Page 59 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes As per the prevalent practices relevant to recurring deposit, the deposit shall mature 30 days/
one month after payment of last instalment or on due date whichever is late.
Banks also provide for advances/loan against the recurring deposit, payment of irregular and
discontinued recurring deposit account etc. The investor should refer to the related guidelines of
the bank where recurring deposit is intended to be opened.

Did u know? Any individual (singly or jointly) or a minor of 10 years and above in his own
name otherwise under guardianship, HUF, a firm, a club, association, educational
institution, municipality, Panchayat, society, trust etc. can open the account.

Self Assessment

1. A Joint Savings bank account can be operated upon by a Mandate/Power of attorney
holder provided:
(a) The Mandate/Power of attorney is given by all the joint account holders
(b) The Mandate/Power of attorney is given by any of the joint account holders

(c) Joint SB account cannot be operated upon by a mandate/power of attorney
(d) None of the above
(e) Any one of (a), (b), (c)

2. The mode of operation of Joint Savings Bank account can be altered by:
(a) All joint account holders
(b) Any of the joint account holders
(c) Mode of operation once given cannot be altered
(d) All of the above

(e) None of the above
3. In a Joint Savings Bank account when the operational instructions are not given, cheques
in the account can be drawn by:

(a) Any of the joint account holders
(b) All the account holders jointly
(c) Cheques cannot be drawn without operational instructions

(d) Operations in the account cannot be permitted
(e) None of the above
4. .................................... has wider connotation and is not the same as that of retail lending.
5. Banks cannot accept interest-free deposit, except for deposit at call; for instance money
held in current account of the .................................... does not bear any interest.

Task Discuss the RBI policies in India.

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