I85PREP
⌘ K
IIBF SFB study materials
IIBF SFB study resources

IIBF SFB: Deposit Mobilisation, Liabilities and Customer Service

IIBF SFB · Work through your exam, one topic at a time.

All guide sections

Deposit Mobilisation, Liabilities and Customer Service

What the exam tests

An SFB is a deposit-funded institution, not a pure MFI. Questions test the liability mix, deposit safeguards, insurance cover and the customer-service framework binding an SFB.

Core rules

  • Funding mix: retail and bulk term deposits, savings and current accounts, refinance from SIDBI/NABARD and other institutions, term borrowings and non-convertible debentures. Heavy reliance on a few large depositors is a supervisory red flag.
  • Deposit cap: the 2014 licensing framework capped acceptance at Rs 1 lakh per customer; this was relaxed under the later on-tap regime, so product design now follows a board-approved policy within RBI's deposit directions.
  • Insurance: DICGC cover is Rs 5 lakh per depositor per bank (raised from Rs 1 lakh with effect from 4 February 2020), covering principal and interest, and must be displayed.
  • Nomination is mandatory for new deposits; balances unclaimed for 10 years move to the Depositor Education and Awareness Fund.
  • Rates: board-approved, published and non-discriminatory within the same class and tenor; premature withdrawal and senior-citizen terms must be transparent.
  • Redressal: the RBI Integrated Ombudsman Scheme, 2021 covers SFBs; each bank needs a grievance-redressal policy, nodal officer and escalation matrix, and the Charter of Customer Rights applies.

Worked example

A customer holds Rs 3 lakh in savings, Rs 4 lakh in a fixed deposit and Rs 1 lakh in a joint account with a spouse. The Rs 7 lakh held in the customer's own right is insured only up to Rs 5 lakh, leaving Rs 2 lakh uninsured. The joint account is a different capacity and carries its own Rs 5 lakh cover shared between the joint holders. Neither the number of accounts nor the number of branches changes the outcome.

Marks-losing traps

Treating DICGC cover as per account or per branch; assuming an SFB deposit carries a sovereign guarantee; forgetting the Depositor Education and Awareness Fund; presenting the Rs 1 lakh cap as a current restriction.