Tag: other services and modern trends in banking sector

Questions Related to other services and modern trends in banking sector

Stop payment letter is usually made to prevent the misuse of the cheque when the cheque is _______.
business organisation and correspondence functions of commerical banks other services and modern trends in banking sector types of banks diversified banking functions

  1. lost

  2. issued

  3. credit

  4. None of these

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Correct Option: A
Explanation:

Stop payment letter is usually made to prevent the misuse of the cheque when the cheque is lost. A customer who issued the cheque can write a stop payment letter. This stop payment letter is used to issue in order to stop the misuse of the lost cheque.

State the following statement is True or False:
Pay-in-slip is commonly called as a deposit-slip.

business organisation and correspondence functions of commerical banks other services and modern trends in banking sector types of banks diversified banking functions

  1. True

  2. False

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Correct Option: A
Explanation:

Pay-in-slip is also called as a deposit slip. When a person deposits cheque or cash into a bank account, pay-in=slip is filled in. It has the details viz account number, amount, date, etc. Depositor need not be account holder.

_________ account is suitable for salaried people.
business organisation and correspondence functions of commerical banks other services and modern trends in banking sector types of banks diversified banking functions

  1. Current

  2. Saving

  3. Over draft

  4. None of these

Show answer
Correct Option: B
Explanation:

Salary Account opened with a bank is a form of savings account. It is generally as 'Zero balance' account. It encourages savings among salaried people.

Current account is opened by business entities who have numerous transactions.
Overdraft is a facility given by the bank to the account-holders (basically current account holders).

Process by which physical certificates of an investor are converted to an equivalent number of securities in an electronic format and credited in the Investors A/c held through depository participant is called  __________.

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. Remat

  2. Demat

  3. both (A) and (B)

  4. only A

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Correct Option: B
Explanation:

Dematerialisation or Demat in short is the process through which an investors physical share certificate gets converted to electronic format which is maintained in an account with the Depository Participant.

Which of the following is/are the benefit(s) of e-banking to the banker?

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. Competitive advantage

  2. Network is expanded beyond branches

  3. Centralised database reduces work load

  4. All of the above

Show answer
Correct Option: D
Explanation:
E-banking can be defined as a method of banking. Through e-banking customers can conduct transactions electronically. E-banking is a product designed for the purpose of online banking. Benefits of e-banking to the banker are:
a) Competitive advantage
b) Network is expanded beyond branches
c) Centralized database reduces work load.

Image-based cheque clearing system where the image of the cheque is sent electronically _____________.

business organisation and correspondence bank 1 - definition, kinds, functions and importance other services and modern trends in banking sector types of banks diversified banking functions

  1. RTGS

  2. NEFT

  3. CBS

  4. CTS

Show answer
Correct Option: D
Explanation:

Image-based cheque clearing system where the image of the cheque is sent electronically is known as CTS. The Cheque Truncation System( CTS) can be defined as a process of stopping flow of physical cheque in which electronic image of the instrument is presented during the time of clearing.