JAIIB · Principles & Practices of Banking · Module A — General Banking Operations
JAIIB PPB Unit 7 — Banker's Special Relationship: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 2 November 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
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.
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.
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): A mandate is a simple written authority for short absences (travel, illness) — temporary by design; longer or formal delegation needs a power of attorney.
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
Mr Rao has given his son a mandate to operate his savings account. Mr Rao is later adjudged insolvent. The mandate:
Why (a): A mandate is an agency, and an agency ends on the principal's death, insanity or insolvency (Sec. 201, Indian Contract Act); once the bank learns of the insolvency it must stop acting on the son's instructions.
0 of 5 answered.
Traps in this unit
Confusable A
Confusable B
The difference
Mandate
Power of Attorney
Unstamped temporary letter vs stamped notarised instrument
Donor
Donee
Gives 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 3,200+ PPB questions, the full and module mocks, Smart Revision and the Readiness Score for 18 months (₹1,299). Not sure where you stand? Sit the free 120-question mock first (all four papers, questions drawn from pages like this one, real exam screen).
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 November 2026; verify from official sources before relying on them in practice.
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