Resume from card #1

🏦 JAIIB PPB 80 cards

All Capsule Cards

View: Vertical

When a customer opens a savings or current deposit account with a bank, what is the primary legal relationship established?

Tap to reveal answer

The Bank is the Debtor, and the Customer is the Creditor.

Continuation:
Since the customer lends money to the bank, the bank owes the money back. The customer has no security from the debtor (bank).

Tap to flip back

165 Views

Relationship: Deposit Account

Banker-Customer Relationship 165

WA 165

What is the banker-customer relationship when the bank grants a loan or advance to the customer?

Tap to reveal answer

The Bank is the Creditor, and the Customer is the Debtor.

Continuation:
Lending is the core activity of banks. The borrower executes documents and offers security to the bank before utilizing the credit facility.

Tap to flip back

120 Views

Relationship: Loan Account

Banker-Customer Relationship 120

WA 120

What is the legal relationship between the bank and customer when valuables are deposited for safe custody?

Tap to reveal answer

The Bank is the Bailee, and the Customer is the Bailor.

Continuation:
Governed by Sec 148 of the Indian Contract Act. The bank becomes the custodian and is liable for any loss caused due to its negligence.

Tap to flip back

113 Views

Relationship: Safe Custody

Banker-Customer Relationship 113

WA 113

In the Account Aggregator framework, who ultimately holds the power to initiate the transfer of financial information?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

110 Views

Consent Architecture in AA

Technology Trends in Banking, e-RUPI, Fintech - RegTech, SupTech, Hashtag Banking etc. 110

WA 110

When a bank provides a safe deposit locker to a customer, what specific relationship is formed?

Tap to reveal answer

The Bank is the Lessor, and the Customer is the Lessee.

Continuation:
Governed by Sec 105 of the Transfer of Property Act. The bank is not liable for loss from natural calamities, only for its own negligence/fraud.

Tap to flip back

109 Views

Relationship: Safe Deposit Locker

Banker-Customer Relationship 109

WA 109

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

In a pledge transaction where goods are kept as security, what is the relationship between the bank and the borrower?

Tap to reveal answer

Bank is the Pawnee (Pledgee), Customer is the Pawner (Pledger).

Continuation:
A pledge involves actual or constructive delivery of goods to the bank as security for a debt.

Tap to flip back

106 Views

Relationship: Pledge

Banker-Customer Relationship 106

WA 106

When did business ethics in India gain center stage in corporate operations, and which committee was recently set up by SEBI?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

104 Views

Corporate Governance in India

Ethics, Business Ethics & Banking: An Integrated Perspective 104

WA 104

What is the fundamental difference between Values and Ethics in the context of banking and business?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

101 Views

Values vs Ethics

Ethics, Business Ethics & Banking: An Integrated Perspective 101

WA 101

In business ethics, does the principle of fairness mean that everybody is treated equally and gets exactly what they want?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

101 Views

Principle of Fairness

Ethics, Business Ethics & Banking: An Integrated Perspective 101

WA 101

Which famous leader espoused the philosophy of 'Trusteeship', and what is its core origin?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

98 Views

Philosophy of Trusteeship

Ethics, Business Ethics & Banking: An Integrated Perspective 98

WA 98

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

If a customer deposits a cheque into their account for collection, what role does the bank play during the clearing process?

Tap to reveal answer

The Bank acts as an Agent, and the Customer is the Principal.

Continuation:
According to Sec 182 of the Indian Contract Act. This relationship terminates upon death, insolvency, or lunacy of the customer.

Tap to flip back

93 Views

Relationship: Cheque Collection

Banker-Customer Relationship 93

WA 93

What is the foremost principle of ethical banking, and what does it inspire among stakeholders?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

88 Views

Ethical Foundation: Trust

Ethics, Business Ethics & Banking: An Integrated Perspective 88

WA 88

What are the three stages an organization passes through during an ethical crisis event?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

82 Views

Stages of Ethical Crisis

Ethics, Business Ethics & Banking: An Integrated Perspective 82

WA 82

What creates an ethical dilemma for a banking professional during the course of business?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

79 Views

Ethical Dilemmas in Banking

Ethics, Business Ethics & Banking: An Integrated Perspective 79

WA 79

How do the principles of 'Openness' and 'Prudence' apply to a banking business?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

75 Views

Principle of Openness & Prudence

Ethics, Business Ethics & Banking: An Integrated Perspective 75

WA 75

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

When immovable property is given as security for a loan, what relationship is established?

