Partnership Firm Account Opening with Minor Partner

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Questions and Answers

What should be recorded on the Account Opening Form when a minor is admitted as a partner in a partnership firm?

The date of birth of the minor

What is the liability of a minor in a partnership firm?

The minor is not liable to the liabilities of the firm

What should a minor do after attaining majority or gaining knowledge of being admitted to a partnership?

Give notice within a specified time to elect to be liable or not to be liable as a partner

What happens if a minor fails to give notice after attaining majority or gaining knowledge of being admitted to a partnership?

The minor becomes a partner after the expiry of the specified period Signup and view all the answers

What should be done with accounts that have no operations (deposits or withdrawals) for a period of one year?

Treat them as inoperative accounts and transfer them to a 'DORMANT' account Signup and view all the answers

What is required for the first withdrawal from a dormant account?

Prior permission from the Manager / Sub-Manager after verifying the account holder's identity Signup and view all the answers

What are the key areas that banks need to focus on to attract quality management and service?

Protecting and building up their deposit base, growing their capacity for creating products in different areas of operation, strengthening their ability to manage different areas of general banking, and enhancing their ability for providing services as per customer needs. 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 like bank fraud, money laundering. Signup and view all the answers

Why are malpractices particularly detrimental for banks?

Because banks are widely perceived to be more fragile than other non-financial organizations. Signup and view all the answers

What measures have been taken to handle the challenges of malpractices and frauds?

Relevant legislative measures have been made and stringent compliance requirements have been increased. Signup and view all the answers

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

It can prove to be very challenging for banks. Signup and view all the answers

Why is it essential for policy makers to focus on the risks of general banking?

Because all associated risks of general banking must receive adequate attention to ensure the stability of the bank. Signup and view all the answers

Under what circumstances should a bank conduct Enhanced Due Diligence (EDD)?

When individuals or legal entities are scored with high risk, when dealing with politically exposed persons or influentials, or when transactions are unusual in pattern, volume, and complexity with no apparent economic or lawful purposes. Signup and view all the answers

What type of information should be obtained to conduct Enhanced CDD measures?

Additional information on the customer's occupation, volume of assets, and information available through public databases, internet, etc. Signup and view all the answers

What is the purpose of obtaining information on the source of funds or source of wealth of the customer?

To understand the legitimacy of the customer's funds and to identify potential risks associated with the source of their wealth. Signup and view all the answers

Why is it necessary to obtain the approval of senior management to commence or continue the business relationship?

To ensure that the bank's senior management is aware of the risk level of the customer and has approved the business relationship, thereby minimizing potential risks. Signup and view all the answers

What is the purpose of conducting regular monitoring of the business relationship?

To increase the number and timing of controls applied and select patterns of transactions that need further examination. Signup and view all the answers

Why is it essential to make bank officials aware of the risk level of the customer?

To ensure that they are vigilant and take necessary precautions to minimize the risk associated with the customer's business activities. Signup and view all the answers

What is the main risk in general banking?

Fraud, money laundering etc. Signup and view all the answers

What measures have been taken to handle the challenges of malpractices and frauds in general banking?

Relevant legislative measures have been made and stringent compliance requirements increased tremendously. Signup and view all the answers

Why is it crucial for banks to focus on the risks of general banking?

To avoid being perceived as fragile and to manage risks associated with general banking. Signup and view all the answers

What happens when banks avoid procedures and compliance requirements in general banking?

It can prove to be very challenging for banks. Signup and view all the answers

Why is it essential for banks to strengthen their capacity in different areas of operation?

To attract quality management and service, protecting and building up their deposit base. Signup and view all the answers

What is the fundamental basis of the relationship between banks and their clients?

fiduciary Signup and view all the answers

What is the supreme responsibility of a bank in relation to its customers' deposits?

protecting customers' deposit and secrecy Signup and view all the answers

What is the significance of commercial banks in the development process?

indispensable for economic development Signup and view all the answers

What should banks avoid in their dealings with customers?

favor or indulgence Signup and view all the answers

What is the role of banks in the economy?

financial intermediary Signup and view all the answers

What is the primary purpose of the General Banking Department in a bank?

The primary purpose of the General Banking Department is to provide direct customer service and manage deposits, cash, and other ancillary services. Signup and view all the answers

What is crucial for bankers in general banking to ensure effective handling of banking operations?

Due compliance with laws and procedures is crucial for bankers in general banking to ensure effective handling of banking operations. Signup and view all the answers

What type of skills are essential for senior bankers to guide desk-level bank officials in general banking?

Adequate knowledge and skills to facilitate general banking effectively are essential for senior bankers to guide desk-level bank officials. Signup and view all the answers

What is the importance of capacity development for bank officials in general banking?

Capacity development is important for bank officials to handle general banking challenges effectively and maximize profit for the bank. Signup and view all the answers

What is the ultimate goal of general banking in terms of profit?

The ultimate goal of general banking is to maximize profit for the bank. Signup and view all the answers

What are the key areas that the manual covers with respect to general banking activities of banks?

The manual covers general banking activities, risk issues, capacity development aspects, and widely used general banking related issues. Signup and view all the answers

What is the primary focus of chapter 2 of the manual?

The primary focus of chapter 2 is the Banker-customer relationship, including general and special relationships. Signup and view all the answers

What topics are discussed in chapter 5 of the manual?

Chapter 5 discusses Clearing and Collection of Instruments, BACH, BACPS Cash, and vault managements, measures for safekeeping of cash. Signup and view all the answers

What is the significance of chapter 3 of the manual?

Chapter 3 discusses the opening and operation of different bank accounts and some other important issues of various types of account operation. Signup and view all the answers

What is the primary purpose of the manual?

The primary purpose of the manual is to provide knowledge requirements for relatively senior level bank executives of the NCC Bank Limited. Signup and view all the answers

What are the main objectives of the Contract Act, 1872 in the context of general banking?

The main objectives of the Contract Act, 1872 in the context of general banking are to regulate and govern the contractual relationships between banks and their customers, ensuring that the contracts are lawful, valid, and enforceable. Signup and view all the answers

What is the significance of the Bank Companies Act, 1991 in the context of general banking?

The Bank Companies Act, 1991 is significant in the context of general banking as it regulates the banking companies, licensing, and supervision, ensuring that banks operate in a safe and sound manner, protecting the interests of depositors and maintaining financial stability. Signup and view all the answers

What is the importance of the Companies Act, 1994 in the context of general banking?

The Companies Act, 1994 is important in the context of general banking as it regulates the incorporation, management, and dissolution of companies, including banking companies, ensuring that they comply with the legal requirements and maintain transparency and accountability. Signup and view all the answers

What is the purpose of the Partnership Act, 1932 in the context of general banking?

The Partnership Act, 1932 is significant in the context of general banking as it regulates the partnerships and partnership firms, including those engaged in banking and financial activities, ensuring that they comply with the legal requirements and maintain transparency and accountability. Signup and view all the answers

What are the key provisions of the relevant laws and regulations related to general banking in Bangladesh?

