RETAIL LIABILITY PRODUCT
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 retail liability product in banking?
A retail liability product is a deposit product offered by banks to individual customers whereby the bank incurs a liability to repay the deposited funds, such as savings accounts, current accounts, and fixed deposits.
What is the minimum period for which a term deposit can be opened in India?
Minimum 7 days as per RBI guidelines.
Which RBI guideline governs the minimum balance requirements for savings bank accounts?
RBI issues directives under Section 35A of the Banking Regulation Act, 1949, requiring banks to transparently disclose minimum balance requirements and levy reasonable charges for non-maintenance.
What type of account allows unlimited transactions without any restriction on credits?
Current account allows unlimited transactions.
What is the difference between a savings bank account and a current account?
A savings bank account is meant for individuals to park surplus funds and earns interest, while a current account is designed for businesses with frequent transactions and typically earns no interest.
Which retail liability product earns interest on a daily reducing balance basis?
Savings bank account earns interest on daily balance.
What is the interest rate applicable on savings bank accounts as per RBI deregulation?
Since October 2011, RBI deregulated savings bank deposit interest rates, allowing banks to fix their own rates freely; however, banks must offer a uniform rate on deposits up to Rs. 1 lakh.
What is the minimum balance typically required in a savings bank account at public sector banks?
Varies by bank; many PSBs allow zero balance accounts.
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