120 Questions
What type of relationship exists between banks and their clients?
Fiduciary
What is the primary responsibility of a bank?
Protecting customers' deposit and secrecy
What is the significance of commercial banks in the development process?
They play a crucial role in economic development
What is a bank considered in terms of its function?
A financial intermediary
What is the bank's duty towards its customers?
To carry out duties in utmost good faith and due diligence
What is the primary focus of chapter 5 in the manual?
Clearing and Collection of Instruments
Which of the following is NOT discussed in chapter 5?
Bills Collection and Remittance
Where can one find the discussion on Bills Collection and Remittance in the manual?
Chapter 6
What is the main topic of chapter 6 in the manual?
Bills Collection and Remittance
What is BACH an acronym for in the context of chapter 5?
Bangladesh AutomatedClearingHouse
What is the abbreviation for Automated Clearing House?
ACH
What is the term for the bank that receives the payment instruction from the payer?
Receiving Bank
What is the process of exchanging payment instructions between banks?
Clearing
What does the abbreviation 'CBS' stand for in the context of banking?
Core Banking Solution
What is the term for the bank that initiates the payment instruction?
Paying Bank
What is the primary source of funding for a bank's business?
Deposits from retail and corporate customers
What is the main objective of deposit mobilization in banking?
To collect money from various customer groups
Why are banks introducing various deposit schemes?
To attract deposits from various customer groups
What is the primary reason banks are opening branches across the country?
To reduce dependence on urban deposits
What is the primary function of deposit mobilization in banking?
To collect money from various customer groups
What is the primary function of the Presenting Bank in the clearing process?
To present the instrument to the Paying Bank
What is the role of the Paying Bank in the clearing process?
To settle the amount with the Presenting Bank
What is the term for the processing of instruments at the Participating Bank Module?
PBM
What is the name of the real-time settlement system?
RTGS
What is the term for the system where instruments are cleared on the same day?
Same Day Clearing
When a customer has multiple debts outstanding, what is the role of the bank in appropriating payment?
The bank can exercise its right to appropriation without needing the customer's direction
What is the purpose of a Garnishee Order?
To instruct the bank to hold funds until directed by the court
What is the banker's obligation when a customer issues a cheque?
To verify the customer's account and then honour the cheque
What is the bank's implied right in relation to services rendered?
To charge interest and commission on services rendered
What is the banker's obligation in relation to customer records?
To maintain proper and accurate records
What is the purpose of obtaining a clear instruction from joint account holders?
To avoid disputes in making payments
What does the term 'garnishee' refer to?
The person who has been served with the order
What is the purpose of the 'Garnishee Order Nisi'?
To give the banker an opportunity to prove the order is incorrect
What happens to the customer's cheques if the 'Garnishee Order Absolute' is issued?
The banker must dishonor all cheques
Why should a banker carefully examine the terms of the 'Garnishee Order'?
To understand the extent of the garnishment
What should a banker do if a 'Garnishee Order' is received after debiting the account but before making cash payment?
Refuse payment with an appropriate objection
What is the primary consequence of a 'Garnishee Order Absolute' on a customer's account?
The customer's account is garnished
What is the banker's responsibility when a 'Garnishee Order' is issued?
To carefully examine the terms of the order
What is the significance of the 'Garnishee Order Nisi' becoming an absolute order?
The order is enforced and becomes absolute
What is the purpose of having clear instructions from joint account holders when opening an account?
To avoid disputes in making payments
What is the primary function of the Presenting Bank in the clearing process?
To submit the instrument to the Clearing House
Which chapter of the manual discusses the Bills Collection and Remittance?
Chapter 6
What is the role of the Paying Bank in the clearing process?
To make the payment to the Collecting Bank
What is the term for the bank that receives the payment instruction from the payer?
Ordering Bank
What is the process of exchanging payment instructions between banks?
Clearing
What is the primary role of the Collecting Bank in the clearing process?
To present the instrument to the Paying Bank for payment
What is the term for the process of exchanging payment instructions between banks?
Clearing
What is the primary responsibility of the Paying Bank in the clearing process?
To make payment to the payee
What is the term for the bank that receives the payment instruction from the payer?
Originating Bank
What is the term for the bank that initiates the payment instruction?
Originating Bank
What is the primary purpose of a banker's efforts to diversify sources of funds?
To reduce dependence on retail deposits
What is the primary function of deposit mobilization in banking?
To mobilize savings through intensive deposit collection
What is the primary source of funding for a bank's business?
Deposits from retail and corporate customers
Why are banks introducing various deposit schemes?
To attract deposits from various customer groups
What is the primary role of a bank in the economy?
To play a major role in the development process
Which of the following is the primary function of the Clearing House in the clearing process?
To facilitate the exchange of instruments between banks
Which bank is responsible for verifying the authenticity of the instruments in the clearing process?
Presenting Bank
What is the term for the system where instruments are cleared on the same day in the Bangladesh banking system?
RTGS (Real Time Gross Settlement)
Which of the following is an abbreviation for 'Bangladesh Automated Clearing House'?
BACH
What is the term for the bank that initiates the payment instruction in the clearing process?
Originating Bank
What is the primary responsibility of the Paying Bank in the clearing process?
To verify the genuineness of the instrument
What is the term for the bank that initiates the payment instruction?
Originating Bank
What is the term for the processing of instruments at the Participating Bank Module?
PBM
What is the primary function of the Collecting Bank?
