Banking: Deposit Accounts and Types

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What type of deposits require agreement between the depositor and the bank on period and interest rate?

Saving Deposits

Time Deposits (correct)

Recurring Deposits

Fixed Deposits

What is a necessary feature of a valid contract for opening a bank account?

Capacity to sign a contract

Sound mind to invest in the bank

Competence to contract (correct)

Free consent to open an account

What document is required to verify the customer's address?

Specimen Signature Card

Proof of address (correct)

Proof of identity

Know Your Customer Form

What document is required for nomination purposes?

Photographs of the nominee(s) Signup and view all the answers

What determines the additional documents required for opening a bank account?

Nature of the customer Signup and view all the answers

What is the primary source of funds for most banks?

Deposits from retail and corporate customers Signup and view all the answers

Why are banks introducing various deposit schemes?

To attract deposits from a wider customer base Signup and view all the answers

What is the main task of banking with regards to deposits?

Mobilizing savings through intensive deposit collection Signup and view all the answers

Why are banks opening branches across the country?

To reduce dependence on urban deposits Signup and view all the answers

What is deposits in the context of banking?

Money placed into a banking institution for safekeeping Signup and view all the answers

Who can open a Savings Bank account?

Minor individuals, illiterate persons, and clubs/societies Signup and view all the answers

How many times can a depositor withdraw money from a Savings Bank account in a week?

Twice in a week Signup and view all the answers

What is the minimum balance required to be eligible for interest in a Savings Bank account?

Tk.500 Signup and view all the answers

What is the condition for withdrawing money exceeding 25% of the balance in a Savings Bank account?

07 days prior notice is required Signup and view all the answers

When is the interest paid on a Savings Bank account?

On June and December of each year Signup and view all the answers

What is the purpose of obtaining identification documents from a prospective customer?

To verify their identity and reduce unlawful activities Signup and view all the answers

What is the importance of having effective KYC standards in banks?

To reduce legal and reputational risks Signup and view all the answers

What is the main objective of KYC procedures?

To accumulate complete and accurate customer information Signup and view all the answers

What is the recommended approach to verifying a customer's identity?

Following a cumulative verification process Signup and view all the answers

Why is it essential to obtain documents that are difficult to obtain illicitly?

To ensure the authenticity of the documents Signup and view all the answers

What should happen if a cheque is presented for payment in a Dormant Account?

The cheque is referred to the Manager / Authorized Officer of the account Branch for verification Signup and view all the answers

How can a customer reactivate a Dormant Account?

By requesting the account Branch for activation Signup and view all the answers

What happens to a Deceased Account after authenticated information is received?

The account operations are stopped immediately Signup and view all the answers

How is interest applied to a Deceased Savings Bank Account?

Interest is paid up to the date of withdrawal or closing of the account Signup and view all the answers

What triggers the reactivation of a Dormant Account in the system?

A customer-initiated debit to the account Signup and view all the answers

What is required from an account holder who cannot sign, in addition to the Account opening form?

A letter of undertaking Signup and view all the answers

Who should attest the thumb impression of the account holder?

Manager / Sub-Manager and the Introducer Signup and view all the answers

What should be attached to the specimen signature card?

One copy of passport size photograph Signup and view all the answers

What is the purpose of the letter of undertaking obtained from the account holder?

To ensure the account holder will not operate on the account unless they personally come to the bank Signup and view all the answers

What precautionary measure should be taken by the bank?

Not pay cheques bearing thumb impression and presented through clearing Signup and view all the answers

What happens when a term deposit is encashed prematurely?

Interest is paid up to the date of withdrawal Signup and view all the answers

How is interest paid when a term deposit is encashed at maturity?

At the rate applicable for the relevant TDR Signup and view all the answers

What happens when a term deposit is encashed beyond maturity?

Interest is paid up to the period of maturity and beyond Signup and view all the answers

Who can appoint a nominee to their bank account?

All bank account holders Signup and view all the answers

What is the role of a nominee in a bank account?

To receive the benefit in case of death of the account holder Signup and view all the answers

When can an account holder nominate a person to their account?

