Module: General Practice
Q194: Consider the following:
Assertion (A): Even after a bank transfers a customer's money to the RBI DEA Fund, the bank's liability to pay the customer does not extinguish.
Reason (R): The DEA Fund operates on a "Refund on Demand" basis, where the bank pays the customer first and seeks reimbursement from the RBI later.
Reason (R): The DEA Fund operates on a "Refund on Demand" basis, where the bank pays the customer first and seeks reimbursement from the RBI later.
✅ Correct Answer: A
Correct Answer: A. Both A and R are true, and R is the correct explanation of A. Concept: Liability and Liquidity.
Logic: The Fear: Customers often worry that if money goes to RBI, it is "gone" or "nationalized." The Reality: The transfer is merely for custody.
The contractual liability remains between the Bank and the Customer.
The Process (R): If Mr.
X walks into the bank 15 years later, the bank must pay him immediately.
The bank cannot say "Go to RBI." Because the bank pays first and claims later from the DEA Fund, the liability technically and practically stays with the bank.
Logic: The Fear: Customers often worry that if money goes to RBI, it is "gone" or "nationalized." The Reality: The transfer is merely for custody.
The contractual liability remains between the Bank and the Customer.
The Process (R): If Mr.
X walks into the bank 15 years later, the bank must pay him immediately.
The bank cannot say "Go to RBI." Because the bank pays first and claims later from the DEA Fund, the liability technically and practically stays with the bank.