Tap to reveal answer

The Bank is the Mortgagee, and the Customer is the Mortgagor.

Continuation:
Mortgages apply to real estate and immovable assets. The bank holds the interest in the property until the loan is repaid.

Tap to flip back

65 Views

Relationship: Mortgage

Banker-Customer Relationship 65

WA 65

In the standard banking code of conduct, what is the difference between 'Integrity' and 'Neutrality'?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

62 Views

Integrity vs Neutrality

Ethics, Business Ethics & Banking: An Integrated Perspective 62

WA 62

For a vehicle loan where the vehicle remains in the possession of the borrower, what is the relationship?

Tap to reveal answer

The Bank is the Hypothecatee, and the Customer is the Hypothecator.

Continuation:
Unlike a pledge, possession remains with the customer (borrower) in hypothecation, though the bank has a charge over the asset.

Tap to flip back

61 Views

Relationship: Hypothecation

Banker-Customer Relationship 61

WA 61

What is the fundamental difference between Demand Deposits and Time Deposits in banking?

Tap to reveal answer

Demand deposits are payable on demand (low/no interest), Time deposits are repaid after a fixed expiry period (higher interest).

Continuation:
Current and Savings accounts are demand deposits. FDs, RDs, and Short-term deposits are time deposits.

Tap to flip back

59 Views

Demand vs Time Deposits

Banker-Customer Relationship 59

WA 59

When does the law of limitation begin to run for a bank deposit (both demand and fixed deposits)?

Tap to reveal answer

It begins only when a demand for repayment has been made by the customer.

Continuation:
Unlike typical debts where limitation starts immediately, deposit limitation starts strictly upon the customer's demand for withdrawal/repayment.

Tap to flip back

58 Views

Law of Limitation: Deposits

Banker-Customer Relationship 58

WA 58

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

What is the threshold limit for reporting cash transactions in the CTR to FIU-IND?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

51 Views

Cash Transaction Report (CTR)

AML- KYC Guidelines 51

WA 51

What is the time limit for a bank to report an STR to FIU-IND after concluding a transaction is suspicious?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

51 Views

Suspicious Transaction Report (STR)

AML- KYC Guidelines 51

WA 51

As per KYC norms and PMLA 2002, who exactly qualifies as a 'Customer' of a bank?

Tap to reveal answer

A person/entity maintaining an account, executing a transaction, or the beneficial owner behind a transaction.

Continuation:
It includes non-account holders doing walk-in transactions (like high-value DDs) and professional intermediaries acting on someone's behalf.

Tap to flip back

48 Views

Definition of Customer (KYC)

Banker-Customer Relationship 48

WA 48

When a bank issues a duplicate demand draft to a customer who lost the original, what relationship is established?

Tap to reveal answer

The Bank is the Indemnified (Indemnity Holder), and Customer is the Indemnifier.

Continuation:
Governed by Sec 124 of Indian Contract Act. The customer promises to compensate the bank against any loss from the duplicate issuance.

Tap to flip back

46 Views

Indemnity Relationship

Banker-Customer Relationship 46

WA 46

What makes a collateral security 'effective' and desirable for a lending bank?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

44 Views

Effectiveness of Securities

Types of Collaterals and their Characteristics 44

WA 44

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

What are the fundamental rules a banker must follow to ensure safe and profitable lending, minimizing inherent risks?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

43 Views

Cardinal Principles of Lending

Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities 43

WA 43

What is the purpose of FATCA and CRS regulations in Indian banking?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

43 Views

FATCA and CRS

AML- KYC Guidelines 43

WA 43

Under LRS, what is the maximum foreign exchange limit allowed for medical treatment abroad without insisting on a hospital or doctor's estimate?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

43 Views

Medical Treatment Abroad Limits

Foreign Exchange Remittance Facilities for Individuals 43

WA 43

Under which specific Act and Section is 'Banking' defined as accepting deposits from the public for the purpose of lending or investment?