At the time of opening the bank account Signup and view all the answers

How many nominees can an account holder appoint?

One or more nominees Signup and view all the answers

What happens to the deposit when an account holder dies?

The deposit is transferred to the nominee Signup and view all the answers

Who receives the benefit of the deposit in case of death of the account holder?

The nominee Signup and view all the answers

What determines the interest rate for the period beyond maturity?

The Savings Bank Account rate Signup and view all the answers

What is the primary purpose of deposit mobilization in banking?

To fund the bank's business through savings Signup and view all the answers

What is the main objective of banks introducing various deposit schemes?

To reduce their dependence on funds from other banks Signup and view all the answers

What type of deposits require agreement between the depositor and the bank on period and interest rate?

Time Deposits Signup and view all the answers

What is a necessary document for nomination purposes in opening a bank account?

Photographs of the nominee(s) Signup and view all the answers

What is the source of funds for most banks?

Deposits from retail and corporate customers Signup and view all the answers

What is the purpose of managing deposits in a bank?

To fund the bank's business through savings Signup and view all the answers

What is required to be present when a banker opens an account?

Essential features of a valid contract Signup and view all the answers

What is the purpose of the Expected Transaction Profile (ETP) Form in opening a bank account?

To know the expected transaction pattern of the customer Signup and view all the answers

What is the benefit of diversifying sources of funds for banks?

To reduce their dependence on funds from other banks Signup and view all the answers

Who can open an account with the bank?

Every person who is competent to contract as per Contract Act, 1872 Signup and view all the answers

What happens to an account when a cheque is presented for payment in a Dormant Account?

The cheque is referred to the Manager/Authorized Officer of the account Branch for verification Signup and view all the answers

How does a customer reactivate a dormant account?

By making a customer-initiated debit to the account Signup and view all the answers

What happens to the operation of an account when a bank receives authenticated information about the account holder's death?

The account is stopped immediately Signup and view all the answers

How is interest applied in a Deceased Savings Bank Account?

Interest is paid up to the date of withdrawal or closing of the account Signup and view all the answers

What happens to a Dormant Account after a customer-initiated debit transaction?

The account is reactivated Signup and view all the answers

What is the condition for withdrawal of money up to 25% of the balance in a Savings Bank account?

No prior notice is required Signup and view all the answers

What is the benefit of having a Savings Bank account with this bank?

Wide network of branches and various utility payment services Signup and view all the answers

What happens if the balance in a Savings Bank account falls below Tk.500 at any day of a particular month?

The account holder will not get interest for that month Signup and view all the answers

In how many days' prior notice is required for withdrawal of money exceeding 25% of the balance in a Savings Bank account?

7 days' prior notice Signup and view all the answers

Who can open a Savings Bank account?

Adult individuals, joint account holders, illiterate persons, and minors Signup and view all the answers

What is the primary purpose of obtaining a certified copy of the statute when opening a bank account?

To comply with the bank's risk management policies Signup and view all the answers

What is the main goal of implementing effective KYC procedures in banks?

To protect the integrity of the banking system Signup and view all the answers

What is the recommended approach to verifying a customer's physical and financial identity?

By conducting a cumulative verification process Signup and view all the answers

What type of document is recommended to obtain from a prospective customer to verify their identity?

A document that is difficult to obtain illicitly Signup and view all the answers

What is the purpose of the Mandate document when opening a bank account?

To authorize the person to operate the account Signup and view all the answers

What should be obtained from the account holder who cannot sign?

A letter of undertaking and thumb impression on a specimen signature card Signup and view all the answers

What is the purpose of the letter of undertaking obtained from the account holder?

To ensure the account holder will not operate on the a/c unless they personally come to the bank Signup and view all the answers

Who should attest the thumb impression of the account holder?

The Branch Manager/Sub-Manager and the Introducer Signup and view all the answers

What should be attached to the specimen signature card?

One copy of passport size photograph Signup and view all the answers

What precautionary measure should be taken by the bank?

See that no cheque bearing thumb impression and presented through clearing is paid Signup and view all the answers

How should interest be paid when a term deposit is encashed at maturity?

