Top 10 Banking Terms for IDBI JAM (2026 )

This is the final countdown! Since it’s April 10, 2026, and your IDBI JAM exam is just 48 hours away, you don’t have time to read a 100-page dictionary. You need the “heavy hitters”—the terms that examiners love to put in the General/Banking Awareness section.

Here are the Top 10 Banking Terms updated for the 2026 landscape that could be the difference between clearing the sectional cut-off and missing out.

10 Essential Banking Terms for IDBI JAM 2026

1. PCA (Prompt Corrective Action)

IDBI Bank has a famous history with PCA. It is a framework under which banks with weak financial metrics are put under watch by the RBI.

• Why it matters: It restricts a bank’s lending and expansion until its health improves.
• Key Metrics monitored: Capital to Risk-weighted Assets Ratio (CRAR), Net NPA, and Return on Assets (RoA).

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2. PSL (Priority Sector Lending)

Every bank in India is mandated to lend a portion of its credit to specific sectors that help the economy grow at the grassroots level.

• The Target: For most banks, it is 40% of Adjusted Net Bank Credit (ANBC).
• Sectors included: Agriculture, MSME, Education, Housing, Social Infrastructure, and Renewable Energy.

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3. CBDC (Central Bank Digital Currency) – The Digital Rupee

By 2026, the Digital Rupee has moved beyond pilot stages. You must know its two versions:

• CBDC-R (Retail): For everyday transactions by citizens.
• CBDC-W (Wholesale): For interbank settlements and bulk transfers.
• Feature: It is a legal tender in digital form, unlike private cryptocurrencies.

4. CASA Ratio (Current Account Savings Account)

This is a key indicator of a bank’s profitability.

• What it is: The ratio of deposits in current and savings accounts to the total deposits.
• Why it’s important: CASA deposits are “cheap” for the bank because they pay little to no interest. A High CASA Ratio means the bank has a lower cost of funds.

5. SARFAESI Act, 2002

Standing for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest, this act is a bank’s best friend for recovering bad loans.

• Power: It allows banks to seize and sell the “collateral” (security) of a borrower who defaults without having to go to court.

6. Repo Rate & Standing Deposit Facility (SDF)

While everyone knows the Repo Rate (the rate at which RBI lends to banks), the SDF has become the primary tool for absorbing liquidity.

• SDF: It replaced the Fixed Reverse Repo as the floor of the LAF (Liquidity Adjustment Facility) corridor. It allows the RBI to absorb excess cash from banks without providing collateral.

7. BASEL III Norms

These are global regulatory standards on bank capital adequacy, stress testing, and market liquidity risk.

• The Pillars: 1. Minimum Capital Requirements, 2. Supervisory Review, and 3. Market Discipline.
• The Number: In India, banks are generally required to maintain a 9% Capital To Risk-weighted Assets Ratio (CRAR).

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8. DICGC (Deposit Insurance and Credit Guarantee Corporation)

What happens if a bank fails? DICGC is the safety net for depositors.

• Insurance Limit: Each depositor in a bank is insured up to a maximum of ₹5 Lakh (including both principal and interest).
• Status: It is a wholly-owned subsidiary of the RBI.

9. NPA (Non-Performing Assets)

A loan becomes an NPA when the interest or installment of the principal remains overdue for a specific period.

• Standard Period: 90 days for most loans.
• Categories: Sub-standard (up to 12 months), Doubtful (more than 12 months), and Loss assets.

10. Financial Inclusion (The “JAM” Trinity)

Since you are applying for the Junior Assistant Manager (JAM) role, you must know the other JAM!

• J: Jan Dhan Yojana (Universal banking access).
• A: Aadhaar (Biometric identification).
• M: Mobile (Digital connectivity).
• Goal: To provide banking services to the unbanked population at an affordable cost.

Also Read: Best Online Coaching for Banking Exams India 2026

Also Read: SBI PO Online Coaching 2026

Final Tip for April 12th

General Awareness in IDBI JAM is often focused on Current Banking Affairs. Ensure you have revised the last 3-4 months of RBI circulars.

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Good luck! Stay calm, focus on accuracy, and you’ll see your name on that merit list.

IDBI JAM 2026: Quick FAQs