known as 'Diversifiable risk/
Unique risk / Asset-specific risk.'

UPI Interoperable Cash Deposit (UPI-ICD)

UPI-ICD innovative service allows you to deposit cash into your bank account
using any UPI app, eliminating the need for a physical debit card. While initially
available at select ATMs of banks like Axis Bank and Union Bank of India, more
banks are expected to adopt this service in the near future. UPI Interoperable
Cash Deposit (UPI-ICD) allows you to deposit cash into your bank account using
any UPI app, regardless of the bank operating the ATM.

Upselling

Upselling is the practice of offering a better product or service to a consumer

than their intended product. The primary purpose of upselling is to encourage
the consumer to acquire a higher-quality product and hence pay a greater price.
Both parties leave happier: the supplier with more revenue and the customer
with a product of higher quality and utility.

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Upstream Guarantee & Downstream Guarantee

Downstream and upstream guarantees are the main forms of cross guarantee
that involve a parent company and its subsidiaries.

An upstream guarantee is a form of guarantee in which a subsidiary guarantees

its parent company’s debts. An upstream guarantee occurs when the parent
company does not own enough assets to pledge as collateral for a loan and
includes the subsidiary’s assets to expand its collateral.

On the other hand, a downstream guarantee is a guarantee provided by the

parent company for its subsidiary company, to assure lenders that the subsidiary
will honour its financial obligations. In the event that the subsidiary is unable to
make its loan repayments, the parent company commits to repay the loan on
behalf of the subsidiary.

Uptick

Uptick describes an increase in the price of a financial instrument since the

preceding transaction. An uptick occurs when a security’s price rises in relation
to the last tick or trade. An uptick is sometimes also referred to as a plus tick.

Urbanization

Urbanization is the population shift from rural to urban areas, the corresponding
decrease in the proportion of people living in rural areas, and the ways in which
societies adapt to this change. It can also mean population growth in urban areas
instead of rural ones.

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 V
Valley of Death

Valley of Death refers to the strong risk situation for start-ups to fail after the
initial stages. The valley of death refers to financial risks that start-ups face as
they struggle to grow from small teams to going ventures.
Value Chain

Value Chain series of transactions necessary to bring a product from inputs to

the final market, involving a process of adding value at every stage.
Value Stock

A Value Stock refers to shares of a company that appears to trade at a lower price
relative to its fundamentals, such as dividends, earnings, or sales, making it
appealing to value investors.
Vanishing Premium

Vanishing Premium is a periodic fee paid for an insurance policy that continues
until the cash value of the policy grows enough to cover the fee. At that point,
the premium "vanishes" as payments are no longer necessary, but are instead
covered by the policy's internal value and dividend stream.
Variable Rate Repo (VRR) Auction

Variable Repo Rate is used when RBI desires to infuse liquidity in economy but
Banks are not eager to borrow from RBI at Repo Rates as interest rates in
economy may already be lower. In that case RBI allows Banks to borrow at rate
decided by market generally lower than Repo Rate (though not less than Reverse
Repo Rate) for duration more than One Day. Usually, the central bank announces
the variable rate repo (VRR) auction to inject liquidity in the banking system
when it turns tight or deficit.

Variety

Variety refers to the many different types of data available. With the rise of big
data, there is a significant increase in unstructured data types.

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Vega

Vega is the measurement of an option's price sensitivity to changes in the

volatility of the underlying asset. Vega represents the amount that an option
contract's price changes in reaction to a 1% change in the implied volatility of
the underlying asset.

Vehicle Currency

Currency that is used as a unit of account, medium of exchange and store of

value not only for transactions within the country, but also for international
public and private transactions. In most markets, US dollar is the vehicle
currency, Viz., the currency used to denominate international transactions.

Velocity

Velocity refers to the fast rate at which data is received and, in some cases, acted
upon. This is especially important for internet-enabled smart products that
operate in real-time or near-real-time, requiring quick evaluations and
responses.

Venture Capital

Venture capital involves active investors who not only buy stakes in companies,
but also advise them, and help them build businesses that are fit for purpose
using their experience from working with other similar companies.

Venture Debt

Venture debt doesn’t do all that. When the venture lender lends venture debt,
they don’t become shareholders or get involved in the management of the
businesses.

