1 and 4 only

2, 3 and 4 only

1, 2 and 3 only

All of the above [H2]High-Yield Core Concepts[/H2] [CORE_CONCEPTS] [C]**Current Account Restrictions:** While **Domestic Term Deposits** earn fixed interest, banks are strictly permitted to accept interest-free deposits only in Current Accounts.[/C] [C]**Maturity Rules:** Unpaid matured deposits attract the lower of the savings or contracted rate, while early closures are governed by the bank's specific **Premature Withdrawal Penalty** policy.[/C] [C]**Foreign Currency Restrictions:** As per **FCNR(B) Scheme Rules**, recurring deposits are explicitly prohibited, restricting this scheme purely to term deposits.[/C] [C]**Remuneration Limitations:** Under the **RBI Master Direction**, banks generally cannot pay commission or brokerage for mobilizing deposits, with strict exceptions only for Business Correspondents or Direct Selling Agents.[/C] [/CORE_CONCEPTS] [H2]Semantic Comparison: Interest Rates on Deposits vs Interest Rates on Advances[/H2] [VERSUS_TABLE] | Feature / Metric | Interest Rates on Deposits | Interest Rates on Advances | | **Core Definition** | The rate banks pay to customers for parking their funds. | The rate banks charge to customers for borrowing funds. | | **Primary Use Case** | Encourages consumer savings and mobilizes bank liquidity. | Generates primary interest income and profitability for the bank. | | **Exam Importance** | Highly tested in operational banking and RBI compliance modules. | Critical for credit management and priority sector lending topics. | [/VERSUS_TABLE] [FAQ_BOX][H2]Frequently Asked Questions[/H2] [FAQ_ITEM][Q]Why is **Interest Rates on Deposits** critical for **Bank Promotion Exams Scale II – V, RBI Exams, SBI PO, and IBPS PO**?[/Q][A]It is a consistently high-scoring area. Examiners frequently repeat core concepts from this section, particularly regarding operational exceptions and FCNR(B) guidelines.[/A][/FAQ_ITEM] [FAQ_ITEM][Q]Does this mock test cover the full syllabus?[/Q][A]Yes, these questions target the most highly-weighted concepts found in previous years' papers and recent RBI Master Directions.[/A][/FAQ_ITEM] [FAQ_ITEM][Q]What are the most repeated topics?[/Q][A]Based on our blueprint, General Eligibility & Account Types and FCNR(B) & Special Provisions carry the highest weightage.[/A][/FAQ_ITEM] [/FAQ_BOX]