The key provisions of the relevant laws and regulations related to general banking in Bangladesh include the Bank Companies Act, 1991, the Contract Act, 1872, the Companies Act, 1994, and the Partnership Act, 1932, which regulate and govern the banking industry, ensuring that banks operate in a safe and sound manner, protecting the interests of depositors and maintaining financial stability. Signup and view all the answers

What role do commercial banks play in the economy and how do they contribute to its development?

Commercial banks collect capital from the general public and mobilize it to productive fields, activating the entire economic sector, thus contributing to its development. Signup and view all the answers

How do banks ensure the security of deposits and encourage saving?

Banks provide security to deposits and pay interest on them, encouraging saving. Signup and view all the answers

What is the significance of the General Banking department in a financial institution?

The General Banking department is the vital part of a financial institution, linked with all other departments. Signup and view all the answers

Why is it essential for bank employees to continually update their skills and knowledge?

Bank employees need to update their skills and knowledge to respond to the rapidly changing banking and finance world and to handle various customer queries. Signup and view all the answers

Why is general banking a crucial part of overall banking activities?

General banking holds the major part of overall banking activities, making it essential to focus on issues related to it. Signup and view all the answers

What is the primary purpose of the Customer Due Diligence (CDD) obligations on banks under legislation and regulation?

To make it more difficult to abuse the banking industry for money laundering or terrorist financing. Signup and view all the answers

What is the basis of the risk-sensitive CDD measures that banks should implement?

The basis is on the type of customers, business relationship, type of banking products, and transactions carried out by the customer. Signup and view all the answers

What is the objective of banks in implementing adequate CDD measures?

To demonstrate to the supervisory authority that they have taken necessary steps to prevent money laundering and terrorist financing. Signup and view all the answers

What is the purpose of conducting Enhanced Due Diligence (EDD) measures by banks?

To conduct additional measures when necessary, in addition to normal CDD measures. Signup and view all the answers

What is the significance of the MLPA, 2012 and ATA, 2009 in the context of CDD obligations?

These laws make it an offence to commit money laundering and terrorist financing, and banks must take measures to prevent these activities. Signup and view all the answers

What is the role of supervisory authority in relation to CDD obligations of banks?

To ensure that banks have implemented adequate CDD measures to prevent money laundering and terrorist financing. Signup and view all the answers

What is the consequence of banks not implementing adequate CDD measures?

They may be at risk of committing offences under MLPA, 2012 and ATA, 2009. Signup and view all the answers

What is the importance of understanding the type of customers in the context of CDD?

To understand the level of risk associated with each customer and to implement appropriate measures to prevent money laundering and terrorist financing. Signup and view all the answers

What is the purpose of transaction monitoring in the context of CDD?

To identify and prevent suspicious transactions that may be related to money laundering or terrorist financing. Signup and view all the answers

What is the significance of knowing the source of funds or source of wealth of the customer in the context of CDD?

To understand the legitimacy of the customer's funds and to prevent money laundering and terrorist financing. Signup and view all the answers

What specific laws and regulations have been implemented to address the challenges of malpractices and frauds in general banking?

Relevant legislative measures and stringent compliance requirements Signup and view all the answers

What is the primary purpose of the Bank Companies Act, 1991 in relation to general banking?

It plays a crucial role in regulating the banking sector and ensuring compliance with laws and regulations Signup and view all the answers

What is the significance of the Companies Act, 1994 in the context of general banking?

It provides a framework for companies to operate and ensures compliance with laws and regulations Signup and view all the answers

What is the role of the MLPA, 2012 and ATA, 2009 in the context of CDD obligations?

They provide guidelines for banks to comply with anti-money laundering and terrorist financing regulations Signup and view all the answers

What is the primary focus of the Contract Act, 1872 in the context of general banking?

It regulates the contracts and agreements between banks and their customers Signup and view all the answers

What is the significance of the Bank Companies Act, 1991 in the context of general banking?

The Bank Companies Act, 1991 is significant in general banking as it provides the legal framework for banking operations in Bangladesh. Signup and view all the answers

What is the importance of understanding the MLPA, 2012 and ATA, 2009 in the context of CDD obligations?

Understanding the MLPA, 2012 and ATA, 2009 is important for banks to comply with the legal requirements for Customer Due Diligence (CDD) and to prevent money laundering and terrorist financing. Signup and view all the answers

What is the significance of the Contract Act, 1872 in the context of general banking?

The Contract Act, 1872 is significant in general banking as it provides the legal framework for contracts and agreements between banks and their customers. Signup and view all the answers

What are the key provisions of the relevant laws and regulations related to general banking in Bangladesh?

The key provisions of the relevant laws and regulations related to general banking in Bangladesh include the Bank Companies Act, 1991, MLPA, 2012, ATA, 2009, and the Contract Act, 1872. Signup and view all the answers

Why is it essential for banks to comply with the laws and regulations related to general banking?

It is essential for banks to comply with the laws and regulations related to general banking to prevent fraud, money laundering, and terrorist financing, and to maintain credibility and trust with customers. Signup and view all the answers

What is the significance of the Companies Act, 1994 in the context of general banking?

The Companies Act, 1994 is significant in the context of general banking as it provides the legal framework for the incorporation and management of companies, which are major customers of banks. Signup and view all the answers

What are the key provisions of the relevant laws and regulations related to general banking in Bangladesh?

The key provisions include the Companies Act, 1994, the Partnership Act, 1932, the Contract Act, 1872, the Money Laundering Prevention Act, 2012, and other relevant laws and regulations. Signup and view all the answers

What is the primary purpose of chapter 10 of the manual, which covers Laws and Regulations Related to General Banking?

The primary purpose of chapter 10 is to provide an overview of the key laws and regulations related to general banking in Bangladesh. Signup and view all the answers

What is the significance of the Money Laundering Prevention Act, 2012 in the context of general banking?

The Money Laundering Prevention Act, 2012 is significant in the context of general banking as it provides the legal framework for preventing money laundering and terrorist financing in Bangladesh. Signup and view all the answers

What is the role of chapter 11 of the manual, which covers Fraud, Forgeries, and Malpractices Related to General Banking?

The role of chapter 11 is to provide an overview of the key issues related to fraud, forgeries, and malpractices in general banking and the measures that banks can take to prevent and mitigate these risks. Signup and view all the answers

What is the significance of the Contract Act, 1872, and the Bank Companies Act, 1991, in the context of general banking?

The Contract Act, 1872, deals with the contractual obligations between banks and customers, while the Bank Companies Act, 1991, regulates the banking industry, including the establishment, management, and operation of banks. Signup and view all the answers

What are the implications of the MLPA, 2012, and ATA, 2009, on Customer Due Diligence (CDD) obligations of banks?

