ETHICAL DIMENSIONS EMPLOYEES
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.
What is the primary ethical obligation of a bank employee towards customers?
A bank employee must act in the best interest of the customer, ensuring fair treatment, transparency, and confidentiality of customer information at all times.
What is the ethical responsibility of a bank employee when a customer complains about unauthorized transactions?
Immediately escalate, investigate, and resolve the complaint promptly.
Which RBI guideline emphasizes the fair treatment of customers by bank employees?
RBI's Customer Service guidelines and the Charter of Customer Rights mandate that bank staff treat customers fairly, honestly, and without discrimination.
What does 'professional secrecy' require of bank employees regarding customer accounts?
Keep all customer financial information strictly confidential always.
What does 'conflict of interest' mean in the context of bank employees?
A conflict of interest arises when a bank employee has a personal or financial interest that could improperly influence their professional decisions or actions in favour of self over the bank or customer.
What ethical issue arises when a bank employee prioritizes sales targets over customer needs?
Conflict between commercial pressure and fiduciary duty to customers.
What is the significance of the 'Know Your Customer' (KYC) norm from an ethical standpoint?
KYC norms ethically obligate bank employees to verify customer identity and prevent misuse of banking channels for money laundering, fraud, or financing of illegal activities.
What is the ethical duty of bank employees under the Prevention of Money Laundering Act (PMLA), 2002?
Report suspicious transactions and maintain proper KYC records diligently.
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