Banking Abbreviations & Acronyms – Complete A-Z Glossary
Introduction
Banking is filled with abbreviations and acronyms that can be confusing to customers, students, and even professionals. This A-Z glossary of banking abbreviations helps you quickly find the full form, meaning, and context of each term.
Whether you’re preparing for bank exams, interviews, or simply want to understand your bank statements better, this list covers everything from everyday terms like ATM and NEFT to technical financial ratios like CAR and CRR.
Most Common Banking Abbreviations
Abbreviation | Full Form | Meaning / Use |
ATM | Automated Teller Machine | Machine used for cash withdrawals, deposits, and balance inquiries. |
KYC | Know Your Customer | Process of verifying identity of customers to prevent fraud and money laundering. |
RBI | Reserve Bank of India | India’s central bank responsible for monetary policy and regulation. |
NEFT | National Electronic Funds Transfer | Electronic funds transfer system for inter-bank money transfers in India. |
RTGS | Real-Time Gross Settlement | Instant transfer of high-value money between banks. |
IMPS | Immediate Payment Service | 24/7 instant money transfer service in India. |
UPI | Unified Payments Interface | Mobile-first instant payment system developed by NPCI. |
CRR | Cash Reserve Ratio | Percentage of a commercial bank's deposits held as reserves with RBI. |
SLR | Statutory Liquidity Ratio | Minimum percentage of deposits banks must maintain in liquid assets before offering credit. |
CAR | Capital Adequacy Ratio | Ratio of bank’s capital to its risk-weighted assets, ensuring stability. |
Banking Abbreviations A-Z
A
- ACH – Automated Clearing House: Network for batch electronic transactions.
- AML – Anti-Money Laundering: Regulations to prevent illegal money activities.
- APY – Atal Pension Yojana: Pension scheme in India for unorganized sector workers.
B
- BIC – Bank Identifier Code: Unique identifier used for international transfers.
- BSBDA – Basic Savings Bank Deposit Account: Zero balance savings account mandated by RBI.
- BCBS – Basel Committee on Banking Supervision: Global standard setter for banking regulation.
C
- CRR – Cash Reserve Ratio: Portion of deposits banks keep with RBI.
- CBS – Core Banking Solution: Centralized online real-time banking system.
- CDR – Corporate Debt Restructuring: System to support financially distressed companies.
D
- DSCR – Debt Service Coverage Ratio: Measures ability to service debt.
- DRAT – Debt Recovery Appellate Tribunal: Handles appeals against DRT decisions.
- DP – Drawing Power: Limit a borrower can withdraw based on collateral.
E
- ECB – External Commercial Borrowings: Loans from foreign institutions by Indian companies.
- ECS – Electronic Clearing Service: Automated recurring payment/collection system.
- EMI – Equated Monthly Installment: Fixed monthly payment towards loan repayment.
Category-wise Banking Abbreviations
1. Regulation & Compliance
- KYC – Know Your Customer
- AML – Anti-Money Laundering
- CIBIL – Credit Information Bureau (India) Limited
2. Payments & Transfers
- NEFT – National Electronic Funds Transfer
- RTGS – Real Time Gross Settlement
- UPI – Unified Payments Interface
3. Financial Ratios & Metrics
- CAR – Capital Adequacy Ratio
- CRAR – Capital to Risk-Weighted Assets Ratio
- NPA – Non-Performing Assets
4. Banking Products & Services
- FD – Fixed Deposit
- RD – Recurring Deposit
- BSBDA – Basic Savings Bank Deposit Account.
FAQs on Banking Abbreviations
- Why are banking abbreviations important?
Banking uses technical terms daily. Abbreviations simplify communication, save time, and are crucial in exams and documentation.
- What is the difference between an acronym and abbreviation?
An acronym is formed from the first letters and read as a word (e.g., NEFT), while an abbreviation shortens a word (e.g., A/C for Account).
- Which banking abbreviations are most useful for bank exams?
Important ones include RBI, CRR, SLR, NPA, CAR, NEFT, RTGS, IMPS, UPI, EMI.
- How often do new banking abbreviations appear?
With digital banking and fintech, new terms (like BNPL – Buy Now, Pay Later) are added frequently.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2026 BankBazaar.com.