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PPB Capsule Cards PRO Types of Collaterals and …
What makes a collateral security 'effective' and desirable for a lending bank?
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Effectiveness of Securities
Types of Collaterals and their Characteristics 44
WA 44
PPB Capsule Cards PRO Types of Collaterals and …
What major risk does a bank face when advancing money against 'Documents of Title to Goods'?
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Unpaid Vendor's Right of Stoppage
Types of Collaterals and their Characteristics 36
WA 36
PPB Capsule Cards PRO Types of Collaterals and …
How is a life insurance policy offered as security to a bank?
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Advances against Life Insurance
Types of Collaterals and their Characteristics 32
WA 32
PPB Capsule Cards PRO Types of Collaterals and …
Under Section 2(4) of the Sale of Goods Act, what documents represent legal ownership and control of goods in transit or storage?
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Documents of Title to Goods
Types of Collaterals and their Characteristics 31
WA 31
PPB Capsule Cards PRO Types of Collaterals and …
Under Section 19(2) of the BR Act 1949, what is the maximum limit of shares a bank can hold in any single company?
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Statutory Limit on Bank's Shareholding
Types of Collaterals and their Characteristics 31
WA 31
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PPB Capsule Cards PRO Types of Collaterals and …
What is the maximum loan limit an individual can get against the security of shares, convertible bonds, and mutual funds?
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Advances against Shares to Individuals
Types of Collaterals and their Characteristics 31
WA 31
PPB Capsule Cards PRO Types of Collaterals and …
How does a bank create a charge over a borrower's 'Book Debts' (receivables/sundry debtors)?
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Advances against Book Debts
Types of Collaterals and their Characteristics 31
WA 31
PPB Capsule Cards PRO Types of Collaterals and …
What is the primary method of creating a charge when a bank grants a loan against its own Fixed Deposit receipt?
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Loans against Term Deposits
Types of Collaterals and their Characteristics 31
WA 31
PPB Capsule Cards PRO Types of Collaterals and …
Why is land or immovable property sometimes considered a difficult security to realize for a bank?
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Disadvantages of Land as Collateral
Types of Collaterals and their Characteristics 30
WA 30
PPB Capsule Cards PRO Types of Collaterals and …
Which types of Life Insurance policies are generally NOT acceptable as security for bank advances?
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Unacceptable Insurance Policies
Types of Collaterals and their Characteristics 30
WA 30
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PPB Capsule Cards PRO Types of Collaterals and …
What is a Trust Receipt used for in documentary credit financing?
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Trust Receipts
Types of Collaterals and their Characteristics 29
WA 29
PPB Capsule Cards PRO Types of Collaterals and …
What is the fundamental difference between a secured loan and an unsecured loan?
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Secured vs Unsecured Loans
Types of Collaterals and their Characteristics 28
WA 28
PPB Capsule Cards PRO Types of Collaterals and …
What is the maximum amount a bank can finance to an individual for subscribing to Initial Public Offerings (IPOs)?
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IPO Financing Limit
Types of Collaterals and their Characteristics 24
WA 24
PPB Capsule Cards PRO Types of Collaterals and …
What specific actions must a bank take to perfect its security interest when financing a commercial or personal vehicle?
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Vehicle Finance Security
Types of Collaterals and their Characteristics 22
WA 22
PPB Capsule Cards PRO Types of Collaterals and …
How does the RBI standardise the valuation of gold ornaments accepted as collateral for agricultural or non-agricultural loans?
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Gold Loan Valuation Basis
Types of Collaterals and their Characteristics 21
WA 21
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PPB Capsule Cards PRO Types of Collaterals and …
Under what conditions is a 'bullet repayment' (paying interest and principal together at maturity) allowed for gold loans?
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Gold Loan Bullet Repayment
Types of Collaterals and their Characteristics 21
WA 21
PPB Capsule Cards PRO Types of Collaterals and …
What restriction has the RBI placed on banks granting advances against specially minted gold coins?
