my banking

BANKING FOR ALL
INDEX

MY BANKING


Introduction of a Bank

Every one of us now a day is compelled to take services of a bank. Let it be purchasing a house , getting an electric connection, water connection, admitting a child in a school, taking admission in any educational institution, applying for a job every where a bank’s draft, a cheque or some other method of payment is pre- required without which nothing is found possible. In other words a Bank has become a necessity of our life in one way or the other way., In case you are getting some payment from any organization you will either receive a Bank cheque or a bank draft. In order to get the hard cash in your hands you need the services of a bank. Not only receiving money, even for making payments to some one else the services of a bank are required. In these circumstances every one of us is bound to avail the services of a bank for one or the other reasons.

It has generally been found that the knowledge about the banking services is not available to the general people who under completion go to a bank. It is seen that most of the common people try not to go to a bank for want of knowledge. Some time a common person is afraid of using the banking services only because they fear whether or not the dealing with a bank are reliable. Most of the common persons even today rely upon postal services for upkeep of their meager savings. Today in days of internet banking most of the people still believe using the method of money orders through a post office to remit their money to their desired destinations.

Good from the old British days the post offices in India have been acting as bankers also and were a very reliable source of remitting money from one place to another place with authenticity. This history of postal banking is still prevailing in our rural India and most of the common men are still confined to this method of dealing in money. A trust on a tested system lasts longer. It is found really difficult that most of our county men are afraid of using banking services and rather prefer to go to a post office and in the absence of a nearby post office they avail the services of a local lender, mahajan and some body else to take care of their hard earned money. In case of availing the services of private persons most of the poor people have to repent for fraudulent activities of such private persons or their middle man. Of late banking was the business of an elite class where poor persons dared not to deal with. After the Nationalization of banks in India a ray of hope was opened for a common man to enter into the premises of a bank. With passage of time the bank of today has become the bank of every one whether rich or a poor. Certain specified guide lines have been prescribed for every bank to deal with general public and with the result every other person has started using the services of banking industry.

By and large now a day’s at least one person from each home is using services of one or the other banks for whatsoever purpose. But it is seen the habit of dealing with a bank is still at its infant stage so far as a common man is concerned. In some cases it is found that even well educated persons do not know their bank. They are banking in a stereo type manner without knowing what is a bank, what does it do, and how to use banking services in best of their interest. In order to inculcate a habit of banking, its uses, its benefits, methods of banking practice, banking law and other related matters are going to be discussed in the coming chapters of this book. First of all I shall try to make the readers understand what a bank is. What does it do , how can one avail the banking services, How to open an account with a bank, what are the prerequisites to open an account and once an account has been opened what is relation with the bank and its customer. Usually common person is ignorant about his rights and is some times denied proper banking services for want of knowledge. It has therefore being made an effort to acquaint a common man about banking services available for them. In the light of what has been stated above it becomes of utmost important for a us to know what is a bank and does it do.

WHAT IS A BANK

A Bank is an establishment, office, a company which deals in money. A bank receives money in deposit accounts of its customers on certain conditions in different type of deposit accounts. The conditions of these accounts differ from the nature of accounts. In deposit accounts banks also pay interest to its customer as per the nature and conditions of the account. A bank also lends money to its customers as per decided guidelines. If there remain some surplus funds with any bank it may invest such funds till required for payment to its customers. Although no statuary definition of a bank is given anywhere but as per section 5 ( c ) of Banking Regulation Act 1949 a “ Banking Company” means any company which transacts the business of a Banking Company in India. The term has been further elaborated under section 5(B) of the said Act which says The Banking means the accepting for the purpose of lending or investment, of deposits of money from the public , repayable on demand or otherwise , and withdraw able by cheque, draft, pay order or otherwise.

Please do not be confused from the different clauses of the banking act as we are not going to examine the legal aspects of banking companies in India. Our motto is to understand how we perform our banking activities in such a way that these fulfill our day to banking requirements in a way beneficial to us

One thing is very important to understand that any Bank functioning in India is bound to obey the rules of the Reserve Bank of India. A better care of the customers is taken by all banks is ensured by the Reserve Bank of India. As such the Reserve Bank of India keeps an attentive eye on the functioning of banks in India and also takes corrective steps whenever required to protect the interest of each banking customer. Now the question arises what is Reserve Bank of India.


WHAT IS RESERVE BANK OF INDIA

The Reserve Bank of India is the central Bank of the country entrusted with monetary stability, the management of currency and the supervision of the financial as well as the payment system.. The brief history and its basic function are given separately in this book. In a simple manner we can understand that all banks functioning in India are controlled by the Reserve Bank of India. There are so many types of banks which are not the subject matter of this book but a brief description of types of banks is also provided separately for your knowledge. Now we are going to concentrate on our own banking activities
On fused from the different clauses of the banking act as we are not going to examine the legal aspects of banking companies in India. Our motto is to understand how we perform our banking activities in such a way that these fulfill our day to day banking requirements in a way beneficial to us.

One thing is very important to understand that any Bank functioning in India is bound to obey the rules of the Reserve Bank of India. A better care of the customers is taken by all banks is ensured by the Reserve Bank of India. As such the Reserve Bank of India keeps an attentive eye on the functioning of banks in India and also takes corrective steps whenever required to protect the interest of each banking customer. Now the question arises what is Reserve Bank of India.

In very simple words Reserve Bank is the Bank of all Banking Companies working in India. The storey of Reserve Bank of India is explained in the Chapter of Banking History. For the purpose of law it is informed that the reserve Bank of India was constituted during British Raj in India on IST April 1934.

The Reserve Bank of India is the central Bank of the country entrusted with monetary stability, the management of currency and the supervision of the financial as well as the payment system.

The Reserve Bank of India was setup on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act 1934 provides the statutory basis of the functioning of the Bank, which commenced operations on IST April, 1935. It was constituted to:-

· Regulate the issue of Bank Notes
· Maintain reserves with a view to securing monetary stability and
· To operate the credit and currency system of the country to its advantage.
BASIC FUNCTINS OF RBI

The preamble of Reserve Bank of India describes the basic functions of the Reserve Bank of India:-
“To regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary security in India and generally to operate the currency and credit system of the country to its advantage”

Financial Supervision.
The Reserve Bank of India performs the functions under the guidance of the Board of Financial Supervision in brief known as (BFS). The board was constituted in 1994 as a committee of the central board of directors of the Reserve Bank of India.

OBJECTIVES OF BFS

Primary objective of BFS is to undertake consolidated supervision of the financial sector comprising commercial Banks, Financial Institutions and Non-Banking financial companies.

FUNCTIONS
Some of the functions of BFS include:-
· Restructuring of the system of Bank Inspections
· Introduction of off-site surveillance
· Strengthening of the role of statutory Auditors and
· strengthening of the internal defenses of supervised institutions
There is certain legal framework also for Reserve Bank of India but most important is Banking Act. Governing Banking operations like:-
· Formulates, Implements and monitors the monetary policy.
· Maintains price stability and ensuring adequate flow of credit to productive sectors.
· Prescribes broad parameters of banking operations within which the country’s banking and financial system functions
· Maintains public confidence in the system, protect depositors interest and provide cost effective banking services to the public
RBI ALSO PERFORMS CERTAIN REALTED FUNCTIONS.