The MLPA, 2012, and ATA, 2009, emphasize the importance of CDD in preventing money laundering and terrorist financing, requiring banks to implement adequate CDD measures to manage these risks. Signup and view all the answers

How do the Companies Act, 1994, and the Partnership Act, 1932, influence general banking practices in Bangladesh?

The Companies Act, 1994, governs company formations and operations, while the Partnership Act, 1932, regulates partnerships, affecting the banking relationships with these entities. Signup and view all the answers

What role do laws and regulations play in shaping the risk management framework for banks in Bangladesh?

Laws and regulations, such as the Bank Companies Act, 1991, and the Financial Institutions Act, 1993, establish the regulatory framework for banks, enabling them to manage risks and maintain financial stability. Signup and view all the answers

How do the laws and regulations related to general banking in Bangladesh address the challenges of malpractices and frauds?

The laws and regulations, such as the Penal Code, 1860, and the Bangladesh Money Laundering Prevention Act, 2009, criminalize fraudulent activities and provide a legal framework for preventing and prosecuting malpractices and frauds. Signup and view all the answers

What is the main objective of the Bank Companies Act, 1991 in relation to general banking?

To regulate and monitor the banking activities of commercial banks in Bangladesh. Signup and view all the answers

What is the significance of the Companies Act, 1994 in the context of general banking?

It provides a legal framework for the formation and operation of companies, including banks, and regulates their activities. Signup and view all the answers

What is the purpose of the Partnership Act, 1932 in the context of general banking?

It provides a legal framework for the formation and operation of partnership firms, including those with bank accounts. Signup and view all the answers

What is the main objective of the Contract Act, 1872 in the context of general banking?

It provides a legal framework for the formation and enforcement of contracts, including those between banks and their customers. Signup and view all the answers

What is the significance of the MLPA, 2012 and ATA, 2009 in the context of CDD obligations?

They provide a legal framework for anti-money laundering and combating the financing of terrorism, and require banks to implement CDD measures. Signup and view all the answers

What is the significance of The Companies Act, 1994 in the context of general banking, and how does it relate to the banking operations?

The Companies Act, 1994 is significant in the context of general banking as it provides the framework for company incorporation, management, and regulation, which is crucial for banks to understand when dealing with corporate customers. This understanding is essential to ensure compliance with banking regulations and to mitigate risks associated with corporate banking. Signup and view all the answers

What are the implications of The Bank Companies Act, 1991 on the banking operations, and how do banks ensure compliance with its provisions?

The Bank Companies Act, 1991 has significant implications on banking operations, as it regulates the formation, operation, and management of banks. Banks ensure compliance with its provisions by adhering to the licensing requirements, capital adequacy, and prudential regulations, as well as reporting requirements to the Bangladesh Bank. Signup and view all the answers

How does The Contract Act, 1872 relate to the banker-customer relationship, and what are the implications of its provisions on banking operations?

The Contract Act, 1872 is significant in the banker-customer relationship, as it provides the legal framework for contract formation and enforcement. Its provisions imply that banks must ensure that contracts with customers are valid, enforceable, and comply with the legal requirements, which is essential for maintaining trust and confidence in banking operations. Signup and view all the answers

What is the significance of The Partnership Act, 1932 in the context of general banking, and how does it relate to the banking operations?

The Partnership Act, 1932 is significant in the context of general banking, as it provides the legal framework for partnership formation and management, which is crucial for banks to understand when dealing with partnership firms. Its provisions imply that banks must ensure that partnership firms comply with the legal requirements, which is essential for maintaining trust and confidence in banking operations. Signup and view all the answers

What are the key provisions of the relevant laws and regulations related to general banking in Bangladesh, and how do they impact banking operations?

The key provisions of the relevant laws and regulations related to general banking in Bangladesh include The Bank Companies Act, 1991, The Companies Act, 1994, The Contract Act, 1872, and The Partnership Act, 1932. These provisions regulate the banking sector, providing the framework for company incorporation, management, and regulation, as well as contract formation and enforcement, which is essential for maintaining trust and confidence in banking operations. Signup and view all the answers

What is the primary purpose of Customer Due Diligence (CDD) obligations under legislation and regulation?

To make it more difficult to abuse the banking industry for money laundering or terrorist financing. Signup and view all the answers

What are the factors that banks consider when implementing risk-sensitive CDD measures?

Type of customers, business relationship, type of banking products, and transaction carried out by the customer. Signup and view all the answers

What is the consequence of banks not implementing adequate CDD measures?

Increased risk of committing offences under MLPA, 2012 including 'Predicate Offences' and the relevant offences under ATA, 2009. Signup and view all the answers

What is the significance of the MLPA, 2012 and ATA, 2009 in the context of CDD obligations?

They are laws that prevent money laundering and terrorist financing, and banks must comply with them. Signup and view all the answers

Under what circumstances should banks conduct Enhanced Due Diligence (EDD) measures?

When necessary, in addition to normal CDD measures. Signup and view all the answers

What is the primary focus of banks in implementing CDD measures?

To understand who their customers are and to prevent money laundering and terrorist financing. Signup and view all the answers

What is the basis of the risk-sensitive CDD measures that banks implement?

Type of customers, business relationship, type of banking products, and transaction carried out by the customer. Signup and view all the answers

What is the significance of understanding the type of customers in the context of CDD?

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

What is the role of the supervisory authority in relation to CDD obligations?

To ensure that banks implement adequate CDD measures. Signup and view all the answers

Why is it essential for banks to implement adequate CDD measures?

To prevent money laundering and terrorist financing and to comply with laws and regulations. Signup and view all the answers

What are the consequences of non-compliance with procedures and legislative measures in general banking, and why is it crucial to address these challenges?

Non-compliance with procedures and legislative measures can lead to detrimental effects such as fraud, money laundering, and reputational damage to banks. It is crucial to address these challenges because banks are widely perceived to be more fragile than other non-financial organizations, and malpractices can have severe consequences. Signup and view all the answers

How do legislative measures and compliance requirements contribute to the prevention of fraud and money laundering in general banking?

Legislative measures and compliance requirements contribute to the prevention of fraud and money laundering by increasing stringent compliance requirements and enhancing the ability of banks to manage risks and prevent fraudulent activities. Signup and view all the answers

What are the key aspects of the risk management framework for banks in Bangladesh, and how do laws and regulations shape this framework?

The key aspects of the risk management framework for banks in Bangladesh include managing risks associated with general banking, such as fraud and money laundering. Laws and regulations, such as the Bank Companies Act, 1991, and the Money Laundering Prevention Act, 2012, play a crucial role in shaping this framework by providing guidelines and requirements for banks to manage risks effectively. Signup and view all the answers

What is the significance of understanding the relevant laws and regulations, such as the Contract Act, 1872, the Companies Act, 1994, and the Bank Companies Act, 1991, in the context of general banking?

