Banking · Para-Banking and Bancassurance
Read the statements below regarding retail banking activities and select the correct option. Assertion (A): The 'Para-Banking' activities of a retail branch, such as the distribution of third-party insurance and mutual fund products, are vital components of a bank's non-interest fee income strategy. Reason (R): Under the 'Bancassurance' model, the bank acts as the principal insurer and assumes all underlying underwriting risks associated with the policies sold to customers.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A is false but R is true.
- 2A is true but R is false.✓
- 3Both A and R are true but R is not the correct explanation of A.
- 4Both A and R are true and R is the correct explanation of A.
Correct answer
A is true but R is false.
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