We also recommend that you read some important LRB questions before taking the exams: In 2008, U.S. consumers had more choices than ever between payment instruments: four types of paper instruments: cash, cheques, money orders and traveller`s cheques; three types of payment cards – debit, credit and prepaid cards; and two electronic instruments – online bank bill payments (OBBP) and electronic bank account deductions (EBAD) using their bank account numbers. The average consumer owned 5.1 of the nine instruments in 2008 and used 4.2 in a typical month. Consumers made 52.9% of their monthly payments with a payment card. More consumers now have debit cards than credit cards (80.2% vs. 78.3%), and consumers use debit cards more often than cash, credit cards or individual checks. However, paper instruments remain popular, accounting for 36.5% of consumer payments. Most consumers have used the new electronic payments at some point, but these account for only 9.7% of consumer payments. Security and ease of use are the features of payment instruments that consumers consider to be the most important.
Kevin Foster et al., The 2008 Survey of Consumer Payment Choice, Federal Reserve Bank of Boston, Public Policy Discussion Paper No. 09-10, p. 2 (April 2010), www.bos.frb.org/economic/ppdp/2009/ppdp0910.pdf. You can repeat the tests from this course and interact with me if you need further clarification. I update this course every 6 months with the latest questions. He is a professional banker with over 10 years of experience in base banking as well as stock trading. He holds a master`s degree in computer science as well as JAIIB (Junior Associate of Indian Institute of Bankers), CAIIB (Certified Associate of Indian Institute of Bankers) and mutual fund certifications. What is the law that provides the legal framework for e-governance in India? A discussion of government regulation of the financial services sector would be beyond the scope of this book.
Our scope is narrower: the laws that govern the operations of the banking system vis-à-vis its depositors and customers. Although the history of the banking sector focuses on the relationship between banks and the national government, the banking law, which regulates the day-to-day operation of current accounts, is state – Article 4 UCC. The huge increase in cheque-free banking led to the Electronic Money Transfer Act, a federal law. In addition to the Check 21 Act, the Electronic Funds Transfer Act 1978 also facilitates electronic banking services. It deals mainly with the use of credit and debit cards. According to this law, the electronic terminal must present a transfer receipt. The financial institution must follow certain procedures when notified of errors, the customer`s liability is limited to $50 if a card or code number is used illegally and the institution has been notified, and an employer or government agency may require EFT to accept a salary or government benefits. There are 180 currencies that are legal tender in United Nations (UN) Member States, UN observer states, partially recognized or unrecognized states and their dependencies. In an effort to reduce paperwork for themselves and customers and speed up the cheque collection process, financial institutions have been moving away from paper cheques and towards electronic money transfers for three decades. EFTs are ubiquitous, including ATMs, point-of-sale systems, direct deposits and withdrawals, and online banking of various types. In response to the need to protect consumers, Congress passed the Electronic Funds Transfer Act, which went into effect in 1978. The Act addresses many common concerns of consumers when using electronic money transfer systems, establishes the liability of financial institutions and customers, and provides an enforcement mechanism.
Three legal issues that frequently arise in disputes relating to transfers of funds are dealt with in Article 4A and could be mentioned here. Substitution audits are legally negotiable instruments. The legislation provides certain safeguards to protect replacement cheque recipients to protect recipients from losses related to the cheque replacement process. One of those guarantees provides that `[a] bank transferring a replacement cheque must present or return it. for which he receives consideration. that. [t]he surrogate criterion satisfies the requirements of legal equivalence” (12 CFR § 229.52(a)(1)). Check 21 does not replace existing state laws on these instruments. The Single Commercial Code is still in force, and we will come back to that later. My second piece of advice concerns the meaning of JAIIB. Friends JAIIB is highly relevant in the banking and financial sector. So, if you plan to stay in the banking business for a long time and reach new heights, take this review seriously and gain as much knowledge as possible.
If the custodian is also the paying bank (about 30% of all checks), the check is called an „on-us” item, and UCC 4-215(e)(2) provides that if the check is not cashed, it will be available to the payee „at the opening of the bank`s second business day after receipt of the item.” Roger writes a check to Matthew, both of whom have accounts at Seattle Bank; Matthew pays the check on Monday. On Wednesday, the check is good for Matthew (he may have received a „temporary credit” before, as noted below, the bank could withdraw the money from his account if Roger didn`t have enough to cover the check). When preparing for upcoming JAIIB exams, you can use mock tests to move into exam mode. You will also find below some questions from the previous year, which were prepared by the learning sessions. Once Julius knows that the letter of credit has been issued and confirmed, he can send the goods and draw a line which he submits (with the necessary documents such as commercial invoice, bill of lading and insurance policy) to First Excelsior, who must follow his instructions from the Houdini Street Bank to the letter. Julius can present the project and documents directly, through correspondent banks or through a representative in the port from which it ships the goods. Upon submission, First Excelsior may forward the documents to the Houdini Street Bank for approval, and if First Excelsior is satisfied, it will receive the draft and immediately pay Julius on a visual project or stamp the „accepted” project if it is a draw on time (payable in thirty, sixty or ninety days). Julius may update an assumed time change or hold it until maturity and redeem it for the full amount.
As a first step, Excelsior will forward the draft to the Banque de Rue de Houdini through international banking channels in order to debit Rochelle`s account. (2) the funds are subject to legal process or other charges that limit such transfer; My third piece of advice is for new hires. Take this exam as soon as you enter the banking industry. Most of you have just left university and are still in study mode. This makes it easier for you to learn and understand concepts. But if you take more time, like 5-10 years, then you will lose motivation and now, if you are married and have children, you lose your study habits and it is difficult to study in this environment. You must have seen many elderly people struggle to pass this exam The Check 21 law provides the legal basis for the electronic transport of check data. A bank scans the check. The cheque data is already encoded into electronically readable numbers and the data, which is now separated („truncated”) from the paper instrument (which can be destroyed), is transferred for processing. „The Act authorizes a new negotiable instrument called a replacement cheque, a paper reproduction of an electronically copied cheque, the image of which is transferred on demand in place of the paper cheque to replace the original cheque.
A replacement cheque is a paper reproduction of the original cheque that is suitable for automated processing in the same way as the original cheque. The law allows banks to issue replacement checks instead of the original checks to the following parties in the check processing flow. Any financial institution in the cheque clearing process can cut the original cheque and create a replacement cheque. U.S. Treasury, The Check Clearing for the 21st Century Act: Frequently Asked Questions, October 2004, www.justice.gov/ust/eo/private_trustee/library/chapter07/docs/check21/Check21FAQs-final.pdf. However, in the case of cheque collection, it is not necessary for the image to be converted into a replacement inspection: the electronic image itself may suffice.