[FREE EPDF] JAIIB Module B Chapter 8 | Retail Liability Products

• Easy-to-understand explanations with real-life banking examples
• Step-by-step breakdown of Savings Accounts, Fixed Deposits, and Minor Accounts
• RBI rules, regulations & practical applications in the banking sector
• Answers to common doubts and FAQs for exam success

👉 Before we dive in, watch this video for a complete breakdown:

📌 Key Concepts Covered (Structured by Timestamp)

1. Introduction to Retail Liability Products (00:00:23)

Retail Liability Products are financial instruments where customers deposit money in banks, and banks use these funds for lending and investments.

• Examples include Savings Accounts, Fixed Deposits (FDs), Recurring Deposits (RDs), and Current Accounts.
• RBI guidelines ensure proper compliance for different account types and deposit schemes.

Banks classify their liabilities into different segments based on liquidity, risk, and regulatory requirements. Understanding these classifications helps bankers strategize their deposit mobilization and customer relationship policies.

2. Savings Account – Who Can Open One? (00:01:16)

• Any legally competent individual can open a savings account.
• Minors above 10 years old can also have accounts under specific conditions.
• Required documents: Identity Proof, Address Proof, PAN Card/Form 60, and a recent photograph.

Savings accounts serve as a primary banking facility for individuals. They allow easy fund transfers, withdrawals, and deposits while offering nominal interest rates to customers. Various savings schemes cater to different customer needs, such as salary accounts, pension accounts, and premium savings accounts.

3. Minor’s Savings Account – Rules & Guidelines (00:02:56)

• Minors below 10 years need a guardian-operated account.
• If above 10 years, they can operate the account independently.
• RBI directs that minors must be able to read and write in a recognized language.

Minor accounts encourage young individuals to develop savings habits early. Banks offer attractive interest rates and zero-balance facilities to motivate parents to open accounts for their children.

4. Fixed Deposits (FDs) – What You Must Know (00:15:12)

• Minimum tenure: 7 days (for deposits ₹15 lakh or above), 15 days for smaller deposits.
• Maximum tenure: 10 years (120 months).
• FD holders can nominate beneficiaries & opt for auto-renewal.
• Interest Calculation: Paid quarterly with an option for reinvestment.

Fixed deposits provide a safe investment avenue with better returns than savings accounts. They are widely used for short-term and long-term financial planning. Various types of FDs, such as tax-saving FDs and senior citizen FDs, cater to different investment goals.

5. Home Loans – Retail Asset Products Overview (00:41:17)

• Who can apply? Salaried employees, self-employed individuals, NRIs, partnerships, and corporates.
• Loan eligibility is based on repayment capacity and income stability.
• Maximum repayment tenure: 30 years.
• Margin requirement: Varies based on loan amount (10%-25%).

Home loans are crucial for financing residential properties. Banks evaluate an applicant’s creditworthiness, income, and employment stability before granting loans. Home loan interest rates depend on the tenure and credit profile of the borrower.

Conclusion

Understanding Retail Liability Products is essential for both JAIIB aspirants and working bankers. In this session, we covered:

• Savings Accounts & Minor Accounts
• Fixed Deposits (FDs) & Recurring Deposits (RDs)
• Interest calculation, withdrawal rules & loan against FD
• Retail asset products like home loans

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