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JAIIB PPB Unit 10 — Foreign Currency Accounts for Residents and Other Aspects: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 2 of the November 2026 cycle (22 November 2026)

This page is a free slice of our JAIIB PPB question bank for Unit 10 — Foreign Currency Accounts for Residents and Other Aspects (Module A — General Banking Operations). The Mock Centre holds 55 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

PPB · Module A55 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. Residents' forex accounts in India — ERRD: EEFC (earners), RFC (returning NRIs), RFC(D) (individuals' small receipts), DDA (diamond trade); benefits: natural hedge + saved conversion costs.
  2. Forms: individuals — current/savings/TD; firms/companies — current/TD only; NO recurring deposits; single or joint.
  3. Death disposal: outside-India nominee — direct remittance of his share; India-resident nominee paying the deceased's ABROAD liabilities — RBI approval; resident nominee of a FOREIGN account — close and repatriate.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Foreign currency accounts of residents are regulated under:
Why (b): FEMA and its FC-Account Regulations govern residents' foreign currency accounts.
Question 2 of 5
Residents may hold which foreign currency accounts in India?
Why (b): The resident quartet: EEFC (exporters/earners), RFC (returning NRIs), RFC(D) (individuals' small receipts), DDA (diamond trade).
Question 3 of 5
Does the EEFC account earn interest?
Why (c): The EEFC account earns NO interest — it is a non-interest-bearing CURRENT account where exporters park their foreign-currency earnings.
Question 4 of 5
The RFC account is mainly meant for:
Why (b): RFC (Resident Foreign Currency) holds the returning NRI's foreign assets — NRE/FCNR balances, pensions, overseas assets.
Question 5 of 5
The designated FCRA Account for receiving foreign contribution must be opened at:
Why (b): The 2020 amendment centralised receipts at SBI NDMB (utilisation accounts may exist elsewhere).
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
EEFCRFCExporter/earner's account vs returning NRI's account
RFCRFC (Domestic)Returning-NRI corpus vs resident's small forex receipts
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← Unit 9: Operational Aspects of NRI Business · Unit 11: Cash Management Services and its Importance → · All PPB units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.