These laws and regulations provide a legal framework for general banking operations, ensuring that banks operate fairly, efficiently, and securely, while also protecting customers' rights and interests. Signup and view all the answers

How do laws and regulations, such as the Money Laundering Prevention Act, 2012, and the Anti-Terrorism Act, 2009, influence the implementation of CDD measures in general banking?

These laws and regulations require banks to implement robust CDD measures to prevent money laundering and terrorist financing, ensuring that banks operate with integrity and transparency. Signup and view all the answers

What is the significance of the Bank Companies Act, 1991, and the Money Laundering Prevention Act, 2012, in the context of general banking in Bangladesh?

The Bank Companies Act, 1991, and the Money Laundering Prevention Act, 2012, are significant in the context of general banking in Bangladesh as they provide guidelines and requirements for banks to manage risks associated with general banking, including fraud and money laundering. Signup and view all the answers

How do banks ensure compliance with laws and regulations related to general banking in Bangladesh, and what are the consequences of non-compliance?

Banks ensure compliance with laws and regulations related to general banking in Bangladesh by implementing adequate measures, such as risk-sensitive Customer Due Diligence (CDD) measures, and conducting regular monitoring of the business relationship. Non-compliance can lead to severe consequences, including reputational damage and financial losses. Signup and view all the answers

What is the role of supervisory authorities in ensuring compliance with CDD obligations by banks, as mandated by laws and regulations such as the Bank Companies Act, 1991?

Supervisory authorities monitor and supervise banks to ensure that they comply with CDD obligations, providing guidance and enforcing penalties for non-compliance, thereby maintaining the integrity of the banking system. Signup and view all the answers

How do laws and regulations, such as the Partnership Act, 1932, impact the banking-customer relationship in general banking?

These laws and regulations govern the rights and obligations of banks and customers, providing a legal framework for contractually binding agreements, such as opening bank accounts. Signup and view all the answers

What is the significance of the Companies Act, 1994, in the context of general banking, particularly with regard to the management and operations of banks?

The Companies Act, 1994, regulates the incorporation, management, and operations of banks, ensuring that they operate in a transparent and accountable manner. Signup and view all the answers

What is the fiduciary relationship between banks and their clients based on, and what is the bank's supreme responsibility?

The fiduciary relationship is based on trust and utmost good faith, and the bank's supreme responsibility is to protect customers' deposits and secrecy. Signup and view all the answers

What is the significance of commercial banks in the development process, and what is the primary role they play in the economy?

Commercial banks play a crucial role in the development process, and their primary role is to act as a financial intermediary, facilitating economic development. Signup and view all the answers

What is the fundamental principle that banks must adhere to in their dealings with customers, and what happens if a bank fails to uphold this principle?

The fundamental principle is that banks must be impartial and non-discriminatory in their dealings with customers, and failure to uphold this principle is considered a violation of the fiduciary relationship. Signup and view all the answers

What is the primary objective of chapter 11 of the manual, and what topics are discussed in this chapter?

The primary objective of chapter 11 is to discuss fraud, forgeries, and malpractices related to general banking, and it covers leadership and managerial skills in banking. Signup and view all the answers

What is the significance of chapter 10 of the manual, and what topics are covered in this chapter?

Chapter 10 covers laws and regulations related to general banking, and it is significant because it provides banks with a comprehensive understanding of the legal framework that governs their operations. Signup and view all the answers

What are the implications of non-compliance with The Bank Companies Act, 1991 on the banking operations?

Non-compliance with The Bank Companies Act, 1991 may lead to legal and reputational risks, fines, and penalties, and may also result in loss of banking license. Signup and view all the answers

How do The Contract Act, 1872 and The Partnership Act, 1932 influence general banking practices in Bangladesh?

The Contract Act, 1872 and The Partnership Act, 1932 provide a legal framework for contracts, partnerships, and banking practices, influencing general banking practices in Bangladesh. Signup and view all the answers

What is the significance of The Companies Act, 1994 in the context of general banking?

The Companies Act, 1994 is significant in general banking as it regulates company formation, management, and operations, influencing banking practices and transactions. Signup and view all the answers

What are the implications of non-compliance with Customer Due Diligence (CDD) obligations under legislation and regulation?

Non-compliance with CDD obligations may lead to fines, penalties, reputational risks, and legal consequences, and may also result in loss of banking license. Signup and view all the answers

What is the primary purpose of risk management in general banking?

The primary purpose of risk management in general banking is to identify, assess, and mitigate risks, ensuring the stability and sustainability of banking operations. Signup and view all the answers

What are the key areas that the manual covers with respect to general banking activities of banks?

The manual covers general banking activities of banks, including risk issues and capacity development aspects, especially connected with the skills of senior management. Signup and view all the answers

What is the significance of chapter 3 of the manual?

Chapter 3 discusses opening and operations of different bank accounts, and other important issues related to various types of account operations. Signup and view all the answers

What is the primary focus of banks in implementing CDD measures?

The primary focus of banks in implementing CDD measures is to identify and mitigate the risks associated with customers and business relationships. Signup and view all the answers

What is the role of laws and regulations in shaping the risk management framework for banks in Bangladesh?

Laws and regulations play a crucial role in shaping the risk management framework for banks in Bangladesh, as they provide guidelines and standards for risk management practices. Signup and view all the answers

What happens when banks avoid procedures and compliance requirements in general banking?

When banks avoid procedures and compliance requirements in general banking, they are exposed to risks and consequences of non-compliance, including legal and reputational risks. Signup and view all the answers

What is the significance of laws and regulations in shaping the risk management framework for banks in Bangladesh, and how do they impact banking operations?

Laws and regulations play a crucial role in shaping the risk management framework for banks in Bangladesh, as they provide guidelines and standards for banks to follow, ensuring the stability and security of the banking system. These laws and regulations impact banking operations by setting boundaries and requirements for banks to operate within, influencing the way banks manage risks, conduct business, and interact with customers. Signup and view all the answers

What is the primary objective of the Bank Companies Act, 1991, and how does it relate to the banking operations in Bangladesh?

The primary objective of the Bank Companies Act, 1991, is to regulate and oversee the banking industry in Bangladesh, ensuring the stability and soundness of the financial system. This Act relates to banking operations by setting standards for bank management, governance, and risk management, and imposing regulatory requirements on banks to ensure compliance with these standards. Signup and view all the answers

What is the primary objective of the Customer Due Diligence (CDD) obligations under legislation and regulation?

To make it more difficult to abuse the banking industry for money laundering or terrorist financing. Signup and view all the answers

What is the role of the Contract Act, 1872, in the context of general banking, and how does it impact the banker-customer relationship?

The Contract Act, 1872, governs the formation and performance of contracts between banks and their customers, providing a legal framework for the banker-customer relationship. This Act impacts the banker-customer relationship by establishing the terms and conditions of the contract, and governing the rights and obligations of both parties. Signup and view all the answers

What is the significance of the Money Laundering Prevention Act, 2012 (MLPA) and the Anti-Terrorism Act, 2009 (ATA) in the context of CDD obligations?

