Ever wondered what happens if you forget to pay your bank locker rent? Or what if a nominee isn’t assigned to a locker? These are common yet crucial questions for bankers and JAIIB aspirants.
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🚀 What you’ll learn:
- Bank Locker Regulations – When can a bank break open your locker?
- Custodian Services – How banks manage assets and securities
- Portfolio Management – The role of banks in investment advisory
- Merchant Banking – How banks help in IPOs and mergers
- Government Business Transactions – How banks handle tax collection and pension payments
- Service Charges – Understanding the fees and charges associated with banking services
👉 Watch the video now and comment below with your doubts!
Before We Dive In, Watch This Video for a Complete Breakdown:
Bank Locker Closure & Breaking Rules
🔑 When Can a Bank Break Open a Locker?
- Lost Locker Keys – If the customer loses their keys, banks can break open the locker in their presence after verification.
- Non-Payment of Rent – If the rent is not paid for 3 consecutive years, the bank issues a public notice and can eventually open the locker.
- Government Orders – If a legal authority instructs the bank to open a locker with a valid court order, it must comply.
- Inoperative Lockers (7 Years) – If a locker has been inactive for 7 years, and the holder is untraceable, it is considered ‘absconding’ or deceased, and contents are transferred to legal heirs.
🔹 Banks must follow strict procedures, including public notices, customer verification, and documentation before breaking open a locker.
Custodian Services
🏦 What Are Custodian Services?
A custodian bank safeguards securities like stocks, bonds, mutual funds, and important documents for clients. These services ensure the security and safekeeping of valuable financial assets.
🔹 Types of Custodian Services:
- Physical Custody – Safekeeping of physical securities like bonds and share certificates.
- Demat Custody – Holding digital securities in a dematerialized form.
- Transaction Settlements – Ensuring seamless buying and selling of securities.
Portfolio Management Services (PMS)
📈 What is Portfolio Management?
Portfolio Management Services (PMS) handle investment decisions on behalf of clients. These services help investors maximize returns while managing risks.
🔹 Types of Portfolio Management:
- Active PMS – Frequent buying and selling to optimize returns.
- Passive PMS – Investments held for the long term with minimal transactions.
JAIIB PPB Ancillary Services | Module A Chapter 15 Part 1 [FREE EPDF]
Merchant Banking – Wholesale Banking Services
💼 What is Merchant Banking?
Merchant banks offer financial services to large corporations, handling IPOs, mergers, acquisitions, and underwriting. They play a crucial role in corporate finance and capital market transactions.
Government Business Handling by Banks
Banks facilitate various government-related financial transactions, including tax collection, public provident funds, and pension payments.
🔹 Examples of Government Banking Services:
- Tax Collection – Handling payments for Income Tax, GST, and Excise duties.
- Pension Disbursement – Managing pension payments for retired individuals.
- Public Provident Fund (PPF) – Assisting customers with PPF accounts and deposits.
Service Charges & NEFT/RTGS Fees
NEFT & RTGS transactions are available 24×7, and inward transactions are free.
Conclusion & Key Takeaways
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