JAIIB · RBWM · Chapter 2

Delivery Channels in Retail Banking

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

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One-liners from this chapter

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Q

What is the primary purpose of delivery channels in retail banking?

A

Delivery channels enable banks to deliver financial products and services to customers efficiently without requiring them to visit a branch every time.

Q

Which intermediary is appointed by banks to carry out actual banking transactions in areas where branch setup is not feasible?

A

Business Correspondent (BC)

Q

Which delivery channel allows customers to conduct banking transactions 24/7 without visiting a branch?

A

ATMs (Automated Teller Machines) allow customers to withdraw cash, check balances, and perform other transactions round the clock without visiting a branch.

Q

What is the key distinction between a Business Facilitator (BF) and a Business Correspondent (BC)?

A

A BF can only refer, pursue proposals and facilitate — but cannot personally execute transactions; a BC actually carries out transactions as the bank's agent

Q

What does the term 'branchless banking' refer to in the context of retail banking delivery channels?

A

Branchless banking refers to the provision of financial services outside conventional bank branches using agents, mobile phones, or other technology-driven channels.

Q

Why are off-site ATMs located away from bank branches at busy public locations?

A

To move customers away from branch counters, as the cost of service at the counter is comparatively higher

Q

A rural cluster has no feasible scope for a brick-and-mortar branch, yet villagers need to deposit cash, withdraw money and open basic accounts on the bank's behalf — which intermediary is used?

A

A Business Correspondent (BC) is used; the BC acts as the bank's agent and is authorised to carry out transactions such as deposits, withdrawals, and account opening on behalf of the bank.

Q

How many free ATM transactions per month does RBI mandate at a customer's own bank's ATMs?

A

5 free transactions

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