Page 67 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes Modern wholesale banks are engaged in: finance wholesaling, underwriting, market making,
consultancy, mergers and acquisitions, fund management.

Wholesale banking in India is set for a period of sharp growth. Revenues from wholesale
banking activities are likely to more than double over the next five years as infrastructure
investment, expansion by Indian companies overseas, and further "Indianisation" of multinational
businesses, among other trends, drive new business. Foreign players and the country's domestic
banks, however, will find themselves in a tough commercial environment and must overcome
a range of challenges if they are to maintain, or assume, a leading position in the market.
Prospects for India's wholesale banking market are intriguing. Wholesale banking revenues,
which in India account for close to 30 percent of total banking revenues, are expected to more
than double, from roughly $16 billion in fiscal 2010 to between $35 billion and $40 billion
by 2015.

Self Assessment

11. In case of premature withdrawal of an FDR, interest is payable if the deposit has remained
with the bank:

(a) For a period more than 15 days

(b) For a period more than 45 days
(c) No interest is payable on premature payment
(d) None of the above

12. Mr. X has given a power of attorney to his son Y to operate the account, you learn Mr. X is
now admitted to mental hospital due to his lunacy. In this case—

(a) Mr. Y can operate the account

(b) Mr. Y cannot operate the account
(c) Mr. X can operate the account
(d) Mr. X or Y cannot operate the account

13. Payment in a deceased deposit account can be made when—

(a) All the legal heirs jointly submit the succession certificate
(b) Legal heirs submit death certificate and indemnity only
(c) Both (a) and (b) above

(d) None of the above

14. If the banker makes payment in violation of stop payment instruction of the account
holder, the same may be regarded as a deficiency in the bank’s service—

(a) Yes
(b) No
15. The ............................ is the bank’s primary representative to a customer or client.

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