Versioning

Versioning is a business practice in which a company produces different models

of essentially the same product and then charges different prices for each model.
Versioning a product gives the consumer the option of purchasing a higher
valued model for more money or a lower-valued model for less money. In this
way, the business is attempting to attract higher prices based on the value a
customer perceives.

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Versioning (also known as "quality discrimination")

Versioning (also known as "quality discrimination")is a business practice in

which a company produces different models of essentially the same product and
then charges different prices for each model. Versioning a product gives the
consumer the option of purchasing a higher valued model for more money or a
lower-valued model for less money. In this way, the business is attempting to
attract higher prices based on the value a customer perceives.

Vertical Analysis

Vertical Analysis also called Common-size Analysis, is a financial analysis tool

that lists each line item on the financial statements as a percentage of its total
category. In other words, it’s a method used to analyze financial statements by
comparing individual entries as a proportion of their total accounts like assets,
liabilities, and equity.

Vertical balance

Vertical balance refers to the balanced distribution of tax and other resources
between the central government and state governments.

Vertical FDI

Vertical FDI, a business expands into another country by moving to a different

level of supply chain. Thus business undertakes different activities overseas but
these activities are related to main business.

Vertical Integration

Vertical Integration is when a business expands by acquiring another company

that operates before or after them in the supply chain.

Vested Bonus

Vested Bonus is the bonus already accrued, which is declared and attached to a
policy. Once vested it becomes guaranteed.

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Vesting

Vesting means to give or earn a right to a present or future payment, asset, or

benefit. It is most commonly used in reference to retirement plan benefits when
an employee accrues incentives or employer contributions made to the
employee's retirement plan account or pension plan.

Vesting Schedule

Vesting Schedule is an incentive program for employees that gives them

benefits, usually stock options, when they have contractually fulfilled a specified
term of employment with the company. The benefits can also be other assets,
such as retirement funds. Vesting is a way for employers to keep top-performing
employees at the company.

VFM Audit

Value For Money (VFM) audit is an objective, professional and systematic

examination of systems and procedures that management has established to
ensure that financial, human and physical resources are managed with due
regard to economy, efficiency and effectiveness; and accountability relationships
are served.

Viator

Viator is a person who has been diagnosed with a terminal or life-threatening

illness and decides to sell his life insurance policy. In doing so, viators receive a
portion of the death benefits while they are still alive. A viator is a life insurance
policyholder who decides to receive a portion of their death benefit while they
are still alive.

Viksit Bharat 2047

Viksit Bharat 2047 is the Indian government's ambitious initiative to transform

India into a developed nation by the year 2047, which marks the 100th
anniversary of its independence. Viksit Bharat 2047 serves as a long-term
roadmap for India's future development. It aims to inspire and guide the nation
towards becoming a leading global power.

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Viral marketing

Viral marketing refers to a technique in marketing a product or a service where

users help in spreading the advertiser's message to other websites or the users
create a scenario which can lead to multi-fold growth.

Virtual Banking

Internet banking is sometimes known as Virtual Banking. It is called so because

it has no bricks and Boundaries. It is controlled by the World Wide Web.

Vishing

Vishing is a combination of “Voice‟ and “Phishing‟. In Vishing fraudsters use

Voice over Internet Protocol (VoIP) technology, to cheat customers for getting
their personal and financial details over the phone. They do so by pretending to
represent real companies like banks.

Vision

A vision statement serves as a roadmap for a company’s future. It outlines

specifics about customer focus, technology, geographic and product markets,
and plans for developing new capabilities. Some vision statements also reflect
the management's aspirations for the company.

Vittiya Saksharta Abhiyan

‘Vittiya Saksharta Abhiyan’ is a promotion campaign for cashless transactions. It

should be carried out by faculty and students of higher education institutions
among those who doesn’t adopt digital transactions.

Vivad se Vishwas

Vivad se Vishwas DTVSV (Direct Tax Vivad se Vishwas Scheme) : It is announced

in Budget 2020 as “No Dispute but Trust Scheme- Vivad se Vishwas Scheme “ to
settle pending disputes relating to direct taxes.

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Volatility

Volatilityis a statistical measure of the dispersion of returns for a given security

or market index. In most cases, the higher the volatility, the riskier the security.
Volatility is often measured as either the standard deviation or variance between
returns from that same security or market index.