It is a Banker to the Government, Performs Merchant Banking functions for the central and the state governments; also acts as their Banker.
It is also a Banker to Banks.
Maintains Banking accounts of all schedule Banks.
There is long history of banking Industry a brief of which shall be given in a separate chapter or annexure to this book. The main objective of this book is to acquaint the younger generation with banking norms in their early childhood so that they are equipped well to deal efficiently with their banking operations whenever they are required to obtain banking services.
CHAPTER-2
OPENING AN ACCOUNT

Before we start our banking activities we are required to open an account with the bank of our choice. Without opening an account in any bank no body can avail the banking services as a customer. Without being a customer one can go to a bank, ask for issuing a draft required, deposit money in some account that already exists in the bank, withdraw money for a cheques issued in one’s favor and also to gather knowledge about the different types of services being provided by the bank. The banks now a days are not only dealing with money they have acquired multifarious activities including Insurance, Mutual Funds, Gold sale, Wealth Management and so on. The list is for example only there are various other activities being done by banks besides working as merchant bankers to so many companies. These banks are also approved to deal in foreign currency and are also acting as agents for exchange of money. There are other fields also where banking industry in India is growing by leaps and bounds. Most of these activities are called ancillary activities of a bank. The function of a bank starts as banking institution with any one when a proper bank account is opened in any bank of the choice of any individual. Do not fall prey for opening an account with a bank allured by their attractive advertisements. Before opening an account one is required to know the terms and conditions of operating an account. In certain Private Banks some unwanted charges are recovered from the account opener. These private banks also desired that certain amount should always be kept with them as deposits otherwise they levy charges and recover this amount from the account of its customer without any intimation to customers. This happens only because one does not like to go into details of reading the terms and conditions printed on the account opening forms of such banks. In short it is strongly recommended that before opening any type of account in any bank one should acquire adequate knowledge about the terms and conditions so that one does not become victim of unnecessary charges levied by a bank. After having considered all the necessary aspects of banking transactions when one decides to open an account with a bank there are certain statutory requirements to be fulfilled for opening an account with any bank. In order to familiarize you with the system of opening an account with a bank the entire procedure required to open an account is being explained below

HOW TO OPEN AN ACCOUNT WITH A BANK

Herein before opening a bank account was very simple. A person desiring to open an account was required to simply fill in an account opening form get himself introduced by a person known to the bank by virtue of his being an old account holder or otherwise to the satisfaction of the Branch Manager. The method was made simple so that every one desiring to open an account with any bank can do so without facing any difficulty. But with the passing of time some people started to use this channel for unwanted activities. A number of accounts were used to be opened in fictitious names and the money collected in such accounts was utilized for anti national and ante social activities. Some time these accounts were opened for transacted in false names encouraging creating black money in the market. It was also observed that Bank accounts were utilized for terrorist’s activities also in addition to manipulating black money.

In order to restrict fraudulent activities through banking channels the Reserve Bank of India issued guide lines for identification of depositors to help control financial frauds, identifying money laundering as well as to keep an eye on suspicious activities; and for security /monitoring of huge value cash transactions. Taking into account recent developments, both domestic and international it has been decided to consolidate the extant instructions on KYC norms and cash transactions

Before opening of an account a Bank has to carry out due diligence of customers. This is a step taken by the Reserve Bank of India to combat money laundering and financing of TERRORISM in the country. The main purpose of KYC norms was to restrict money laundering and terrorist financing when it was introduced in late 1990s in United States. The U.S. Government turned very strict after 9/11 and all regulations were finalized before 2002 for KNOW YOUR CUSTOMER (KYC). Taking a leaf out of the US book, the Reserve Bank of India too directed all banks to implement KYC guidelines for all new accounts in second half of 2002.

WHAT IS KYC (KNOW YOUR CUSTOMER)

KYC norms actually mean to prevent identity theft, identity fraud, money laundering, and terrorist financing. The Reserve Bank of India directed all Banks and Financial institutions to put in a place a Policy frame work to know their customers before opening any account Before adopting a policy for KYC norms it was made mandatory to place on record certain information about the customer desiring to open an account in any BANK. These mandatory requirements are:-

A person wishing to open an account with a bank should possess PAN card i.e. a permanent account number of Income Tax Department. In the absence of a PAN Card a prospective customer has to declare himself as non-assessy for the purpose of income tax in which case he has to file a declaration in the form of Form No. 60 or 61 as may be applicable to him.
A person desiring to open an account with a Bank is required to produce the documentary proof of his identity.
A person desiring to open an account with a Bank is required to provide documentary proof of his residential address.
In support of above requirements a person desiring to open an account with a Bank can produce inter-alia following documents;
A Pass Port issued by the competent authority of the area concerned.
A Voter ID Card issued by the State Governments.
A Driving License issued by the local Transport Authority

Above are some of documents that may help serve the purpose of Identifying a person and can be accepted as a proof of identification. But for the purpose of Residential proof some of the documents which can be accepted are mentioned below:-

A Ration Card issued by any state Government. (This document is actually meant for drawing ration at the control rate and is widely used by poor persons. Such persons frequently change their residential address and move from one place to anther where ever they get any sort of employment. In such circumstances this documents fails to serve the purpose of residential proof. In view of this fact certain State Governments have started printing on the face of ration cards that this document is issued for the only purpose of drawing Ration and therefore it can not be used for any other purpose. In view of this inscription on the face of a ration card many banks do not accept this document as a proof of residence.
A person living in a house must be using electricity. Therefore a bill of electricity in the name of a person desiring to open an account with bank can be considered as a proof of residence.
Likewise a telephone Bill of land line can also be accepted as a proof of residence.
A House tax receipt can also be accepted as a proof of residence.
In the absence of above documents a letter from the employer certifying the address can also be accepted as a proof.
Any Certificate by any recognized public authority certifying the address can also be treated as a residential proof.
Failing all a visit by a bank official to the residence of the prospective customer will also serve the purpose.
A family consists of so many members but electrical bill, telephone bill or House Tax receipt is generally in the name of one person usually in the name of the head of the family. In such circumstances other family members are not able to produce proof of residence as all such documents do not contain their name for identification. It is under consideration of the Reserve Bank Of India that a certificate from the family member in whose name such documents are available should issue a certificate clarifying his relation with the family members to enable him to open an a bank account on the basis of such certificate.

Failing all a visit by a bank official to the residence of the prospective customer will also serve the purpose. Though the standard documents which are accepted as proof of identity and residence remain the same across various banks, some deviations are permitted, which differ from bank to bank. The type of documents required to open an account in any bank are listed below. All these documents are required to be verified by bank officials. Most of the customers are not in position to submit original documents and tend to submit only photo copies of required documents. In such cases the customers are required to produce original documents before a Bank official who may after seeing the original documents will be able to verify your documents.

For a ready reference to enable the customers to open an account with any bank a list of documents is given below. Although efforts have been made to provide a complete list but some banks may also ask for some other additional documents and may also ignore some of these. These documents are being mentioned only for the knowledge of customers and are not binding by any law.

The list of documents required to open an account with a bank

Accounts of Individuals

- Legal Name and/or another
name used
- Correct Permanent Address
- Present Address
- Telephone Number














Accounts of Companies

- Name the Company
- Principal place of business
- Mailing Address of the
company
- Telephone/fax number

Passport
PAN Card
Voter Identity Card
Driving License
Identity Card
Letter from recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of the Bank like:-
-A Telephone Bill (Land Line)
-Bank Account Statement
-A letter from any recognized public authority
-Electricity Bill
-A Ration Card
-A Letter from employer(Subject to satisfaction of bank)
-( Any one document which provides customer information to the satisfaction of the bank)


Certificate of incorporation and Memorandum and Article of Association
-Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account
-power of Attorney granted to its managers, Officers or Employees to transact business on its behalf

Copy of PAN number or PAN allotment letter
-copy of the telephone bill.
Accounts Of Partnership Firms

-Legal Name
-Address
-Names of All Partners and their Addresses

-Telephone numbers of the firm and partners





Accounts of Trusts and Foundations

-Names of Trustees, settlers, beneficiaries and signatories
-Names and Addresses of of the founder, the managers/directors and the beneficiaries
-Telephone/Fax numbers of all
Registration certificate, if registered Partnership deed.
Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf
-Any officially valid document identifying the partners and the persons holding the Power of Attorney and their Addresses
-Telephone bills in the name of firm/partners.





Certificate of registration, if registered
Power of Attorney granted to transact business on its behalf
Any officially valid document to identify the trustee, settlers, beneficiaries and those holding Power of Attorney,
Founders/managers/directors and their addresses.
Resolution of the managing body of the foundation/association
Telephone Bill and telephone/fax numbers.


