> ## Documentation Index
> Fetch the complete documentation index at: https://banking.nextedge.consulting/llms.txt
> Use this file to discover all available pages before exploring further.

# Banking glossary

> Shared terms for reviewing books, programmes, cards, lending and operating outcomes.

Read [Start here](/banking/start-here) for the layers and [module ownership](/banking/module-boundaries) for their differences. These definitions explain the proposed software; exact institution policy still needs approval.

| Term | Meaning in this specification |
| - | - |
| Institution/tenant | An isolated institution context; legal entities, programmes and partner duties still need explicit modelling |
| Offering | A permitted bundle of products/modules/channels for an institution |
| Programme | An issuer/lender/sponsor arrangement connecting products, network/processor and financial ownership |
| Product version | Approved, effective-dated terms/eligibility/economics used by an account or instruction |
| CIF/party | Stable verified customer/party identity, not a matching email or synthetic label |
| Account operating mandate | Who can act for an account holder and under which proof/signature rules (B06) |
| Payment mandate | Accepted authority for a defined recurring debit/payment, with adopted validity and revocation rules (B11) |
| Ledger | Authoritative balanced financial entries and controlled linked corrections |
| Subledger | Detailed product/account obligations reconciling to general ledger |
| Available balance | Amount permitted for use after adopted holds/restrictions/credit rules |
| Authorisation hold | Reservation pending permitted completion/clearing/expiry, not necessarily a final posting |
| Issuer/acquirer | Contracted card issuance and transaction-acceptance roles; not inferred from a software tenant |
| BIN/IIN | Issuer/programme routing identifier with actual network/processor ownership |
| PPI | Prepaid payment instrument governed by its issuer/category and permitted use/funding policy |
| LOS | Loan Origination System: application, evidence and accepted loan-contract preparation (B12) |
| Underwriting/sanction | Credit assessment and accountable decision on amount/conditions (B13); not funds movement |
| LMS | Loan Management System: confirmed loan book, dues and repayment servicing (B14) |
| Collections | Overdue customer-contact/recovery case work (B16); a promise is not a verified receipt |
| KYC | Know Your Customer: identity/evidence verification and adopted review (B04) |
| KFS/MITC | Key Facts Statement / Most Important Terms and Conditions: applicable approved disclosure packages, depending on product and authority |
| NBFC | Non-Banking Financial Company; the selected entity/category and authorised offerings must be established, not inferred from the name |
| FD/RD | Fixed Deposit / Recurring Deposit: agreed placement or periodic-funding deposits with adopted maturity terms (B09) |
| CMS | Card Management System: card credential/programme/lifecycle management (B17); funding and billing are separate responsibilities |
| CBS | Core Banking System: the selected authoritative account/book/servicing boundary; ownership is a pending architecture decision |
| ALM | Asset Liability Management: analysis of institution cash-flow/maturity positions using defined sources/assumptions (B25) |
| POS/online/ATM | Point of Sale, online commerce and Automated Teller Machine: different use channels under adopted card controls |
| UI/API | User Interface / Application Programming Interface: a person’s screen versus a client/service contract |
| UAT | User Acceptance Testing: institution users verify agreed journeys and evidence before release |
| DPD | Days past due according to the adopted authoritative schedule/policy |
| Maker/checker | Independently authorised initiation and approval duties |
| Authorisation | An eligibility/funds/credit decision for a transaction; may create a reservation, not final settlement |
| Clearing/presentment | Exchange/matching of a transaction’s financial obligation and details after or independently of an authorisation, under contracted rules |
| Settlement | The evidenced exchange of funds for the resulting obligations |
| Reconciliation | Evidence that books, instructions, provider outcomes and funds agree with complete sources |
| Business date | Institution operating date used by financial work; can differ from the clock date |
| EOD/BOD | End of Day / Beginning of Day: controlled dated processing and close/open cycles (B31) |
| Idempotency | Repeating one original command does not create another economic effect |
| Unknown outcome | The result is unconfirmed; query/reconcile the original reference before any new instruction |
| Reversal/adjustment | Linked corrective financial entry; never deletion of original financial history |
| RPO/RTO | Bank-approved acceptable recovery data-loss window and service-restoration objective |
| HSM/PIN boundary | Hardware Security Module / Personal Identification Number: adopted secure cryptographic/device handling of sensitive authentication material |
| Commissioned | Identity, policy, interface, security and operational prerequisites accepted for the intended environment |
| Proposed/built/accepted/released | Different statuses; a described feature or passing local test is not bank deployment acceptance |

Use the [decision register](/banking/decisions) to settle institution-specific meanings before implementation.


This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.