Case Studies
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
In a case where a customer's cheque is dishonoured due to insufficient funds, what is the primary obligation of the bank?
The bank must return the cheque with a memo stating the reason for dishonour (e.g., 'Insufficient Funds') and is not liable for any consequential loss to the drawer provided it acted in accordance with its mandate.
In a case where a customer issues a post-dated cheque, when can the bank honour it?
Only on or after the date written on the cheque.
A bank mistakenly credits a wrong account due to a NEFT transaction error; what steps should the bank take?
The bank should immediately debit the wrongly credited account and credit the correct beneficiary account, and must inform both parties as per RBI guidelines on erroneous credit reversals.
When a bank receives a garnishee order, which account balances are typically attached?
Balances existing at the time the order is received by the bank.
When a borrower defaults on a term loan, what is the sequence of classification under NPA norms?
An account is classified as Sub-Standard after 90 days of non-payment, then Doubtful after 12 months in Sub-Standard category, and finally Loss when the outstanding is considered irrecoverable.
In a case study on Lok Adalats, what type of banking disputes are commonly settled there?
NPA recovery cases and cheque dishonour disputes up to prescribed limits.
In a case study involving KYC non-compliance, what risk does the bank primarily face?
The bank faces regulatory risk including penalties from RBI, reputational risk, and potential exposure to money laundering or terrorist financing under the Prevention of Money Laundering Act (PMLA).
A customer requests a stop payment instruction on a cheque already presented; what action should the bank take?
The bank cannot stop payment once the cheque has been paid.
Video classes for this chapter
APPRAISAL AND ASSESMENT OF CREDIT FACILITIES
ATM TRANSACTIONS_CUSTOMER GUIDELINES
CREDIT EXPOSURES
CREDIT CARD FACILITIES
FCNRB ACC
FOREIGN EXCHANGE
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