BFSI Glossary
1,400+ terms, definitions, and AI-simplified explanations grounded in RHFL's lending context.
AML (Anti-Money Laundering)
A set of policies, procedures, and regulations designed to prevent the conversion of illegally obtained funds into legitimate assets.
Rules that stop criminals from disguising dirty money as clean money — by tracking who's moving cash, why, and where it came from.
In a Repco housing loan, this means verifying the source of a customer's down payment — if ₹50 lakh shows up in their account a week before applying, we ask where it came from.
KYC (Know Your Customer)
The process of verifying the identity of customers to assess potential risks of illegal intentions for the business relationship.
PEP (Politically Exposed Person)
An individual entrusted with prominent public functions, posing higher risks for involvement in bribery or corruption.
STR (Suspicious Transaction Report)
A report filed by financial institutions with FIU-India when a transaction is suspected to involve proceeds of crime or terrorist financing.
LTV (Loan-to-Value Ratio)
The ratio of a loan amount to the value of the asset being purchased — a key indicator of lending risk in home finance.
DSCR (Debt-Service Coverage Ratio)
A measure of a borrower's ability to service their debt obligations from their income.