Captcha is a kind of security feature that distinguishes between a human and a bot. This prevents bots or automated softwares to make fake accounts.
Example:
Suppose you are trying to create an account on a website. Before you can proceed, the website presents you with a visual puzzle or a simple question to prove that you are a human and not a bot. The challenge might be to identify and click on all images with traffic signals/ cars/street signs, or to type in a series of distorted or jumbled letters and numbers.
Captcha is a kind of security feature that distinguishes between a human and a bot. This prevents bots or automated softwares to make fake accounts.
Example:
Suppose you are trying to create an account on a website. Before you can proceed, the website presents you with a visual puzzle or a simple question to prove that you are a human and not a bot. The challenge might be to identify and click on all images with traffic signals/ cars/street signs, or to type in a series of distorted or jumbled letters and numbers.
This is a service offered by Banks and card companies that allows you to block or cancel your credit/debit card in case you lost it or someone stole it
Example:
Calling the toll-free number of your bank and answering a few verification questions after which they will cancel your card, preventing any loss of money.
A cashback is a strategy used by credit card, online wallets and other such companies to nudge their users to use them as payment methods by rewarding them users for choosing them
Example:
For example, Ravi goes and buys a phone worth 10,000 rupees with a particular bank card and he gets 10% cashback. Which means he will receive 1000 in his bank account after making the purchase. This money generally comes either instantly or within 4-5 working days .
Cashless claim settlement means that you can avail a particular service without having to pay for it at the time. Instead, the payment is settled between the policy company and the service provider on their own.
If we opt for Cashless Claim Settlement, we should choose an Insurance Company which has a good network of hospitals or vehicle repair shops that it covers across the country.
Example:
For example, in some health insurance if you are admitted to the hospital then the patient is not required to pay any money but the insurance company pays the hospital bill directly
Credit Guarantee Fund Scheme for Education Loans provides a guarantee for education loans to students from the economically weaker sections (EWS) studying in India or abroad.
The scheme dictates for education loans to be availed by students without any collateral security and third-party guarantee for a maximum loan limit of Rs. 7.5 Lakh.
Central Goods and Services Tax is collected by the Central Government on products that are supplied and consumed within one state.
Example:
For example:Lakshmi, a cloth dealer in Kerala, sold a Salvaar-Kameez set for 1000 rupees to Pallavi who also lives in Kerala. The GST on this transaction is 9%. So rupees 90 will go to the State government and 90 will go to the Central government.18%, this means SGST is 9% and CGST is 9%. So rupees 90 will go to the State government and 90 will go to the Central government.
Capital Gains Tax is tax levied on large revenue generated by the sale of assets such as land, mutual funds, share, equities, jewellery, buildings and property.
However, exemptions are given if- the income is earned through long-term capital gains used to purchase or construct a residential house or if you sell agricultural land in rural areas.
Credit Guarantee Fund Scheme for Micro and Small Enterprises offers loans to street vendors, shopkeepers, truck drivers and taxi operators etc. by offering guarantees to banks and other financial institutes so that they can provide loans to owners of MSMEs without collateral.
A Cheque Book is a small booklet provided by the bank that acts as an instrument to make payments
You simply fill all the information on the cheque, tear that from the book and either deposit it in the payee’s bank or hand it over to them.
Example:
Suppose you owe 10000 rupees to someone. You can just write a cheque for 10000 and give it to them. They can then deposit the cheque into their bank account and receive the payment.
A chit fund is a type of savings and credit scheme. It involves a group of people pooling their money together and taking turns receiving a lump sum payout which is decided by random selection of name chits. Chit funds are typically managed by a chit fund company, which collects the money and facilitates the payouts.
Example:
Suppose 10 people start the fund for 10 months and pay 1000 every month individually. The total money pooled will be 1,00,000. Each month, one member of the chit fund is selected to receive the lump sum payout of Rs. 10,000. The member who gets the fund is not required to make further contributions.
