Back Office Functions / Handling Unreconciled Entries in Banks
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
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Free sample — 8 of 59 rapid-fire Q&A cards.
Define back office in banking.
Administration and support personnel performing processing, settlement, recording and verification without direct customer interaction.
What is the primary source of truth for all rupees passing through a branch?
General Ledger (GL), maintained by the back office.
Name five major back-office functions.
Book-keeping, deposits processing, loans processing, regulatory compliance, e-banking operations.
What is the current CRR rate as of February 2025?
4.00% of NDTL (reduced from 4.50% in December 2024).
Define reconciliation in banking context.
Matching entries in bank's books with corresponding entries in another party's books to isolate and clear differences.
What are the three perspectives of the same foreign currency account?
NOSTRO (our account abroad), VOSTRO (foreign bank's deposit), LORO (another bank's reference).
State the fundamental rule of intra-branch reconciliation.
GL Control A/c balance must equal sum of all subsidiary ledger balances daily.
What is an Inter-Office Account (IOA)?
Accounting bridge recording transactions between branches and Head Office within the bank.
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