Business Support Services

Accepting deposits from the general public directly

Step 1: The RBI is the central bank of India and is known as the 'bankers' bank' and 'banker to the government'. Step 2: RBI issues currency notes and regulates money supply — this is a core RBI function. Step 3: RBI acts as banker to the government, maintaining records of government receipts and payments — this is correct. Step 4: RBI regulates and supervises all banking institutions — this is a key function of RBI. Step 5: RBI does NOT deal directly with the general public. It does not accept deposits from individuals. This is the function of commercial banks. Therefore, Option C is NOT a fu

₹3 lakh (actual loss)

Step 1: This question is based on the Principle of Indemnity in insurance. Step 2: The Principle of Indemnity states that the insured can only be compensated for the actual loss suffered — not more, not less. Step 3: The insured sum is ₹10 lakh, but the actual damage is only ₹3 lakh. Step 4: According to the principle, compensation = actual loss OR sum insured, whichever is LOWER. Step 5: Since ₹3 lakh (actual loss) is lower than ₹10 lakh (insured amount), Sanjana can claim only ₹3 lakh. Insurance does not allow profit from a claim.

Principle of Utmost Good Faith

Step 1: In insurance, each principle addresses a specific requirement of a valid contract. Step 2: Principle of Insurable Interest — the insured must have a financial interest in the subject matter. Step 3: Principle of Subrogation — ownership of damaged property passes to the insurer after claim is settled. Step 4: Principle of Contribution — when insured with multiple insurers, each shares the loss proportionately. Step 5: Principle of Utmost Good Faith (Uberrimae Fidei) — both parties must disclose ALL relevant facts. For example, in life insurance, the insured must honestly reveal health c

Endowment Policy

Step 1: Compare different types of life insurance policies. Step 2: Whole-life Policy — premium is paid throughout life or for a fixed term; amount is paid ONLY to heirs after death. It does not cover survival benefit during the policy term. Step 3: Money Back Policy — gives periodic payments (e.g., 20% every 5 years) during the policy term itself. Step 4: Group Insurance Scheme — provides life insurance to a group of people (e.g., company employees) at low cost. Step 5: Endowment Policy — runs for a limited period. If the insured survives, the sum is paid to the insured. If the insured dies b