CASE STUDY 1

A customer named Shanti, a doctor by profession approaches your branch for opening a PPF
account. After viewing her account, you as an official guided her for taking third products as well.
She, out of curiosity, asked you for giving Term insurance plans. She asked for your guidance and
showed interest in buying term insurance plan. How you respond on her queries.

Solution:
Firstly, we guide with suggestion that it is good to get a term life cover which is at least ten times
your annual income. This ensures your family’s expenses are met for the next ten years. It is best
to check family’s financial needs and upgrade the sum assured as and when required.
We guide her to be sure to add liabilities to your family’s needs since they will have to pay
liabilities after your unfortunate demise. This is to be considered while fixing the sum assured
and to check the insurer’s claim settlement ratio before buying a term plan. Claim settlement
ratio is the ratio of the number of claims raised to the number of claims settled. Another ratio to
be checked is the company’s solvency ratio. This indicates the financial health of the insurance
company.
We advise her that if she has a history of health problems in the family, it is better to get a term
insurance policy with critical illness riders and if her family’s income needs are fixed, she can
structure the death pay out in the form of a monthly income scheme. It is best to invest in an
insurer who provides all details, including charges and fees upfront. We guide her to be sure to
read the offer document carefully before investing. We guide her that the cheapest premium
does not equate to the best term insurance plan. We advise her to read through the brochure
and contact the company representatives to get things clarified before investing.

After elaborating and convincing her all the conditions, we will call or invite our tie up insurance
partner and consult the plans in front of us with the customer.
Select the most suitable answer from the MCQ’s
Q1. Mrs. Shanti came for PPF product, what would be your reasons of insisting and pursuing
her for Third party products
A. It caters to identified HNIs for all their investment needs.
B. It ensures customer retention through relationship management.
C. The endeavor would be to explore all avenues of cross selling/ up selling besides offering
wider choice of Third-Party products to our customers.
D. To earn fee-based income for the bank.
E. All of the above
CASE STUDY 2
You have been appointed as a Chief Manager- Marketing in CAC. What could be your strategies
to increase the product per customer?
Solution
STRATEGIES TO INCREASE THE PRODUCT PER CUSTOMER
Corporates availing credit facilities to be tapped for merchant acquiring products.
Salary account holders to be tapped for cross selling of third party products, Government
products, credit cards and retail loans.
List of customers availing education loans to be prepared who can be contacted for prospective
cross selling different variants of salary accounts and other products.
List of customers to be prepared availing Vehicle loans facility and satisfactorily repaid the loans
in last 3 months to be contacted as prospective leads for Vehicle loans.
Existing Home Loan customers with satisfactory repayments to be contacted for Top up Housing
loans.
Personal Loans to be offered to employees of Government Departments along with cross selling
of government products and banking products.
Efforts to be made to takeover loans of customers who are paying EMIs from their existing
accounts and availing retail loans from other banks and vice versa.
Aggressive Cross selling and up selling to be made to customers who are already availing only
single third party product.
Display of the bouquet of products offered by bank inside the branches and ATM’s through
leaflets, banners, standees and led-screens.
Awareness camps to be organized in the branches for educating customers about the various
products and services available with the bank.

Select the most suitable answer from the MCQ’s

Q2. As a CAC Official, What would be your strategies for increasing the bank business?
A. Aggressive Cross selling and up selling to be made to customers who are already availing
only single third party product
 B. Personal Loans to be offered to employees of Government Departments along with cross
selling of government products and banking products and Existing Home Loan customers
with satisfactory repayments to be contacted for Top up Housing loans
C. List of customers to be prepared availing Vehicle loans facility and satisfactorily repaid
the loans in last 3 months to be contacted as prospective leads for Vehicle loans.
D. Efforts to be made to takeover loans of customers who are paying EMIs from their existing
accounts and availing retail loans from other banks and vice versa
E. All of the above

CASE STUDY 3

Mr. Arnab Malhotra has taken Pnb MetLife Life insurance policy from our bank of sum assured
12 lakhs in 2019.Mrs Reema Malhotra is nominee in the policy. Insured died on 09.10.2023.
Nominee comes to your branch official regarding the claim of policy. What steps you will take.

Solution
We shall first talk to Pnb MetLife Official regarding documents needed for claim settlement
process and guide the nominee accordingly to approach MetLife Personnel posted in circle office
or at their office for claim cases along with necessary documents and we will keep liasioning with
both the parties
Claim settlement process with the insurer:
Upon the happening of the event for which the policy is drawn, the insurer will pay the
beneficiary the entire coverage amount. Instead of a lump sum, instalments can be paid to the
beneficiary/beneficiaries after your sudden death.
The insurance company may also pay bonuses, based on the amount that has been accumulated
over the policy tenure. In order to acquire this money, the beneficiary/relative of the deceased
policyholder has to get in touch with the insurer to intimate them of the situation.
Nominee has to provide the policyholder’s death certificate as proof, along with other necessary
documents as required by the company.
After reviewing the documents, the insurer will either accept or reject the claim. Following that,
an arrangement would be worked out for the payment of regular pay-outs or the lump sum.

