THIRD PARTY PRODUCT DISTRIBUTION IN RETAIL BANKING
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 66 rapid-fire Q&A cards.
What is meant by Third Party Product Distribution (TPPD) in retail banking?
TPPD refers to the activity where banks act as agents or brokers to sell financial products manufactured by third parties such as insurance companies, mutual funds, and pension fund managers to their customers.
What is bancassurance in the context of retail banking?
Sale of insurance products through bank branches as distribution channel.
Which regulatory body governs the distribution of insurance products by banks in India?
The Insurance Regulatory and Development Authority of India (IRDAI) governs insurance distribution, while the Reserve Bank of India (RBI) issues guidelines on banks' role as corporate agents or brokers.
What is the maximum number of life insurers a bank corporate agent can tie up with?
One life insurer under IRDAI corporate agent regulations.
What is the term used when a bank sells insurance products as an agent of an insurance company?
When a bank sells insurance products on behalf of an insurance company, it is called 'Bancassurance,' and the bank acts as a Corporate Agent under the IRDAI framework.
What is the maximum number of non-life insurers a bank corporate agent can partner with?
One non-life insurer and one standalone health insurer allowed.
Under the IRDAI (Registration of Corporate Agents) Regulations 2015, how many insurers can a corporate agent bank tie up with?
A corporate agent bank can tie up with a maximum of three life insurers, three general insurers, and three health insurers for distributing their products.
What certificate is required for bank employees to sell mutual funds?
NISM Series-V-A certification issued by National Institute of Securities Markets.
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