ANCILLARY SERVICES & CASH MANAGEMENT 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 65 rapid-fire Q&A cards.
What is the primary purpose of ancillary services offered by banks?
Ancillary services are non-core banking products offered to generate fee-based income and provide value-added convenience to customers, such as locker facilities, remittances, and utility bill payments.
What is the full form of CMS in banking?
Cash Management Services
What is Cash Management Services (CMS) in banking?
Cash Management Services (CMS) refers to a suite of services offered by banks to corporate clients to efficiently manage their cash flows, including collections, payments, liquidity management, and account reconciliation.
What type of instrument is a Pay Order valid for?
Local payments within the same city only
What is the role of a bank in providing safe deposit locker facilities?
Banks provide safe deposit lockers on a rental basis to customers for storing valuables; the bank is responsible for the safe custody of the locker but not for the contents, as the relationship is one of a licensee and licensor.
Which bank service helps corporates consolidate funds from multiple branches?
Cash pooling or concentration banking service
Under which RBI directive are banks required to link locker allotment to a term deposit?
As per RBI guidelines issued in August 2021, banks must link safe deposit locker allotment to a fixed deposit equivalent to three years' rent plus the cost of breaking open the locker, to cover unpaid dues.
What is a Bank Guarantee (BG) in the context of ancillary services?
Bank's commitment to pay on behalf of customer if they default
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