At the rate applicable for the relevant TDR up to the date of maturity Signup and view all the answers

What should be done when a term deposit is encashed prematurely?

Recovery of penal interest should be made in accordance with prevalent instructions Signup and view all the answers

Who can nominate a person to their account?

Nominee Bank account holders having deposit accounts in their individual names or in joint names Signup and view all the answers

What happens when a term deposit is encashed beyond maturity?

Interest should be paid at the rate applicable for the relevant TDR up to the date of maturity and at the rate applicable for Savings Bank Accounts with checking facility for the period beyond maturity Signup and view all the answers

What is the role of a nominee in a bank account?

To receive the benefit in case of death of the account holder Signup and view all the answers

How many nominees can an account holder appoint?

One or more nominees Signup and view all the answers

When can an account holder nominate a person to their account?

At the time of account opening Signup and view all the answers

What happens to the deposit when an account holder dies?

The deposit should be deemed to have been made up to the date of death Signup and view all the answers

What should be done when a term deposit is encashed prematurely?

Interest should be paid and recovery of penal interest made in accordance with prevalent instructions Signup and view all the answers

What is the benefit of having a nominee in a bank account?

To receive the benefit in case of death of the account holder Signup and view all the answers

What is the primary determinant of the rate of interest applicable to a time deposit?

The period of the deposit Signup and view all the answers

What is a necessary document for verifying a customer's address when opening a bank account?

Proof of identity Signup and view all the answers

What is the primary objective of deposit mobilization in banking?

To attract deposits from various customer groups Signup and view all the answers

What is the primary source of funds for most banks?

Deposits from retail and corporate customers Signup and view all the answers

What is the primary purpose of obtaining a Specimen Signature Card when opening a bank account?

To obtain a record of the customer's signature Signup and view all the answers

What is a key feature of a valid contract for opening a bank account?

The presence of all essential features of a valid contract Signup and view all the answers

What is the purpose of introducing various deposit schemes by banks?

To attract deposits from various customer groups Signup and view all the answers

What is the ultimate goal of managing deposits in a bank?

To minimize risk and maximize returns Signup and view all the answers

What type of deposit allows the depositor to make regular deposits over a fixed period of time?

Recurring Deposit Signup and view all the answers

What is the purpose of diversifying sources of funds for banks?

To reduce dependence on funds from other banks Signup and view all the answers

What is the primary condition for a depositor to be eligible for interest in a Savings Bank account?

The depositor must maintain a minimum balance of Tk. 500 at any day of a particular month. Signup and view all the answers

What is the consequence of persistently withdrawing more than twice in a week or a sum exceeding 25% of the balance in a Savings Bank account without notice?

The depositor will not be entitled to interest for that month. Signup and view all the answers

What is the frequency of interest payment on a Savings Bank account?

Bi-annually Signup and view all the answers

What is the minimum percentage of the balance that a depositor can withdraw without prior notice from a Savings Bank account?

25% Signup and view all the answers

What is the benefit of having a Savings Bank account with this bank?

Wide network of branches and various facilities such as MICR cheque-book, debit card, and online banking Signup and view all the answers

What happens when a bank receives authenticated information about the death of an account holder?

The operations of the concerned account will be stopped immediately. Signup and view all the answers

What is the purpose of referring a cheque to the Manager / Authorized Officer of the account Branch in a Dormant Account?

To verify the genuineness of the drawing. Signup and view all the answers

How is interest applied in a Deceased Savings Bank Account?

Interest is paid upto the date of withdrawal / closing of the accounts as admissible under Savings Bank Accounts rules. Signup and view all the answers

What triggers the reactivation of a Dormant Account in the system?

A customer-initiated debit transaction to the account. Signup and view all the answers

What is the primary purpose of adopting effective KYC standards in banks?

To protect the integrity of the banking system Signup and view all the answers

What is the recommended approach to verifying a customer's physical and financial identity?

Conducting a cumulative verification process Signup and view all the answers

What should be done if a cheque is presented for payment in a Dormant Account?

The cheque should be referred to the Manager / Authorized Officer of the account Branch. Signup and view all the answers

What type of document is recommended to obtain from a prospective customer to verify their identity?

