Understanding banking terms is essential for anyone dealing with financial transactions, particularly for users of Indian banks. Here are 15 important banking terms that are commonly used in the Indian banking sector:

1. NEFT (National Electronic Funds Transfer) – A nationwide payment system facilitating one-to-one funds transfer. Used for transferring funds from one bank account to another across the country without the need for physical cheques or cash.
2. RTGS (Real Time Gross Settlement) – The fastest possible money transfer system through the banking channel. It enables real-time transfer of funds and is typically used for high-value transactions.
3. IMPS (Immediate Payment Service) – An instant payment inter-bank electronic funds transfer system in India. IMPS offers an inter-bank electronic fund transfer service through mobile phones.
4. CRR (Cash Reserve Ratio) – The share of a bank’s total deposits that is mandated by the Reserve Bank of India to be kept in the current account with the central bank. It’s meant to ensure that a portion of bank deposits is always available to meet withdrawal demands.
5. SLR (Statutory Liquidity Ratio) – The minimum percentage of deposits that a bank is required to maintain in the form of gold, cash, or other approved securities. It is the ratio of liquid cash and securities with the central bank to the total liabilities.
6. NPA (Non-Performing Asset) – Loans or advances for which the principal or interest payment remained overdue for a period of 90 days.
7. KYC (Know Your Customer) – The process of a bank verifying the identity, suitability, and risks involved with maintaining a business relationship. The term is also used to refer to the bank regulation which governs these activities.
8. Fixed Deposit – A financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date.
9. Savings Account – A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
10. Current Account – A type of deposit account for individuals who carry out significantly higher transactions with the bank, including deposits, withdrawals, and contra transactions.
11. IFSC Code (Indian Financial System Code) – An 11-character code that uniquely identifies every bank branch that is part of the NEFT system in India. Used to route the messages to the destination banks/branches.
12. ATM (Automated Teller Machine) – A machine that provides the cardholder with access to financial transactions, such as cash withdrawals, deposits, transfer funds, or obtaining account information, anytime and without the need for direct interaction with bank staff.
13. EMI (Equated Monthly Installment) – A fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
14. Demat Account – A dematerialized account for Indian residents to trade in listed stocks or debentures, required for trading and investing most securities in India.
15. UPI (Unified Payments Interface) – A system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.

These terms form the basic vocabulary of any banking-related conversation in India, essential for daily banking and understanding various banking products and operations.