RETAIL BANKING CONCEPTS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary characteristic that distinguishes retail banking from wholesale banking?
Retail banking deals with individual customers and small businesses through standardised, high-volume, low-value transactions, whereas wholesale banking caters to large corporates and institutions with customised, low-volume, high-value deals.
What is the full form of ATM in the context of retail banking?
Automated Teller Machine used for cash transactions.
Which RBI guideline governs the opening of basic savings bank deposit accounts in India?
RBI's Basic Savings Bank Deposit Account (BSBDA) guidelines mandate that any individual can open a zero-balance account with minimal KYC, ensuring financial inclusion for the unbanked population.
What is a mobile banking application in retail banking?
App allowing banking transactions via smartphone anytime, anywhere.
What does the term 'liability products' refer to in the context of retail banking?
Liability products are those that create a liability (obligation to repay) for the bank, such as savings accounts, current accounts, fixed deposits, and recurring deposits, since the bank owes money to depositors.
What is the purpose of a locker facility offered by retail banks?
Safe storage of valuables and important documents.
How is a recurring deposit (RD) different from a fixed deposit (FD)?
In a recurring deposit the customer deposits a fixed amount every month for a predetermined tenure, whereas in a fixed deposit a lump-sum amount is deposited at one time and earns interest till maturity.
What is an overdraft facility in retail banking?
Credit allowing withdrawal beyond account balance up to a limit.
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