Other Financial Services By Banks
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Compliance Professional — Banking Compliance Professional.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary regulatory framework governing insurance distribution by banks in India?
The Insurance Regulatory and Development Authority of India (IRDAI) regulates bancassurance, and banks must obtain a corporate agency license from IRDAI to distribute insurance products.
What is a custodial service offered by banks?
Safekeeping and administration of securities on behalf of clients.
What is bancassurance?
Bancassurance is the distribution of insurance products through bank channels, where banks act as corporate agents for insurance companies to cross-sell life and non-life insurance to their customers.
Which regulator governs the depository participant (DP) activities of banks in India?
SEBI regulates depository participant activities of banks.
How many insurance companies can a bank tie up with under the current IRDAI guidelines?
Under the 'open architecture' model, a bank can tie up with a maximum of three life insurers, three non-life insurers, and three standalone health insurers.
What is a bank guarantee and under what RBI guidelines is it issued?
Contingent liability instrument issued under RBI's non-fund-based credit guidelines.
What is the meaning of 'mutual fund' distribution by banks?
Banks distribute mutual fund units as agents/distributors of asset management companies (AMCs) and must be registered with AMFI (Association of Mutual Funds in India) as ARN holders.
What is the role of a bank acting as a trustee?
Managing assets or funds on behalf of beneficiaries under a trust deed.
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