Indian BFSI, explained simply.
Short, accurate answers to the questions people actually search: what a term means, how it works, and what it changes for banks, NBFCs and fintechs. Each page has a one-paragraph answer, a Hinglish summary and the common follow-up questions.
Payments
IMPS vs NEFT vs RTGSIMPS sends money instantly, one transaction at a time, 24×7.TPAP (Third-Party Application Provider)A TPAP (Third-Party Application Provider) is a non-bank company that runs a UPI app, such as Google Pay or PhonePe.PSP bankA PSP (Payment Service Provider) bank is a bank that is a member of UPI and connects payment apps to NPCI's switch.VPA / UPI IDA VPA (Virtual Payment Address), also called a UPI ID, is an alias like name@bank that points to a bank account.UPI AutoPay (UPI mandate)UPI AutoPay lets a customer approve a recurring payment once with their UPI PIN.NACH & e-mandateNACH (National Automated Clearing House) is NPCI's system for bulk, recurring payments.BBPS (Bharat Connect)BBPS (Bharat Bill Payment System), rebranded as Bharat Connect, is India's interoperable bill-payment network.
KYC & identity
V-CIP (Video KYC)V-CIP (Video-based Customer Identification Process) is RBI's framework for doing KYC over a live video call instead of in person.CKYC (Central KYC)CKYC (Central KYC) is India's shared KYC database, the Central KYC Records Registry, run by CERSAI.Aadhaar eKYCAadhaar eKYC is electronic identity verification using UIDAI's Aadhaar system.Re-KYC (periodic KYC update)Re-KYC, or periodic KYC updation, is when a bank or NBFC asks an existing customer to reconfirm or refresh their KYC details.
Lending & collections
DPD (Days Past Due)DPD (Days Past Due) is the number of days a loan or credit card payment has stayed unpaid after its due date.SMA-0, SMA-1, SMA-2 & NPARBI asks lenders to flag early stress in loans as Special Mention Accounts (SMA) before they turn bad.Co-lendingCo-lending is when two regulated lenders, usually a bank and an NBFC, jointly fund each loan in a pre-agreed ratio under one agreement.FLDG / DLG (Default Loss Guarantee)FLDG (First Loss Default Guarantee) is an arrangement where a fintech or lending partner promises to absorb a lender's losses on a loan portfolio up to a set amount.Key Fact Statement (KFS)A Key Fact Statement (KFS) is a standard, plain-language summary of a loan that the lender must give the borrower before signing.APR (Annual Percentage Rate)APR (Annual Percentage Rate) is the total yearly cost of a loan, expressed as a percentage.Cooling-off (look-up) periodThe cooling-off (or look-up) period is a window right after a digital loan is disbursed.Loan Management System (LMS) vs LOSA loan management system (LMS) is the software that runs a loan after it is approved.Account AggregatorAn Account Aggregator (AA) is an RBI-licensed NBFC that moves your financial data between institutions only with your explicit, revocable consent.
Fraud, AML & compliance
Mule accountA mule account is a bank account used to receive and quickly pass on money from fraud or other crime, so the trail to the criminals breaks.Transaction monitoring (AML)Transaction monitoring is the continuous review of customer transactions to spot activity that may indicate money laundering, terror financing or fraud.FIU-IND, STR & CTRFIU-IND (Financial Intelligence Unit, India) is the central national agency, under the Ministry of Finance, that receives, analyses and shares financial intelligence on suspicious transactions.DPDP Act 2023The Digital Personal Data Protection Act, 2023 (DPDP Act) is India's law on how organisations collect and use people's digital personal data.
AI for BFSI
More references
UPI error codes · IMPS error codes · UPI statistics · Free tools · Blog