Volume

Volume refers to the amount of data, which is large and often comes in low-
density, unstructured forms. Big data involves handling large volumes of data,
such as Twitter feeds, which may be of unknown value.

Voluntary Bankruptcy

Voluntary Bankruptcy - When a debtor voluntarily files for bankruptcy, it is

known as Voluntary Bankruptcy. In this case, the debtor himself files the
bankruptcy petition, unlike cases where creditors initiate action against debtors’
wishes. A debtor goes for such bankruptcy if he or she is unable to pay the debt.

Vulture Capitalist

A vulture capitalist is an investor who seeks to extract value from companies in

decline. The goal is to swoop in when sentiment is low and the company is
trading at a rock bottom price and take whatever action is necessary to engineer
a quick turnaround and sell it on for a profit.

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 W
Wage Drift

Wage drift is defined as the difference or change in the wage actually paid to a
worker as compared to a locally negotiated wage. The increase could be due to
several reasons such as overtime, bonus payment paid out by the company etc.
Walk-away Lease

Walk-away Lease is a common type of car lease which releases the lessee from
any financial obligations at the end of the lease, assuming they have satisfied the
maintenance and mileage requirements of the lease agreement. The lessee
makes an initial down payment plus monthly lease payments over the life of the
agreement. They must have the car serviced regularly and are subject to
penalties if they exceed an agreed-upon monthly mileage cap. At the end of the
lease, the car is returned to the lessor.

Wall of Worry

Wall of worry is the financial markets' periodic tendency to surmount a host of

negative factors and keep ascending. Wall of worry is generally used in
connection with the stock markets, referring to their resilience when running
into a temporary stumbling block, rather than a permanent impediment to a
market advance.

Wall Street

Wall Street is a street located in the lower Manhattan section of New York City.
Wall Street is used as an umbrella term to describe the financial markets and the
companies that trade publicly on exchanges throughout the U.S. Wall Street has
been the historic headquarters of some of the largest U.S. brokerages and
investment banks and is also the home of the New York Stock Exchange.

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WASH

"WASH stands for ""water, sanitation and hygiene"". Universal, affordable and
sustainable access to WASH is a key public health issue within international
development and is the focus of the Sustainable Development Goal (SDG).
""Access to WASH"" includes safe water, adequate sanitation and hygiene
education. Improving access to WASH services can improve health, life
expectancy, student learning, gender equality, and other important issues of
international development."
Wash Sale

A wash sale is a transaction in which an investor sells or trades a security at a loss

and purchases "a substantially similar one" 30 days before or 30 days after the
sale.
Wash Trading also referred to as Round Trip Trading

Wash Trading – also referred to as Round Trip Trading – is an illegal practice

where investors buy and sell the same financial instruments at the same time in
order to manipulate the market. The practice can unnaturally increase the
trading volume in order to make the security appear as though it is more
desirable than it actually is. It may also be done to provide brokers with
commission fees to compensate for securities they can’t settle outright.
Watered Stock

Watered stock referred to shares of a company that were issued at a much

greater value than the value implied by a company's underlying assets, usually
as part of a scheme to defraud investors.
Waterfall Mechanism

Waterfall Mechanism is a mechanism under Section 53 of the IBC 2016 whereby

the proceeds from the sale of the liquidation assets in respect of a corporate
debtor are required to be distributed in a certain order of priority.

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Ways and Means Advances

Under the RBI Act ,the RBI provides financial assistance (credit) to the State
Governments to help tide over the temporary mismatches in the cash flow of
their receipts and payments. This type of Advances are known as “Ways and
Means Advances”.

Weather Derivative

A weather derivative is a financial instrument used by companies or individuals

to hedge against the risk of weather-related losses. The seller of a weather
derivative agrees to bear the risk of disasters in return for a premium. If no
damages occur before the expiration of the contract, the seller will make a profit
and in the event of unexpected or adverse weather, the buyer of the derivative
claims the agreed amount.

Webrooming

Seeing the product online and purchasing in showroom (offline) is called

Webrooming. Example Mobile Phone.

Wedge

A wedge is a price pattern marked by converging trend lines on a price chart.

The two trend lines are drawn to connect the respective highs and lows of a price
series over the course of 10 to 50 periods. The lines show that the highs and the
lows are either rising or falling at differing rates, giving the appearance of a
wedge as the lines approach a convergence. Wedge shaped trend lines are
considered useful indicators of a potential reversal in price action by technical
analysts.

