Operational Aspects of Deposit Accounts | PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE A: GENERAL BANKING OPERATIONS
Banker - Operational Aspects of Deposit Accounts Banker – Operational Aspects of Deposit Accounts Salient Features of Deposit Accounts Deposit accounts allow customers to deposit money in a bank, earning interest depending on the account type. These include Savings Accounts, Current Accounts, Fixed Deposits, and Recurring Deposits. Features include easy fund access, security, nomination, and interest earnings. Interest on Deposit Accounts Interest is paid based on the account type and RBI guidelines. Savings accounts earn nominal interest, while fixed and recurring deposits offer higher returns. Interest is generally compounded quarterly. Prohibitions & Exemptions Banks are prohibited from paying interest on current accounts. KYC norms must be followed. Exemptions are granted for specific government accounts and organizations under RBI or central directives. Inoperative Accounts & Unclaimed Deposits Accounts with no activi...