After having provided all the documents as stated above the most important factor and also MANDATORY is to provide an Introduction of the person desiring to open an account with a bank. This introduction part is very important as the introduction is not merely a formality but is also recognized by the Law. In case of any miss happening or a fraud in any account, the foremost thing taken into account is whether or not the account was duly introduced as per KYS norms. If not the bank official responsible to open the accounts without proper introduction also becomes a subject matter of suspicion and accordingly staff side action(An action to fix the responsibility and if found guilty to be punished accordingly) is taken against him which may even result in terminating his services for a vital fraud taking place because of wrong introduction. It is therefore of utmost importance that banks must obtain an introduction of a person for whom the bank is going to open an account.

Chapter -3

WHAT IS MEANT OF INTRODUCTION AND OPENING A BANK ACCOUNT

We should understand to know as to what is meant for introduction. The word introduction has not been defined anywhere but we can go by the meaning of introduction according to which the act of introduction is the act of introducing or bringing into notice, the act of making persons formally acquainted with one another. Here in terms of banking an introducer is bringing into the notice of bank a new customer by verifying the personal information of the new coming customer. As such the introducer is a person who knows well about the person wishes to open an account with the bank and also provides a certificate to the bank that he knows the person for such and such period and also certifies that the person is living at such and such place and is also engaged in such and such activities.

Such type of certificate or introduction can be given by any one. But banks do not believe on the introductions given by any dick and Harry. A bank also verifies the standing of the introducer. Either the introducer should be an account holder of the same bank where a new customer wants to open an account and the account of the introducer should have run for a required time of period satisfactorily. In other cases the introducer should to the satisfaction of the bank officials either by virtue of his dealings with the bank or by virtue of his locus standee. Now comes the question as to who can introduce an account.


WHO CAN INTRODUCE A NEW BANK ACCOUNT?

Most of the banks require an introduction of a new customer wishing to open an account with a bank from an existing customer of the same bank whose conduct of account is found satisfactory and the account of the introducer must have been maintained satisfactorily for at least for past six months.
In other words opening a new account in a bank is no longer a cake walk. All the documents are required to be checked against bank’s requirements to ascertain if these match or not before allowing an account opening process with any bank.
This process of opening an account in any bank continued till 2004. In the year of 2004 the Reserve Bank of India came up with more specific guidelines regarding KYC norms and these are divided in four parts;-




CUSTOMER ACCEPTANCE POLICY

All banks shall develop criteria for accepting any person as their customer to restrict any anonymous accounts and ensure documents mentioned in KYC (please see details in the appendix)

CUSTOMER IDENTIFICATION PROCEDURE

Customer to be identified not only while opening the account, but also at the time when the bank has any doubt about his transactions.

MONITORING OF TRANSACTIONS
KYC can be effective by regular monitoring of transactions, identifying any abnormal or unusual transaction and keeping a watch on higher risk group of the account is essential in monitoring transactions.(please see details in appendix
RISK MANAGEMENT
This is about managing internal work to reduce the risk of any unwanted activity, managing responsibilities, duties and various audits plus regular employee training for KYC norms.(Please see details in appendix).The information about the above four parameters has been explained in a separate annexure to this book.
ADVERSE EFFECTS OF KYC NORMS
Whatever has been prescribed under the so called KYC norms are implemented in words and spirit whenever a case of opening an account of a common man comes before a bank? Even after having produced all the documents required for opening an account a common man still finds it difficult to comply with KYC norms. A laborer living in a hut on rent or a person permanent resident of a different city living on rent in any other city having no proof of identity , address proof as defined in KYC norms and having no introducer is not able to open an account in any bank. The sordid storey is that a young son of such a person having no documentary proof of is identity or his residence dies in a road accident and he is awarded a compensation paid in the form of a cheque, but because of KYC norms this poor man is not able to open any account in any bank. On the contrary a big fish having huge amounts on his disposal is invited by the bank managers to open an account and no KYC norms come into picture for opening such accounts.( These are personal views of the writer and are not subject to any law, rules ,practices of different banks.)
I think you might have thought seriously as to how difficult it is to open an account with any bank without identifying yourself and without providing necessary documents ascertaining your place of living besides knowing a person who can introduce you. Since you are a bonafide citizen of the city having all the required documents and you are able to open an account with a bank. You would like to know how to operate your account, how many types of accounts are available in your bank and also how to conduct your account.
OPENING A DEPOSIT ACCOUNT
You can open a Saving Account, a current account, a term Deposit account in any bank. All these accounts are known as deposit accounts. Deposit accounts are those accounts in which the customers of any bank deposit their money. This money is kept in a bank in the name of the depositor in a particular account for which a particular account number is provided to the customer by the bank. Any future transaction in such an account is known by this account number provided by the Bank.
An account can be opened provided that all necessary formalities as per KYC norms are completed. The new customer pays something in to open an account, and gives the bank a specimen of his signatures and name of one or two referees according to the practice of a particular bank. In case you are introduced by some existing customer of the same bank in which you are wishing to open an 1account the names of referees may or may not required depending upon the policy of an individual bank. In case you are introduced by some exiting customer of the bank a simple letters shall be written to him for verification whether or not he has introduced the account. If an introducers calls on personally to the bank and provides introduction in the presence of bank officials such letters may not be issued. In the absence of introducers a letter is written to the referees. When the referees have replied satisfactorily, and in return they have been favorably reported on by their bankers a cheque book can be issued to a new customer.
However where the account has been introduced by the existing customer of the same bank and no names of any referee has been given an independent verification of the address of the new customer is done by the bank. This independent verification can be done both deputing some official to go and verify the address or by way of sending some letter to the new customer by way of post office. If such letter sent to customer is brought to the bank, it stands that independent verification has been done and a cheque book is issued to the customer. In case such a letter posted to a customer at the address given in his application does not reach him, it tantamount not to be fulfillment of KYC norms. Banks take extra precaution in such cases while allowing issuing a cheque book in such newly opened accounts.
In case of a joint account or a partnership account the appropriate mandate must be signed indicating how cheques and correspondence are to be signed, and establishing joint and several liabilities.
In case of a Limited Company a bank will see a copy of the Memorandum and Article of Association, the certificate of incorporation and, in case of Public Limited Company, the trading certificate. A Resolution should be provided giving names of the officials who will act for the company, the way in which the cheques and authorities will be singe along with appropriate specimen signatures of such official
Since the subject matter of this book is to inculcate an habit of banking among the young generation, giving vital details of related acts in-depth elaboration of different banking rules, acts and laws are not being taken into account and a very simple procedure is going to be explained as to how an account can be opened in bank and how can it should be operated. The purpose of the book is simply to provide preliminary information of banking system so that young people are well equipped with banking knowledge that may help them in case when they actually need it and use it. Now you have opened an account with a bank of your choice and you have become a customer of the said bank. Would you not like to know what is a customer of a bank as per the law? It has been tried to explain who is a customer of a bank. Simply a customer of bank is who has an account with any bank. Having an account with a bank confirms a person to be known as an account holder. The word Account holder is very important and has its importance and significance under the banking law. You should therefore also know what an account holder is.
AN ACCOUNT HOLDER
There is no definition of an account holder in any Act, Law are Rule of the country, including RBI Act, Banking regulation Act, Banking Companies Act, and even in Negotiable Instrument Act. It is a general term accepted as banking practice and is normally used for a person who is maintaining any type of an account with any bank.
Therefore as and when you open an account with a bank you become an account holder of the bank in general term. But opening an account does not remain as general as it is known. It becomes a contract between the Bank and an account opener under the Contract Act of India.. By opening an account with a bank you and the bank both have singed a contract whereby both the parries are governed by rules. Violation of rules by any of the party becomes an offence in the eyes of law. When an account of a person is opened in a bank that person becomes a customer of the said bank. Every customer enjoys rights as a consumer of services. In case of deficiencies in services he is free to take legal action against the bank. Which is true vice versa? When you are now a customer of a bank you would also like to know what is a customer?
CUSTOMER
There is no statutory definition of a customer, reliance must be placed on case law definitions which include:-
1. To make a person a customer of the bank there must be either a current account or any sort of deposit account like saving, term deposit, recurring deposit, a loan account or some similar relation.
2. The relationship of banker and customer begins as soon as money or cheque is paid in and the bank accepts it and is prepared to open account.
3. The world customer signifies a relationship in which duration is not of essence. A person whose money has been accepted by the banker on the footing that he undertakes to honour cheques unto the amount standing to his credit is a customer of the bank irrespective of whether his connection is short or long duration. The question whether a person is a customer in the period between his first contact with the bank and the receipt of the final letter (a letter written to the introducer or at the address of the account opener to ascertain his personal verification) authenticating the reference/introduction is not free from doubt. If the reference/introduction is satisfactory the person is a customer and probably always has been, if it is not, and no other satisfactory reference can be supplied, the banker will probably decide not to proceed. In this case the person is not a customer and never has been. If in this interval a banker has collected a cheque for the person, he may be at risk, for he can not claim the statutory protection under the Negotiable Instrument Act.
To be a customer of a bank it is must that a person must have an account with the bank whether in debit or credit is immaterial for this purpose.
Mind it merely because a person visits the office of a bank for some transactions; say for purchasing of a draft or encashing of cheque etc. he does not become a customer.
Although there is no statutory definition of a customer but recently a customer has been defined under SARFAESI ACT. As per ( SARFAESI ) Securitization and Reconstruction of Financial Assets and Enforcement of security Interest Act 2002 a person has been defined as a person/entity as follows:-
· a person who is maintaining an account in his own name or in whose name the deposits are maintained