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Weightless Economy

At the start of the 21st century, the total output of the American economy
weighed roughly the same as it did 100 years earlier. Yet the value of that output,
in Real terms, was 20 times greater. Output is increasingly weightless, produced
from Intellectual Capital rather than physical materials. Production has shifted
from steel, heavy copper wire and vacuum tubes to microprocessors, fine fibre-
optic cables and transistors. Services have increased their share of GDP. This
weightless or dematerialised economy, most economists agree, is not just lighter
but also more efficient.

Wet Signature

A wet signature is a physical signature made on a document with a pen, ink, seal,
or other identifying mark. The term is often used to distinguish wet signatures
from electronic signatures, or e-signatures.

What-If Analysis

What-If Analysis is the process of altering the values in cells to examine how
those changes affect the results of formulas in a worksheet.
Wheeler-Dealer

Wheeler-Dealer is someone who makes clever, complicated, and sometimes

dishonest business arrangements: He was a wheeler-dealer who bought and sold
items at flea markets.
Whisper Number

A whisper number can also refer to the expected future earnings or revenues
according to a herd of individual investors. In this sense, a whisper number could
be compiled by a website polling its visitors. Essentially, the whisper number is
the unofficial consensus of what earnings and revenue for a company will be at
the next announcement.

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Whistle-blower

Whistle-blower is anyone who has and reports insider knowledge of illegal

activities occurring in an organization. Whistle-blowers can be employees,
suppliers, contractors, clients, or any individual who becomes aware of illegal
business activities.
White Elephant

White elephant is something whose maintenance cost is too high compared to

its utility. This term refers to an asset that is so expensive to operate and
maintain and is extremely difficult to make any gain from it.
White Goods

Durable goods, generally purchased for household or office use are known as
White Goods. Examples include refrigerators, microwaves and air conditioners.
They are called white goods because, historically, they have been available only
in white.
White Horse Stocks & Dark Horse

There are two kinds of stocks: one is the dark horse, which is usually unknown
but occasionally breaks out, surprising people. It is also called "black horse
stock." The other is sought after everywhere and is the star of attention in the
stock market. It is called "white horse stock." Black horse stocks have the
potential to rise suddenly, referring to stocks with poor performance but can rise
sharply in the short term; white horse stocks refer to stocks with transparent
performance and good growth, which are generally favored by the public.
White-collar Crime

White collar Crime is a non-violent crime committed for financial gain. White-
collar crimes include securities fraud, embezzlement, corporate fraud, and
money laundering.

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Wide-Ranging Day

Wide-ranging days describe the price range of a stock on a particularly volatile

day of trading. Wide-ranging days occur when the high and low prices of a stock
are much further apart than they are on a typical day. Some technical analysts
identify these days by using the volatility ratio.

Wildcat Banking

Wildcat Banking refers to a situation when banks establish branches in remote

and inaccessible locations.
Windfall Gain (or windfall profit)

Windfall Gain is an unexpected gain in income which could be due to winning a

lottery, unforeseen inheritance or shortage of supply. Windfall gains are
transitory in nature.
Window Contracts

Window contracts are guaranteed investment contracts that are purchased with
deposits made over a specific future time period, usually between 3 to 12
months. All deposits within the window receive the same credit rating.
Winner's curse

The winner's curse is a tendency for the winning bid in an auction to exceed the
intrinsic value or true worth of an item.
The gap in auctioned vs. intrinsic value can be attributed to incomplete
information, types of bidders, emotions, or other subjective factors.
Win-Win Negotiation

Win Win Negotiation is a negotiation style in which the interests of both parties
are taken into consideration to gain maximum benefits.

