JAIIB Paper 4 Module B Quiz 7

[Customer Requirements] Repeated failure to meet a stated promise undermines reliability. The bank should address process causes and communicate accurately.

[Product Development] Research and feasibility, risk and compliance reviews help determine whether a product is desirable, viable and deliverable before launch.

[Product Development] Pricing should reflect funding, delivery costs, risk and market conditions while providing customer value and meeting regulatory requirements.

[Credit Scoring] Credit scoring converts selected risk factors into a numerical or categorical risk estimate. Model design and validation determine its usefulness.

[Retail Liability Products] Savings deposit rates were deregulated, allowing banks to set rates within applicable requirements and transparent policy frameworks.

[Retail Liability Products] Banks may advance against eligible deposits by placing an appropriate lien or charge, subject to policy and documentation.

[Retail Asset Products] Appraisal and verification should precede sanction. The lender must assess capacity, policy compliance, fraud risk and documentation.

[Credit and Debit Cards] Traditional charge cards generally require full payment of the statement balance, unlike revolving cards that may permit carried balances.

[Credit and Debit Cards] Card schemes provide operating rules and transaction-routing infrastructure among issuers, acquirers and other participants.

[Remittance Products] A reference helps banks trace a payment and investigate delays or disputes, but does not replace correct beneficiary details.

[Digitisation] INFINET is a communication network for financial institutions associated with IDRBT and supports secure connectivity.

[AI and Technology] Cloud use requires governance over security, availability, data handling, third-party risk and recovery. Outsourcing does not remove bank accountability.

[Recovery of Retail Loans] Recovery conduct must comply with applicable directions and bank policy. Harassment, privacy violations and false claims are inappropriate.

[Securitisation] Securitisation pools assets and uses their cash flows to support securities issued through a transaction structure, subject to law and regulation.

[Retail Liability Products] Current accounts are designed for frequent transactional use. Term and recurring deposits are primarily savings products with different access and tenure features.

[Product Development] Post-launch management monitors how a product performs and whether it continues to meet customer, risk and business objectives.

[Securitisation] Risk transfer depends on the transaction structure and retained interests. The originator may continue to service assets or retain certain exposures.

[Retail Liability Products] Clear disclosure helps customers make informed decisions and reduces later disputes. KYC remains a separate obligation.

[AI and Technology] AI outputs can be wrong or contextually inappropriate. Banks need testing, monitoring, data safeguards and human escalation for sensitive issues.

[Credit Scoring] Periodic review helps customers identify errors or possible identity misuse. Disputes should be raised with the relevant bureau and lender.