Finance & Taxation Glossary
Full forms and plain-English meanings of the most-searched Indian finance terms — each entry links to a working calculator so you can put the number to work in seconds.
Investing
- SIPSystematic Investment Plan
SIP full form is Systematic Investment Plan — a mutual fund investment method where you invest a fixed amount every month.
- PPFPublic Provident Fund
PPF full form is Public Provident Fund — a 15-year government-backed savings scheme with tax-free interest and Section 80C benefits.
- NPSNational Pension System
NPS full form is National Pension System — a government-regulated retirement savings scheme with extra Section 80CCD(1B) tax benefit up to ₹50,000.
- CAGRCompound Annual Growth Rate
CAGR full form is Compound Annual Growth Rate — the annualised rate at which an investment grows if it compounded at a constant rate.
- XIRRExtended Internal Rate of Return
XIRR full form is Extended Internal Rate of Return — the annualised return of an investment with irregular cash flows, like an SIP.
- NAVNet Asset Value
NAV full form is Net Asset Value — the per-unit price of a mutual fund, calculated as (total assets − liabilities) ÷ total units outstanding.
- ELSSEquity Linked Savings Scheme
ELSS full form is Equity Linked Savings Scheme — a tax-saving equity mutual fund with a 3-year lock-in, eligible for Section 80C deduction up to ₹1.5 lakh.
- ROIReturn on Investment
ROI full form is Return on Investment — the percentage gain or loss on an investment relative to its cost, calculated as (gain ÷ cost) × 100.
Banking
- EMIEquated Monthly Instalment
EMI full form is Equated Monthly Instalment — a fixed monthly payment made toward a loan covering both principal and interest.
- IFSCIndian Financial System Code
IFSC full form is Indian Financial System Code — an 11-character alphanumeric code that uniquely identifies a bank branch for NEFT, RTGS and IMPS transfers.
- NEFTNational Electronic Funds Transfer
NEFT full form is National Electronic Funds Transfer — an RBI payment system that moves money between banks in half-hourly batches, 24x7.
- RTGSReal Time Gross Settlement
RTGS full form is Real Time Gross Settlement — an RBI system for high-value transfers (₹2 lakh and above) settled instantly, one transaction at a time.
- IMPSImmediate Payment Service
IMPS full form is Immediate Payment Service — an NPCI system for instant, 24x7 interbank money transfers using account number, IFSC or mobile MMID.
- UPIUnified Payments Interface
UPI full form is Unified Payments Interface — NPCI's instant real-time payment system that links bank accounts to a single mobile app for 24x7 transfers.
- KYCKnow Your Customer
KYC full form is Know Your Customer — the mandatory identity-and-address verification process banks and financial firms complete before opening accounts.
- NACHNational Automated Clearing House
NACH full form is National Automated Clearing House — an NPCI system for bulk, recurring electronic payments like SIPs, EMIs, salaries and utility bills.
- MICRMagnetic Ink Character Recognition
MICR full form is Magnetic Ink Character Recognition — a 9-digit code printed on cheques that identifies the bank and branch for faster clearing.
Taxation
- GSTGoods and Services Tax
GST full form is Goods and Services Tax — a unified indirect tax on the supply of goods and services in India, introduced on 1 July 2017.
- TDSTax Deducted at Source
TDS full form is Tax Deducted at Source — income tax withheld by the payer and deposited with the government on the recipient's behalf.
Salary
- EPFEmployees' Provident Fund
EPF full form is Employees' Provident Fund — a mandatory retirement savings scheme where employee and employer each contribute 12% of basic salary.
- HRAHouse Rent Allowance
HRA full form is House Rent Allowance — a salary component that is partially tax-exempt under Section 10(13A) if you live in rented accommodation.