Important retail liability products
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 savings bank account in the context of retail liability products?
A savings bank account is a deposit account offered by banks to individuals for parking surplus funds, earning interest, and facilitating day-to-day transactions. RBI regulates the interest rate payable on savings deposits.
What is the full form of CASA in banking?
Current Account and Savings Account
Which RBI guideline governs the minimum balance requirement for savings accounts?
RBI has deregulated minimum balance requirements, leaving it to individual banks to decide; however, banks must transparently disclose charges for non-maintenance of minimum balance and cannot levy charges beyond the prescribed limits.
What is the minimum age to open an independent savings account in India?
18 years (majority age)
What is a current account and how does it differ from a savings account?
A current account is a demand deposit account designed for businesses and high-volume transactors with no restriction on the number of transactions; unlike savings accounts, current accounts do not earn interest and are not meant for savings purposes.
What interest is generally paid on current accounts by Indian banks?
No interest is paid on current accounts
What is the maximum deposit insurance coverage provided by DICGC per depositor per bank?
The Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage up to Rs. 5 lakh per depositor per bank, covering both principal and interest across all deposit types.
What is the full form of BSBDA?
Basic Savings Bank Deposit Account
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