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Advances against Gold Coins
Types of Collaterals and their Characteristics 20
WA 20
PPB Capsule Cards PRO Types of Collaterals and …
Can banks finance employees to buy shares of their own companies under an ESOP?
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Bank Finance to Employees for ESOPs
Types of Collaterals and their Characteristics 27
WA 27
PPB Capsule Cards PRO Types of Collaterals and …
What are Supply Bills, and why are advances against them considered riskier than standard trade bills?
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Supply Bills
Types of Collaterals and their Characteristics 23
WA 23
PPB Capsule Cards PRO Types of Collaterals and …
What are the key conditions for granting an advance against Mutual Fund units?
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Advances against Units of Mutual Funds
Types of Collaterals and their Characteristics 23
WA 23
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Types of Collaterals and their Characteristics — JAIIB PPB Capsules

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All 20 cards on this page
Effectiveness of Securities What makes a collateral security 'effective' and desirable for a lending bank? Unpaid Vendor's Right of Stoppage What major risk does a bank face when advancing money against 'Documents of Title to Goods'? Advances against Life Insurance How is a life insurance policy offered as security to a bank? Documents of Title to Goods Under Section 2(4) of the Sale of Goods Act, what documents represent legal ownership and control of goo… Statutory Limit on Bank's Shareholding Under Section 19(2) of the BR Act 1949, what is the maximum limit of shares a bank can hold in any singl… Advances against Shares to Individuals What is the maximum loan limit an individual can get against the security of shares, convertible bonds,… Advances against Book Debts How does a bank create a charge over a borrower's 'Book Debts' (receivables/sundry debtors)? Loans against Term Deposits What is the primary method of creating a charge when a bank grants a loan against its own Fixed Deposit… Disadvantages of Land as Collateral Why is land or immovable property sometimes considered a difficult security to realize for a bank? Unacceptable Insurance Policies Which types of Life Insurance policies are generally NOT acceptable as security for bank advances? Trust Receipts What is a Trust Receipt used for in documentary credit financing? Secured vs Unsecured Loans What is the fundamental difference between a secured loan and an unsecured loan? IPO Financing Limit What is the maximum amount a bank can finance to an individual for subscribing to Initial Public Offerin… Vehicle Finance Security What specific actions must a bank take to perfect its security interest when financing a commercial or p… Gold Loan Valuation Basis How does the RBI standardise the valuation of gold ornaments accepted as collateral for agricultural or… Gold Loan Bullet Repayment Under what conditions is a 'bullet repayment' (paying interest and principal together at maturity) allow… Advances against Gold Coins What restriction has the RBI placed on banks granting advances against specially minted gold coins? Bank Finance to Employees for ESOPs Can banks finance employees to buy shares of their own companies under an ESOP? Supply Bills What are Supply Bills, and why are advances against them considered riskier than standard trade bills? Advances against Units of Mutual Funds What are the key conditions for granting an advance against Mutual Fund units?
Chapters in this paper
Banker-Customer Relationship Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities Essentials of Bank Computerisation Ethics, Business Ethics & Banking: An Integrated Perspective AML- KYC Guidelines Appraisal and Assessment of Credit Facilities Operational Aspects of CBS Environment Ethics at the Individual Level Operational Aspects of KYC Operational Aspects of Loan Accounts Alternate Delivery Channels – Digital Banking Ethical Dimensions: Employees Opening Accounts of Various Types of Customers Types of Collaterals and their Characteristics Data Communication Network and EFT Systems Work Ethics and the Workplace
Modules in PPB
MODULE A: General Banking Operations MODULE B: Functions of Banks MODULE C: Banking Technology MODULE D: Ethics in Banks and Financial Institutions
JAIIB papers
IE-IFS — Indian Economy & Indian Financial System PPB — Principles & Practices of Banking AFM — Accounting & Financial Management for Bankers RBWM — Retail Banking & Wealth Management
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