Tap to reveal answer

Sec 5(b) of the Banking Regulation Act, 1949.

Continuation:
Crucial exam point: Companies accepting deposits only for trading/manufacturing are NOT banks. Deposits must be repayable on demand or otherwise.

Tap to flip back

43 Views

Definition of Banking

Banker-Customer Relationship 43

WA 43

How did the actions of traders manipulating the LIBOR rates highlight a massive ethical failure?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

40 Views

LIBOR Manipulation Scandal

Work Ethics and the Workplace 40

WA 40

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

NEFT revolutionized retail payments in India. Unlike RTGS, how are NEFT transactions settled throughout the day, and are there any minimum or maximum limits?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

40 Views

NEFT (National Electronic Fund Transfer)

Data Communication Network and EFT Systems 40

WA 40

To handle disputes related to failed digital transactions quickly, what system has the RBI mandated Payment System Operators to implement?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

40 Views

ODR for Failed Transactions

Grievance Redressal & RBI Integrated Ombudsman Scheme 2021 40

WA 40

What is the typical duration of the skill development and entrepreneurship programs offered by RSETIs to rural youth?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

40 Views

RSETI Training Duration

Financial Inclusion & Financial Literacy 40

WA 40

What is the purpose of the CTS-2010 standards introduced by the RBI for cheques?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

40 Views

CTS-2010 Standards

Operational Aspects of Handling Clearing/Collection/Cash 40

WA 40

What happens in the final 'Integration' stage of money laundering?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

40 Views

ML Stage: Integration

AML- KYC Guidelines 40

WA 40

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

What are the critical technological requirements for conducting a Video-based Customer Identification Process (V-CIP)?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

39 Views

Video-based CIP (V-CIP)

Operational Aspects of KYC 39

WA 39

If a customer deposits money with the bank for a specific purpose, can the bank apply a lien on those funds?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

39 Views

Lien Exception: Specific Purpose

Banker's Special Relationship 39

WA 39

When did the Foreign Exchange Management Act (FEMA) come into effect, and what act did it replace to manage foreign exchange in India?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

39 Views

FEMA Introduction & Enactment

Foreign Exchange Remittance Facilities for Individuals 39

WA 39

Under the Customer Acceptance Policy, is a bank permitted to open an account in an anonymous or fictitious/benami name?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

38 Views

Anonymous Accounts Prohibition

Operational Aspects of KYC 38

WA 38

How did unethical lending practices contribute to the global financial crisis of 2007-08?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

37 Views

Global Financial Crisis (2007-08)

Ethics, Business Ethics & Banking: An Integrated Perspective 37

WA 37

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

What was one of the most significant changes introduced by the Consumer Protection Act (CPA) 2019 compared to the 1986 Act?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

37 Views

CPA 2019 E-Commerce Inclusion

The Consumer Protection Act, 2019: Preamble, Extent and Definitions 37

WA 37

Which conceptual framework helps financial institutions evaluate the overall creditworthiness and borrowing strength of a prospective client?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

37 Views

7 Cs of Credit Framework

Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities 37

WA 37

What is the maximum number of partners allowed in a partnership firm established for the purpose of gain?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

37 Views

Partnership Firm Max Limit

Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities 37

WA 37

Can an NRI open a Non-Resident (Ordinary) Rupee Account (NRO) jointly with a resident Indian?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

37 Views

NRO Account Joint Holding

Operational Aspects of NRI Business 37

WA 37

Why is a Banker's General Lien legally referred to as an 'implied pledge' in banking law?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

37 Views

Implied Pledge (Right to Sell)

Banker's Special Relationship 37

WA 37

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

Under PMLA, who is responsible for overall compliance of KYC/AML obligations in a bank?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

37 Views

Designated Director (DD)

AML- KYC Guidelines 37

WA 37

What is the fundamental difference between Terminal Values and Instrumental Values?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