The Securitisation and Reconstruction of Financial Assets and enforcement of Security Interest Act 2002 to regulate secured creditor’s interest came into force in 2002. It is primarily aimed at the enforcement of the security interests besides securitization and reconstruction of the financials assets.(Please note this meant for those who have taken any type of loan from banks). So far as SARFAESI is concerned it is a matter of law while most of the banks do function as per their prevalent practice that also tantamount to be a law. Now you have, supposed, opened a Saving Account with a Bank and have legally become a customer of the bank. But there are many types of customers for a bank. Not to be specific but most of the customers of a bank are of different kinds.







Chapter-4
TYPES OF ACCOUNTS
Single person account

INDIVIDUAL CUSTOMER

It is an account opened by one person in his/her own and individual capacity. Such type of accounts are maintained and operated upon only by the single person who has opened the account. This sole and single person is the customer of the bank.
There are many type of individuals like an educated person, illiterate person, an insane, an intoxicated an insolvent, a minor etc. Since there are so many types of individuals these can be classified as follows:-
A ) LITERATE person is an educated one and can well understand the pros and cons of all laws and acts to protect himself. He can therefore open all types of accounts in a bank. He being a literate person may engaged in some important works and may not find time to transact banking business .he can therefore authorize some other person to operate upon his accounts.
B)Illiterate person
Now an illiterate person can not read and write. It is a general conditions of all the banks that they must fill in a form required to open an account with a bank. Usually such forms are meant to collect necessary information per the KYC norms. In addition to this information most of the Account Opening forms do contain certain terms and conditions to be followed by the customers. Besides the customers are also required some sort of obligations to take care of while operating their respective accounts. Do you think these are possible for an illiterate person to understand? No An illiterate person can not read and understand all these things written on account opening forms of different banks. What is a possible solution to this problem? A simple way is that all these terms and conditions are read allowed and the meaning thereof is explained to the illiterate persons. In case they understand all these terms and conditions and also the meaning thereof his account can be opened with a bank. But before opening the account of an illiterate person the Manager or some other official of the bank has to give a certificate to this effect that all the terms and conditions have been explained to the illiterate person and he after having understood these is willing to open an account with the bank. Such a certificate is recorded on the account opening form and is also witnessed by some other person in whose presence these conditions were understood by an illiterate person.
Now an illiterate person can not sign. A very significant, important and vital aspect of banking is THE SIGNATURES of the customers. All banking transactions are based on the signatures. If signatures do not tally with the one proved on the banks records the bank is not bound to honour the instructions of the customers. While a literate person can well understand this problem and will provide appropriate signatures what about an illiterate person.
Although no correct definitions of signatures has been provided in specific terms anywhere but signatures can be taken as a sign, stamp or mark impressed, a person’s name written by himself, the act of writing it.
The signatures of a customer on an instruction to his banker is the banker’s authority to comply with the instructions and to debit the customer’s account with the cost.
In case of illiterate person no signatures are available; in this condition some photographs of the illiterate persons are obtained and affixed on the account opening forms, Specimen signatures slip and on the passbook. The Specimen signature slip is mainly meant for literate persons who can provide the specimen of their signature to be used as their authority for the bank. In case of illiterate persons the same specimen signature slip is used to obtain the impression of their thumbs. In case of male customer the impression of their left hand thumb is taken whereas in case of women customer the impression of their right hand is taken. The impression of right /left hand is a practice not a law. The bankers also try to obtain certain addition information about the identity of illiterate persons like a mole r or scare visible on the person of the customer can be recorded as additional information. Since illiterate persons can not sign they are not issued cheque books. Such customers are required to come to the bank personally every time they wish to use the services of their bankers.
Some of the customers like Insane and intoxicated or insolvent are not normal customers and are therefore not being discussed in view of the subject matter of this book.
c) BLIND
A blind person can be literate and also illiterate but there is no bar for these persons to open an account with any bank. The Banks take some extra precautions while opening the accounts of blind persons as they can not see.
In case of blind persons all the terms and conditions of KYC norms are adhered to very strictly. Besides obtain thump impression or signatures of such persons in the account opening form and on the specimen signature slips the words BLIND PERSON are written very boldly. In case of issue of cheque books only crossed cheques are issued to them. The receipts and payments of such persons are made in the presence of some independent witness whose signatures are also obtained on the mandate of such customers. Normally before issuing cheque books to such customers the words “bearer” are replaced with “order” so that payees can be easily searched.

d) MINOR
Section -3 of Indian Majority Act 1875 states that Minor is a person who has not completed the age of 18 years.
Section 11 of Indian Contact Act 1872 says that a minor can not enter into a valid contract. It further says that contract with a minor is not only void able but void-ab-intio i.e from the very beginning.
Money lent to a minor can not be recovered, even if he gives security. All contracts entered into by a minor for the repayment of money lent shall be absolutely void.
Section-26 of Negotiable Instrument Act-1881 provides that MINOR can draw, endorse, deliver and negotiate a promissory note, bill of exchange or Cheque so as to bind all the parties EXCEPT HIMSELF.
However, a contact on behalf of a minor can be, entered into by his guardian.
The Guardian to a minor can be:-
· Natural Guardian
· Legal Guardian
· Testamentary Guardian

The word GUARDIAN has defined in several Acts. Accordingly a Natural Guardian in case of Hindus is mentioned under section 6 of Minority and Guardianship Act 1956 which provides that in case of a minor boy or unmarried girl, the father and after his death, the mother shall be the guardian of both person and propert of the minor. Step father/step mother can not act as natural guardian. After the death of both the father and the mother, a minor can be represented only through a legal guardian.
Mohammedans
In case of Muslim minor, father is the natural guardian. After death of father the guardianship goes to:-
· executor appointed by father’s will. In the absence of such will it then goes to
· Father’s father and then executor appointed by the will made by father’s father
In the absence of all it goes to legal guardian. Mother can only act as guardian if appointed by court or by will.
Christians and persons of other religions
The father is treated as natural guardian and after his death the mother becomes natural guardian. In case both are dead, a person appointed by the court can act as a guardian

