The main law that governs banks in India. It sets rules on licensing, management, capital and RBI's powers over banks.
Related terms in Banking
Asset Reconstruction Company (ARC)
A company registered with RBI under the SARFAESI Act that buys bad loans from banks at a discount and tries to recover them.
ATM
Automated Teller Machine. A machine that lets customers withdraw cash, check balances and do other basic banking without visiting…
Basel III
A global set of banking rules from the Basel Committee on Banking Supervision. It asks banks to keep more and better-quality capi…
Business Correspondent (BC)
A person or agency appointed by a bank to provide basic banking services such as deposits, withdrawals and account opening in pla…
Capital Adequacy Ratio (CAR / CRAR)
A bank's capital as a percentage of its risk-weighted assets. It shows how well the bank can absorb losses.
Capital Conservation Buffer (CCB)
An extra layer of common equity, 2.5% of risk-weighted assets, that banks must hold above the minimum under Basel III. Banks that…
CASA
Current Account and Savings Account deposits. These are low-cost funds for a bank, so a high CASA ratio means cheaper money to le…
Central KYC (CKYC)
A central record of customers' KYC details kept by CERSAI. Once your KYC is in CKYC, other financial institutions can use your 14…
Cheque
A written order from an account holder asking the bank to pay a stated amount to a named person or the bearer. It is a negotiable…
Cheque bounce (Section 138)
When a cheque is returned unpaid for lack of funds. Under Section 138 of the Negotiable Instruments Act, this can be a criminal o…