36 Views

Terminal vs Instrumental Values

Ethics at the Individual Level 36

WA 36

If the creditor formally releases the principal debtor from the debt, does the guarantor still have to pay?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

36 Views

Discharge of Principal Debtor

Contracts of Guarantee & Bank Guarantee 36

WA 36

What major risk does a bank face when advancing money against 'Documents of Title to Goods'?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

36 Views

Unpaid Vendor's Right of Stoppage

Types of Collaterals and their Characteristics 36

WA 36

What is the legal definition of a contract under Section 2(h) of the Indian Contract Act, 1872, and what makes an agreement legally binding for a bank?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

36 Views

Essentials of a Valid Contract

Different Modes of Charging Securities 36

WA 36

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

What is the general provisioning requirement for standard assets in the Agriculture and Micro/Small Enterprises (SMEs) sectors?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

36 Views

General Provisioning (Standard Assets)

Non-Performing Assets/ Stressed Assets 36

WA 36

What is the general formula to assess a borrower's maximum limit for a Letter of Credit (LC) facility?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

36 Views

Assessing Letter of Credit (LC) Limit

Appraisal and Assessment of Credit Facilities 36

WA 36

To ensure Payment Banks actually serve unbanked areas, what percentage of their physical access points must be located in rural centers?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

36 Views

Payment Banks Rural Access

Financial Inclusion & Financial Literacy 36

WA 36

In the context of a collecting banker, what does the legal term 'Conversion' refer to?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

36 Views

Meaning of 'Conversion'

Responsibility of Collecting Bank 36

WA 36

What is the monetary ceiling prescribed by RBI for using International Credit Cards (ICCs) for expenses while on a visit outside India?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

36 Views

International Credit Cards (ICC)

Foreign Exchange Remittance Facilities for Individuals 36

WA 36

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

What is the objective of the 'Layering' stage in money laundering?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

36 Views

ML Stage: Layering

AML- KYC Guidelines 36

WA 36

What distinguishes Morals from Personal Values for an individual decision-maker?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

Morals vs Personal Values

Ethics at the Individual Level 35

WA 35

Beyond the main Data Warehouse, organizations utilize other storage architectures. What is the fundamental difference between a Data Mart and a Data Lake?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

Data Mart vs Data Lake

Essentials of Bank Computerisation 35

WA 35

How is an 'Assignment' used as a mode of charging security, and what type of banking assets are typically transferred through this method?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

Assignment of Actionable Claims

Different Modes of Charging Securities 35

WA 35

Which specific types of assets and conditions are explicitly exempt from seizure and auction under the SARFAESI Act?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

SARFAESI Act Exemptions

Important Laws Relating to Recovery of Dues 35

WA 35

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

What external benchmarks did RBI mandate for pricing retail and MSME floating rate loans effective from October 1, 2019?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

External Benchmark Lending Rate (EBLR)

Operational Aspects of Loan Accounts 35

WA 35

When does a customer gain the right to approach the Banking Ombudsman regarding an unresolved complaint?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

Ombudsman Approach Timeline

Grievance Redressal & RBI Integrated Ombudsman Scheme 2021 35

WA 35

What is the difference between the Memorandum of Association (MoA) and Articles of Association (AoA) for a borrowing company?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

MoA vs AoA of a Company

Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities 35

WA 35

What is the purpose of Ultra Small Branches (USBs), and where are they strategically established in rural areas?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

Ultra Small Branches (USBs)

Financial Inclusion & Financial Literacy 35

WA 35

In Bank of Bihar vs Mahabir Lal, why was the bank held liable when it handed the cash to a known employee (Potdar) who absconded?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

Bank of Bihar vs Mahabir Lal

Responsibility of Paying Bank 35

WA 35

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

What specific protection does Section 131 of the NI Act offer to a collecting banker?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

Section 131 Protection

Responsibility of Collecting Bank 35

WA 35

When is a bank required to file an FIR with the Nodal Police Station regarding counterfeit notes?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

Counterfeit Note FIR Rules

Operational Aspects of Handling Clearing/Collection/Cash 35

WA 35

What is the maximum limit of foreign exchange an individual can remit outwards under the Liberalised Remittance Scheme (LRS) per financial year?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

Liberalised Remittance Scheme Limit

Foreign Exchange Remittance Facilities for Individuals 35

WA 35

Under which Act and Section is the offense of Money Laundering defined in India?

