Which of the following terms is generally not used in the banking sector terminology?

Introduction / Context:
Different segments of the financial sector use specialised terminology. The banking sector, insurance sector, and capital markets each have their own commonly used terms. This question tests whether you can identify which term among the options does not belong to typical banking vocabulary. Such classification questions are common in general awareness and banking exams.

Given Data / Assumptions:

• We have four terms: daily product basis, remittance, cash reserve, and actuary.
• The context is the banking sector.
• The task is to identify the term that is not generally associated with banking operations.
• Basic knowledge of both banking and insurance terminology is assumed.

Concept / Approach:
Daily product basis refers to the method of calculating interest on bank deposits or loans based on the daily closing balance, so it is definitely a banking term. Remittance refers to the transfer of funds from one place or account to another, and banks provide remittance services, so this is also a banking term. Cash reserve is closely related to the Cash Reserve Ratio CRR, which is a banking and monetary policy concept. Actuary, however, is a term primarily used in the insurance sector. An actuary is a professional who applies mathematics and statistics to assess risk and design insurance products and pension schemes. While bankers may interact with actuaries, the word actuary is not a typical banking term.

Step-by-Step Solution:
Step 1: Examine the term daily product basis and recall that banks often calculate interest on savings accounts using the daily product or daily balance method.Step 2: Consider remittance. Banks provide remittance facilities such as demand drafts, NEFT, RTGS, and IMPS, so remittance is clearly associated with banking.Step 3: Consider cash reserve. This is linked with cash reserves held by banks and the Cash Reserve Ratio set by the central bank, so it is also a banking term.Step 4: Consider actuary. This term is central to insurance and pension calculations, not to daily banking vocabulary.Step 5: Therefore, select actuary as the term that is not used in the banking sector terminology as frequently as in the insurance sector.

Verification / Alternative check:
To verify, think of where you usually see these words. Bank advertisements and documents often refer to interest calculated on a daily product basis, remittance charges, and cash reserve requirements. Insurance company literature, on the other hand, often refers to actuarial valuations and actuarial reports. This separation confirms that actuary is the out of place term when the context is specifically the banking sector.

Why Other Options Are Wrong:
Option A daily product basis is wrong as the answer because it is indeed used by banks for interest calculation methods. Option B remittance is a core banking service, so it is not the odd term out. Option C cash reserve is tied directly to banking regulations like CRR and cannot be considered non banking. Only option D actuary is primarily associated with insurance and pensions rather than day to day banking terminology.

Common Pitfalls:
Some candidates may be unfamiliar with the term daily product basis and wrongly assume it is not a banking term. Others may confuse actuary with accountant and think it is a general finance term. To avoid such errors, remember that actuarial science is closely linked to life insurance, general insurance, and pension planning, whereas banks focus more on interest calculation, remittances, and reserve requirements.

Final Answer:
The term that is generally not used as standard banking sector terminology is actuary.