Glossary of RBI, SEBI and IRDAI Terms for Product Managers

In short

Plain-word definitions of 27 RBI, SEBI and IRDAI terms product teams meet, each from a regulator page read in November 2026.

Each entry below is a short definition in plain words, followed by the regulator and the page it comes from. Where a term has a number in it, the number is the regulator's. These are working definitions for product discussions, not legal advice. The regulator's own text is the authority.

1. RBI: payments and cards

Aadhaar Enabled Payment System (AePS). A payment system run by NPCI where transactions are enabled through an Aadhaar number and biometrics or OTP authentication. It covers cash withdrawal, cash deposit and fund transfer, plus mini statement and balance enquiry. (RBI directions, 27 June 2025)
Additional Factor of Authentication (AFA). An extra check on a card-not-present payment, using information not visible on the card, usually an OTP sent by the issuer. (RBI glossary)
Card Not Present (CNP) transaction. A card transaction where the card is not physically shown, such as an online or mobile banking payment. (RBI glossary)
Escrow account. A bank account in which funds are held for specific credits and debits. (RBI glossary)
Nodal account. An internal account of a bank, opened so that intermediaries can collect payments from the customers of merchants. (RBI glossary)
Merchant Discount Rate (MDR). The fee a merchant pays its acquiring bank for accepting digital payments. (RBI glossary)
Payment aggregator (PA). An intermediary that accepts payments from customers on behalf of the merchant and then transfers the money to the merchant's account. (RBI glossary)
Payment gateway (PG). A technology provider that routes and processes an online payment, without handling the funds itself. (RBI glossary)
Token and token requestor. Tokenisation replaces the actual card details with an alternate code, the token. The token requestor is the entity that takes the customer's request to tokenise a card and passes it to the card network. (RBI FAQ, May 2023)
TSP (two meanings). In the RBI glossary, TSPs are technology service providers that supply software or hardware and never hold the money moving between customer and merchant. In the card tokenisation circular, TSP means Token Service Provider, which can be a card issuer. Check which one a document means. (RBI glossary; RBI circular, 7 September 2021)
Clearing and settlement. Clearing is the process of transmitting, reconciling and sometimes confirming transactions before settlement. Settlement is the discharge of an obligation under the terms of the underlying contract. (RBI glossary)
Deferred net settlement (DNS). A mechanism that settles on a net basis at the end of a predefined settlement cycle. (RBI glossary)

2. SEBI: markets and mutual funds

NAV (Net Asset Value). The unit price of a mutual fund scheme: net assets (total assets minus total liabilities) divided by the number of outstanding units on a given date. (SEBI FAQ, August 2024)
Cut-off time. The time limit set by SEBI, the same for all mutual funds, that decides which day's NAV a purchase or redemption gets. (SEBI FAQ, August 2024)
KYC (Know Your Customer). A mandatory process by which banks, mutual fund companies and stockbrokers verify the identity and address of their customers. (SEBI investor site)
CKYC (Centralized KYC). Once registered, KYC details sit in a centralized database that all participating institutions can access, which saves time on later transactions. (SEBI investor site)
IPV (In-Person Verification). A required step in KYC. Many institutions now allow it to be done digitally through video calls, or through e-KYC using Aadhaar-based authentication. (SEBI investor site)
ISIN. The International Securities Identification Number, a unique 12-digit alphanumeric number allotted to a security. (SEBI depository FAQ)
Demat (dematerialisation). Converting an investor's physical certificates into an equivalent number of securities in electronic form. (SEBI depository FAQ)

3. IRDAI: health insurance

Third Party Administrator (TPA). A company registered with IRDAI and engaged by an insurer, for a fee, to provide health services under a health services agreement. (IRDAI FAQ)
Cashless facility. The insurer, or a TPA on its behalf, pays the network provider directly for treatment, up to the amount the pre-authorisation approves. It is offered only at network providers. (IRDAI FAQ)
Co-payment. The policyholder bears a set percentage of the admissible claim. It does not reduce the sum insured. (IRDAI FAQ)
Deductible. An amount, or a number of days or hours for hospital cash policies, that the insurer does not pay before benefits start. It does not reduce the sum insured. (IRDAI FAQ)
Cumulative bonus. An increase in the sum insured that the insurer grants without a rise in premium. (IRDAI FAQ)
Grace period. The time right after the premium due date in which a payment can still renew the policy without losing benefits such as waiting periods and cover for pre-existing diseases. No cover applies for a period with no premium. (IRDAI FAQ)
Pre-existing disease (PED). A condition diagnosed, or for which advice or treatment was given, within 48 months before the policy starts or is reinstated. A disclosed PED is covered after the policy's waiting period, which cannot exceed 48 months. (IRDAI FAQ)
Claim settlement time. An insurer must settle or reject a claim within thirty days of the last necessary document. If an investigation is needed, it must finish within 30 days and the claim must be settled within 45 days. Late payment carries interest at 2% above the bank rate. (IRDAI FAQ)

Questions people ask

Which RBI term do product teams mix up most?

TSP. In the RBI glossary it means technology service providers who never hold the money. In the card tokenisation circulars it means Token Service Provider. The two are different roles.

Where are these definitions from?

The RBI payments glossary, RBI circulars and FAQs, SEBI's mutual fund and depository FAQs and investor pages, and IRDAI's FAQ on health insurance regulations. The full list is under Sources.

Is a payment aggregator the same as a payment gateway?

No. Per the RBI glossary, an aggregator accepts payments for the merchant and passes the money on. A gateway only routes and processes the payment and does not handle funds.

Do these definitions change?

Yes. The SEBI depository FAQ used here says it was updated till December 2012, so check the current text for anything that goes into a contract or a spec.

This glossary is a summary of public regulator pages, so check with a compliance professional before you rely on a definition in a product, a contract or a filing.

Sources

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