To guard against the risk of committing offences under MLPA, 2012, including 'Predicate Offences' and the relevant offences under ATA, 2009. Signup and view all the answers

What is the significance of the Money Laundering Prevention Act, 2012, in the context of general banking, and how does it relate to the banking operations in Bangladesh?

The Money Laundering Prevention Act, 2012, is a crucial law that aims to prevent money laundering and terrorist financing, by requiring banks to implement robust customer due diligence and reporting mechanisms. This Act relates to banking operations by imposing anti-money laundering and combating financing of terrorism (AML/CFT) requirements on banks, to prevent the misuse of the banking system for illicit activities. Signup and view all the answers

What is the purpose of the Companies Act, 1994, in the context of general banking, and how does it influence banking operations in Bangladesh?

The Companies Act, 1994, governs the incorporation, management, and regulation of companies in Bangladesh, including banks. This Act influences banking operations by providing a framework for the formation and management of banks, and governing the rights and obligations of shareholders and directors. Signup and view all the answers

What is the purpose of conducting Enhanced Due Diligence (EDD) measures by banks?

When necessary, in addition to normal CDD measures. Signup and view all the answers

What is the role of supervisory authorities in ensuring compliance with CDD obligations by banks, as mandated by laws and regulations?

To ensure banks implement adequate CDD measures considering the risks of money laundering and terrorist financing. Signup and view all the answers

What are the key factors that banks consider when implementing risk-sensitive CDD measures?

Type of customers, business relationship with the customer, type of banking products, and transaction carried out by the customer. Signup and view all the answers

What is the consequence of banks not implementing adequate CDD measures?

Banks may be used for money laundering or terrorist financing. Signup and view all the answers

What is the primary purpose of the Bank Companies Act, 1991 in relation to general banking?

To regulate the banking industry and prevent its misuse for illegal activities. Signup and view all the answers

What is the significance of the Companies Act, 1994 in the context of general banking?

It influences general banking practices and provides a framework for regulating companies. Signup and view all the answers

What are the key provisions of the relevant laws and regulations related to general banking in Bangladesh?

The MLPA, 2012, ATA, 2009, Bank Companies Act, 1991, and Companies Act, 1994, among others. Signup and view all the answers

What is the role of laws and regulations in shaping the risk management framework for banks in Bangladesh?

They provide a framework for banks to mitigate the risks of money laundering and terrorist financing. Signup and view all the answers

What is the primary objective of laws and regulations related to general banking in Bangladesh?

To ensure the stability and security of the banking system, protect customers' interests, and prevent malpractices and frauds. Signup and view all the answers

How do laws and regulations related to general banking in Bangladesh impact banking operations?

They provide a framework for banks to operate, set standards for customer service, and guide risk management practices. Signup and view all the answers

What is the significance of the Bank Companies Act, 1991 in the context of general banking in Bangladesh?

It sets the guidelines for the establishment, operation, and management of banks, and ensures compliance with regulatory requirements. Signup and view all the answers

What is the role of supervisory authorities in ensuring compliance with laws and regulations related to general banking in Bangladesh?

They monitor and supervise banks to ensure compliance with regulatory requirements, and take enforcement action when necessary. Signup and view all the answers

Why is it essential for banks to comply with laws and regulations related to general banking in Bangladesh?

To avoid legal and reputational risks, maintain customer trust, and ensure the stability of the banking system. Signup and view all the answers

What is the significance of legislative measures in handling the challenges of malpractices and frauds in general banking?

Legislative measures have been made to handle the challenges of malpractices and frauds in general banking, such as money laundering, and stringent compliance requirements have been increased. Signup and view all the answers

Why is it crucial for banks to focus on the risks of general banking, particularly fraud and money laundering?

It is crucial for banks to focus on the risks of general banking because malpractices could be particularly detrimental for banks, and avoidance of procedures and compliance requirements could prove to be very challenging for banks. Signup and view all the answers

What is the role of laws and regulations in shaping the risk management framework for banks in Bangladesh?

Laws and regulations play a crucial role in shaping the risk management framework for banks in Bangladesh by guiding their risk management practices and ensuring compliance. Signup and view all the answers

What is the consequence of non-compliance with procedures and legislative measures in general banking?

The consequence of non-compliance with procedures and legislative measures in general banking could prove to be very challenging for banks, and may lead to fraudulent activities and financial losses. Signup and view all the answers

Why is it essential for policy makers to focus on the risks of general banking?

It is essential for policy makers to focus on the risks of general banking because all associated risks of general banking must receive adequate attention of the policy makers of the bank. Signup and view all the answers

What is the primary purpose of chapter 10 of the manual?

Chapter 10 of the manual covers Laws and Regulations Related to General Banking. Signup and view all the answers

What is the significance of the banker-customer relationship?

The banker-customer relationship is a fiduciary one, based on trust, and the bank has to carry out its duties to the customer in utmost good faith and due diligence. Signup and view all the answers

What is the role of banks in the economy?

Banks play a significant role in the economy as financial intermediaries, facilitating economic development through their operations. Signup and view all the answers

What is the supreme responsibility of a bank in relation to its customers' deposits?

The supreme responsibility of a bank is to protect customers' deposits and maintain secrecy about customers' affairs. Signup and view all the answers

Why is it essential for banks to be impartial and non-discriminatory in their dealings with customers?

Banks must be impartial and non-discriminatory to avoid violating the fiduciary relationship with customers and to ensure fair treatment of all customers. Signup and view all the answers

What is the primary purpose of the manual, and what areas of general banking are covered in it?

The primary purpose of the manual is to provide knowledge to senior level bank executives of the NCC Bank Limited. The manual covers general banking activities, risk issues, and capacity development aspects, including banker-customer relationships, opening and operations of bank accounts, negotiable instruments, clearing and collection of instruments, and more. Signup and view all the answers

What are the key areas of general banking activities discussed in the manual?

The manual covers general banking activities, including banker-customer relationships, opening and operations of bank accounts, negotiable instruments, clearing and collection of instruments, and more. Signup and view all the answers

What is the significance of understanding laws and regulations related to general banking in Bangladesh?

Understanding laws and regulations related to general banking in Bangladesh is crucial for banks to ensure compliance with laws and regulations, and to manage risks effectively. Signup and view all the answers

What is the role of supervisory authorities in ensuring compliance with laws and regulations related to general banking in Bangladesh?

Supervisory authorities play a crucial role in ensuring compliance with laws and regulations related to general banking in Bangladesh, by monitoring and enforcing banks' compliance with laws and regulations. Signup and view all the answers

What is the significance of the Bank Companies Act, 1991 in the context of general banking?