A document that is difficult to obtain illicitly Signup and view all the answers

What is the purpose of obtaining a certified copy of the statute when opening a bank account?

To establish the customer's business existence Signup and view all the answers

What is the ultimate goal of implementing effective KYC policies and procedures in banks?

To contribute to the bank's overall safety and soundness Signup and view all the answers

What is the primary purpose of obtaining a letter of undertaking from the account holder?

To ensure that the account holder personally operates the account Signup and view all the answers

What document is required from local authorities or municipal corporations to open a bank account?

A copy of the status or any other law by which the body was created and is governed Signup and view all the answers

How many passport size photographs of the account holder should be obtained?

Two Signup and view all the answers

Who attests the account holder's thumb impression on the specimen signature card?

The Introducer Signup and view all the answers

What precautionary measure should be taken by the bank?

To take precautionary measures to see that no cheque bearing thumb impression is paid by the Branch Signup and view all the answers

When a term deposit is encashed prematurely, what happens to the interest?

Interest is paid up to the date of withdrawal at the rate applicable for the relevant TDR. Signup and view all the answers

Who can appoint a nominee to their bank account?

Nominee bank account holders having deposit accounts in their individual names or in joint names Signup and view all the answers

What happens to the interest when a term deposit is encashed beyond maturity?

Interest is paid up to the period of maturity at the rate applicable for the relevant TDR and beyond maturity at the rate applicable for the Savings Bank Accounts. Signup and view all the answers

What is the status of a deposit when an account holder dies?

The deposit is deemed to have been made up to the date of withdrawal Signup and view all the answers

What is the role of a nominee in a bank account?

To receive the benefit in case of death of the account holder Signup and view all the answers

When can an account holder nominate a person to their account?

At the time of opening the bank account Signup and view all the answers

What happens when a term deposit is encashed prematurely?

Penal interest is recovered and interest is paid up to the date of withdrawal Signup and view all the answers

How many nominees can an account holder appoint?

One or more nominees Signup and view all the answers

What is the condition for encashment of a term deposit?

Interest should be paid up to the date of maturity Signup and view all the answers

Who is responsible for nominating a person to their bank account?

The account holder(s) Signup and view all the answers

What should be obtained from an account holder who cannot sign?

Thumb impression on the account opening form Signup and view all the answers

What precautionary measure should be taken by the bank when opening an account for an account holder who cannot sign?

The Introducer and Branch Manager/Sub-Manager should attest the thumb impression Signup and view all the answers

What should be attached to the specimen signature card for an account holder who cannot sign?

One passport-size photograph of the account holder Signup and view all the answers

What should be done when a cheque is presented for payment in a Dormant Account?

The cheque should not be paid by the Branch Signup and view all the answers

What is required to open an account for a local authority or municipal corporation?

A copy of the statute or law governing the local authority Signup and view all the answers

What is the primary objective of a trustee in a trust account?

To manage and administer the trust property for the benefit of the beneficiary Signup and view all the answers

What is the purpose of the trust deed in a trust account?

All of the above Signup and view all the answers

What is the role of the author of the trust?

To reposes confidence in the trustee Signup and view all the answers

What is the beneficial interest of the beneficiary in a trust account?

The right against the trustee as the owner of the trust property Signup and view all the answers

What precaution should the banker take when opening a trust account?

Thoroughly examine the trust deed appointing the trustees Signup and view all the answers

What documents are required to open a special type of account, along with a certified copy of the statute?

Account Opening Form, Specimen Signature Card, and Mandate Signup and view all the answers

What is the primary purpose of implementing effective KYC policies and procedures in banks?

To protect the integrity of the banking system and reduce money laundering Signup and view all the answers

What is the recommended approach to verifying a customer's physical and financial identity?

Conducting a cumulative verification process using multiple identification documents Signup and view all the answers

What is the consequence of a bank's inadequate KYC program?

Significant risks, especially legal and reputational risk Signup and view all the answers

What is the main purpose of KYC procedures in banks?

To know the customer physically and financially Signup and view all the answers

What happens to a Dormant Account when a cheque is presented for payment?