Tap to reveal answer

Sec 3 of the Prevention of Money Laundering Act (PMLA), 2002.

Continuation:
It involves attempting to indulge in, or assisting with, proceeds of crime and projecting it as untainted property. It is a cognizable, non-bailable offense.

Tap to flip back

35 Views

Money Laundering Definition

AML- KYC Guidelines 35

WA 35

In the context of Money Laundering, what happens during the 'Placement' stage?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

35 Views

ML Stage: Placement

AML- KYC Guidelines 35

WA 35

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

In a CBS environment, weak passwords lead to systemic breaches. According to basic operational controls, what are the mandatory parameters for enforcing strong passwords?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

34 Views

Password Control Parameters

Operational Aspects of CBS Environment 34

WA 34

Under Section 125 of the Contract Act, what damages is an indemnity holder entitled to recover when sued?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

34 Views

Rights of Indemnity Holder: Damages

Contracts of Indemnity 34

WA 34

Why are indemnity contracts heavily utilized by bankers when settling death claims without legal representation?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

34 Views

Application to Banks: Death Claims

Contracts of Indemnity 34

WA 34

What is the critical operational and legal distinction between a Pledge and a Hypothecation of goods for a lending banker?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

34 Views

Pledge vs Hypothecation

Different Modes of Charging Securities 34

WA 34

What is the generally acceptable benchmark for Average DSCR across the entire repayment tenor of a term loan?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

34 Views

Acceptable DSCR Benchmark

Appraisal and Assessment of Credit Facilities 34

WA 34

🔓

Enjoying ClearShorts?

Create a free account to track progress, like cards and join discussions.

Register Free Login

Can a single partner bind the entire firm by taking a loan or pledging partnership property without explicit consent?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

34 Views

Implied Authority of a Partner

Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities 34

WA 34

Who holds the authority to borrow money and pledge ancestral property in a Hindu Undivided Family (HUF)?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

34 Views

HUF Karta's Borrowing Powers

Principles of Lending, Different Types of Borrowers, and Types of Credit Facilities 34

WA 34

What is the primary operational restriction that differentiates a Business Facilitator (BF) from a Business Correspondent (BC)?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

34 Views

Business Facilitators (BF) Scope

Financial Inclusion & Financial Literacy 34

WA 34

In a jointly held bank account, what is the rule for delegating authority to a third party via Mandate or POA?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

34 Views

POA in Joint Accounts

Banker's Special Relationship 34

WA 34

What are the three universally recognized stages of the money laundering cycle?

Tap to reveal answer

Premium Answer

Unlock with a membership plan

34 Views

Stages of Money Laundering

AML- KYC Guidelines 34

WA 34

🎓

You've seen it all!

Excellent progress on this topic!

Choose Another Chapter All Chapters Unlock Premium Try Mock Tests

No comments yet. Be the first!

JAIIB PPB Capsule Cards 2026

India's #1 short-form JAIIB preparation app. 500+ capsule cards, unlimited mock tests & PDF notes for JAIIB May & Nov 2026 (PPB, IE-IFS, AFM, RBWM). Learn while commuting. Clear JAIIB in your first attempt. Join 5,000+ bankers.

