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Questions and Answers
What is the primary function of the Bank regarding deposits?
To accept deposits from the public for the purpose of lending.
Depositors are considered the major stakeholders of the Banking System.
True
Which of the following is a type of deposit product offered by the Bank?
What does a 'savings deposit' refer to?
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What is a 'term deposit'?
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What does 'green finance' involve?
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A 'current account' allows unlimited withdrawals.
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A ______________ is a special kind of deposit offered to the customer.
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What is the purpose of the Depositor Education And Awareness Fund (DEAF)?
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What annual process is mentioned in the deposit policy?
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What is a 'deceased depositor's account'?
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Study Notes
Introduction
- Accepting deposits is a core function of banks, crucial for lending activities.
- Depositors are key stakeholders within the banking system, influencing the regulatory framework.
- The regulatory framework governing depositors is highlighted in the Banking Regulation Act, 1949.
- The Reserve Bank of India (RBI) directs policies on interest rates and deposit account operations.
- Liberalization and deregulation allow banks to create deposit products within RBI guidelines.
- This policy document sets out principles and guidelines for deposit product formulation and account conduct.
- Focus is on depositor rights, account management, interest payments, account closures, and the handling of deceased depositors' funds.
Definitions
- Demand Deposit: Withdrawable on demand; includes savings and current accounts.
- Savings Deposit: A demand deposit with restrictions on withdrawal amounts and frequency.
- Term Deposit: Fixed-period deposits not accessible until maturity; includes several schemes like Fixed Deposits, Recurring Deposits, and Tax Planner Deposits.
- Green Deposit: Interest-bearing deposits aimed at financing environmentally sustainable projects per RBI's guidelines.
- Current Account: Demand deposit with unlimited withdrawal capability, excluding savings and term deposits.
- Flexi Deposits: Special deposits with unique features, encouraging higher interest rates under certain conditions.
Additional Features
- The policy aims to inform customers about various deposit accounts and their terms.
- Commitment to customer rights is reaffirmed through the ‘Code of Banks Commitment to Customers’.
- Operational instructions for deposit schemes and services will be periodically updated.
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Description
Test your knowledge on the Deposit Policy for 2024-25. This quiz covers various aspects such as account types, operational procedures, and specific provisions for different customer categories. Whether you're a banking professional or a student, this quiz will enhance your understanding of deposit regulations.
