OPERATIONAL ASPECTS OF DEPOSIT ACCOUNTS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
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Free sample — 8 of 65 rapid-fire Q&A cards.
What is the minimum number of persons required to open a joint account in a bank?
A joint account can be opened by two or more persons. There is no maximum limit prescribed by RBI for the number of joint account holders.
What is the maximum balance allowed in a Basic Savings Bank Deposit Account (BSBDA) at any point?
Maximum balance of Rs. 50,000 is permitted.
What does the mandate 'Either or Survivor' mean in a joint deposit account?
It means either of the joint holders can operate the account during their lifetime, and upon the death of one, the survivor can continue to operate and claim the balance.
What is the maximum number of withdrawals allowed per month in a BSBDA account?
Maximum four withdrawals are allowed per month.
What is the significance of the 'Former or Survivor' mandate in a joint account?
Under this mandate, only the former (first-named) holder can operate the account during their lifetime; the survivor gets the right to the balance only after the former's death.
What is the minimum period for which a bank can accept a Fixed Deposit in India?
Minimum period is seven days for term deposits.
What document must a bank obtain before opening any deposit account as per KYC norms?
The bank must obtain proof of identity (POI) and proof of address (POA) from the customer as per RBI's Know Your Customer (KYC) guidelines before opening any deposit account.
What does the term 'NRE account' stand for in Indian banking?
Non-Resident External account for NRIs.
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