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Wisdom of Crowds

Wisdom of crowds is the idea that large groups of people are collectively smarter
than individual experts when it comes to problem-solving, decision-making,
innovating, and predicting. The idea is that the viewpoint of an individual can
inherently be biased, whereas taking the average knowledge of a crowd can
result in eliminating the bias or noise to produce a clearer and more coherent
result.
Without Evidence of Insurability

Without evidence of insurability means an insurance provider underwrote a

policy, such as for life or health insurance, without verifying that the
policyholder was eligible for that coverage. Some group plans may not require
proof of insurability if the applicant applies during the open enrollment period.
Also, providers of plans offering lower or limited benefits may not need evidence
of a policyholder's insurability. Also, convertible life insurance will not require
additional evidence on conversion.
Working Age Population

The working-age population is the portion of the total population that is

between the ages of 15 and 64. It includes both the economically active and
inactive populations.
Working Capital

Working Capital (Gross Working Capital) is simply the current assets of a firm.
This type of capital ― works for the firm in that it ensures the smooth operation
of the firm.
World Bank

The World Bank is one of the United Nations' specialized agencies comprising
member countries. It refers to the International Bank for Reconstruction and
Development (IBRD) and the International Development Association (IDA).
These organizations provide low-interest loans, interest-free credit, and grants
to developing countries.

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World Bank Group

"The World Bank Group consists of:

International Bank for Reconstruction and Development (IBRD).
International Development Association (IDA).
International Finance Corporation (IFC).
Multilateral Investment Guarantee Agency (MIGA).
International Centre for Settlement of Investment Disputes (ICSID).

The group's mission is to fight poverty and improve living standards in

developing countries."
World Economic Forum (WEF)

The World Economic Forum (WEF) was established in 1971 as a not-for-profit

foundation based in Geneva, Switzerland. It operates independently and
impartially, not tied to any special interests, with a focus on global
entrepreneurship and upholding high governance standards.
World’s First Bank

The Bank of Venice, founded in 1157 was the first public banking institutions.
However, Depending on the definition, the world's oldest bank is either Banca
Monte dei Paschi di Siena or Berenberg Bank.
Banca Monte dei Paschi di Siena was founded in its present form in 1624, but
traces its history to a mount of piety founded in 1472.
World Federation of Stock Exchanges

The World Federation of Stock Exchanges, more commonly known as the World
Federation of Exchanges, is an international trade group that supports the
interests of regulated securities exchanges around the world and promotes
widespread access to financial markets and the safety and soundness of the
global financial system.

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World Savings Day

World Thrift DayWorld Savings Day (previously known as World Thrift Day) is
observed every year on October 31 all over the world. In India due to death of
late Prime Minister Indira Gandhi on the same day in 1984 this day is being
celebrated on 30th October. World Thrift Day was established to inform people
all around the world about the idea of saving their money in a bank rather than
keeping it under their mattress or at home.
Write Down

Write Down is the accounting term used to describe a reduction in the book
value of an asset due to economic or fundamental changes in the asset.
Write Off / Write Back / Marking Off

Write Off: When the bank waives credit dues from borrowers.

Write Back: When the bank absorbs liability items.

Marking Off: When the bank waives non-credit dues of customers.

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 X
X-Efficiency

X-efficiency refers to the degree of efficiency maintained by firms under

conditions of imperfect competition. Efficiency in this context means a company
getting the maximum outputs from its inputs, including employee productivity
and manufacturing efficiency.
Xenocurrency

Xenocurrency is a currency that circulates or trades in markets outside of its

domestic borders. The name derives from the Greek prefix "xeno," meaning
foreign or strange.
X-inefficiency

X-inefficiency is the failure to minimize costs or maximize returns. (Sometimes

referred to as X-efficiency, but carrying the same meaning.)
X-Mark Signature

X-Mark Signature is made by a person in lieu of an actual signature. Due to

illiteracy or disability, a person may be unable to append a full signature in name
to a document as an attestation that its content has been reviewed and
approved. In order to be legally valid, the X-mark signature must be witnessed.

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 Y
Yankee Bonds

Yankee Bonds are bonds issued & traded in the United States by foreign entities,
they are traded & denominated in U.S. Dollars.
Yellow-Light Subsidies

Subsidies that are not prohibited but which may be subject to countervailing
measures are called “Yellow-Light Subsidies”
Yield Gap

The Yield Gap is the difference between actual farm yield and the yield potential
with good management that minimizes yield losses from biotic and abiotic
stresses, is a key biophysical indicator of the available room for crop production
increase with current land and water resources.
Yield On Earning Assets

The yield on earning assets is a popular financial solvency ratio that compares a
financial institution’s interest income to its earning assets.
Yield Spread

A yield spread is the difference between yields on differing debt instruments of

varying maturities, credit ratings, issuers, or risk levels, calculated by deducting
the yield of one instrument from the other. This difference is most often
expressed in basis points (bps) or percentage points.
Your Watch, My Watch

“Your Watch, My Watch" clause refers to the general indemnification provided

by the seller in most purchase and sale agreements. It usually states that the
seller will indemnify the purchaser from any third party claims that may arise
from issues related to the time prior to the transaction. The name comes from
the fact that the seller is responsible for all costs/issues during ""their watch""
pre-transaction, and the buyer is responsible for all costs/issues during ""their
watch"" post transaction."

