JAIIB · PPB · Chapter 4

Opening Accounts of Various Types of Customers

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Q

Low Risk — Examples / Periodic Updation?

A

Examples: Salaried, Govt. employee, PSU, salaried pensioners; Periodic Updation: Once in 10 years

Q

Medium Risk — Examples / Periodic Updation?

A

Examples: Self-employed, traders, small businesses; Periodic Updation: Once in 8 years

Q

High Risk — Examples / Periodic Updation?

A

Examples: PEPs, NRIs from high-risk jurisdictions, Trusts, NPOs, cash-intensive businesses, NGOs; Periodic Updation: Once in 2 years

Q

NRE SB / FD — Currency / Repatriable? / Joint with Resident? / Tenor / Interest Tax?

A

Currency: INR; Repatriable?: Yes — fully (P & I); Joint with Resident?: With resident close-relative on Former-or-Survivor basis only; Tenor: SB/CA/FD 1–10 yrs; Interest Tax: Tax-FREE in India

Q

NRO SB / FD — Currency / Repatriable? / Joint with Resident? / Tenor / Interest Tax?

A

Currency: INR; Repatriable?: Restricted — up to US$ 1 mn p.a.; Joint with Resident?: Yes; Tenor: SB/CA/FD; Interest Tax: Taxable in India (TDS 30% + cess)

Q

FCNR (B) FD — Currency / Repatriable? / Joint with Resident? / Tenor / Interest Tax?

A

Currency: USD/GBP/EUR/JPY/CAD/AUD + Yuan etc.; Repatriable?: Yes — fully; Joint with Resident?: With resident close-relative on Former-or-Survivor; Tenor: 1 – 5 years only; Interest Tax: Tax-FREE

Q

Through Natural / Legal Guardian — Who Operates / Cap / Restriction?

A

Who Operates: Father (default), mother (per RBI 2014 circular), court-appointed guardian; Cap / Restriction: No upper cap (subject to bank's product limits); step-parents CANNOT act as natural guardians

Q

Minor ≥ 10 years — self-operated — Who Operates / Cap / Restriction?

A

Who Operates: Minor signs the AOF and operates SB / Term Deposit directly; Cap / Restriction: Balance cap ₹1 lakh (commonly imposed by banks per Board policy); no overdraft; internet banking, ATM/debit card permitted within risk limits

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