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Questions and Answers
Who is the party that delivers the goods to another in a bailment relationship?
Who is the party that delivers the goods to another in a bailment relationship?
In a bailment relationship, who is the party to whom the goods are delivered?
In a bailment relationship, who is the party to whom the goods are delivered?
Who becomes the Hypothecator when a customer hypothecates movable property with a banker?
Who becomes the Hypothecator when a customer hypothecates movable property with a banker?
In a trustee and beneficiary relationship, who holds the property for the beneficiary?
In a trustee and beneficiary relationship, who holds the property for the beneficiary?
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When a customer invests in securities, what role does the banker play?
When a customer invests in securities, what role does the banker play?
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If a customer deposits valuables with a banker for safe custody, what role does the banker take on?
If a customer deposits valuables with a banker for safe custody, what role does the banker take on?
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What type of services are included in the category of Fees based products?
What type of services are included in the category of Fees based products?
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Which service is NOT listed under Value Added services?
Which service is NOT listed under Value Added services?
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Which of the following services is categorized under Miscellaneous services?
Which of the following services is categorized under Miscellaneous services?
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Who are Wholesale Banking services primarily offered to?
Who are Wholesale Banking services primarily offered to?
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Which service is NOT provided under Wholesale Banking services?
Which service is NOT provided under Wholesale Banking services?
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In which category of services would you find the purchase/sale of shares/bonds in the Stock Market on behalf of customers?
In which category of services would you find the purchase/sale of shares/bonds in the Stock Market on behalf of customers?
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What are the required documents for opening a bank account for a sole proprietorship?
What are the required documents for opening a bank account for a sole proprietorship?
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Which document is NOT mentioned as a requirement for opening a bank account for a sole proprietorship?
Which document is NOT mentioned as a requirement for opening a bank account for a sole proprietorship?
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What type of bank account documentation could be accepted in lieu of an income tax return acknowledgment?
What type of bank account documentation could be accepted in lieu of an income tax return acknowledgment?
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Which licensing document is NOT mentioned in the text as acceptable for opening a bank account for a sole proprietorship?
Which licensing document is NOT mentioned in the text as acceptable for opening a bank account for a sole proprietorship?
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Which utility bills can be used as identity documents for opening a bank account?
Which utility bills can be used as identity documents for opening a bank account?
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Which organization's Certificate of Practice is accepted as a valid identity document for opening a bank account?
Which organization's Certificate of Practice is accepted as a valid identity document for opening a bank account?
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Which type of deposit accounts are Current accounts and Savings accounts classified as?
Which type of deposit accounts are Current accounts and Savings accounts classified as?
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Which type of deposit accounts are Recurring Deposit accounts and Fixed Deposit accounts classified as?
Which type of deposit accounts are Recurring Deposit accounts and Fixed Deposit accounts classified as?
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What was the fixed interest rate on Saving Bank Accounts till 24/10/2011?
What was the fixed interest rate on Saving Bank Accounts till 24/10/2011?
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What is the term used for accounts that do not have any minimum balance requirement?
What is the term used for accounts that do not have any minimum balance requirement?
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Which banks are now free to decide the interest rates on Saving Bank Accounts?
Which banks are now free to decide the interest rates on Saving Bank Accounts?
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What do some private banks like Kodak Bank and Yes Bank pay on Saving Bank Accounts deposits?
What do some private banks like Kodak Bank and Yes Bank pay on Saving Bank Accounts deposits?
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What is one of the objectives of the Prevention of Money Laundering?
What is one of the objectives of the Prevention of Money Laundering?
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What is one way in which banks can better manage risks according to the text?
What is one way in which banks can better manage risks according to the text?
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When was the FATF formed?
When was the FATF formed?
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What is one primary function of the FATF regarding money laundering?
What is one primary function of the FATF regarding money laundering?
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In what year did the Parliament of India pass the Prevention of Money Laundering Act?
In what year did the Parliament of India pass the Prevention of Money Laundering Act?
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What is one key aspect of money laundering enforcement as per the text?
What is one key aspect of money laundering enforcement as per the text?
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Study Notes
Bailment and Bailor-Bailee Relationship
- Bailment is a contract where one party delivers goods to another to be held in trust for a specific period and returned when the purpose is over.
- The party delivering the goods is the Bailor, and the party holding the goods is the Bailee.
- Example: A customer giving a sealed box to a bank for safe keeping, where the customer is the Bailor and the bank is the Bailee.
Hypothecator and Hypothecatee
- When a customer hypothecates movable property or assets with a banker to get a loan, the customer becomes the Hypothecator, and the banker is the Hypothecatee.
Trustee and Beneficiary
- A trustee holds property for the beneficiary, and the profit earned from the property belongs to the beneficiary.
- Example: When a customer deposits securities or valuables with a banker for safe custody, the banker becomes a trustee, and the customer remains the beneficiary, with ownership remaining with the customer.
Advisor and Client
- When a customer invests in securities, the banker acts as an Advisor, taking maximum care and caution in giving advice.
- The banker is the Advisor, and the customer is the Client.
Fee-Based Products and Services
- List of Fee-Based Products: selling insurance policies, selling mutual fund units, investment advisory services, and wealth management services.
- List of Value-Added Services: safe deposit lockers, depository services, and banc assurance products.
- Miscellaneous Services: issue of drafts, offering electronic remittances facilities, collecting cheques, renting out lockers, safe custody services, and more.
Wholesale Banking Services
- Wholesale banking services are offered to government agencies, pension funds, and other institutional customers and to corporations with strong balance sheets and sound income statements.
- Services include cash management, equipment leasing, large-sum loans, loan syndication, merchant banking, and trust services.
Demand Deposits Accounts
- Types of Demand Deposits accounts: current accounts and savings accounts.
- Features: provide cheque facilities, flexibility for depositors, and some banks offer interest rates between 6% and 7% on such deposits.
Prevention of Money Laundering
- Objectives: prevent criminal elements from using the banking system, enable banks to know customers and their financial dealings better, put in place controls for detection and reporting of suspicious activities, comply with applicable laws and regulatory guidelines, and ensure staff are trained in Know Your Customer (KYC) / Anti-Money Laundering (AML) procedures.
Money Laundering Enforcement
- The Financial Action Task Force (FATF) is an intergovernmental body that develops and promotes an international response to combat money laundering.
- FATF's primary functions: monitoring members' progress, reviewing and reporting on laundering trends, and promoting the adoption of FATF anti-money laundering standards globally.
Money Laundering in India
- The Prevention of Money Laundering Act, 2002 was passed by the Parliament of India to combat money laundering.
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Description
Learn about different types of deposit accounts in retail banking including Saving Accounts, Fixed Deposit Accounts, and Recurring Deposit Accounts. Understand the differences between Demand Deposits and Time Deposits.
