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Question 180

In Receiver's agreement-12 CFR 210.28 it is clearly mentioned that:

    Correct Answer: B, C

    12 CFR 210.28 covers specific operational details regarding the role of Reserve Banks and other banks in the processing of payment orders. It includes provisions such as the authorization by receiving banks for the Reserve Bank to credit their accounts, the obligations of off-line banks concerning their interactions with Reserve Banks, and the Reserve Bank's rights related to overdrafts. Therefore, the correct options address these specific points: an off-line bank warrants to the Reserve Bank regarding intermediary roles and beneficiary banks (B), and a Reserve Bank's creditor rights to recover overdrafts (C). These cover explicit regulatory requirements outlined in 12 CFR 210.28.

Discussion
Cam22Option: A

The correct answer is A. Receiving bank authorizes the Reserve Bank to credit the receiving bank's account. This part of the Receiver's agreement under 12 CFR 210.28 outlines the authorization given by the receiving bank to the Reserve Bank, allowing the Reserve Bank to credit its account in accordance with the payment orders it receives. This is a standard procedure in the funds transfer process, ensuring that funds are appropriately credited to the intended recipient's account within the banking system.