Bank Theory

PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE A: GENERAL BANKING OPERATIONS MCQs PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE A: GENERAL BANKING OPERATIONS MCQs 1. Banker-Customer Relationship Q1: What is the relationship between a banker and a customer? A) Trustee and Beneficiary B) Debtor and Creditor C) Bailee and Bailor D) Agent and Principal Answer: B) Debtor and Creditor Q2: In which of the following relationships is the banker obligated to maintain confidentiality? A) Banker and Customer B) Employer and Employee C) Agent and Principal D) Bailee and Bailor Answer: A) Banker and Customer 2. Requirements to be Called a Bank Q3: Which of the following is a basic requirement for an institution to be recognized as a bank? A) It must provide loans B) It must be registered under...

Banker Ancillary Services - Bank Theory Banker Ancillary Services - Bank Theory Remittances: Introduction Remittance services allow the transfer of funds from one person or entity to another through banks. These services play a vital role in enabling secure and timely fund movement both domestically and internationally. Demand Drafts (DD) and Banker’s Cheques (BC) Demand Drafts are prepaid negotiable instruments used for remitting money across locations. Banker’s Cheques are similar but used within the same city and are non-negotiable. Mail Transfer (MT) Mail Transfer refers to the instruction sent by a bank via post to another branch to pay a specified amount to a named person. Telegraphic Transfer (TT) TT involves remittance of funds through telegram or fax. Though obsolete, it was widely used before digital methods became prevalent. National Electronic Funds Transfer System (NEFT) NEF...