A ANCILLARY SERVICES
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 66 rapid-fire Q&A cards.
What is a locker facility offered by banks classified as?
A locker facility is classified as an ancillary service provided by banks, where customers rent safe deposit boxes to store valuables and important documents.
What is a bill payment service offered by banks to customers?
Facility to pay utility bills through bank on behalf of customers.
Under what contract does a bank provide locker services to customers?
Locker services are governed by a contract of bailment and licence, where the bank acts as a licensor and the customer as a licensee, not a bailor-bailee relationship for the contents.
What is a bank's collection agency service in the context of ancillary services?
Banks collect cheques, bills, and dues on behalf of customers for a fee.
What is the liability of a bank in case of loss of contents from a safe deposit locker due to bank's negligence?
As per RBI guidelines, a bank's liability is capped at 100 times the prevailing annual rent of the locker in case of loss due to the bank's negligence or fraud by its employees.
What is the purpose of a bank's gift card or prepaid card service?
Prepaid cards loaded with a fixed amount usable for purchases without a bank account.
What is a demand draft (DD)?
A demand draft is a negotiable instrument issued by a bank on behalf of a customer, directing another branch or bank to pay a specified amount to a named payee, payable on demand.
What is a demat account and why is it considered a bank ancillary service?
Electronic account holding securities in dematerialised form offered by banks as a depository participant.
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