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 Demat account used for in banking?
A Demat account (Dematerialised account) holds securities like shares and bonds in electronic form, eliminating physical share certificates. It is maintained by depositories like NSDL and CDSL.
What is a Demat account and why is it essential for trading securities in India?
It holds securities electronically, mandatory for trading on stock exchanges.
Which two depositories operate Demat accounts in India?
NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited) are the two depositories that operate Demat accounts in India.
What is a Prepaid Payment Instrument (PPI) as offered by banks?
Pre-loaded card or wallet for purchasing goods, services, or remittances.
What is a Depository Participant (DP) in the context of ancillary services?
A Depository Participant is an intermediary (such as a bank or broker) registered with a depository to offer Demat account services to investors on behalf of NSDL or CDSL.
What is the function of NSDL in India's depository system?
NSDL holds and maintains electronic records of securities in Demat form.
What does the term 'safe custody' refer to as a bank ancillary service?
Safe custody refers to the bank's service of holding customers' valuables such as securities, documents, and jewellery in its vaults for safekeeping on behalf of the customer.
What is a Foreign Currency Non-Resident (FCNR) account as a bank ancillary product?
NRI deposit account maintained in foreign currency, fully repatriable.
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