The Bank Companies Act, 1991 is significant in the context of general banking, as it provides a framework for the regulation of banks and banking activities in Bangladesh. Signup and view all the answers

What is the importance of laws and regulations in general banking, and how do they shape the operations of commercial banks in Bangladesh?

Laws and regulations are essential in general banking as they provide a framework for banks to operate, ensuring transparency, accountability, and protection of customers' interests. They shape the operations of commercial banks in Bangladesh by outlining guidelines for customer due diligence, risk management, and compliance requirements. Signup and view all the answers

What is the primary objective of laws and regulations related to general banking in Bangladesh, and how do they impact the banking industry?

The primary objective of laws and regulations is to ensure the stability and soundness of the banking system, protecting depositors' interests and preventing fraudulent activities. They impact the banking industry by setting standards for banking operations, risk management, and customer protection. Signup and view all the answers

How do laws and regulations related to general banking in Bangladesh contribute to the prevention of fraud and money laundering?

Laws and regulations in Bangladesh contribute to the prevention of fraud and money laundering by outlining guidelines for customer due diligence, suspicious transaction reporting, and anti-money laundering measures. These regulations enable banks to identify and report suspicious activities, preventing fraud and money laundering. Signup and view all the answers

What is the significance of the Bank Companies Act, 1991, and the Companies Act, 1994, in the context of general banking in Bangladesh?

The Bank Companies Act, 1991, and the Companies Act, 1994, are crucial in the context of general banking in Bangladesh as they provide the legal framework for banking operations, corporate governance, and customer protection. These laws regulate banking activities, ensuring compliance and accountability. Signup and view all the answers

Why is it essential for banks in Bangladesh to comply with laws and regulations related to general banking, and what are the consequences of non-compliance?

It is essential for banks to comply with laws and regulations to ensure transparency, accountability, and customer protection. Non-compliance can lead to reputational damage, financial penalties, and legal consequences, ultimately affecting the stability of the banking system. Signup and view all the answers

What is the main objective of the Contract Act, 1872, and how does it relate to the banking operations in Bangladesh?

The main objective of the Contract Act, 1872 is to provide a framework for contracts and agreements between parties. In the context of banking operations in Bangladesh, this Act is relevant to the banker-customer relationship, as it outlines the contractual obligations and rights of both parties. Signup and view all the answers

What are the key provisions of the Bank Companies Act, 1991, and how do they impact banking operations in Bangladesh?

The key provisions of the Bank Companies Act, 1991 include the regulation of banking companies, the appointment of directors, and the management of banking operations. These provisions impact banking operations in Bangladesh by ensuring that banks operate in a transparent and accountable manner, with a focus on protecting the interests of depositors and shareholders. Signup and view all the answers

What is the significance of the Companies Act, 1994, in the context of general banking in Bangladesh?

The Companies Act, 1994 is significant in the context of general banking in Bangladesh because it provides a framework for the incorporation and management of companies, including banks. It outlines the rights and responsibilities of shareholders, directors, and other stakeholders, and ensures that companies operate in a transparent and accountable manner. Signup and view all the answers

What is the role of supervisory authorities in ensuring compliance with laws and regulations related to general banking in Bangladesh?

The role of supervisory authorities is to ensure that banks comply with the laws and regulations related to general banking in Bangladesh. They monitor and regulate banking operations, conduct inspections and audits, and take enforcement actions against banks that fail to comply with the laws and regulations. Signup and view all the answers

What are the consequences of non-compliance with laws and regulations related to general banking in Bangladesh?

The consequences of non-compliance with laws and regulations related to general banking in Bangladesh include fines, penalties, and legal action. Banks may also face reputational damage, loss of customer confidence, and regulatory sanctions. In extreme cases, non-compliance can lead to the revocation of a bank's license to operate. Signup and view all the answers

What is the primary principle that banks must adhere to in their dealings with customers?

Knowing who their customers are and having the necessary documentary evidence to verify this. Signup and view all the answers

What is the purpose of the Customer Due Diligence (CDD) obligations under legislation and regulation?

To make it more difficult to abuse the banking industry for money laundering or terrorist financing. Signup and view all the answers

What factors should risk-sensitive CDD measures be based on?

Type of customers, business relationship with the customer, type of banking products, and transactions carried out by the customer. Signup and view all the answers

What is the significance of the Money Laundering Prevention Act, 2012 (MLPA), and the Anti-Terrorism Act, 2009 (ATA) in the context of CDD obligations?

They are designed to make it more difficult to abuse the banking industry for money laundering or terrorist financing. Signup and view all the answers

What is the role of the supervisory authority in relation to CDD obligations of banks?

To ensure that banks put in place and implement adequate CDD measures. Signup and view all the answers

What is the consequence of banks not implementing adequate CDD measures?

Increased risk of committing offences under MLPA, 2012, including 'Predicate Offences' and relevant offences under ATA, 2009. Signup and view all the answers

When should banks conduct Enhanced Due Diligence (EDD) measures?

When necessary, in addition to normal CDD measures. Signup and view all the answers

What is the primary objective of the Customer Due Diligence (CDD) obligations under legislation and regulation?

To understand who the customers are and guard against the risk of committing offences. Signup and view all the answers

What is the significance of obtaining information on the source of funds or source of wealth of the customer?

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

What should banks do to ensure compliance with CDD obligations?

Implement adequate CDD measures based on the type of customers, business relationship with the customer, type of banking products, and transactions carried out by the customer. Signup and view all the answers

When a customer hires a safe deposit locker from the bank, the relation between the bank and the customer is ______ and lessee.

lessor Signup and view all the answers

The bank is the ______ and the hirer of safe deposit locker is the lessee.

lessor Signup and view all the answers

When a bank collects cheques, bills and other instruments for customers, the relation between the bank and customer is that of ______ and Agent.

Principal Signup and view all the answers

The bank acts as the and customer the .

agent, principal Signup and view all the answers

An ______ is a person who transfers his security rights to a lender as collateral to the money borrowed by him.

assignor Signup and view all the answers

The transfer of Life Insurance Policies, Supply bills etc. in the name of the bank is examples of ______.

assignment Signup and view all the answers

The bank on whose name security rights are transferred by the is called as .

assignor, assignee Signup and view all the answers

On full payment of dues to the , the can get the security re-assigned in his name.

assignee, assignor Signup and view all the answers

Customer service in banking is one of the most important ways to keep customers ______________________

coming back Signup and view all the answers

It includes responding to customers, addressing questions and ______________________ in a thorough and timely manner

complaints Signup and view all the answers

Most if not all bank employees are involved in some aspect of ______________________ service

customer Signup and view all the answers

Good customer service is the ______________________ of banking

heart Signup and view all the answers

Banks continually strive for improvements in this ______________________

area Signup and view all the answers

Examples of such techniques include taking customer surveys and monitoring calls that come in through the ______________________ center

call Signup and view all the answers

The customer is the most important ______________________

person Signup and view all the answers

Customer service should be projected as a priority objective of a bank along with its ______________________ and social responsibility

profitability Signup and view all the answers

NCC Bank ______ Account is a Savings Account for school and high school going students of Bangladesh.

