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JAIIB RBWM Unit 26 — Other Financial Services Provided by Banks: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 4 of the November 2026 cycle (29 November 2026)

This page is a free slice of our JAIIB RBWM question bank for Unit 26 — Other Financial Services Provided by Banks (Module D — Wealth Management). The Mock Centre holds 79 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.

RBWM · Module D79 MCQs in the Mock Centre5 free belowPaper on 29 November 2026

Key facts examiners test from this unit

  1. Para banking = third-party distribution WITHOUT risk participation → fee-based income; risk participation = subsidiary/JV only.
  2. MFs: SEBI-registered; units; features — professional management, diversification, liquidity (NOT complexity); caps — large 1–100, mid 101–250; retirement lock 5 years/retirement; commissions — upfront (~0.75% post-entry-load ban) + TRAIL; MF tie-ups UNLIMITED; no assured returns ever.
  3. Bancassurance: IRDA-regulated; corporate agent = 3 life + 3 general + 3 health + ECGC/AIC; no RBI approval for fee-based agency; broker route (Budget 2013-14, ₹50-lakh deposit); risk route needs ₹1,000-crore net worth (≥₹500 crore after).

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
In para banking, the bank's risk profile is:
Why (b): In para banking, the bank distributes WITHOUT RISK PARTICIPATION — it earns commission; the product's risk stays with the manufacturer (insurer/AMC).
Question 2 of 5
NOT a mutual fund salient feature:
Why (c): Mutual funds' salient features: professional management, diversification, liquidity — and SIMPLICITY. 'Complexity' is the fake — funds are marketed precisely as the simple way to invest.
Question 3 of 5
Cross selling means:
Why (b): CROSS-SELLING means selling MORE products to EXISTING customers — the depositor gets a card, the borrower gets insurance. Deepening, not widening.
Question 4 of 5
In factoring, the factor buys the company's:
Why (b): In factoring, the factor buys the company's ACCOUNTS RECEIVABLE — the unpaid invoices — paying cash now and collecting from the buyers later.
Question 5 of 5
Banks distribute insurance products such as:
Why (d): Banks distribute ALL the insurance product types: regular-premium individual policies, single-premium policies and group insurance.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Para bankingRisk participationFee-only vs subsidiary route
UnitsSharesMF vs equity holdings
Practise all 79 questions on Unit 26. The free demo opens a slice of every subject with the same explanations; the RBWM Online-only pass unlocks all 1,912 RBWM 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.