JAIIB · RBWM

RETAIL LIABILITY PRODUCT PART 2, Retail Assets Products

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 a Savings Bank account primarily designed for?

A

A Savings Bank account is designed for individuals to park their day-to-day surplus funds and earn interest, while maintaining liquidity for personal use.

Q

What is a Demat Account and how is it linked to retail banking services?

A

Electronic account holding securities in dematerialized form for investors.

Q

What is the minimum balance requirement concept in a Basic Savings Bank Deposit Account (BSBDA)?

A

BSBDA accounts have zero minimum balance requirement as per RBI guidelines, making them accessible to financially excluded segments of society.

Q

What is a Senior Citizen Savings Scheme (SCSS) offered through banks?

A

Government-backed 5-year deposit scheme offering higher interest for seniors.

Q

What is the key feature that distinguishes a Current Account from a Savings Account?

A

Current Accounts have no restriction on number of transactions and earn no interest, as they are designed for businesses with high-frequency transaction needs.

Q

What is a Sukanya Samriddhi Account and who can open it?

A

Government savings scheme for girl child, opened by parents or guardians.

Q

What is a Recurring Deposit (RD) account?

A

A Recurring Deposit is a product where the customer deposits a fixed amount every month for a predetermined tenure and earns interest compounded quarterly, receiving a lump sum at maturity.

Q

What is a No-Frills Account in the context of financial inclusion?

A

Basic bank account with zero or minimum balance for low-income customers.

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