It is referred to the Manager / Authorized Officer of the account Branch for verification Signup and view all the answers

What happens to an account when a bank receives authenticated information about the death of the account holder?

The account operations are stopped immediately Signup and view all the answers

How can a customer reactivate a Dormant Account?

By initiating a debit transaction to the account Signup and view all the answers

What happens to interest on a Savings Bank Account after the death of the depositor?

It is paid up to the date of withdrawal or closing of the account Signup and view all the answers

What happens to a Dormant Account after a customer-initiated debit transaction?

It becomes a regular account at the end of day processing Signup and view all the answers

What is the primary document required to verify the identity of a customer opening a bank account in Bangladesh?

Valid Passport Signup and view all the answers

What type of account requires an interview of the customer and an introducer from an acceptable person to the bank?

Individual accounts Signup and view all the answers

What is the role of a local government authority in verifying a customer's identity?

To attest a customer's photograph and signature Signup and view all the answers

What is the primary purpose of obtaining a certificate from a local government authority when opening a bank account?

To verify the customer's identity Signup and view all the answers

What is the primary operational procedure for opening a special type of account?

Verifying the customer's identity and address Signup and view all the answers

What should be recorded on the Account Opening Form and Account Opening Register when opening a minor's account?

The date of birth of the minor and the date when s/he attains majority Signup and view all the answers

What is required to be examined before authorizing a legal guardian to open an account in the name of a minor?

The appointment order issued by Court in the guardian's name Signup and view all the answers

What should happen to a minor's account when the minor attains majority?

The account should be closed and the balance should be transferred to a new account operated by the erstwhile minor Signup and view all the answers

What is the condition for opening an account of an illiterate person?

The account holder must be properly introduced Signup and view all the answers

What is not allowed on a minor's account?

Overdraft Signup and view all the answers

What type of deposit requires an agreement between the depositor and the bank on the period of the deposit and interest rate?

Fixed Deposit Signup and view all the answers

What is a necessary document for opening a bank account?

Duly filled in Know Your Customer Form Signup and view all the answers

What is the purpose of the Expected Transaction Profile Form?

To understand the customer's transaction profile Signup and view all the answers

What type of deposit allows the depositor to withdraw money at short notice?

Short Notice Deposit Signup and view all the answers

What is required for a depositor who cannot sign?

Thumb impression attestation Signup and view all the answers

What is the purpose of obtaining photographs of the nominee(s)?

To verify the nominee's identity Signup and view all the answers

What is a necessary feature of a valid contract for opening a bank account?

All of the above Signup and view all the answers

What is the purpose of obtaining proof of identity and address verification?

To verify the customer's identity and address Signup and view all the answers

What type of deposit allows the depositor to deposit a fixed amount at regular intervals?

Recurring Deposit Signup and view all the answers

What is the purpose of a Specimen Signature Card?

To authenticate the customer's signature Signup and view all the answers

What is the primary purpose of having effective KYC standards in banks?

To reduce the risk of money laundering and terrorist financing Signup and view all the answers

In what chapter of the manual is the opening and operation of different bank accounts discussed?

Chapter 3 Signup and view all the answers

What is the recommended approach to verifying a customer's physical and financial identity?

Accumulating complete and accurate information through a cumulative process Signup and view all the answers

What is the primary focus of chapter 4 of the manual?

Negotiable Instruments Signup and view all the answers

What is the role of the person who reposes or declares confidence in a trust?

Author of the trust Signup and view all the answers

What is the primary objective of a bank's risk management policies?

To reduce the risk of legal and reputational risk Signup and view all the answers

Where can you find the discussion on Bills Collection and Remittance in the manual?

Chapter 6 Signup and view all the answers

What document is essential for a banker to examine before opening a trust account?

Trust Deed Signup and view all the answers

In which chapter is Clearing and Collection of Instruments discussed?

Chapter 5 Signup and view all the answers

What is the term for the right of the beneficiary against the trustees as the owner of the trust property?

Beneficial interest Signup and view all the answers

What is the primary purpose of a bank's KYC procedures?