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Yo-yo

Yo-yo is a slang term for a very volatile market. The name comes from the
movements of a yo-yo toy; in a yo-yo market, security prices continually go up
and down.

Yuppie

Yuppie is a slang term denoting the market segment of young urban

professionals. A yuppie is often characterized by youth, affluence, and business
success. They are often preppy in appearance and like to show off their success
by their style and possessions.

Yuva Sangam portal

The main aim of this portal is to build close ties between the youth of the North
East Region and the rest of India under the spirit of Ek Bharat Shreshtha Bharat.
This Cultural Exchange Program will also allow youth to celebrate the ancient
culture and natural diversity of India. The youth of 18 years to 30 years will get
an opportunity to see different states of the country, to understand their art,
culture and languages.

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 Z
Zakat

Zakat is an Islamic finance term referring to the obligation that an individual has
to donate a certain proportion of wealth each year to charitable causes.
ZBNF (Zero Budget Natural Farming)

ZBNF is a farming practice that believes in natural growth of crops without

adding any fertilizers and pesticides or any other foriegn elements. The word
Zero Budget refers to the zero net cost of production of all crops (inter crops,
border crops, multi crops).
Z-Bond

A Z-bond, also known as an accrual bond, is often the last bond to mature. It
receives payment, which is the accrual of interest added to the principal, after all
other bond classes.
ZCash

ZCash is a cryptocurrency with a decentralized blockchain that seeks to provide

anonymity for its users and their transactions. As a digital currency, ZCash is
similar to Bitcoin.
ZED (Zero Defect & Zero Effect) Rating

ZED (Zero Defect & Zero Effect) Rating for MSMEs has been evolved to upgrade
the quality standards in the Manufacturing units with zero defects which will
have zero effect on the ecosystem resulting in world class products.
Zero Coupon Bond

A Zero Coupon Bond (also known as a Pure Discount Bond or Accrual Bond) is
issued at a discount and repaid at face value without periodic interest payments.
The difference between the issue price and redemption price represents the
bondholder's return. The holder receives a single payment at maturity.
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Zero Date

The zero date of a project signals the effective start of the project. The
completion of projection will be counted from this point of time. It is important
to ensure that all activities that effect project performance like arrangement of
finance, infrastructure facilities, government and clearance etc. are fully
dealt/designed / established / started by this time.
Zero Days to Expiration (DTE) Options

Zero days to expiration options are options contracts that expire and become
void the same day that they’re traded. When an option reaches this stage, there’s
not much more time left to act on the right to buy or sell the underlying asset.
Zero Latency Enterprise

A Zero Latency Enterprise is a firm that can respond to internal and external
events as soon as they occur because information is exchanged across
departmental or divisional boundaries without any delay.
Zero Sum Game

Zero Sum Game is a situation in economics where one party's win causes other
parties to lose exactly in the same proportion. The aggregate result of all parties
results equals zero.
Zero-Rated Goods

In countries that use value-added tax (VAT), zero-rated goods are products that
are exempt from value taxation. Examples of items that may be zero-rated
include certain foods and beverages, export goods, donated goods sold by
charity shops, equipment for the disabled, prescription medications, water and
sewage services, books and other printed publications, and children's clothing.
Zero-Rupee Note

The Zero-Rupee Note is an imitation banknote issued in India by an NGO named

5th Pillar as a means to fight corruption. These notes are "paid" in protest to
individuals soliciting bribes for services meant to be free.

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Zero-volatility spread (Z-spread)

The Zero-volatility spread (Z-spread) is the constant spread that makes the price
of a security equal to the present value of its cash flows when added to the yield
at each point on the spot rate treasury curve where cash flow is received. In other
words, each cash flow is discounted at the appropriate Treasury spot rate plus
the Z-spread. The Z-spread is also known as a static spread 1.The depth of
products offered, or how many variations of a particular product a store carries
(e.g. how many sizes or flavours of the same product). 2.The width (breadth) of
the product variety, or how many different types of products a store carries.