All 80 cards on this page

Relationship: Deposit Account When a customer opens a savings or current deposit account with a bank, what is the primary legal relati… Relationship: Loan Account What is the banker-customer relationship when the bank grants a loan or advance to the customer? Relationship: Safe Custody What is the legal relationship between the bank and customer when valuables are deposited for safe custo… Consent Architecture in AA In the Account Aggregator framework, who ultimately holds the power to initiate the transfer of financia… Relationship: Safe Deposit Locker When a bank provides a safe deposit locker to a customer, what specific relationship is formed? Relationship: Pledge In a pledge transaction where goods are kept as security, what is the relationship between the bank and… Corporate Governance in India When did business ethics in India gain center stage in corporate operations, and which committee was rec… Values vs Ethics What is the fundamental difference between Values and Ethics in the context of banking and business? Principle of Fairness In business ethics, does the principle of fairness mean that everybody is treated equally and gets exact… Philosophy of Trusteeship Which famous leader espoused the philosophy of 'Trusteeship', and what is its core origin? Relationship: Cheque Collection If a customer deposits a cheque into their account for collection, what role does the bank play during t… Ethical Foundation: Trust What is the foremost principle of ethical banking, and what does it inspire among stakeholders? Stages of Ethical Crisis What are the three stages an organization passes through during an ethical crisis event? Ethical Dilemmas in Banking What creates an ethical dilemma for a banking professional during the course of business? Principle of Openness & Prudence How do the principles of 'Openness' and 'Prudence' apply to a banking business? Relationship: Mortgage When immovable property is given as security for a loan, what relationship is established? Integrity vs Neutrality In the standard banking code of conduct, what is the difference between 'Integrity' and 'Neutrality'? Relationship: Hypothecation For a vehicle loan where the vehicle remains in the possession of the borrower, what is the relationship? Demand vs Time Deposits What is the fundamental difference between Demand Deposits and Time Deposits in banking? Law of Limitation: Deposits When does the law of limitation begin to run for a bank deposit (both demand and fixed deposits)? Cash Transaction Report (CTR) What is the threshold limit for reporting cash transactions in the CTR to FIU-IND? Suspicious Transaction Report (STR) What is the time limit for a bank to report an STR to FIU-IND after concluding a transaction is suspicio… Definition of Customer (KYC) As per KYC norms and PMLA 2002, who exactly qualifies as a 'Customer' of a bank? Indemnity Relationship When a bank issues a duplicate demand draft to a customer who lost the original, what relationship is es… Effectiveness of Securities What makes a collateral security 'effective' and desirable for a lending bank? Cardinal Principles of Lending What are the fundamental rules a banker must follow to ensure safe and profitable lending, minimizing in… FATCA and CRS What is the purpose of FATCA and CRS regulations in Indian banking? Medical Treatment Abroad Limits Under LRS, what is the maximum foreign exchange limit allowed for medical treatment abroad without insis… Definition of Banking Under which specific Act and Section is 'Banking' defined as accepting deposits from the public for the… LIBOR Manipulation Scandal How did the actions of traders manipulating the LIBOR rates highlight a massive ethical failure? NEFT (National Electronic Fund Transfer) NEFT revolutionized retail payments in India. Unlike RTGS, how are NEFT transactions settled throughout… ODR for Failed Transactions To handle disputes related to failed digital transactions quickly, what system has the RBI mandated Paym… RSETI Training Duration What is the typical duration of the skill development and entrepreneurship programs offered by RSETIs to… CTS-2010 Standards What is the purpose of the CTS-2010 standards introduced by the RBI for cheques? ML Stage: Integration What happens in the final 'Integration' stage of money laundering? Video-based CIP (V-CIP) What are the critical technological requirements for conducting a Video-based Customer Identification Pr… Lien Exception: Specific Purpose If a customer deposits money with the bank for a specific purpose, can the bank apply a lien on those fu… FEMA Introduction & Enactment When did the Foreign Exchange Management Act (FEMA) come into effect, and what act did it replace to man… Anonymous Accounts Prohibition Under the Customer Acceptance Policy, is a bank permitted to open an account in an anonymous or fictitio… Global Financial Crisis (2007-08) How did unethical lending practices contribute to the global financial crisis of 2007-08? CPA 2019 E-Commerce Inclusion What was one of the most significant changes introduced by the Consumer Protection Act (CPA) 2019 compar… 