It is a form given by insurance companies at the time of paying the sum assured to the claimant.
It is the first step that notifies the company about a loss or damage and the claim made by the policy holder to insurance coverage. It includes information such as policy number, name of the insured and the time and place of the incident.
However, this does not guarantee the company has accepted your claim and will pay out.
If a company does not have the claim intimation form, a Claim Intimation letter is written instead.
An insurance claim is a formal request by a policyholder to their insurance company for providing coverage or compensation for the event or mishap the policy was taken for.
Example:
Let’s say Gurpreet had vehicle insurance done for accident coverage. The policy covers accidents with a total coverage of 50,000. In case any accident happens Gurpreet can claim the amount and thai would be called as claim settlement.
The Claim Settlement Ratio shows the number of claims which were settled by the insurance company out of all the claims which were raised in the year.
It is published every year by Insurance Companies on their website. This helps you know which insurance company is more likely to settle your claims in the future or not.
It is a method used by banks to check the value of customers and stability. It means seeing the money that got in the account vs the balance on the last day of the month.
Example:
Starting balance – 1,000
Deposits: +500
Withdrawals: – 200
Fees: -50
Closing balance: 1,250
Credit Linked Capital Subsidy Scheme is a scheme aimed to promote technological up-gradation in MSMEs, including tiny, khadi, village, and coir industrial units especially in rural and semi-rural areas. The scheme provides an upfront 15% capital subsidy for businesses, up to ₹15 lakhs.
It is a form of security we sign off to a bank for a loan of more than 2 lakh to ensure that if we are unable to pay back the loan amount, then the bank or lender can seize the property or asset we have provided in place of cash
Example:
Mariam wanted to take out a loan for her daughter’s wedding and the bank asked for security in case she is unable to repay the loan. Mariam out her home as collateral, which means in case of non-payment bank can seize the house and bear the cost of loan
To compound means to add. So every time you earn interest on your deposit, your principal gets updated to the total sum at that point, therefore increasing it. Meaning that every cycle, you will get interest on this new amount.
Example:
For example, if you earned 50 rupees as interest on the 1000 rupees you deposited in January, in the next month you will earn interest on 1050 rupees,in March your principal amount will be 1100. Thus, by the end of two years you will be earning interest on 2200 rupees and not your initial 1000.
Reviews are comments written by people about the insurance company on the internet and the company website. Almost all service providers have a review or comment section that allow consumers to write about their experience with the company-good or bad including suggestions or tips.
Example:
Example – when you buy a product online from amazon and then before buying check rating and what others are saying about the product. This is similar to financial products as well. This will alert not only other customers but also make the company improve their performance.
The Consumer Price Index (CPI) is a way to measure how much prices have changed over time for a bunch of things that we commonly buy. This can help us see if things are getting more expensive or cheaper. CPI is often used to check how much prices are going up (inflation) and how much more we have to pay for the same things we used to buy.
For example, if the CPI is 100 this year and 105 next year, it means that the prices of things we commonly buy have gone up by about 5%. So, if someone bought the same things as they did last year, it would cost us 5% more this year.
Also known as travel compensation is the money paid by the employer to the employee to cover the cost of travelling from home to work or any other work related travel required.
Generally, an amount of Rs. 1,600 per month (Rs. 19,200 annually) is
Example:
Rekha had to go attend a seminar for work which is away from her regular work space. The employer will give her money to travel the distance
To be credible means to be trustworthy and reliable.
To increase credibility individuals and companies often get themselves legally registered or get verified from a recognized government or private
institute through certifications.
This shows their clients that their skills and services will be good.
Example:
For example, doctors usually put M.B.B.S and M.D on their prescription. This shows that the doctor is qualified. Since the doctor also holds an M.D this means they are more experienced and credible than a regular M.B.B.S doctor.
