BANKING ETHIC CHANGING DYNAMICS
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 the primary purpose of banking ethics in the modern financial system?
Banking ethics ensures that financial institutions operate with integrity, fairness, and transparency, thereby maintaining public trust and systemic stability.
What is the meaning of 'ethical drift' in the banking sector?
Gradual erosion of ethical standards over time in banking culture.
How has digitalization changed the ethical landscape for Indian banks?
Digitalization has introduced new ethical challenges such as data privacy, cybersecurity risks, algorithmic bias, and the need for transparent digital lending practices.
What is the role of a bank's Board of Directors in ensuring ethical conduct?
Sets ethical tone, approves policies, and oversees compliance culture.
What does the term 'ethical banking' broadly encompass?
Ethical banking encompasses responsible lending, fair treatment of customers, avoidance of conflicts of interest, and adherence to regulatory guidelines in all banking operations.
What does 'tone at the top' mean in the context of banking ethics?
Ethical behavior modeled by senior leadership influencing entire organization.
Which RBI guideline specifically addresses fair practices in lending by banks?
The RBI's Fair Practices Code mandates that banks must provide transparent loan terms, acknowledge loan applications promptly, and convey reasons for rejection to borrowers.
Why is 'fair treatment of customers' considered a fundamental banking ethic?
Ensures trust, prevents exploitation, and upholds customer rights.
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