PAPER II – PRINCIPLES & PRACTICES OF BANKING: MODULE A: GENERAL BANKING OPERATIONS | Banker-Customer Relationship Notes & MCQs

By -

Banker-Customer Relationship and Banking Services

PAPER II – PRINCIPLES & PRACTICES OF BANKING: MODULE A: GENERAL BANKING OPERATIONS | Banker-Customer Relationship Notes & MCQs

Requirements to be Called a Bank

  • Acceptance of deposits from the public for the purpose of lending or investment.
  • Repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise.
  • Must be licensed by the Reserve Bank of India (RBI) under the Banking Regulation Act, 1949.

Banker-Customer Relationship

  • Primarily a debtor-creditor relationship when a customer deposits money.
  • Becomes a creditor-debtor relationship when a customer takes a loan.
  • May also include relationships like trustee-beneficiary, agent-principal, etc.

Bank as a Trustee

The bank acts as a trustee when it holds securities or funds on behalf of a customer, managing them according to the terms of the trust.

Bailee-Bailor Relationship

Occurs when a customer gives valuables for safe custody; the bank (bailee) is responsible for their safekeeping and return.

Agent-Principal Relationship

The bank (agent) performs services such as collection of cheques or payment of bills on behalf of the customer (principal).

Lessor and Lessee

In case of locker services, the bank is the lessor, and the customer is the lessee. The bank provides space but is not liable for contents.

Indemnifier and Indemnified

When customers provide indemnity for services like duplicate drafts, the bank is indemnified against possible losses.

Different Deposit Products or Services

  • Savings Account
  • Current Account
  • Fixed Deposit (FD)
  • Recurring Deposit (RD)

Services to Customers and Investors

  • Internet and Mobile Banking
  • ATM and Debit/Credit Card Facilities
  • Investment Services – Mutual Funds, Insurance, Demat Accounts
  • Advisory and Financial Planning Services

MCQs on Banker-Customer Relationship

  1. What is the primary relationship between a bank and a customer who deposits money?
    • A. Agent-Principal
    • B. Debtor-Creditor
    • C. Trustee-Beneficiary
    • D. Bailee-Bailor
  2. In which relationship is the bank considered a bailee?
    • A. When granting loans
    • B. When keeping articles in safe custody
    • C. When accepting deposits
    • D. When issuing credit cards
  3. Which of the following is not a deposit product?
    • A. Recurring Deposit
    • B. Fixed Deposit
    • C. Mutual Fund
    • D. Savings Account
  4. When a bank collects a cheque on behalf of a customer, what is the relationship?
    • A. Creditor-Debtor
    • B. Bailee-Bailor
    • C. Agent-Principal
    • D. Trustee-Beneficiary
Previous Chapter
Real Estate Investment Funds / Infrastructure Investment Fund (concept) 		Next Chapter
AML-KYC Guidelines

Chapter Index:-

Comments

Post a Comment

Popular Posts

jexpo 2013 rank and counseling related question answer

By -
My Dear Students and visitors, If you have any question to ask about JEXPO. Then please ask me as a comment here. Please don't comment any where about JEXPO. JECPO 2014 RESULT and Counselling Notice link listed below of my post So many quires related to Jexpo 2013. First of all I wanna thanks to all of my visitors and students. Now I am going to answer your questions/quires. It is truly impossible to give answer to every on comment individually. So I am try to give you answer as group students asked same type of question. Q1. My Rank is ___, what is my chance to get admission in government college?  Answer: I have information about total seats in government polytechnic college in this year is 15000 (approx.). So who have rank between 1-15000 (If the information I got about total gov. seats is not wrong) they have chance to get admission in government polytechnic colleges. But who have less then 6000 rank they have good chance to get good branch like Civil, Mechanica...
Read more

Jexpo 2012 counselling date & notice

By -
Jexpo 2012 counseling date and notice Jexpo 2012 result is published today 24/05/2012.You can get your Jexpo result from here . date. Counseling of JEXPO-2012 merit listed candidates has been tentatively scheduled from 26th June, 2012. Final notification shall be available  from 3.00 p.m. on June 11, 2012. Copy of Counselling notice and date will be published here. *** Dear students, due to some internal official problem West Bengal State Council of Technical Education is unable to publish the full notice of Jexpo Counselling process. They will publish it shortly. Please keep touch with this website. Venue and dates of counseling of  JEXPO-2012 will be announced  by June 20, 2012.      Notice Publication Date: 20/06/2012   Time: 6:00 PM      Notice Body N O T I C E    JEXPO-2012    (Academic Session 2012-2013)    The venue and dates of c...
Read more

JEXPO 2014 new syllabus | application notice | online application form

By -
JEXPO 2014 Online Application form , Online application for the JEXPO 2014 will be started from 24/01/2014 to 28/02/2014 . But no online application. Only offline application form are available.  New syllabus will be introduced from 2014 JEXPO examination. JEXPO is an Examination for admission in Different polytechnic college in West Bengal. This examination is conducted by the West Bengal State Council of Technical Education . Council announced a news about JEXPO 2014 syllabus . They announced that from 2014 new syllabus will be introduced. But till date I have no copy of the new syllabus. After getting a copy of new syllabus I shall publish it on this page. I hope I shall get it within September, 2013. Notice about JEXPO 2014 will be published after the Durga Puja Vacation . JEXPO 2014 application should be got through Online process, because this year (2013) Council introduced online counselling process and it was successfully completed. Time to time I shall p...
Read more