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JAIIB PPB Unit 7 — Banker's Special Relationship: 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 7 — Banker's Special Relationship (Module A — General Banking Operations). The Mock Centre holds 59 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 A59 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. Mandate: simple unstamped temporary letter, mandatee's signature verified by the CUSTOMER, ceases on Death/Insanity/Insolvency (DII), withdrawable anytime; institutions use POA, not mandate.
  2. POA: stamped + notarised; donor (principal) gives, donee (agent) receives; general vs specific; attorney signs 'Per pro — Constituted Attorney'; revoked by death/insanity/insolvency (company winding-up); sub-delegation only with POWER OF SUBSTITUTION.
  3. Delegation table: joint account — ALL holders sign; partnership — ALL partners; company — further delegation needs specific authority; fiduciaries (executor/administrator/guardian) can NEVER appoint agents.

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 is correct about a mandate's validity?
Why (b): Mandates suit SHORT absences (travel, illness) — temporary by design; longer/formal delegation needs a POA.
Question 2 of 5
The person who EXECUTES a Power of Attorney is the:
Why (b): The person who EXECUTES (gives) a Power of Attorney is the DONOR, also called the principal — he grants the authority for another to act in his name.
Question 3 of 5
To authorise a third party on a JOINT account, the mandate/POA must be signed by:
Why (b): To authorise a third party on a JOINT account, the mandate or POA must be signed by ALL the joint holders — delegation must bind every owner of the money.
Question 4 of 5
The right of set-off is also called the right to:
Why (b): SET-OFF merges mutual debts — combining the customer's debit and credit accounts into one net figure.
Question 5 of 5
Which pair of statements about the mandate is correct?
Why (a): The two ends of the mandate: operation of law (D-I-I) and voluntary revocation anytime by the customer.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
MandatePower of AttorneyUnstamped temporary letter vs stamped notarised instrument
DonorDoneeGives the power (principal) vs receives it (attorney)
Practise all 59 questions on Unit 7. 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.