A credit card is a thin card that looks similar to the debit card. The credit card however allows you to borrow money from the bank when you make a purchase with it. It allows you to withdraw cash or make payments up to a certain limit. You are required to pay the money back to the bank after 21 days or else the bank will start charging interest.
Example:
For example, if you want to buy a laptop but only have 20,000 in your savings account right now. You need 15,000 more to buy the laptop, so you can make the payment using a credit card.
It is your rating number between 300 and 900, which banks look at to decide whether to give a loan to an individual or not. Credit information bureau records our credit history and assigns us a rating.
If you have a good history of repaying the loan amount at the right time your credit score will be positive and help you get a loan much more easily next time.
Critical illness is defined as any life-threatening condition that requires immediate medical support for normal functioning of one or more vital organs failing which the person could die.
Critical illnesses include stroke, heart attack, cancer and some 30 other types of illnesses.
Example:
This form is part of a life insurance claim where the company is notified to make a lump-sum payment in the event of death.
Cryptocurrencies are virtual currencies made by individuals across the world. They are digital currencies designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.The more people buy these currencies, their prices rise.
Their price can be decided by their makers and can be traded through cryptocurrency exchanges and work just like stock exchanges.
These exchanges are like virtual supermarkets where you can buy any cryptocurrency. You can also redeem them at cryptocurrency exchanges. However, it is important to note that cryptocurrencies are highly unregulated and have higher risk of fraud.
Example:
The first completely functional cryptocurrency surfaced during the financial crisis of 2008, Bitcoin. Since then, Ethereum, Litecoin and Zcash have also been released.
At present, there are more than 18,000 cryptocurrencies in the world (as of March 2022).
Central Government Interest Subsidy Scheme benefits all categories of economically weaker students (family income of less than ₹4.5 lakhs per year) pursuing professional/ technical courses in India by providing full coverage on the interest paid during the moratorium period.
CTC or Cost to Company can be defined as the total amount an organisation spends on an employee during a given year.
It is the amount spent on hiring and paying for the employee’s services.
CTC consists of salary, pension, PF contributions and allowances.
The tax payable by both the seller and the buy on the exchange of non-agricultural items such as Gold, silver, copper, natural gases and crude oil in the securities market is called Commodities Transaction Tax.
As opposed to a Savings account, a current allows for unlimited, frequent transactions. While a savings account gives interest on the money kept in the account, in a current account no interest is given to the holder.
It is more suitable for entrepreneurs and traders.
Example:
Suppose a person named Raj runs a small business that sells mobile phones. He needs a bank account to manage his financial transactions, such as receiving payments from customers, paying suppliers, and withdrawing cash. Raj decides to open a current account with a bank.
The bank provides Raj with a current account that allows him to deposit and withdraw money as many times as he wants without any limit on the number of transactions
Tax paid on purchases of goods and services across international borders. This is done to encourage citizens to use products made in India as well as to reduce competition from outside companies. The Central Board of Excise and Customs takes care of customs duty.
Example:
For example: If you are buying alcohol or cigarette brands that are produced outside India, the total cost of these products will be higher than Indian brands since it includes custom duty.
Stands for Card Verification Value. It is a three or four digit code, usually numbers printed on the back of your debit/credit card that is used to complete online transactions.
When you are making online payments through your card, you are asked to input this number to complete the process, hence it is important to keep this private and not share it with anyone.
A crime carried out by the means of a computer, especially through the internet is called a cyber- crime. It could be anything from credit card fraud to identity theft or malvertisement.
Example:
Somebody making a fake profile of your account with your picture and messaging everyone to ask for money on FB and other platform is also considered a kind of cyber crime
The word cyber stands for anything involving computers or computer networks. When people’s identity, accounts, passwords or money is stolen from the information stored on the internet, it is called a cyber theft.
Example:
For example, if the password to your netbanking account is stolen, it might result in loss of money. Such types of thefts done using internet are called cyber thefts
