JAIIB · PPB · Chapter 7

Banker's Special Relationship

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

Obligations?

A

duty to honour cheques, duty of secrecy (Tournier 1924), duty to report suspicious transactions, duty to protect customer data.

Q

Rights?

A

banker's lien, right of set-off, right of appropriation, right of charging reasonable charges.

Q

Third-party impositions?

A

garnishee orders (private), attachment orders (statutory), SARFAESI notices.

Q

General / Universal POA — Scope / Use-Case?

A

Scope: Issued for more than one transaction, giving extensive powers to the donee — sign cheques, stop payment, sign borrowal documents.; Use-Case: NRIs managing Indian property/banking; senior citizens delegating to children.

Q

Special / Limited POA — Scope / Use-Case?

A

Scope: Issued for a specific purpose — often a single transaction.; Use-Case: One-off property sale, single loan signing.

Q

Form — Mandate / Power of Attorney?

A

Mandate: Simple letter; Power of Attorney: Stamped, notarised deed

Q

Duration — Mandate / Power of Attorney?

A

Mandate: Short-term; Power of Attorney: Long-term / specific purpose

Q

Stamping — Mandate / Power of Attorney?

A

Mandate: Not required; Power of Attorney: Required

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