Accounts and Banking Products
Accounts and banking products tests product features and suitability. Candidates must match a customer’s need-daily business, monthly saving, emergency credit-with the correct account or loan product.
Product rules
- Savings accounts are for individuals; current accounts are for businesses and usually pay no interest.
- BSBDA offers no minimum-balance basic banking with limited free services.
- Fixed deposits lock money for a term; premature withdrawal attracts a penalty.
- Recurring deposits accept fixed monthly instalments.
- Overdraft is a sanctioned limit on a current account; cash credit is a working-capital loan against stock/receivables.
- PMJDY accounts provide basic banking with RuPay card and overdraft eligibility after satisfactory operation.
- Joint accounts must specify operation mode: either or survivor, jointly, or former or survivor.
Worked example
A shopkeeper needs daily collections and supplier payments. Reasoning: a current account suits business transactions, while a savings account is designed for individuals and may restrict business credits. The shopkeeper should compare monthly charges, cash-deposit limits and overdraft eligibility before choosing.
Traps that cost marks
- Recommending a savings account for a business.
- Ignoring premature-withdrawal penalties on FDs.
- Assuming all joint accounts are “either or survivor”.
- Selling a credit card as a loan with no repayment obligation.