Select the most suitable answer from the MCQ’s

 Q3. Our Bank official has no role in claim settlement process of the Insurance Policy
A. True
B. False
C. As an Bank official, we should make liasioning with both the parties , insured and insured
and guiding our customer should be our preference
D. It varies from case to case
E. Partially true.

CASE STUDY 4

One Agent of a Customer approach ‘X’ branch of PNB for transferring cheque in his account.
Branch X is very large branch. He gave the cheque to the concerned Single window operator and
left the branch. After a month, Account statement has been requested by the customer, upon
scrutinizing it, customer reported to branch a gap of Rupees approximately 15 lakh in the
statement.
As a Branch Head, What will be your actions on this and if you are an auditor, what will be your
take on this case.

Solution

As a Branch Head, first of all, I will ask customer to show all the receipts of entries or voucher,
which he claims for the amount. After finding the entries, daftari shall be called upon for the
record scruitinization purpose. Then, if there has been any discrepancy, I will correct it or if the
issue is large and cannot be resolved at the branch end or there found any fraud, I will report it
to the circle office, so that the corrective action will be taken
In this case, we found that the account payee cheque was used for the payment by the employee.
The Major loophole in the branch was that the clerical staff was doing fraud consistently for 3
months, without being noticed by any staff of the branch. There, the amount of approximately
15 lakh had been siphoned off by the clerk and fraud of Rs 15 lakh came to light .Here, we noticed
that in HUPM, the power of clerical staff was increased by the previous branch head and he was
using the power of an officer, since then. Due to high rush and staff shortage in the branch, his
power kept unchanged. As an auditor, the loopholes were noticed and staff accountability has
been initiated against the defaulting and ignorant staff of the respective branch.
Select the most suitable answer from the MCQ’s
Q4. What would be the major loopholes in this case?

A. SWO was continuously doing fraud since 3 months, it means some other staff members are
also involved or other staffs are blindly trusting him
B. Staff is found ignorant. MS reports had not been generated and scrutinized daily
C. Branch Incumbent is not monitoring the branch properly
D. Why the power of clerical staff has been increased without any officer order and if increased
for a day, due to certain reasons, why it kept unchanged.
E. All of the above

Q5. Is branch incumbent responsible in this case study?

A. He is not responsible for routine work, as he has to take care of branch targets and budgets
only.
B. This is the responsibility of SWO and Second Man only, as SWO was doing transactions and
Second man was verifying the entries through HTV
C. Branch Incumbent is mainly responsible for the functioning of branch.
D. He should ensure that DMS reports should be printed and analyzed daily. He should
personally scrutinize daily monitoring reports, to find any discrepancies and correct them.
E. C and D option

Q6. What things we learned in this case study?

A. We have to be very cautious towards each and every scenario

B. We should not blindly trust to others, even staff members
C. Following Do’s and Don’ts as per the bank guidelines is very crucial
D. We should follow bank guidelines as per latest circulars, if it had followed, this fraud couldn’t
happened.
E. All of the above

CASE STUDY 5

You are an incumbent of ‘Y’ Branch. One customer angrily enter your premises, shouting on you
about his fixed deposit. You offer him seat and asked for his problem. He told you that he made
a fixed deposit of Rupees 50 lakhs few days ago, but the staff is not giving him the receipt. You
called the staff and asked, why he is not supporting the customer. The staff told you that no FD
has been made by the customer. What would be your take-on in this case?
Solution
I inquired the account number of customer, where it was found that amount has been debited
in his account for the fixed deposit on the mentioned date revealed by the customer, but FD has
not been made. Here, we found that FD of same name has been made in that date. But that
customer is different. We contact that customer for bringing FD and resolve the issue.

Select the most suitable answer from the MCQ’s

Q7. What would be the major loopholes in this case?

A. KYC and AML guidelines are not being followed by the branch.
B. There may be an instance of fraud, as FD of same name has been made, debiting other
account.
C. Due Diligence has not been followed by the branch while opening deposit.
D. Ignorant Staff and Bank’s guidelines like Daily monitoring of DMS has not being followed
by the branch.
E. All of the above.

Question Sr. No Answer

1 E
2 E
3 C
4 E
5 E
6 E
7 E