JAIIB Paper 4 Module B Quiz 10

[Customer Requirements] NPS is based on a customer‘s stated likelihood to recommend a service. It is a customer-experience measure, not a direct credit-risk metric.

[Product Development] Customer deposits are liabilities because the bank owes those funds to depositors. Loans are assets because borrowers owe repayment to the bank.

[Product Development] Bundling combines related services into a coordinated offer. Terms, charges and optional features should be disclosed clearly.

[Credit Scoring] Consistent payments and correction of inaccurate reporting can help. Unnecessary borrowing and high utilisation can increase risk.

[Retail Liability Products] The bank should verify the entity, beneficial ownership/control where applicable, authorized signatories and required KYC documents.

[Retail Asset Products] Home-loan appraisal includes income and obligations, title, valuation, margin and lender policy. Property alone does not establish repayment capacity.

[Retail Asset Products] Pricing can reflect credit risk and the cost of funds and delivery within applicable rules. It should be transparent and fair.

[Credit and Debit Cards] NFC enables short-range contactless communication between a card/device and terminal. Limits and authentication rules depend on current requirements.

[Remittance Products] NEFT is an electronic funds transfer system. Customers should enter correct beneficiary details and retain transaction references.

[Remittance Products] Mandates authorize recurring debits within specified terms and controls. Customers should understand amount, frequency and cancellation arrangements.

[Digitisation] IDRBT supports research, development and initiatives in banking technology.

[AI and Technology] Accessible and understandable interfaces help customers complete tasks correctly. Important security warnings and terms should be clear.

[Recovery of Retail Loans] Lok Adalats facilitate settlement of eligible disputes. Their awards have legal effect under the governing framework.

[Securitisation] Underlying loan collections generally support investor distributions, subject to the transaction waterfall, servicing and credit enhancement.

[Remittance Products] RTGS settles transactions individually in real time on a gross basis. The customer should still verify current limits and bank procedures.

[Retail Asset Products] Valuation informs collateral adequacy and LTV, but does not guarantee future price or replace title and repayment-capacity checks.

[Product Development] Sales volume alone is not enough to assess product success. Complaints may indicate unclear terms, unsuitable targeting or operational defects that need remediation.

[Retail Asset Products] A co-borrower may provide repayment support under the product‘s eligibility rules. The lender still needs to assess the course, costs and documentation.

[Recovery of Retail Loans] Records help the bank oversee conduct, investigate complaints and demonstrate compliance with applicable requirements.