4

Retail banking Liability Products

Operational Provisions and Cases

Advise your decision in the following situations:

1.

You have a amount Rs. 5 lakh surplus for another five years after which you need these funds.
But you want to keep liquidity for 40% of these funds for any family emergency. Your friend has
suggested you to keep this amount in a savings account with a bank.

i.

Whether you will chose a Public sector bank, a Private sector bank or a Foreign bank for opening the
savings bank account and why?

ii.

Do you think there are any risks you run if you keep entire amount of deposit of Rs. 5 lakh in a savings
bank account with ICICI Bank, Greater Noida branch ?

iii.

Will the risk profile change if you transfer an amount of Rs. 2 lakh ( out of Rs 5 lakh) from ICICI Bank
Greater Noida branch into a fixed deposit for a period of 5 years and keep with the Sector 62, Noida
branch of ICICI Bank.

iv.

Will there be any change in your risk profile if you transfer from ICICI Bank another sum of Rs. 1 lakh
to a Fixed Deposit account with HDFC Bank at Greater Noida branch.

v.

Do you perceive any risk in keeping a deposit of Rs. 5 lakh as above ? If you do not feel any risk is there,
why so? If you perceive any risk , what is that risk and the strategy you will adopt to manage that risk?

2.

A customer has fixed deposit of Rs.15,000 and interest thereon is Rs.6000 due today. The customer
wants cash payment of interest on due date and wants the principal amount to be credited to his savings
bank account with the same branch. Will bank agree?

3.

A customer has three fixed deposits of Rs.5000. Rs.10,000 and Rs.8,000 due on 03.10.12, 05.04.13,
and 01.06.13, respectively. On 03.010.12, the due date for FDR for Rs.5000, (plus accrued interest of
Rs.1, 500) customer wants to get cash payment of this deposit only. Will bank pay cash?

4.

A having lost his fixed deposit receipt, requests for a duplicate fixed deposit receipt. Will bank issue
Duplicate fixed deposit? What formalities bank will insist?

5.

Mrs. A brings the fixed deposit receipt in name of A on due date for payment to her as her husband has
been missing for the last 5 years. She has got a copy of missing persons FIR with the police in this
regard. Will the Bank pay to Mrs. A ?

6.

Mr. Ram Kapoor and his wife Mrs. Rashmi Kapoor have joint fixed deposit (Either or Survivor). Mrs.
Kapoor brings the Fixed deposit receipt and requests in writing for addition of name of their 19 years
old son Jas Kapoor. Will the bank agree?

7.

A customer got issued a fixed deposit for 1 year @8% p.a. interest. After 6 months, the interest rates for
1 year were raised to 9.5%. Customer wants to avail of the benefit of increased interest rates and
requests the bank to re-issue the FDR without penalty for premature breach of earlier contract. What the
bank will do as per rules?

8.

A customer has several deposit accounts with a bank. TDS on interest income above Rs.10,000 will
apply to which types of following accounts : Tick mark correct option:
i. Fixed deposits
ii. Fixed deposits and savings banks deposits
iii. Fixed deposits, savings deposits and recurring deposits
iv. None of the above

9.

The Income Tax Exemption is available on interest income up to Rs.10,000 from Financial year 201213 for the following types of accounts : Tick mark correct option:
i. Savings bank accounts

ii. Savings and Fixed deposit accounts

iii, S/B, FD and RD accounts

iv. None of the above

10. Income tax exemption on investment in bank deposits up to Rs.1 lakh overall under section 80 C is

available for following banks deposit accounts: Tick mark correct option:
i. Recurring deposits accounts

ii. All term deposit accounts

iii. Deposits under Bank Term deposit scheme- 2006 (5 years term)

iv. All of the above

11. Ranbir Kapoor has following account balances with SBI and Standard Chartered Bank .
Sr

Bank

Account Name

Type of Account

SBI, New Delhi

SBI, Noida
SBI , Mumbai

Ranbir Kapoor and Nitu Kapoor

Ranbir Kapoor
Ranbir Kapoor and Rishi Kapoor

Savings account
Savings account
Fixed deposit

Balance
(Rs.)
1,26,000
98,000
1,00,000

SBI , Mumbai
Standard Chatered
Bank Mumbai

Ranbir Kapoor and Nitu Kapoor

Ranbir Kapoor and Nitu Kapoor

Fixed deposit
Fixed deposit

50,000
100,000

Work out if both banks are liquidated, what amount will be paid by DICGC and to whom.

DICGC
Claim