JAIIB · RBWM

OTHER FINANCIAL SERVICES PROVIDED BY BANKS

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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What is a demat account and which regulator governs it in India?

A demat account holds securities in electronic form, eliminating physical share certificates. It is governed by SEBI and operated through depositories NSDL and CDSL.

What is a Recurring Deposit (RD) account offered by banks?

A savings scheme where fixed amounts are deposited monthly for a set tenure.

What is the role of a Depository Participant (DP) in the demat ecosystem?

A Depository Participant is an intermediary (often a bank) registered with NSDL or CDSL that provides demat account services to investors on behalf of the depository.

What is a demand draft and how does it differ from a cheque?

A prepaid negotiable instrument guaranteed by the issuing bank unlike a cheque.

What is a 3-in-1 account offered by banks?

A 3-in-1 account combines a savings bank account, a demat account, and a trading account, enabling seamless fund transfer and securities settlement through a single banking relationship.

What is a bank guarantee and who is the beneficiary in such an arrangement?

A promise by a bank to pay if the customer defaults; beneficiary is the third party.

What is the meaning of Portfolio Management Services (PMS) offered by banks?

Portfolio Management Services involve professional management of a client's investment portfolio in stocks, bonds, and other securities, with a minimum investment threshold of Rs. 50 lakh as per SEBI regulations.

What is a letter of credit (LC) and in which type of trade is it commonly used?

A bank undertaking to pay the seller; commonly used in international trade transactions.

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