Youngster Signup and view all the answers

The age limit for NCC Bank Youngster Account is any Bangladeshi student enrolled in an enlisted school or high school within the age of ______ years.

18 Signup and view all the answers

The initial deposit for NCC Bank Youngster Account is not less than ______.

BDT 100 Signup and view all the answers

The joint signature of account holder and either of any parents or legal guardian is mandatory for ______ frequency.

withdrawal Signup and view all the answers

NCC Bank Youngster Account can be continued by the account holder until attaining the age of ______ years.

18 Signup and view all the answers

Nomination of legal guardian requires guardians' name and signature to be attested by both of the parents on ______ non-judicial stamp and notarized.

BDT 150 Signup and view all the answers

The minimum balance to be maintained in NCC Bank Youngster Account is not less than ______.

BDT 50 Signup and view all the answers

After 18 years, the account holder may apply for ______ savings account with closure of NCCB Youngster Account.

regular Signup and view all the answers

Penalty for default is 2% of the installment size or minimum Tk.______ installment

10 Signup and view all the answers

Nomination is ______ and selected by both of the parents or legal guardian.

mandatory Signup and view all the answers

After 01 year but before 05 years, the existing ______ rate will be provided.

savings Signup and view all the answers

The account holder must be NCCB Youngster account Holder with written consent from both the parents/______.

Legal guardian Signup and view all the answers

The account holder must be a Bangladeshi student enrolled in an enlisted school or high school with Bangladeshi government within the age of ______ years.

18 Signup and view all the answers

A maximum of ______ different accounts are allowed at a single name or in joint name with account holder’s sibling’s account name.

05 Signup and view all the answers

The NCC Bank Youngster Maximus Account is basically a fixed deposit account for school and high school going students of Bangladesh with added values and ______.

benefits Signup and view all the answers

The total amount must not cross BDT ______.00.

1,000,000.00 Signup and view all the answers

Time deposits may be of: a) Fixed ______ b) Short Notice Deposits c) Recurring Deposits d) Large portion of Saving Deposits

Deposits Signup and view all the answers

The period of the deposit and rate of ______ applicable to the deposit are matters to be agreed between the depositor and the bank under the terms of the deposit.

interest Signup and view all the answers

All the essential features of a valid ______ must be present when a banker opens an account.

contract Signup and view all the answers

For opening each type of account some documents are commonly required which are mentioned below: a) Duly filled in Account Opening ______

Forms Signup and view all the answers

Proof of identify, verification of the address of the customer are required for opening an account with the ______.

bank Signup and view all the answers

Photographs of the nominee(s) if any are required for opening an account with the ______.

bank Signup and view all the answers

Every person can open an account with the ______ that is competent to contract as per Contract Act, 1872.

bank Signup and view all the answers

The period of the deposit and rate of interest applicable to the deposit are matters to be agreed between the depositor and the ______ under the terms of the deposit.

bank Signup and view all the answers

The ______ changes which are taking place in the economic and financial surroundings of the country

continuous Signup and view all the answers

Malpractices that take the form of irregularities or non-compliance of procedures and fraudulent activities like bank fraud, money ______ became a crucial concern for the banks

laundering Signup and view all the answers

The common view that the main risk within general banking is ______, Money laundering etc.

fraud Signup and view all the answers

Relevant legislative measures have been made and stringent compliance requirements increased tremendously as a measure to handle the challenges of ______ and especially frauds

malpractices Signup and view all the answers

Avoidance of the procedures and compliance requirements in general banking could prove to be very challenging for ______

banks Signup and view all the answers

Thus all associated risks of general banking must receive adequate attention of the policy makers of the ______

bank Signup and view all the answers

Strengthening their ability to manage different areas of ______ banking

general Signup and view all the answers

Growing their capacity for creating products in different areas of ______

operation Signup and view all the answers

To open a bank account, a certified copy of the ______ is required.

statute Signup and view all the answers

The adoption of effective KYC standards is an essential part of banks' ______ management policies.

risk Signup and view all the answers

KYC procedures refer to knowing a customer physically and ______.

financially Signup and view all the answers

Maturity tenure of a youngster account is minimum ______ years.

3 Signup and view all the answers

Nomination of a legal ______ is mandatory for a youngster account.

guardian Signup and view all the answers

The verification procedures establishing the identity of a prospective customer should basically be the same whatever type of ______ or service is required.

account Signup and view all the answers

It would be best to obtain the ______ documents from the prospective customer which is the most difficult to obtain illicitly.

identification Signup and view all the answers

The maximum age of the account holder at maturity is ______ years.

18 Signup and view all the answers

The ______ Earners Welfare Deposit Pension Scheme (WEWDPS) has a tenor of 5 years.

Wage Signup and view all the answers

The verification will generally be a ______ process.

cumulative Signup and view all the answers

A ______ photograph of the applicant and both parents is required for opening an account.

School-attested Signup and view all the answers

The ______ of the banking system is protected by reducing money laundering and terrorist financing.

integrity Signup and view all the answers

Sound KYC Policies and Procedures contribute to the bank's overall ______ and soundness.

safety Signup and view all the answers

The account holder must have a written consent from both the parents or ______.

legal guardian Signup and view all the answers

The nominee's birth registration certificate is a required ______ for opening an account.

document Signup and view all the answers

A copy of the birth certificate of the ______ is required for opening an account.

applicant Signup and view all the answers

When a company is the judgment-debtor, an order attaching the accounts of the ______ cannot be passed.

liquidator Signup and view all the answers

If the debit balance is in a loan account, which has not been recalled by the bank, on the date of service of order, credit into another account cannot be ______.

adjusted Signup and view all the answers

The bank cannot ______ the credit balance towards the contingent liabilities of the customer, when a garnishee order is served.

appropriate Signup and view all the answers

A banker, like other creditors, possesses the right of ______, which enables him to combine two accounts in the name of the same customer and adjust the debit balance in one account with the credit balance in the other.

set-off Signup and view all the answers

The right to combine two accounts is known as the right of ______.

set-off Signup and view all the answers

But the firm's account cannot be attached for individual ______ of the partners.

debts Signup and view all the answers

When the garnishee order does not name the customer correctly or with sufficient accuracy, to enable the bank to identify the account in its ______, the bank is not bound to act upon it.

books Signup and view all the answers

In cases where the customer is having more than one accounts in the bank's branch, one is in debit and the other is ______ balance.

credit Signup and view all the answers

The person who draws the bill is called the '' and the person on whom it is drawn, is called the ''

drawer, drawee Signup and view all the answers

A '______' is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.

cheque Signup and view all the answers

A '______' is the most commercial and safe method of money transaction because the transfer cost is very low and also the possibility of loss is minimum.

cheque Signup and view all the answers

'______' alteration in relation to a promissory note, bill of exchange or cheque includes any alteration of the date, the sum

material Signup and view all the answers

The person to whom the amount is payable is called the '______'

payee Signup and view all the answers

A cheque is a document of great importance in the '______' world.

business Signup and view all the answers

A cheque can pass from one hand to another easily and so it has become a popular mode of '______'

payment Signup and view all the answers

The person on whom the bill is drawn, is called the '' or ''

drawee, acceptor Signup and view all the answers

Study Notes

General Banking

General banking is a key component of banking operations, consisting of deposit management, cash management, cheque clearance, customer service, locker facilities, and other ancillary services.
The department is considered a direct customer service center and is the starting point of all banking operations.