Zeta Model

The Zeta Model is a mathematical model that estimates the chances of a public
company going bankrupt within a two-year time period. The number produced
by the model is referred to as the company's Z-score (or zeta score) and is
considered to be a reasonably accurate predictor of future bankruptcy.

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Zombies

Zombies are companies that earn just enough money to continue operating and
service debt but are unable to pay off their debt. Zombie companies are subject
to higher borrowing costs. Zombies are especially dependent on banks for
financing, which is fundamentally their life support. Zombie companies are also
known as the "living dead".
Zonation

Zonation is Division of a large land area (such as a region or country) into zones
according to a specific feature or characteristic such as disaster intensity.
Zoning

A government controlled area where only certain uses of the land are permitted
is called zoning.

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 Number Related

51% Attack

A 51% attack is an attack on a cryptocurrency blockchain by an entity or group

that controls more than 50% of the network. If a party were to gain this much
control of a network, it would have the power to alter the blockchain.
72 Rule

The Rule of 72 is a quick, useful formula to estimate the number of years required
to double the invested money at a given annual rate of return.
80-20 Rule

The 80-20 rule, also known as the Pareto Principle, is a familiar saying that asserts
that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for
any given event.
360-degree Feedback

360-degree feedback is a feedback process where not just your superior but your
peers, direct reports, and sometimes even customers evaluate you. You receive
an analysis of how you perceive yourself and how others perceive you.
419 Scam

419 Scam, also known as Advance-fee Scam, is a form of fraud and one of the
most common types of confidence tricks. An Advance fee scheme occurs when
the victim pays money to someone in anticipation of receiving something of
greater value—such as a loan, contract, investment, or gift—and then receives
little or nothing in return. There are many variations of this type of scam,
including the "Nigerian prince scam", “the Spanish Prisoner Scam", and the Black
Money Scam. The number "419" refers to the section of the Nigerian Criminal
Code dealing with fraud.

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 List of Books compiled by The Banking Tutor
So far the following Books are compiled by me which can be shared by any one
free of cost, without any permission from me or without any intimation to me,
without charging any amount.

Book No Book Name

002 Alerts - Vol 01

003 Forex - Vol 01

004 Banker and Legal Enactments - Vol 01

005 Banker and Financial Statements

006 Confusables – Vol 01

008 ABC (Awareness of Basics of Credit)

013 Management of W C Limits

015 Confusables - Vol 02

018 Bankers and Court Verdicts - Vol 01

019 Inland Bank Guarantees

020 The Dirty Dozen

022 Banks - Supporting Agencies - Vol 01

024 Banks - Supporting Agencies - Vol 2

025 Banks - Supporting Agencies - Vol 3

031 Confusables - Vol 03

042 Less Known Forex Terminology

044 Treasury Management - Objective Type

045 Treasury Management - Notes

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046 Indian Economy & Indian Financial System - Notes

048 MSME – Objective Type

050 50 Essays in Practical Banking

052 Basics of Bank Audits

053 The Shortens

055 NumLogEx

056 Basic Statistics for Bankers

057 JAIIB IE & IFS – All Modules

062 JAIIB – PPB – All Modules

063 JAIIB 2023 – IE & IFS – Objective Type

066 JAIIB 2023 – PPB – Objective Type

069 JAIIB 2023 – RBWM - Notes

070 JAIIB 2023 – RBWM - Objective Type

071 CAIIB 2023 – AFBM – Objective Notes

072 CAIIB 2023 – ABM – Objective Notes

073 CAIIB 2023 – BRBL – Objective Notes

074 CAIIB 2023 – BFM – Objective Notes

075 CAIIB 2023 – One Liners – BFM

076 JAIIB 2023 – One Liners – IE & IFS

077 CAIIB 2023 – One Liners – ABFM

078 CAIIB 2023 – One Liners – BRBL

079 CAIIB 2023 – One Liners – ABM

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081 Basics of Agri Lending & Essays in Rural Economy