To present the instrument to the paying bank
What is the term for the system where instruments are cleared on the same day?
Same Day Clearing
What happens when a customer has multiple debts outstanding and no direction is given to the banker?
The bank can exercise its right of appropriation and apply it in payment of any debt.
What is the implied right of a banker in relation to services rendered?
To charge for services rendered and sold to a customer.
What is the obligation of a banker when a customer issues a cheque?
To honour the customer’s cheque after the necessary verifications.
What is the purpose of a Garnishee Order?
To instruct a bank that funds held on behalf of a debtor should not be released until directed by the court.
What is the obligation of a banker in relation to customer records?
To maintain secrecy of customer’s account and maintain proper records.
What is the primary consequence of a 'Garnishee Order Absolute' on a customer's cheques?
The cheques are dishonored regardless of the amount
What should a banker do if a 'Garnishee Order' is received after debiting the account but before making cash payment?
Refuse payment with an appropriate objection
What is the purpose of having a clear instruction from joint account holders when opening an account?
To avoid complications in making payment that may arise as a future dispute
What is the significance of the 'Garnishee Order Nisi' becoming an absolute order?
It attaches the customer's account and the banker must dishonor the cheques
What happens if a 'Garnishee Order' is received after debiting the account but before making cash payment?
The payment is refused with an appropriate objection
What is the role of the bank in relation to a 'Garnishee Order'?
To attach the customer's account and dishonor the cheques
What is the primary consequence of a 'Garnishee Order' on a customer's account?
The account is attached and the banker must dishonor the cheques
What is the significance of the 'Garnishee Order Nisi'?
It gives the banker an opportunity to prove that the order could not be enforced
What is the role of the bank in relation to a customer's cheques?
To dishonor the cheques if a 'Garnishee Order Absolute' is issued
What happens to the customer's account if a 'Garnishee Order Absolute' is issued?
The account is attached and the banker must dishonor the cheques
What is the main focus of Chapter 5 in the manual?
Clearing and Collection of Instruments
What is the role of the Paying Bank in the clearing process?
To receive the payment instruction from the payer
What is the term for the bank that receives the payment instruction from the payer?
Paying Bank
What is the primary function of the Collecting Bank in the clearing process?
To collect the payment on behalf of the customer
What is the abbreviation for Bangladesh Automated Clearing House?
BACH
What is the primary function of the Presenting Bank in the clearing process?
To process the payment instruction
What is the term for the bank that receives the payment instruction from the payer?
Receiving Bank
What is the primary responsibility of a bank in relation to its customers?
To protect customers' deposits and secrecy
What is the abbreviation for Bangladesh Automated Clearing House?
BACH
What is the nature of the relationship between banks and their clients?
Fiduciary and based on trust
What is the primary function of the Collecting Bank in the clearing process?
To collect the payment on behalf of the customer
What is a bank's role in the economy?
To act as a financial intermediary
What is the term for the system where instruments are cleared on the same day?
Same Day Clearing
What is the significance of commercial banks in the development process?
They facilitate economic development
What is the bank's supreme responsibility?
To protect customers' deposits and secrecy
What is the purpose of deposit mobilization in banking?
To diversify sources of funds for the bank
What is the primary source of funding for a bank's business?
Deposits from retail and corporate customers
What is the main objective of a bank's efforts to diversify sources of funds?
To reduce dependence on other banks
What is the primary role of a bank in the economy?
To facilitate transactions and provide financial services
What is the term for the process of exchanging payment instructions between banks?
Clearing
What does the term 'BACH' stand for in the context of chapter 6?
Bangladesh Automated Clearing House
What is the responsibility of the Presenting Bank in the clearing process?
To initiate the payment instruction to the Paying Bank
What is the term for the processing of instruments at the Participating Bank Module?
PBM
What is the primary responsibility of the Paying Bank in the clearing process?
To settle the payment instruction with the Presenting Bank
What is the term for the system where instruments are cleared on the same day?
Same Day Clearing
What is the right of the customer regarding the appropriation of payment made by him?
Banker's right to appropriate payment
What is the obligation of a banker regarding customer's cheques?
To honour the customer's cheque after verification
What is the purpose of a garnishee order?
To instruct a bank not to release funds
What type of order is a garnishee order?
Court order
What happens if a customer has multiple debts outstanding and no direction is given to the banker?
The banker can exercise its right of appropriation and apply it in payment of any debt
What is the purpose of obtaining clear instruction from joint account holders when opening an account?
To avoid any future dispute between the joint account holders
What is the significance of 'Garnishee Order Nisi'?
It is an opportunity for the banker to prove that the order cannot be enforced
What should the banker do if a 'Garnishee Order' is received after debiting the account but before making cash payment?
Refuse payment with an appropriate objection
What happens to the customer's cheque if a 'Garnishee Order Absolute' is issued?
The cheque will be dishonored
What is the primary consequence of a 'Garnishee Order Absolute' on a customer's account?
The account is fully attached
What is the responsibility of the banker when a 'Garnishee Order' is received?
To go through the terms of the order carefully
What should the banker do when a customer has multiple debts outstanding and no direction is given?
Appropriate the payment as the banker sees fit
What is the term for the bank that receives the payment instruction from the payer?
Presenting Bank
What is the role of the Collecting Bank in the clearing process?
To present the instruments to the Paying Bank
What is the term for the system where instruments are cleared on the same day?
Same-day Clearing
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