Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q45: In the context of "Settlement of Claims for Missing Persons," a bank can settle a claim before the statutory 7-year waiting period if the claimant produces which specific set of documents?

A
A Notarized Death Certificate only
B
An FIR and a Non-Traceable Report issued by the police
C
An Affidavit from two gazetted officers
D
A letter from the local Member of Parliament
✅ Correct Answer: B
Correct Answer: B. An FIR and a Non-Traceable Report issued by the police.
Concept: Missing Person Settlement (Simplified). The Law: Legally, a person is "presumed dead" only if unheard of for 7 years (Section 108, Indian Evidence Act). The Exception: To avoid hardship for small amounts, RBI allows banks to settle claims earlier if the claimant provides: 1. FIR (First Information Report) lodged with the police.
2. Non-Traceable Report issued by the police (stating the person could not be found after investigation). Note: The bank will also take an Indemnity Bond to protect itself in case the missing person returns alive.