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JAIIB PPB Unit 5 — Operational Aspects of Deposit Accounts: 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 5 — Operational Aspects of Deposit Accounts (Module A — General Banking Operations). The Mock Centre holds 94 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 A94 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. Current account: no interest (exception — deceased individual's balance earns SB rate from death to payment), no holder among minors/pardanashin/illiterate/blind; TOD needs written request + DPN.
  2. SB: daily-product interest, uniform up to ₹1 lakh; prohibited for political parties/budget-funded bodies/business concerns; permitted for SHGs, Sec 8 companies, APMC, KVIB, DWCRA, VVV clubs; minimum-balance: 1-month notice, proportionate charges, never negative.
  3. BSBDA: free minimum bundle (4 withdrawals/month, ATM card, unlimited deposits), one per person, existing SB closed in 30 days, extra-charged services destroy BSBDA status.
Law update, September 2026. From 1 October 2026 (Deposit Directions Second Amendment 2026): the same rate must be offered on the same day for the same amount and tenor at every branch; bulk-deposit rates go on the bank's website daily by 10:00; differential rates on rupee bulk deposits may vary only by the depositor's LCR run-off category. Current law: the Banking Laws (Amendment) Act 2025 allows up to FOUR nominees on a deposit, either successive or simultaneous (with percentage shares). 'Per the textbook / 1985 Rules' → one; 'currently' → up to four. Current law: the Banking Laws (Amendment) Act 2025 permits up to four nominees for deposits, lockers and safe custody alike — successively for lockers, successively or simultaneously for deposits.

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
On which type of account is no interest payable by the bank?
Why (b): CURRENT accounts earn NO interest — they hold businesses' fluctuating working funds.
Question 2 of 5
A Certificate of Deposit (CD) is:
Why (b): A CD is a NEGOTIABLE, unsecured MONEY-MARKET instrument issued against funds deposited — governed by RBI's CD Directions.
Question 3 of 5
Credit balances unclaimed/inoperative for how long are transferred to the DEAF (within 3 months of that period)?
Why (c): Balances unclaimed/inoperative for 10 YEARS move to the DEAF (within 3 months of the end of the 10th year).
Question 4 of 5
A standing instruction can be set up for which of the following?
Why (a): Standing instructions automate periodic transfers — e.g., TD INTEREST swept to the SB account each due date.
Question 5 of 5
Interest on savings accounts is calculated on:
Why (b): Since 2010 SB interest rides daily balances — replacing the old minimum-balance-between-dates method; crediting at quarterly or shorter intervals.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Daily product (SB interest)Minimum monthly balanceCurrent method (2010→) vs the old-method trap
₹3 crore bulk (2024)₹2 crore bulk (old)Latest SCB/SFB threshold vs the book's superseded figure
Practise all 94 questions on Unit 5. The free demo opens a slice of every subject with the same explanations; the PPB Online-only pass unlocks all 3,280 PPB questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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← Unit 4: Opening Accounts of Various Types of Customers · Unit 6: Operational Aspects of Handling Clearing, Collection & Cash → · 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.