LEGAL GUARDIAN
A legal guardian is appointed as per provisions of Guardian and Wards Act 1890. When there is no natural guardian or testamentary guardian, the court can appoint guardian which is known as Legal Guardian
As such a legal guardian of achild is someone the law has given all the duties,rights, responsibilities and powers that a parent has in bringing up the child..
TESTAMENTARY GUARDIAN
A parent who is a guardian of a child can appoint someone to become a guardian of the child when that parent dies. The parent can do this either in their will or in a special type of legal document called a deed. A testamentary guardian must be at least 20 when the parent dies.
In view of above a guardian appointed by the will of minor’s father is called testamentary guardian. Such guardian can act only after the death of the father and mother of the minor child.
To sum up we may say that ‘Guardian’ means a person having the care of the person of a minor or of his property or of both his person and property.
There are so many other type of customers ,like insane, intoxicated, mentally retarded, handicapped and so on but these are not being discussed here.
JOINT ACCOUNTS:
A joint account is a banking account maintained by two or more people. All must sign on any relevant documents unless the mandate provides otherwise. All are jointly liable for any overdraft unless mandate establishes joint and several liability.. On the death of one party to a joint account, any credit balance on the banking account normally becomes the property of the survivors. In some cases, however, particularly where a husband –and-wife joint account is in question, the appropriation of the balance of the survivor on the death of one may depend upon the intention of the party who opened the account in the first place.. The banker shall always guard against any embarrassment arising from a claim on the bank by the personal representative of the deceased party by including in the mandate a specific clause authorizing him to pay the balance to the survivor.
A JOINT ACCOUNT can be of following types;-
1.Operation jointly by all
2.Operation jointly by any two or more
3. Operation by either or survivor.
4. Operation by Former or Survivor.

In the case of (1) and (2) above operation in the account is likely to be stopped by the Bank on the death of any of the joint account holders and the balance amount in the account is sealed. Now there remain two parties one the surviving party and on second hand the legal representatives of the deceased party. In such circumstances the account is treated as a claim case unless and until both the survivors and the legal representatives of the deceased party give a joint mandate to the bank for disposal of the amount held in a joint account.
So far operation in any account is either or survivor, the account can be operated by any of two persons. In case of death of any joint account holder and mandate being Either or survivor the living person has full rights to operate the account but in case of an account opened with the mandated of former or survivor , the former is first person to operate the account . In case the first person says former dies the survivor the second person is authorized to operate the account. In case of the death of survivor in such type of accounts only the former i.e. the first named persons or his/her legal heirs are to take charge of the account as per bank rules.
HUF ACCOUNT (Hindu Undivided family)
A HUF account can be opened by Hindus only. Families of other religions like Muslims, Christians and parses etc can not form HUF.
What is definition of HUF?
HUF is mainly considered for assessment of Income Tax of joint Hindu family. HUF has not been defined under the INCOME TAX ACT. It is defined under the Hindu Law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters. Members into a HUF do not come from a contract but from your status. A HUF can not be formed by a group of people who do not constitute a family, lineal descendents with a common ancestor is a must.
However in Maharashtra, unlike other states, even married daughters are recognized as HUF members
JOINS AND SIKH FAMILIES ARE NOT GOVERNED BY HINDU LAW BUT THEY CAN STILL BE TREATED AS A HUF.
A HUF consists of:
KartaThe karta has to be the oldest male in the family. If he passes away, his wife cannot become the karta. His eldest son will take his place. If he chooses not to, he can give up his right and the next son in line can take his place.
CoparcenersAll the male members of an undivided Hindu Family are coparceners.
A Hindu coparceners includes the sons, grandsons and great-grandsons of the holder of the joint family property. By virtue of their birth, they acquire an interest in the property.
Members
The female members are simply called member
Why is it important?
Under the Income Tax Act, a HUF is treated as a separate entity for the purpose of assessment. From this stems its importance.
However, the income of a joint Hindu family can be assessed as the income of a HUF Hindu only if the following two conditions are satisfied:
There should be coparcenaries.
There should be joint family ancestral property.
Other investments too can take place under the broad head of HUF.
For instance, a HUF can open a bank account in its name. The karta must open a HUF bank account in any bank by giving an undertaking on a stamp paper of Rs 100. The format will be supplied by the bank.
A Hindu undivided family is governed by the Hindu Law which is nothing but a compilation of Hindu practices, customs and traditions. HUF has ancestral property also it has ancestral different form of business in which individual member might be engaged. As per Hindu Law the son conceived has the same right as a son born. Also as per Hindu Law , the Hindus, Sikhs, Joins are the communities who can form HUF. Joint owners of HUF are known as COPARCENERS.
The eldest member of the family is known as ‘KARTA’. All other members (male and Female) are coparceners. The right to manage the business and property of HUF vests with KARTA.
Now, the Parliament has amended Hindu Succession Act 1956, as per the new provision Daughters get the equal rights in the property and assets. So, the HUF for legal purposes compromise of all the major male and female co-parceners The HUF account is operated upon by the Karta and his all banking transactions are binding on all the coparceners of HUF.
There are also so many other types of accounts like the accounts of:
· Sole Proprietor
· Partnership
· Joint Stock Companies
· Company Accounts like:
· Public Limited Company
· Private Limited Company
· Government Companies
· Clubs and Societies.
· Religious Institutions,
· School and Colleges
· Trusts
· Charitable trusts
All such accounts have different type of operating rules which
are not being discussed in this book.


CHAPTER - 5
OPERATION OF BANK ACCOUNTS

Now you are customer of a bank having opened a saving account or a current account, you are also a normal individual adult .After having opened an account you have also been issued a cheque book and also a debit/credit card.
A normal way of operating a Bank account for you is to deposit your surplus money in your account and withdraw it at the time of need. Although this appears to be very simple act but this is required to be done very carefully and as per the practice of your bank.
DEPOSITING CASH OR A CHEQUE IN YOUR ACCOUNT
You can straightforward handover cash money to the bank’s cashier sitting across the counter. For depositing cash money into your account you are required to fill-in a particular form generally known as Pay-in-slip for cash/cheues. This is usually very small and simple form. In this form you have to furnish necessary information to the bank as follows:
Normally name of the bank is already printed on this form but some times name of the branch is not printed. Make sure to write the name of the branch in this slip.
The date should be mentioned very clearly. In case of doubt your entry can be traced easily by your banker. This also helps in value dated transactions.
Your account number must be written very carefully. In case of any mistake or missing a digit your money may not be credited into your account.
Your Name. Yes it of utmost importance that you write your name exactly in the style in which you have written it on the Account Opening Form. For example on this pay-in-slip you have written your name as Mr. A.K.Kohli and there is some mistake in your account number also. Now there are hundreds of A.K.Kohlis having there account in the same bank. There may be some Mr. Ashok Kumar Kohli or Anand Kumar Kohli who are also in habit of writing their name as A.K.Kohli. By chance the mistake done by you in writing your account number also by chance matches with the account number of some other Mr.A.K.Kohli, the cash deposited by you may go into his account. Although banks take utmost care in depositing the amount in a right account number and they also try to tally other particulars like address of the depositor. To err is for human beings.
Make sure write your name in the same style as you have written in your account opening form. If you have written your name in the account opening form as Mr. Amit Kumar Kohli do write the same in the slip also instead of writing Mr. A.K.Kohli.
Address. Do not forget to write your complete address on this slip. It is vital information helps bank to trace you out in case of any mistake.
Telephone Number. Providing your telephone number expedites the action by bank in contacting you on phone for any help information relating to your account.
Amount. There are two columns available in the deposit slip. In one column you have to mention the amount you wish to deposits in figures and in second column in words. Make sure that amount written in words and figures is the same to avoid any confusion.
Details of cash. While depositing money into your account in cash, the details of currency notes should invariably be given by you.
The pay- in slip is in two parts. One part is kept by the bank officials after receiving money from you and the second perforated portion is handed over back to you. This portion serves the purpose as a receipt issued by the bank in token of having received cash from you. Please carefully examine this receipt and ensure that the same amount has been written by the cashier on this receipt which you have deposited and also that the receipt has been signed by the cashier. In case of need this recept enables you to claim your money from the bank.
USE OF CHEQUES
While withdrawing money from the bank, making payment to someone you have to make use of cheques issued to you. First you have to understand what is a cheque.
CHEQUE
A cheque is a negotiable instrument instructing a financial Institution to pay a specific amount of specific currency from a specific demand account held in the name of the maker/depositor’s name with that institution. Both the maker and payee may be natural persons or legal entities.
As per negotiable instrument act a ‘Cheque’ is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on Demand. REMEMBER all cheques are bills of exchange but all bills are not cheques. Since term Bill is not the subject matter of this book here we will discuss about cheques only.
When a cheque is issued it becomes a bill of exchange and also
a negotiable instrument.

