Accounts of various types of customers
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 type of account can a minor open in a bank without a guardian's signature?
A minor above 10 years of age can open and operate a savings account independently, as per RBI guidelines, without requiring a guardian.
What is the minimum age for a minor to independently operate a savings account in most banks?
10 years, as per individual bank policies.
Who is considered a 'minor' under the Indian Majority Act, 1875?
A person who has not attained the age of 18 years is a minor; if a guardian is appointed by a court, minority extends to 21 years.
What is the legal capacity of a minor to enter into a contract in India?
A minor's contract is void ab initio under Indian Contract Act.
Can a minor be held liable for a loan taken from a bank?
No, a minor cannot be held liable for any loan or credit facility, as contracts with minors are void ab initio under the Indian Contract Act, 1872.
Who is the natural guardian of a Hindu minor for banking purposes?
Father, and after him the mother, is natural guardian.
What is a 'joint account' in banking?
A joint account is an account opened in the names of two or more persons, operated as per the mandate given — either/survivor, former/survivor, or jointly.
What type of liability does each partner have in a partnership firm's bank dealings?
Partners have unlimited joint and several liability.
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