7 Cs of Credit Framework Which conceptual framework helps financial institutions evaluate the overall creditworthiness and borrow… Partnership Firm Max Limit What is the maximum number of partners allowed in a partnership firm established for the purpose of gain? NRO Account Joint Holding Can an NRI open a Non-Resident (Ordinary) Rupee Account (NRO) jointly with a resident Indian? Implied Pledge (Right to Sell) Why is a Banker's General Lien legally referred to as an 'implied pledge' in banking law? Designated Director (DD) Under PMLA, who is responsible for overall compliance of KYC/AML obligations in a bank? Terminal vs Instrumental Values What is the fundamental difference between Terminal Values and Instrumental Values? Discharge of Principal Debtor If the creditor formally releases the principal debtor from the debt, does the guarantor still have to p… Unpaid Vendor's Right of Stoppage What major risk does a bank face when advancing money against 'Documents of Title to Goods'? Essentials of a Valid Contract What is the legal definition of a contract under Section 2(h) of the Indian Contract Act, 1872, and what… General Provisioning (Standard Assets) What is the general provisioning requirement for standard assets in the Agriculture and Micro/Small Ente… Assessing Letter of Credit (LC) Limit What is the general formula to assess a borrower's maximum limit for a Letter of Credit (LC) facility? Payment Banks Rural Access To ensure Payment Banks actually serve unbanked areas, what percentage of their physical access points m… Meaning of 'Conversion' In the context of a collecting banker, what does the legal term 'Conversion' refer to? International Credit Cards (ICC) What is the monetary ceiling prescribed by RBI for using International Credit Cards (ICCs) for expenses… ML Stage: Layering What is the objective of the 'Layering' stage in money laundering? Morals vs Personal Values What distinguishes Morals from Personal Values for an individual decision-maker? Data Mart vs Data Lake Beyond the main Data Warehouse, organizations utilize other storage architectures. What is the fundament… Assignment of Actionable Claims How is an 'Assignment' used as a mode of charging security, and what type of banking assets are typicall… SARFAESI Act Exemptions Which specific types of assets and conditions are explicitly exempt from seizure and auction under the S… External Benchmark Lending Rate (EBLR) What external benchmarks did RBI mandate for pricing retail and MSME floating rate loans effective from… Ombudsman Approach Timeline When does a customer gain the right to approach the Banking Ombudsman regarding an unresolved complaint? MoA vs AoA of a Company What is the difference between the Memorandum of Association (MoA) and Articles of Association (AoA) for… Ultra Small Branches (USBs) What is the purpose of Ultra Small Branches (USBs), and where are they strategically established in rura… Bank of Bihar vs Mahabir Lal In Bank of Bihar vs Mahabir Lal, why was the bank held liable when it handed the cash to a known employe… Section 131 Protection What specific protection does Section 131 of the NI Act offer to a collecting banker? Counterfeit Note FIR Rules When is a bank required to file an FIR with the Nodal Police Station regarding counterfeit notes? Liberalised Remittance Scheme Limit What is the maximum limit of foreign exchange an individual can remit outwards under the Liberalised Rem… Money Laundering Definition Under which Act and Section is the offense of Money Laundering defined in India? ML Stage: Placement In the context of Money Laundering, what happens during the 'Placement' stage? Password Control Parameters In a CBS environment, weak passwords lead to systemic breaches. According to basic operational controls,… Rights of Indemnity Holder: Damages Under Section 125 of the Contract Act, what damages is an indemnity holder entitled to recover when sued? Application to Banks: Death Claims Why are indemnity contracts heavily utilized by bankers when settling death claims without legal represe… Pledge vs Hypothecation What is the critical operational and legal distinction between a Pledge and a Hypothecation of goods for… Acceptable DSCR Benchmark What is the generally acceptable benchmark for Average DSCR across the entire repayment tenor of a term… Implied Authority of a Partner Can a single partner bind the entire firm by taking a loan or pledging partnership property without expl… HUF Karta's Borrowing Powers Who holds the authority to borrow money and pledge ancestral property in a Hindu Undivided Family (HUF)? Business Facilitators (BF) Scope What is the primary operational restriction that differentiates a Business Facilitator (BF) from a Busin… POA in Joint Accounts In a jointly held bank account, what is the rule for delegating authority to a third party via Mandate o… Stages of Money Laundering What are the three universally recognized stages of the money laundering cycle?

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

Study formats

All formats Capsule Cards Memory Tricks Infographics JAIIB Mock Tests 2026 All capsules