Pillar 2 of Basel III involves supervisory review, where regulators assess banks' internal capital adequacy processes, stress testing mechanisms, and risk management frameworks.

BHIM (Bharat Interface for Money) is an RBI-NPCI initiative providing a simple, secure digital payment platform accessible to all, with merchant-specific QR code features for business transactions.

MSF is an overnight borrowing facility for banks available at a penal rate (typically 100-200 bps above the repo rate) to manage temporary liquidity mismatches. It forms the upper end of the RBI's interest rate corridor.

ROA (Return on Assets) measures net income as a percentage of total assets, indicating how efficiently a bank uses its assets to generate profits. Higher ROA indicates better profitability.

The RBI has been vested with authority under the Payment and Settlement Systems Act, 2007, to regulate and supervise all payment and settlement systems in India.

Floating rate accounts have interest rates that fluctuate based on changes in the RBI's benchmark rates or market conditions, unlike fixed-rate accounts where the rate remains constant.

DICGC protects depositors by insuring their bank deposits up to Rs. 5 lakh per depositor per bank. This encourages public confidence in the banking system.

A haircut is a percentage discount applied to the market value of collateral to account for potential market volatility and protect the lender. For example, if a security worth Rs. 100 has a 10% haircut, it's valued at Rs. 90.

UPI allows real-time, 24/7 peer-to-peer and peer-to-merchant fund transfers. While RTGS is real-time for bulk transfers and NEFT/IMPS have specific timings, UPI provides true round-the-clock service.

KYC norms are essential anti-money laundering (AML) measures that require banks to verify customer identity and monitor transactions to prevent financial crimes and terrorism financing.