Before we proceed further I feel to make it clear as to what is a bill of exchange and negotiable instrument. Not going into the details of different laws and Acts I would like to explain these terms in very simple way to be understood even by a layman.
A bill of exchange is unconditional order in writing, addressed by one person to another. It is signed by the person giving it, requesting the person to whom it is addressed to make payment on demand or at any fixed future date, the sum mentioned in the bill.
A negotiable instrument (with particular reference to cheques) in simple words is a method of payment of money. It is a specialized type of contract for payment of money which is unconditional and capable of transfer by negotiation. Suppose you have given me a currency note of Rs.100/-. Here the currency note is an instrument and Rs.100/- is value and your act of giving it to me is the act of a contract meaning negotiation done by you. Like wise when you give me a cheque for Rs.100/- it stands as negotiated. It said to be a specialized type of contract only because it is different than the contract defined under the contract Act of India where certain conditions like making an offer and accepting the offer etc some conditions are involved. It stands negotiated merely by act of handing over.
After having understood what a cheque is we must know how to use these cheues and what purpose a cheque can serve for us. As already stated you can withdraw cash through cheques from your account, you can make payments to some one , you can lend money by way of a cheques. On the other side you can also receive a cheque from some one for value, take a loan in the form of a cheque and can receive money through cheques.
PARTIES TO A CHEQUE
When a cheque is issued there becomes many parties to it;
Drawer of the Cheque
A person who issues a cheque or writes a cheque is the maker of the cheque and is called the DRAWER of the cheque.
DRAWEE
The person/bank being directed to make the payment is called the drawee.
PAYEE
One who receives a payment is called the payee.
As per negotiable instrument act a Payee is the person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid is called the payee.
PAYER
The person who issues the cheque or makes the payment is called payer.
There are so many other terms related to cheques like holder of a cheque , holder in due course etc. but for the purpose brevity these are not being discussed here.
After having understood the meaning of a cheque and its utility we will now discuss as to how to use a cheque so that it properly serves the purpose in a legitimate manner within a specified time for which it has been issued by the drawer.
A cheque is usually a printed security form like

From the above form it is clear that such type of security printing is done in a very confidential manner and main features of security printing include
Background printing in fugitive ink.
Primary fluorescence
Anti copy features
Micro line and secret pattern printing
Background bleeding on reacting to organic and inorganic tampering solvents.
Void pantographs
Invisible U.V. pattern printing
Temperature and pressure sensitive inks
Use of Ultra Violet fibers in the cheque paper.
All above features of a cheque are not the subject matter of customers of any bank. These features are used by banks to detect frauds being done through fraudulent cheques.
On seeing the picture of a cheque above one can easily understand that:
· It is specially printed by a bank for use by its customers
· On the right hand side there is space to mention the date when the cheque is issued.(It is mandatory to mention the date on the cheque without which a cheque can be dishonoured)
· In next line it is written PAY--------------------------OR ORDER
A cheque writer/ drawers of the cheque is required to mention the name of the person after the word PAY printed on the cheque to whom the drawer wants to make payment.
· In next line it is written Rupees---------------------( )
The Drawer of the cheque has to write in words the amount he intends to pay to the persons named in the cheque. He has also to mention the amount of the cheque in figures also. In case the amount written in words and figures differ the cheque may not be paid. In case of dispute the amount written in words is considered to be the true amount of the cheque.
Next follows the account number. It is your account on which the cheque is drawn as such please ensure that your correct account number is mentioned on the cheque. Normaly before issuing acheque book to its customer his account number is mentioned on each leave of the cheque book by issuing official of the bank. But in case it has not been mentioned you should ensure that your account number is correctly mentioned on the cheque before issuing a cheque, otherwise your cheque can bounce as unpaid and liable for penalty under the Negotiable instrument act.
Next Comes Signatures. Do not forget to sign the cheque before you issue it to someone. In the absensence of signatures of the account holder no bank will make payment of your cheque. If it remains unpaid the payee may sue you in court of law.
The act on your part is completed as soon as you follow the above instructions. Now there are some other features of a cheque.
On the bottom line some numbers are written. First number is your cheque number, the second number is MICR number of your cheque. The MICR number includes in codes the name of your bank the city in which your bank is located and the branch which has given you the cheque book. This MICR number is utilized by the clearing house of each bank to clear the proceeds of your cheque.
These numbers are known as MICR numbers.
WHAT IS MICR
Magnetic Ink Character Recognition is a character recognition system that uses special ink and characters. When a document that contains this ink needs to be read, it passes through a machine, which magnetizes the ink and then translates the magnetic information into characters.
MICR technology is used by banks. Numbers and characters found on the bottom of checks (usually containing the check number, sort number, and account number) are printed using Magnetic Ink. To print Magnetic Ink need, you need a laser printer that accepts MICR toner.
MICR provides a secure, high-speed method of scanning and processing information.
Next comes inverted coma’s sign like “------ and some space is left blank. This space is utilized by the clearing houses while decoding the MICR number of your cheque and also the amount of your cheque.
The subject matter explained above relates to issuing of a cheque by you in order to pay some money to someone or to make a payment of some money by you.
One More feature you might have noticed on the above cheque. On the extreme left upper corner there are two parallel lines and in between these lines words “A/C payees “ is written.
Such type of two parallel transverse line on the face of of acheque make it a crossed chque which can not be paid across the counter in cash. When the words A/C Payee has also been written such cheques can paid through the acoount of the payee only.
Crossing of a cheque is of different types:
CHEQUES CROSSED GENERALLY;
The cheque bearing across its face an addition of the words ‘and company’ or any abbreviations thereof between two parallel transverse lines, with or without the words ‘not negotiable’; or two parallel transverse lines simply, with or without the WORDS ‘not negotiable’.
CHEQUES CROSSED SPECIALLY;
A cheque bearing across its face an addition of the name of a banker, with or without the words’ NOT NEGOTIABLE’
CROSSING AFTER ISSUE;
Where a cheque is uncrossed, the holder may cross it generally or specially
Where aa cheque is crossed generally, the holder may cross it specially
Where a cheque is crossed generally or specially, the holder may add the words ‘not negotiable’
Where a cheque is crossed specially, the banker to whom it is crossed may again cross it specially, to another banker, his agent, for collection.
A crossed cheque must be collected through a banking account and can not be cashed across a counter. The crossing therefore constitutes a protection for the drawer, who should always cross cheques which he is intending to send through the post, as a precaution against the cheques falling into wrong hands.
ANTEDATED CHEQUE;
A bill of exchange is not invalid by reason only of the fact that it is antedated. However a banker receiving a cheque antedated by six months or more for payment would regard it as STALE CHEQUE, and would return it unpaid unless he could get the confirmation of the drawer to pay it.
POST DATED CHEQUE;
A postdate is the after the day of issue. On cheques postdating may be the intention of the drawer in isolated cases, but if it happens frequently it is a sign of financial weakness on the cutomer’s part. Banks are bound to respect the drawer’s instruction not to pay a post dated cheque until the due date. Postdating of cheques holds many risks for the banker. If the banker pays the cheque without noticing the postdating, he runs the following risks; the customer may stop payment before the due date, or notice of his death or mental illness may be received. There are a number of possibilities connected with bankruptcy Etc.
NOTE;- Any cutting or alteration made on a cheque should by authenticated by you before issuing the same otherwise there is every likelihood that your cheque may not be honored.
Now you may be able to know about the necessary details about the cheques you use for transacting banking business. A cheque is issued in your favour and you want to deposit they money mentioned in this cheque into your account. You are maintaining your account in a Bank known as bank A but the cheque you received is drawn on bank B who would you collect the proceeds of your cheque. What will you do is to simply deposit the cheque with your own bank and in return your bank will collect the money from bank B and deposit the same in your account. How it is done is known as method of cheque collection Every bank collects cheques for its customer and deposits the money so collected into the accounts of its customers. The process of collecting cheques is also very significant and is must to be understood well.
























