Retail Banking
Retail Banking in JAIIB RBWM tests how banks design, price, sell and service products to individuals and households: deposits, retail loans, cards, remittances and wealth products. Questions often combine product features with regulation and suitability.
Core product and rule map
- Liabilities: savings deposits (interest rate deregulated since October 2011), current accounts, fixed and recurring deposits, and NRE/NRO/FCNR(B) deposits for non-residents.
- Assets: home, auto, personal, education, gold and consumer loans; credit cards; overdrafts.
- Wealth: mutual fund distribution, insurance and retirement products. The bank must risk-profile the customer and match product risk; it cannot promise returns.
- DICGC insures deposits up to ₹5 lakh per depositor per bank, covering principal and interest. The limit is per bank, not per branch or account.
- Priority sector lending target is 40% of adjusted net bank credit; individual housing loans qualify up to ₹35 lakh in metropolitan centres and ₹25 lakh elsewhere, subject to dwelling-cost caps.
Worked example
A customer in Pune seeks a ₹34 lakh home loan for a flat costing ₹42 lakh. Pune is a metropolitan centre (population above 10 lakh), the loan is within ₹35 lakh and the dwelling cost is within ₹45 lakh, so the loan can be classified as priority sector housing, subject to other PSL conditions. If the loan were ₹36 lakh, it would fail the loan-size test even though the flat is cheap enough.
Traps
Do not apply DICGC separately to each branch or each FD; do not say savings rates are administered; do not treat a wealth product as a deposit; do not ignore the dwelling-cost cap in PSL housing.