To reduce the risk of money laundering and terrorist financing Signup and view all the answers

What is the purpose of the trust deed in a trust account?

All of the above Signup and view all the answers

What is the total number of chapters in the manual?

12 Signup and view all the answers

What is the primary importance of a bank's KYC policies and procedures?

To protect the integrity of the banking system Signup and view all the answers

What is the obligation of the trustee in a trust?

To accept the confidence reposed in them Signup and view all the answers

What is the primary purpose of obtaining a letter of undertaking from an account holder who cannot sign?

To ensure the account holder will not operate the account unless they personally come to the bank Signup and view all the answers

What is required to be obtained from a local authority or municipal corporation to open an account?

A copy of the statute or law by which the body was created and is governed Signup and view all the answers

What is the purpose of attesting a thumb impression of an account holder who cannot sign?

To ensure the account holder's thumb impression is genuine Signup and view all the answers

What is the purpose of obtaining two copies of passport size photographs of the account holder?

To verify the account holder's identity Signup and view all the answers

What is the purpose of recording a certificate on the back of the cheque?

To attest the account holder's thumb impression Signup and view all the answers

What is essential for a valid contract when a banker opens an account?

All the essential features of a valid contract must be present Signup and view all the answers

What is the primary purpose of obtaining a Specimen Signature Card when opening a bank account?

To obtain the customer's signature for future reference Signup and view all the answers

What type of deposit requires agreement between the depositor and the bank on period and interest rate?

Time Deposits Signup and view all the answers

What is commonly required for opening each type of account?

Duly filled in Account Opening Forms, Proof of identity, verification of the address of the customer, and other necessary documents Signup and view all the answers

Who can open an account with the bank?

Every person who is competent to contract as per Contract Act, 1872 Signup and view all the answers

What is the primary purpose of referring a cheque to the Manager/Authorized Officer in a Dormant Account?

To verify the genuineness of the drawing Signup and view all the answers

What happens to the interest on a Savings Bank Account after the death of the depositor?

It is paid up to the date of withdrawal/closing of the account Signup and view all the answers

What happens to a Deceased Account after authenticated information is received?

The operations of the account are stopped immediately Signup and view all the answers

How is an account activated in the system after being dormant?

By a customer-initiated debit transaction Signup and view all the answers

What is the primary objective of handling a Deceased Account?

To prevent any unauthorized transactions Signup and view all the answers

What is the primary concern of general banking in today's economic and financial surroundings?

Malpractices and fraudulent activities Signup and view all the answers

What is the main challenge faced by banks in terms of general banking operations?

Fraud and money laundering Signup and view all the answers

Why are legislative measures and stringent compliance requirements crucial for general banking?

To handle the challenges of malpractices and fraud Signup and view all the answers

What is the primary objective of banks in terms of general banking operations?

To prevent fraud and money laundering Signup and view all the answers

What is the consequence of avoiding procedures and compliance requirements in general banking?

Proving to be very challenging for banks Signup and view all the answers

Why are banks perceived to be more fragile than non-financial organizations?

Due to fraudulent activities Signup and view all the answers

What is the primary role of policy makers in general banking?

To receive adequate attention to all associated risks Signup and view all the answers

What is the primary challenge faced by banks in terms of managing customer needs?

Malpractices and fraudulent activities Signup and view all the answers

Why are banks strengthening their ability to manage different areas of general banking?

To handle the challenges of malpractices and fraud Signup and view all the answers

What is the primary objective of banks in terms of deposit mobilization?

To build up their deposit base Signup and view all the answers

What is the main focus of chapter 3 of the manual?

Opening and operation of different bank accounts Signup and view all the answers

What is the primary concern of chapter 4 of the manual?

Negotiable Instruments Signup and view all the answers

In which chapter of the manual is the discussion on Bills Collection and Remittance?

Chapter 6 Signup and view all the answers

What is the main topic covered in chapter 5 of the manual?

Clearing and Collection of Instruments and cash management Signup and view all the answers

What is the overall organization of the manual?

Into 12 chapters Signup and view all the answers

What is the term for the right of the beneficiary against the trustees as the owner of the trust property?

