n NISM Certifications
X NISM Series X
Medium

Gratuity is paid to an employee when they retire or earlier, subject to certain conditions, and not based on targets or contractual agreements.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    When the employee meets his/her targets

  2. B

    When the employee retires

  3. When the employee retires or earlier, subject to conditions

    Correct answer

  4. D

    As per the understanding between the employee and employer

Why this is the answer

Gratuity is a benefit payable at retirement or under specified conditions before retirement, after completing minimum service period.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.