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Banking Abbreviations and Terminologies for SBI CBO Exam 2025

The State Bank of India Circle Based Officer (SBI CBO) Exam 2025 places significant emphasis on a candidate’s awareness of banking knowledge, including commonly used abbreviations and industry-specific terminologies. This section is not just crucial for scoring well in the objective test but also plays an important role during the interview and descriptive paper, where familiarity with banking language demonstrates a candidate’s industry readiness.

Banking Abbreviations and Terminologies for SBI CBO Exam 2025

Banking Knowledge is a dedicated section in the SBI CBO 2025 exam, carrying significant weight in the selection process. To score well, candidates must be familiar with important banking abbreviations and terminologies, as these are commonly used in both the objective and descriptive parts of the exam. In today’s competitive banking environment, understanding the core abbreviations and acronyms is essential. These are often used in circulars, reports, and official communications within banking institutions. Here’s a detailed guide to help you master this topic.

Banking Abbreviations for SBI PO 2025

Below is a curated list of important abbreviations that candidates must be well-versed in:

Banking Abbreviations for SBI PO 2025
Abbreviation Full Form Usage/Meaning
RBI Reserve Bank of India India’s central banking institution
SBI State Bank of India Largest public sector bank in India
NEFT National Electronic Funds Transfer Electronic funds transfer system
RTGS Real Time Gross Settlement Instant large-value fund transfer system
IMPS Immediate Payment Service Real-time interbank electronic fund transfer
NPA Non-Performing Asset Loan or advance in default or arrears
CASA Current Account Savings Account Low-cost deposit accounts for banks
CRR Cash Reserve Ratio The percentage of deposits that banks must keep with the RBI
SLR Statutory Liquidity Ratio The percentage of deposits that banks must keep in liquid assets
KYC Know Your Customer Customer identification process
IFSC Indian Financial System Code Unique code for bank branches
MICR Magnetic Ink Character Recognition Code for processing cheques
ATM Automated Teller Machine Self-service banking terminal
ECS Electronic Clearing Service Bulk payment/receipt system
FD Fixed Deposit Term deposit in a bank
OD Overdraft Facility to withdraw more than the account balance
EMI Equated Monthly Instalment Fixed payment for loans
BC Business Correspondent Bank agent for outreach in rural areas
PSL Priority Sector Lending Loans to sectors identified as priority by the RBI
NBFC Non-Banking Financial Company Financial firm not holding a banking license
UPI Unified Payments Interface Real-time payment system
SARFAESI Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest SARFAESI Act, 2002- allows banks and financial institutions to recover non-performing assets (NPAs)
MSME Micro, Small & Medium Enterprises Businesses that are classified based on their Assets & Turnover
FRA Forward Rate Agreement An interest rate derivative
BASEL III Basel Accord for international banking regulation  Internationally agreed-upon standards for bank regulation and supervision
CIBIL Credit Information Bureau (India) Limited Maintains records of individuals’ and organisations’ credit-related activities
GST Goods and Services Tax Indirect tax imposed on the supply of goods and services
IPO Initial Public Offering The company goes public for the first time by offering shares to investors
FDI Foreign Direct Investment Investment made by a company or individual from another country
NABARD National Bank for Agriculture and Rural Development Development bank that focuses on promoting agriculture and rural development

SBI CBO 2025

Banking Terminologies for SBI PO 2025

Along with abbreviations, understanding the meanings and implications of core banking terms is essential. Below are some frequently used banking terminologies likely to be asked in SBI CBO 2025:

Repo Rate: The rate at which the RBI lends money to commercial banks. Used to control liquidity in the economy.

Reverse Repo Rate: The rate at which the RBI borrows money from commercial banks.

Bank Rate: The rate at which the RBI lends money to commercial banks without any security.

Cheque Truncation: Process of stopping the physical movement of cheques and using scanned images for clearance.

SWIFT: Society for Worldwide Interbank Financial Telecommunication, a network for international financial messaging.

Moratorium: Temporary suspension of loan repayment.

Credit Rating: Assessment of a borrower’s creditworthiness.

Digital Banking: Banking services are delivered through digital channels like mobile apps and internet banking.

Core Banking Solutions (CBS): Networking of bank branches to enable customers to operate their accounts from any branch.

Letter of Credit (LC): A guarantee from a bank assuring that a buyer’s payment to a seller will be received on time.

Balance Sheet: A financial statement showing the assets, liabilities, and equity of a bank at a specific point in time.

Amortisation: The gradual repayment of a loan in instalments.

Capital Adequacy Ratio (CAR): A measure of a bank’s capital in relation to its risk-weighted assets.

Securitisation: The process of converting illiquid assets into tradable securities.

Overdraft: A facility allowing an account holder to withdraw more than their account balance.

Bancassurance: A partnership between a bank and an insurance company allowing insurance products to be sold through bank branches.

Why Banking Abbreviations and Terminologies Matter

The SBI CBO exam tests these to assess whether the candidate is comfortable with day-to-day banking operations and regulatory terms. Learning them thoroughly enhances your grasp of financial concepts and helps in decoding questions quickly in both objective and descriptive sections.

  • The SBI CBO exam tests practical banking knowledge, including the use of industry-specific terms and short forms.
  • Understanding these terms helps in answering direct questions, interpreting case studies, and writing essays or letters in the descriptive section.
  • Proficiency in banking language is also crucial for interviews and on-the-job communication.

How to Prepare for Banking Abbreviations and Terms

To prepare for this part of the SBI CBO exam, candidates should:

  • Revise official banking circulars, RBI notifications, and annual reports.
  • Practice quizzes are specifically focused on abbreviations and definitions.
  • Create flashcards or digital notes for daily revision.
  • Use mock tests that simulate the exact exam pattern.
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FAQs

Why are banking abbreviations important for SBI CBO Exam 2025?

They test your industry knowledge and familiarity with terms used in everyday banking operations, regulatory guidelines, and policy documents.