Beneficial interest Signup and view all the answers

What precautionary measure should be taken by the banker when opening an account in the names of persons in their capacity as trustees?

Thoroughly examine the Trust Deed Signup and view all the answers

What is the document that contains the names of the trustees, power vested in them for administering the trust property and other terms and conditions?

Trust Deed Signup and view all the answers

Who is the person who reposes or declares confidence in a trust?

Author of the trust Signup and view all the answers

What is the term for the obligation annexed to the ownership of property, arising out of confidence reposed in a person or group of persons?

Trust Signup and view all the answers

What is the primary purpose of implementing effective KYC policies and procedures in banks?

To protect the integrity of the banking system by reducing money laundering, terrorist financing and other unlawful activities Signup and view all the answers

What is the recommended approach to verifying a customer's physical and financial identity?

Accumulating complete and accurate information about the prospective customer Signup and view all the answers

What is the primary purpose of knowing a customer physically and financially?

To verify the customer's identity and prevent money laundering and terrorist financing Signup and view all the answers

Why is it essential to obtain documents that are difficult to obtain illicitly?

To prevent illegal activities, such as money laundering and terrorist financing Signup and view all the answers

What is the benefit of having sound KYC policies and procedures in banks?

To protect the integrity of the banking system by reducing money laundering, terrorist financing and other unlawful activities Signup and view all the answers

What is obtained from the account holder who cannot sign to ensure the authenticity of the cheques?

Letter of Undertaking Signup and view all the answers

How many passport size photographs of the account holder should be obtained?

Two Signup and view all the answers

Who should attest the thumb impression of the account holder?

Manager/Sub-Manager Signup and view all the answers

What is the purpose of obtaining a letter of undertaking from the account holder?

To ensure the account holder personally operates the account Signup and view all the answers

What is required to open an account for a government or semi-government organization?

Copy of the status or any other law by which the body was created and is governed Signup and view all the answers

What type of deposit allows the depositor to agree on the period and rate of interest with the bank?

Fixed Deposit Signup and view all the answers

Which document is required to verify the identity of a customer opening a bank account?

Proof of Identity Signup and view all the answers

What is the purpose of obtaining a Specimen Signature Card when opening a bank account?

To authenticate the customer's signature Signup and view all the answers

What type of deposit is typically used for a large portion of savings deposits?

Savings Deposit Signup and view all the answers

What is required to open an account with a bank?

All essential features of a valid contract Signup and view all the answers

What happens to a Dormant Account when a cheque is presented for payment?

The cheque is referred to the Manager/Authorized Officer of the account branch for verification Signup and view all the answers

How can a customer reactivate their Dormant Account?

By initiating a debit transaction to the account Signup and view all the answers

What happens to interest on a Savings Bank Account after the death of the depositor?

Interest is paid up to the date of withdrawal/closing of the account Signup and view all the answers

What happens to an account when a bank receives authenticated information about the death of the account holder?

The account is termed as a Deceased Account and operations are stopped Signup and view all the answers

How is the genuineness of a drawing verified in a Dormant Account?

By the Manager/Authorized Officer of the account branch Signup and view all the answers

What is a crucial concern for banks in general banking?

fraud and money laundering Signup and view all the answers

Why are relevant legislative measures taken in general banking?

to handle challenges of malpractices and frauds Signup and view all the answers

What can be detrimental to banks that are widely perceived to be more fragile?

fraud and money laundering Signup and view all the answers

What should receive adequate attention of the policy makers of the bank?

all associated risks of general banking Signup and view all the answers

What is the common view within general banking?

that fraud is the main risk Signup and view all the answers

What can be challenging for banks?

avoiding procedures and compliance requirements Signup and view all the answers

What is a critical challenge in general banking?

malpractices that take the form of irregularities or non-compliance of procedures and fraudulent activities Signup and view all the answers

Why are measures taken in general banking?

to handle challenges of malpractices and frauds Signup and view all the answers

What is challenging for banks in general banking?

avoiding procedures and compliance requirements Signup and view all the answers

What is crucial in general banking?

protecting and building up their deposit base Signup and view all the answers

Banking: Deposit Accounts and Types

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Questions and Answers

What type of deposits require agreement between the depositor and the bank on period and interest rate?