CHAPTER- 6
CHEQUE COLLECTION:


By now it has been made clear as to how you can deposit cash or a cheque in your account. In case you get some payment by way of cheque drawn in your favour how can you collect the money mentioned in the cheque?
In case the cheque is a barer cheque you can go to the banker of the drawer of the cheque and get encashed it across the counter.
In case it is a crossed or account payee cheque the banks usually do not pay such cheques across the counter and rather credit the proceeds in your account after collecting the proceeds of the cheque through clearing. For collecting the cheques there are different methods:-
Collecting of local cheques.
All cheques and other negotiable instruments payable locally are presented through the clearing system prevailing at the center. Cheques deposited at the counters and in collection boxes within the branch premises before the specified cut-off time are normally presented for clearing on the same day.
All the customers accounts are credited on the day of clearing settlement (normally next day)but withdrawals are allowed after reckoning the cheque return schedule of the clearing house. Where no clearing house exists local cheques are presented on drawee banks across the counter and proceeds thereof are credited on realization.
COLLECTION OF OUT STATION CHEQUES;
Cheques drawn on other Banks at outstation centers in India are normally collected through local bank’s branches at these centers. Where the bank does not have a branch of its own the cheques are directly sent for collection to the drawee bank or collected through a correspondent bank
NATIONAL CLEARING CENTER;
In case a center of National Clearing Services of Reserve Bank of India exist at the same center, most of the banks collect outstation cheques through National Clearing.
OUTSTATION CHEQUES DRWAN ON BANKS OWN BRANCHES;
Outstation cheques drawn on Banks own branches are collected using inter-branch arrangements in vogue. The branches which are connected through a centralized processing arrangement and are offering ANYWHERE BANKING services to its customers, provide credit to the accounts of its customer on the same day through the centralized banking system.



INSTANT CREDIT OF OUTSTATION CHEQUES;

Branches will, of their own, afford immediate credit of outstation cheques upto and inclusive of Rs.15000 /-tendered for collection by customers for
Satisfactorily conducted accounts on the following condition:-
(The amount of Rs. 15000/- may differ from bank to bank)
For the purpose of this policy, a satisfactorily conducted account shall be the one:
i) Opened at least six months earlier and complying with KYC norms.ii) Account is neither dormant nor inoperative.iii) Where bank has not noticed any irregular dealings /suspicious transactions in the last 6 months.iv) Where the bank has not experienced any difficulty in recovery of any amount advanced in the past including cheques returned after giving credit. v) Where no adverse features attached to the account/ account holders has been brought to the notice of the bank.b) The facility will be available to all individual deposit account holders without making a distinction about their accounts i.e. Savings Bank/Current Account etc. It will be available at all branches/extension counters.c) Normal collection and out of pocket charges are to be recovered for outstation cheques. However, no “exchange” will be charged.d) In case of outstation cheques, the facility will be restricted to one or more cheques for aggregate amount not exceeding Rs.15000/ at a time ensuring inter-alia that the liability on account of outstanding of cheques purchased does not exceed Rs. 15000/ at any time. The limit of Rs. 15000/- may differ from bank to bank. Please contact your bank to know this limit.

6)CHEQUES PAYABLE IN FOREIGN COUNTIES:
Cheques payable in foreign country where the bank has branch operations/banking operations through a representative, subsidiary etc are collected through that office. Some time services of corresponding banks are also utilized at these centers where your bank has no presence.
In case bank has neither a corresponding bank nor its own presence, in such cases the cheques are sent directly to the drawee bank with instructions to credit proceeds to the respective NASTRO ACCOUNT of the bank maintained with one of the corresponding banks.





CHAPTER-7
CLEARING HOUSE.
Now after having understood the system of collecting your cheques you may like to know what is the process clearing the cheques as the word clearing of chques has been mentioned at number of places in the preceding text of this book.
What is a Clearing House?
A clearing house is a place for exchange of cheques by banks; it facilitates transfer of funds from one bank to another, which represents the proceeds of cheques. It is as a central meeting place for bankers to exchange the cheques drawn on one another and claim funds for the same. Such operations are called as clearing operations. Generally one bank is appointed as in-charge of the clearing operations. In the four metros and a few other major cities, the Reserve Bank of India is looking after the operations of the clearing house. Each clearing house has uniform regulations and rules for the conduct of its operations as prescribed by RBI. There are more than 1000 clearing houses operating all over the country facilitating cheque payments. These are managed by the RBI, State Bank of India and other public sector banks.
The clearing infrastructure is designed to address the movement of instruments between the presenting and drawee branches. Each member bank in a centre is represented in the clearing house by its service branch which collects all the instruments from various branches and consolidates them for presentation to all the banks in the clearing house. Similarly, it receives and distributes among its branches all the instruments drawn upon its branches by other banks in the clearing house. The service branch of a bank performs a crucial intermediary role between the clearing house and the branch of a bank.
Clearing Process: The clearing process begins with the deposit of a cheque in a bank. The cheque (along with other cheques) is delivered to the bank/branch where it is drawn. The cheque is passed for payment if the funds are available and the banker is satisfied about the genuineness of the instrument. The cheques that are unpaid are returned to the presenting bank through another clearing called the Return Clearing. The realisation of the funds occurs after the completion of return clearing and by the absence of an unpaid cheque.
CHEQUES CLEARING
CYCLE
Following steps are to be taken during clearance of cheque:
Step 1st:-
`
The customer





Step 2nd:-

The presenting bank where cheques are presented by payee
for deposit in his / her a/c.




Step 3rd:-

The RCC : Regional collecting centre- to collect all cheques from their presenting branch.








Step 4th:-


Clearing House: to collect cheques from RCC and for settlement of cheques.







Step 5th :-
Drawee’s RCC: Again they collect cheques from the clearin house and send to their drawee bank.






Settlement of Funds: The settlement of funds in clearing occurs at several levels. The aggregate amount or value of cheques presented by a bank on other banks represents the claim by that bank on other banks. Similar claims are made by all the banks on every other bank in the clearing. A net settlement is arrived at the clearing house and the debit or credit position of the bank is determined. These are booked in their current accounts maintained by the settling bank. This represents the inter- bank settlement. The settlement of funds between the service branch and the branch concerned represents the transfer of funds to the branch level. The payment process is completed only when the funds are debited from the drawer’s account and credited to the payee’s account. This occurs after the completion of the return clearing mentioned
Return Clearing: Realisation of a cheque i.e. payment occurs after the cheque that is returned unpaid takes place in this clearing. The aggregate of all items unpaid is debited to the original presenting bank and credited to the drawee bank. The same process is mirrored in the inter-branch settlement at the service branch of a bank. The credit given to the payee on account of the cheque is reversed.
Inter-branch clearing: Cheques presented by customers drawn on different branches of the same bank need not be sent to the clearing house as the transfer of funds is internal to the bank. The service branch usually acts as a settlement branch for the branches and the instruments are sent to the drawee branches while the inter-branch accounts are credited or debited internally.

HOW CHEQUE COMES AGAIN
TO CUSTOMER
There are various reasons which are responsible for unpaid of cheques. A following cycle of unpaid cheque is:

Step1st:-

Drawee Bank: It collects cheques from their RCC and debits the customer a/c. If sufficient balance not found then drawee bank again send cheque to their RCC.







Step 2nd:-



Drawee’s RCC: Again they collect cheques from the clearin drawee branch and send to the clearing house.








Step 3rd:-


Clearing House: to collect again cheques from RCC and sent unpaid cheques to the presenting’s RCC.













Step 4th:-


The RCC : Regional collecting centre- to collect all unpaid cheques from the settlement house and send to their respective branches.







Step 5th:-

The presenting bank : It collect unpaid cheques from the RCC
and send to the customer with written letter containing the reason why
the cheque is not to be paid.






Step 6th:-
The customer who collects his cheque from his/her presenting
bank with some written letter with specific reason.



