JAIIB · RBWM

RETAIL BANKING CONCEPTS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.

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Q

What is the primary characteristic that distinguishes retail banking from wholesale banking?

A

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.

Q

What is the full form of ATM in the context of retail banking?

A

Automated Teller Machine used for cash transactions.

Q

Which RBI guideline governs the opening of basic savings bank deposit accounts in India?

A

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.

Q

What is a mobile banking application in retail banking?

A

App allowing banking transactions via smartphone anytime, anywhere.

Q

What does the term 'liability products' refer to in the context of retail banking?

A

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.

Q

What is the purpose of a locker facility offered by retail banks?

A

Safe storage of valuables and important documents.

Q

How is a recurring deposit (RD) different from a fixed deposit (FD)?

A

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.

Q

What is an overdraft facility in retail banking?

A

Credit allowing withdrawal beyond account balance up to a limit.

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