Banker-Customer Relationship

The relationship between banks and customers is fiduciary, based on trust, and banks must carry out their duties with utmost good faith and due diligence.
Banks must protect customers' deposits and maintain secrecy about customers.
Banks must be impartial and non-discriminatory in their dealings with customers.

Risk Management

Risk management is crucial in general banking, and banks must have specialized people with adequate knowledge and skills to minimize risks.
Capacity development of bank officials is necessary to handle general banking challenges effectively.
Senior management must possess knowledge and skills on risk management and capacity development.

Cash and Vault Management

Cash management involves measures for safekeeping of cash.
Banks must have controls over access to lockers and keys of lockers.

Customer Due Diligence (CDD)

CDD combines Know Your Customer (KYC) procedures, transaction monitoring, and data collection from reliable sources.
CDD obligations are designed to prevent money laundering and terrorist financing.
Banks must understand their customers and demonstrate adequate CDD measures to their supervisory authority.

Enhanced Due Diligence (EDD)

EDD measures are conducted when necessary, in addition to normal CDD measures.
EDD involves obtaining additional information on customers, sources of funds, and business relationships.

Dormant Accounts

Accounts with no operations for a year are considered dormant and must be transferred to a "DORMANT" account.
The first withdrawal from a dormant account requires prior permission from the manager/sub-manager.

Leadership and Managerial Skills

Senior bankers must have adequate knowledge and skills to guide desk-level bank officials.
Leadership and managerial skills are connected to minimizing risks and establishing credibility.

Laws and Regulations

General banking is subject to various laws and regulations, including the Bank Companies Act, 1991, the Contract Act, 1872, and the Companies Act, 1994.
Banks must comply with these laws and regulations to ensure effective general banking operations.### General Banking
Commercial banks collect capital from the general public and mobilize it to productive fields to activate the entire economic sector.
The General Banking department is a vital part of a financial institution, linked with all other departments.

Importance of General Banking

General banking holds the major part of overall banking activities.
It is the direct customer service center and the starting point of all banking operations.

Challenges in General Banking

Malpractices, such as fraud and money laundering, are a crucial concern for banks.
Avoidance of procedures and compliance requirements in general banking can be challenging for banks.
All associated risks of general banking must receive adequate attention from policy makers.

Risk Management in General Banking

Banks must have specialized people with adequate knowledge and skills to facilitate general banking effectively.
Capacity development of all concerned officials is crucial for handling general banking challenges effectively.
Senior management must possess knowledge and skills on risk management and capacity development in general banking.

Customer Service in Banking

Customer service is the heart of banking and is crucial for keeping customers coming back.
Good customer service includes responding to customers, addressing questions and complaints, and interacting with customers through various channels.

Banking Products and Services

Types of deposits: fixed deposits, short notice deposits, recurring deposits, and savings deposits.
Other banking services: cash management, clearing and collection of instruments, remittance, and locker facilities.

Banker-Customer Relationship

The relationship between the bank and customer can be of principal and agent, lessor and lessee, or assigner and assignee.
The bank is responsible for maintaining confidentiality and duty of care towards the customer.

Risk Associated with General Banking

Fraud and money laundering are significant risks in general banking.
Risk control and management, monitoring, and reporting are essential for mitigating these risks.

Relevant laws and regulations, such as the Bank Companies Act, 1991, the Contract Act, 1872, and the Companies Act, 1994, govern general banking activities.### Study Material on General Banking

Chapter 1: Introduction

The manual is prepared for senior-level bank executives of NCC Bank Limited.
The manual covers general banking activities, risk management, and capacity development.

Chapter 2: Banker-Customer Relationship

The relationship between banks and customers is fiduciary, based on trust and good faith.
Banks must protect customers' deposits and maintain confidentiality.
Banks must be impartial and non-discriminatory in their dealings with customers.
A bank's supreme responsibility is to protect customers' deposits and secrecy.

Chapter 3: Opening and Operations of Bank Deposit Accounts

Types of bank deposits: demand deposits, time deposits, and special types of accounts.
Documents required to open a bank account: account opening form, specimen signature card, and mandate.
Special types of accounts: club/society accounts, executor/administrator accounts, trust accounts, and minor accounts.

Chapter 4: Negotiable Instruments

Definition of negotiable instruments: a document guaranteeing the payment of a specific amount.
Types of negotiable instruments: promissory notes, bills of exchange, and cheques.
Characteristics of negotiable instruments: negotiability, assignability, and transferability.

Chapter 5: Cash and Vault Management

Measures for safekeeping of cash: use of cash boxes, vaults, and alarms.
Importance of cash management: to minimize the risk of loss and misappropriation.

Chapter 6: Clearing and Collection of Instruments

Definition of clearing: the process of exchanging cheques and other instruments between banks.
BACH (Bangladesh Automated Cheque Handling) system: an electronic cheque clearing system.
MICR (Magnetic Ink Character Recognition) system: a system for reading cheque details.

Chapter 7: Bills for Collection and Remittance

Definition of bills for collection: cheques and other instruments sent to a bank for collection.
Types of bills for collection: inward and outward bills.
Remittance: the process of transferring funds from one place to another.

Chapter 8: Bank Locker

Definition of bank locker: a safe deposit box provided by a bank for the safekeeping of valuables.
Types of bank lockers: small, medium, and large.
Nomination for return of articles kept in safe custody with the bank.

Chapter 9: Risk Management

Risks associated with general banking: credit risk, market risk, and operational risk.
Importance of risk management: to minimize the risk of loss and maximize profits.
Risk control and management: through customer due diligence, monitoring, and reporting.

The Bank Companies Act, 1991: relevant issues of the act.
The Contract Act, 1872: some important sections.
The Partnership Act, 1932: relevant issues.
The Companies Act, 1994: relevant issues.

Chapter 11: Fraud, Forgeries, and Malpractices

Definition of fraud: an act of deceit or cheating.
Types of fraud: internal fraud, external fraud, and money laundering.
Prevention of fraud: through customer due diligence, monitoring, and reporting.

Chapter 12: Leadership and Managerial Skills in Banking

Importance of leadership and managerial skills: to manage general banking effectively.
Key skills required: knowledge of banking laws, risk management, and customer service.

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