Home › JAIIB › RBWM › Unit 8

JAIIB · Retail Banking & Wealth Management · Module B — Retail Products and Recovery

JAIIB RBWM Unit 8 — Important Retail Liability Products: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 2 November 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 8 — Important Retail Liability Products (Module B — Retail Products and Recovery). The Mock Centre holds 118 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 B118 MCQs in the Mock Centre5 free belowPaper on 29 November 2026

Key facts examiners test from this unit

  1. Deposits = bank liabilities; loans = assets; intermediation = the core function; ONLY banks may take demand deposits; demand = CASA, time = FD + RD.
  2. Current accounts: nil interest, higher minimum balance (higher transaction cost — the textbook's Check Your Progress logic), unlimited transactions, businessmen; NIM-friendly; inoperative after 2 years (reactivation = fresh KYC); company closure needs board resolution; business entities can't hold SB.
  3. RBI current-account discipline (29-10-2021): ₹5-crore exposure trigger; ≥10%-exposure banks only; non-lending banks barred; collection sweeps in 2 working days; NALSA (15-4-2014) for transgender accounts; Damodaran Committee → number portability.
Law update, November 2026. From 1 April 2026 (RBI amendment directions of 11 December 2025) banks may open current and overdraft accounts without these restrictions where the banking system's exposure to the customer is below ₹10 crore; conditions apply at ₹10 crore and above. Under the RBI's KYC Master Direction 2016, a passbook is neither an officially valid document nor a deemed OVD; address proof needs an OVD (passport, driving licence, proof of Aadhaar, voter ID, NREGA job card, NPR letter) or, for address only, a deemed OVD such as a recent utility bill. Under the RBI's circular of 21 April 2025, minors aged 10 and above may open and operate savings and term deposits on their own, within limits each bank sets under its risk policy; no overdraft is allowed.

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
Taking public deposits and lending to productive activities is called:
Why (b): Taking deposits from savers and lending them to businesses and borrowers — standing in the middle of money — is INTERMEDIATION, the core function that makes a bank a bank.
Question 2 of 5
Current accounts are typically opened by:
Why (c): Current accounts are built for BUSINESSMEN and business entities — traders, firms, companies — whose money moves constantly and who need unlimited transactions more than interest.
Question 3 of 5
FD interest credited to SB quarterly:
Why (b): An FD whose interest is CREDITED TO YOUR SAVINGS account every quarter is the SIMPLE (payout) FD — income now, principal at maturity.
Question 4 of 5
An RD can be opened by:
Why (b): An RD may be opened in one's OWN name, JOINTLY with others, or by a MINOR aged 10+ in their own name — the full eligibility menu.
Question 5 of 5
Under 'Former or Survivor', the first-named holder dies. The account is then operated by:
Why (b): Under F-or-S the first-named (former) holder operates while alive; on his death the survivor takes over.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
DepositLoanLiability vs asset
DemandTime depositsCASA vs FD/RD
Practise all 118 questions on Unit 8. The free demo opens a slice of every subject with the same explanations; the RBWM Online-only pass unlocks all 1,900+ RBWM 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).
Take the free mock Open the free demo

← Unit 7: Credit Scoring · Unit 9: Important Retail Asset Products → · All RBWM units · JAIIB 2026 guide

Related reading

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.