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JAIIB PPB Unit 6 — Operational Aspects of Handling Clearing, Collection & Cash: 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 6 — Operational Aspects of Handling Clearing, Collection & Cash (Module A — General Banking Operations). The Mock Centre holds 100 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 A100 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. CTS: effective 1 Feb 2008; legal base = NI Act + IT Act 2000 + BBE Act 1891 (2002 amendments); truncated cheque defined in Sec. 6 NI Act; MICR processing discontinued.
  2. Only banks/Clearing House truncate (never the drawer/holder); truncation only during the clearing cycle; paper retained by the truncating bank/CH; truncating bank's digital signature OPTIONAL (presenting bank must sign images/data at origin).
  3. Three grids — Delhi (Northern), Mumbai (Western), Chennai (Southern); participants: members, sub-members, indirect members; files via CHI/DEM; in-grid cheques = local, T+1, no outstation/ Speed Clearing charges.

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
Which older system was discontinued after CTS?
Why (b): CTS discontinued the older MICR-BASED cheque processing — physical cheques no longer travel to the clearing house; image-based grid clearing replaced the MICR run.
Question 2 of 5
Under CTS, customers should write cheques using:
Why (b): CTS-2010 standards: watermark, VOID pantograph, bank's logo in UV ink, image-friendly colours — plus dark, image-friendly writing ink.
Question 3 of 5
Cash and small-coin balances are kept:
Why (b): Cash and small-coin balances are kept IN THE STRONG ROOM UNDER JOINT CUSTODY — the cardinal rule of branch cash: two custodians, one vault.
Question 4 of 5
Cash remittances in transit are covered under the:
Why (b): The bankers' BLANKET/indemnity policy covers cash in transit, on premises and in ATMs.
Question 5 of 5
The detected counterfeit note is:
Why (c): The detected counterfeit note is IMPOUNDED and stamped 'COUNTERFEIT' — it leaves circulation permanently and enters the police-reporting chain as evidence.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
1 Feb 2008CTS-2010CTS launch date vs cheque-STANDARD name/year
Presenting bank's digital signingTruncating bank's digital signatureMandatory at origin vs OPTIONAL on image
Practise all 100 questions on Unit 6. 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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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.