What is a necessary feature of a valid contract for opening a bank account?

What document is required to verify the customer's address?

What document is required for nomination purposes?

What determines the additional documents required for opening a bank account?

What is the primary source of funds for most banks?

Why are banks introducing various deposit schemes?

What is the main task of banking with regards to deposits?

Why are banks opening branches across the country?

What is deposits in the context of banking?

Who can open a Savings Bank account?

How many times can a depositor withdraw money from a Savings Bank account in a week?

What is the minimum balance required to be eligible for interest in a Savings Bank account?

What is the condition for withdrawing money exceeding 25% of the balance in a Savings Bank account?

When is the interest paid on a Savings Bank account?

What is the purpose of obtaining identification documents from a prospective customer?

What is the importance of having effective KYC standards in banks?

What is the main objective of KYC procedures?

What is the recommended approach to verifying a customer's identity?

Why is it essential to obtain documents that are difficult to obtain illicitly?

What should happen if a cheque is presented for payment in a Dormant Account?

How can a customer reactivate a Dormant Account?

What happens to a Deceased Account after authenticated information is received?

How is interest applied to a Deceased Savings Bank Account?

What triggers the reactivation of a Dormant Account in the system?

What is required from an account holder who cannot sign, in addition to the Account opening form?

Who should attest the thumb impression of the account holder?

What should be attached to the specimen signature card?

What is the purpose of the letter of undertaking obtained from the account holder?

What precautionary measure should be taken by the bank?

What happens when a term deposit is encashed prematurely?

How is interest paid when a term deposit is encashed at maturity?

What happens when a term deposit is encashed beyond maturity?

Who can appoint a nominee to their bank account?

What is the role of a nominee in a bank account?

When can an account holder nominate a person to their account?

How many nominees can an account holder appoint?

What happens to the deposit when an account holder dies?

Who receives the benefit of the deposit in case of death of the account holder?

What determines the interest rate for the period beyond maturity?

What is the primary purpose of deposit mobilization in banking?

What is the main objective of banks introducing various deposit schemes?

What type of deposits require agreement between the depositor and the bank on period and interest rate?

What is a necessary document for nomination purposes in opening a bank account?

What is the source of funds for most banks?

What is the purpose of managing deposits in a bank?

What is required to be present when a banker opens an account?

What is the purpose of the Expected Transaction Profile (ETP) Form in opening a bank account?

What is the benefit of diversifying sources of funds for banks?

Who can open an account with the bank?

What happens to an account when a cheque is presented for payment in a Dormant Account?

How does a customer reactivate a dormant account?

What happens to the operation of an account when a bank receives authenticated information about the account holder's death?

How is interest applied in a Deceased Savings Bank Account?

What happens to a Dormant Account after a customer-initiated debit transaction?

What is the condition for withdrawal of money up to 25% of the balance in a Savings Bank account?

What is the benefit of having a Savings Bank account with this bank?

What happens if the balance in a Savings Bank account falls below Tk.500 at any day of a particular month?

In how many days' prior notice is required for withdrawal of money exceeding 25% of the balance in a Savings Bank account?

Who can open a Savings Bank account?

What is the primary purpose of obtaining a certified copy of the statute when opening a bank account?

What is the main goal of implementing effective KYC procedures in banks?

What is the recommended approach to verifying a customer's physical and financial identity?

What type of document is recommended to obtain from a prospective customer to verify their identity?

What is the purpose of the Mandate document when opening a bank account?

What should be obtained from the account holder who cannot sign?

What is the purpose of the letter of undertaking obtained from the account holder?

Who should attest the thumb impression of the account holder?

What should be attached to the specimen signature card?

What precautionary measure should be taken by the bank?

How should interest be paid when a term deposit is encashed at maturity?

What should be done when a term deposit is encashed prematurely?

Who can nominate a person to their account?

What happens when a term deposit is encashed beyond maturity?

What is the role of a nominee in a bank account?

How many nominees can an account holder appoint?

When can an account holder nominate a person to their account?