IMPORTANT RETAIL LIABILITY PRODUCT
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 a retail liability product in the context of banking?
A retail liability product is a deposit or savings instrument offered by banks to individual customers, such as savings accounts, current accounts, fixed deposits, and recurring deposits, where the bank is liable to repay the deposited funds.
What is the minimum lock-in period for a Tax Saver Fixed Deposit under Section 80C?
Five years; premature withdrawal not permitted during lock-in.
Which RBI guideline governs the interest rates on savings bank deposits?
RBI deregulated savings bank deposit interest rates in October 2011, allowing banks to set their own rates, subject to the condition that they must offer uniform rates for deposits up to Rs. 1 lakh.
What is the maximum deposit amount eligible for tax deduction under a tax-saving FD?
Rs 1.5 lakh per financial year under Section 80C.
What is the minimum balance requirement concept in a savings bank account?
Minimum balance is the least amount a depositor must maintain in a savings account to avoid penalty charges; banks are required to transparently disclose such requirements and associated penalties as per RBI guidelines.
What is the interest rate advantage typically offered to senior citizens on fixed deposits?
Additional 0.25% to 0.50% over regular deposit rates.
What distinguishes a Basic Savings Bank Deposit Account (BSBDA) from a regular savings account?
A BSBDA is a zero-minimum-balance account with limited transaction facilities, introduced by RBI for financial inclusion, available to individuals without requiring a minimum balance or charging for basic services.
What does the term 'premature withdrawal penalty' mean in the context of fixed deposits?
Penalty charged by bank for withdrawing FD before maturity date.
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