The worked question on this page is original educational practice. It is not represented as a question from an official previous-year examination paper.
01 / UNDERSTANDING
Review the question
Write an original case with a known employee, an urgent transfer and an incomplete mandate change. The answer must identify the missing authority, rather than simply label the visitor trustworthy. Replace the travelling director with a newly appointed signatory whose change is not yet recorded. Ask which evidence and procedural step would resolve the uncertainty. The answer should address the authority record rather than judge the person's seniority or apparent confidence.
02 / UNDERSTANDING
The concept in context
Staff should read the recorded mandate before acting on an instruction. A familiar visitor or an urgent request does not replace verified authority. Changes to signatories or operating arrangements require the bank's prescribed process and a reliable record of the accepted change.
03 / UNDERSTANDING
A worked learning case
A company's accounts clerk regularly delivers papers to a branch but is not an authorised signatory. The clerk requests a transfer while the director is travelling. The officer checks the recorded mandate and approved instruction channel instead of treating the clerk's familiarity with the account as authority to transact.
ORIGINAL EDUCATIONAL PRACTICE
Try it before you check.
Does delivering account documents make a visitor an authorised operator?
Show the answer and reasoning
No.
Delivery is an administrative activity, whereas operating authority comes from a valid mandate and the bank's verification process. The officer should establish whether the requested instruction is within that authority. Familiarity with a customer can assist communication but cannot independently create permission to move funds.
Two traps to watch for.
- Equating identity verification with authority to transact.
- Accepting an informal signatory change without updating records.
YOUR TOPIC-SPECIFIC LEARNING MAP
Learn from the attempt
Identify the account holder and legal form in the case.
Locate the operating mandate before evaluating the transfer request.
Describe the evidence required to record an authorised change.
Explain the idea, apply it to a new situation, then check what changed in your reasoning.
BANKERS TUTORIAL · SOURCE NOTES
Keep the source alongside your notes.
Official links provide subject context and authoritative reference material. This guide’s explanation, scenario and question are original Bankers Tutorial learning content.
- iibf.org.in https://iibf.org.in/diploma-banking-finance
- www.iibf.org.in https://www.iibf.org.in/documents/RulesSyllabus/2026/42_DBF-Final_23_2_26%20_Final_website_12_03_2026.pdf
- www.rbi.org.in https://www.rbi.org.in/commonperson/English/Scripts/PressReleases.aspx?Id=2123
- www.rbi.org.in https://www.rbi.org.in/commonPerson/english/Scripts/Notification.aspx?Id=1890
For DBF preparation, check the current official notice before relying on changing dates, rules or examination requirements.