082 IT Security – Objective Notes

083 HRM – Objective Notes

084 Rural Banking – Objective Notes

085 Rural Banking – One Liners

086 Promotion 2023

087 CRAM 2023

088 Essays Related to Banking and Finance Volume 02

089 Material for Promotion Test from Sub-Staff to SWO

090 KYC AML CFT Notes

092 Central Banking Notes (CAIIB Elective Subject)

093 Central Banking Only Points (CAIIB Elective Subject)

094 Digital Banking Notes (Certificate Course of IIBF)

095 Digital Banking Only Points (Certificate Course of IIBF

096 Cyber Crimes & Fraud Management - Notes

097 Foreign Exchange Operations Notes (Cert Course -IIBF)

098 Foreign Exchange Operations – Only Points

099 Court Cases related to Bankers Volume 02

100 MSME - Objective Notes (2024 Updation)

101 Confusables - Volume 04

102 MSME – Only Points (2024)

103 Foreign Exchange Facilities for Individuals (FEFI) - Notes

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104 Foreign Exchange Facilities for Individuals (FEFI) – Only Points

105 Concepts for Credit Professional - Notes

106 Concepts for Credit Professional – Only Points

107 International Trade Finance – Notes (CITF)

108 International Banking and Finance (DIBF)

109 Risk in Financial Services (RFS)

110 Ethics in Banking - Notes
111 Ethics in Banking - Only Points
112 Treasury - Investment and Risk Management - Notes
113 Treasury - Investment and Risk Management - Only Points
114 Strategy Management - Innovations in Banking - Notes
115 International Banking and Finance (DIBF) - Only Points
116 Risk in Financial Services (RFS) - Only Points
117 KYC - AML - CFT - Compliance - Only Points
118 Certified Treasury Professional (CTP) - 2024 - Notes
119 Certified Treasury Professional (CTP) - 2024 - Only Points
120 CITF - Only Points
121 Banking Notes - 2024
122 Basics of Economics for Bankers
123 SS to SWO - 2024
124 Small Finance Banks - Notes

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 125 Banking Compliance Professional (CBCP)
126 Risk Management - For Elective Paper of CAIIB (2024)
127 AFMB – JAIIB 2024 - Notes
128 AFMB – JAIIB 2024 – Only Points
129 The Business Terms – 2024

Books with Missed Serial Numbers are kept out of circulation as books based on
latest syllabus are shared/made available.

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 My Activity
I am sharing the following in my WhatsApp Groups and Telegram Groups. Also
sharing Banking related Articles in my Blog (The Banking Tutor) which are being
viewed by residents of more than 18 countries.

All this is done as I believe in “Sharing is Caring”.

It is a free facility forever.

Banking Related

01. One Point related to Banking & Finance Daily (Daily Point). Started on 16th
September, 2019, so far shared 1934 points without any break. Also shared 32
Points under the caption Let Us Know (which is not having specified periodicity).

02. Once 3 days (on 3rd, 6th, 9th ,12th….) one Lesson on Banking & Finance
(Banking Tutor’s Lessons - BTL), started on 06-09-2018, so far shared 739 lessons.

03. Started sharing Summary of RBI’s Master Directions from 29th July, 2024. So
far Shared 6 such summaries.

04. Monthly First Day – Recap of Daily Points shared during the previous month

So far compiled and shared 129 Books related to Banking and Finance.

Lists of Books furnished in previous pages.

Non Banking Activity

SIVA – SIVA stands for Sharing Information for Value Addition. Under this caption
once in 4 days I am sharing one article in English (not related to Banking) in my
separate telegram group and WhatsApp group. (on 4th, 8th, 12th…….). So far
shared 849 such articles.

Compiled 7 Books (under SIVA) – 4 Volumes of Life Lessons; Book of Books and
J.O.K.E (it is about interesting words in English language) and Best Quotes.

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SBS stands for Share a Book with Summary – every month (on 13th and 28th)
sharing soft copies of two books along with summary in my separate Telegram
group and WhatsApp groups. So far 100 books shared.

కబుర్లు (Kaburlu)

Under the caption కబుర్లు (in Telugu, my mother tongue) sharing one Article in once

in 5 days (5th, 10th, 15th…..). So far shared 690 articles.

So far compiled 6 books in Telugu.

This apart sharing 50 Telugu Comedy Cartoons by way a book on 11th of every
month. So far shared 32 Books of Telugu Cartoons.

My mail id – [email protected] WhatsApp +91 94406 41014

Banking Tutor Blog – https://thebankingtutor.blogspot.com/

31-12-2024 Sekhar Pariti

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