Time lag: The total clearing cycle including the return clearing introduces a time lag in the payments process. The need for physical presentment of the cheque at the branch where it is drawn on, requires the movement of cheques from one place to another. As a result, the recipient of payment has to wait until the collecting banker is fully satisfied that the cheque has been paid. This time lag will continue irrespective of the level of technology and improvements in process, so long as the physical presentment of the cheque is necessary as per the banking law.
What is the time taken for this clearing process?
Generally, if a cheque is to be paid within the same city (local cheque), it would take 2-3 days. In some large cities, there is a system called High Value Clearing which facilitates completion of cheque clearing cycle on the same day and the customer depositing the cheque is permitted to utilize the proceeds next day morning. However, coverage of this High Value Clearing is very limited and usually available at the branches in the main business area; say Fort and Nariman Point area in Mumbai and Connaught Place in New Delhi.
Would a bank customer incur any charges by using cheques for payments?
The person receiving payment by means of cheques would incur some charges to realise the funds through his/her bank. In case of local cheques, no charges are levied. In case of outstation cheques, the bank would take some processing / collection charges depending upon the amount of the cheque and the place from where it has to be realised. The charges levied by the banks are generally decided by the banks themselves. Banks are also required to publicise the schedule of service charges.
The cheques clearing system as explained above is undergoing many changes to make it possible the cheques are cleared as early as possible and the customers are afforded credit immediately after they deposit a chaque with his/her bank. In case of the cheques belonging to the account holders of the same bank and the branches of the bank(both where cheque is deposited and the branch from they money is to be collected are under centralized banking system) the the cheques are collected same day subject to certain charges.
In case the cheques are not drawn on any branch of the same bank and are drawn on the branch of some other bank a new system has already been started by the Reserve Bank of India which is known as CHEQUES TRUNCATION.
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WHAT IS CHEQUE TRUNCATION
The cheque truncation project has been started in NCR.
Truncation is the process of stopping the flow of the physical cheques issued by a drawer to the drawee branch. The physical instrument will be truncated at same point en-route to the drawee branch and an electronic image of the cheque would be sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting Bank etc. . Thus with the implementation of cheque truncation, the need to move the physical instruments across branches of different banks would not be required, except in exceptional circumstances. This would effectively reduce the time require for payment of cheques, the associated cost of transit and delay in processing etc. Thus speeding up the process of collection or realization of cheques.
HOW SHALL IT BE DONE.
The image captured at the presenting bank level would be transmitted to the clearing house and then to the drawee branches with digital signatures of the presenting bank. Thus each image would carry the digital signatures, apart from the physical endorsement of the presenting bank in a prescribed manner. In order to ensure only images of requisite quality reach the drawee branches, there will be a quality check process at the level of capture system and the clearing house interface. This would ensure only images of requisite quality secured with the digital signatures of the presenting banks reach the drawee branches. In addition, drawers could consider using holograms, Bar-Coding or such other features, which would add to the uniqueness of the images.
PROPOSAL OF RBI FOR TRUNCATION OF CHEQUES
The RBI has proposed to implement the project on a PILOT basis in the National Capital Region (NCR) new delhi. RBI would install an interface with its system(CHI) at the service branches of the Banks, who are members of New Delhi Banker’s clearing house. Banks have to decide the point of truncation and have to ensure that the images are digitally signed after their capture. It would thereafter flow to the interface (CHI) provided by RBI, from where the images would flow to the clearing house with the digital signatures of the banks. These digitally signed images would reach the service branches of the drawee branches clearing house interface. The service branches have to ensure that these images are moved across their branches to ensure their processing.
(Cheque truncation services are presently available in Nation Capital Region only.)
For transfer of funds from one branch of the same bank to another branch has already bee n taken care by the centralized banking solution. But for collection of the proceeds of your cheques deposited by you in your drawn on other banks a special services have been envisaged by the Reserve Bank of India. This is known as National Electronic fund Transfer System. In brief we can say NEFT.
WHAT IS NEFT
This is National Electronic Fund Transfer system which enables funds transfer from one Bank branch to any other Bank’s branch. The process of NEFT is new and all branches of all Banks are not covered under this scheme. Only some selected branches of each Bank have this facility.
Under this scheme the beneficiary gets credit of his cheques on the same day or the next depending on the time of settlement.
OPERATION OF NEFT
The customer has to fill in an application form giving the particulars of the beneficiary (Bank Branch, Beneficary’s name , account type and account Number. The customer has to authorize the branch to remit the specified amount to the beneficiary by raising a debit to the remitter’s account(SOME OF THE BANKS ALSO PROVIDE NET BANKING SERVICES FOR THIS SYSTEM)
After receiving the request from the customer the remitting branch prepares a Structured Financial Messaging Solution(SFMS) message and sends it to its Service Centre for NEFT.
The Service Centre forwards the same to the local RBI’s (National clearing cell, Mumbai) to be included for the next available settlement. Presenting NEFT is settled in six batches at 9.30 AM, 10.30AM, 12.00 noon, 1 PM , 3PM, 4PM on weekdays and 9.30AM,10.30AM,12.00noon on Saturdays.
The Reserve Bank Of India at clearing centre sorts the transactions Bank-wise and prepares accounting entries of net debit or credit for passing on to the banks participating in the system. Thereafter bank-wise remittance messages are transmitted to banks.
The receiving bank processes the remittance messages received from Reserve Bank of India and effects credit to the beneficiaries account.
The limit of amount under this scheme is at present Rs. ONE LAC ONLY. Beyond Rs. one lacs you will have to avail the services of another system known as RTGS.
No foreign remittances can be done through NEFT.



WHAT IS RTGS SYSTEM
RTGS stands for Real Time Gross Settlement. It is a fund transfer mechanism where transfer of money takes places from one bank to another bank on a real time and on Gross basis.
This is the fastest possible money transfer system through the banking channel. Real time means Payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. Gross settlement means the transaction is settled on one to one basis without bouncing with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India the payment is taken as final and irrevocable. The RTGS system is meant primarily for large value transactions. The minimum amount to be remitted through RTGS is Rs. One lac OR above.
HOW TO REMIIT MONEY THROUGH RTGS
For remitting money through RTGS one has to furnish:-
1.Amount to be remitted
2.The Account Number which is to be debited
3.Name of the beneficiary Bank
4.Name of the beneficiary customer
5.Account Number of the beneficiary customer
6.Sender to receiver information , if any
7.The IFSC Code of the receiving branch of the receiving bank.
The information required to be furnished as directed above is well know to you from Sl. No. 1 to Sl. No. 6. But what is at Sl. No. 7 IFSC Code
WHAT IS IFSC code ?
IFSC is a code number provided to each branch of each bank dealing with RTGS remittance. It stands for INDIAN FINANCIAL SYSTEM CODE(IFSC). It is an alpha numerical code designed to uniquely identify the Bank Branches in India. This is 11 digit code with first 4 characters representing the bank code, The next character reserved as control character(presenting ‘o’ appears in the fifth position ) and reaming six characters to identify the branch . The RBI ha brought out a list of Frequently asked question about the RTGS which is given below.
What is RTGS System?
Ans The acronym "RTGS" stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a "real time" and on "gross" basis. This is the fastest possible money transfer system through the banking channel. Settlement in "real time" means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. "Gross settlement" means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.
Q.2 How RTGS is different from Electronic Fund Transfer System (EFT) or National Electronics Funds Transfer System (NEFT)?
Ans EFT and NEFT are electronic fund transfer modes that operate on a deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. For example, NEFT settlement takes place 6 times a day during the week days (9.30 am, 10.30 am, 12.00 noon. 1.00 pm, 3.00 pm and 4.00 pm) and 3 times during Saturdays (9.30 am, 10.30 am and 12.00 noon). Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. Contrary to this, in RTGS, transactions are processed continuously throughout the RTGS business hours.
Q3. Is there any minimum / maximum amount stipulation for RTGS transactions?
Ans. The RTGS system is primarily for large value transactions. The minimum amount to be remitted through RTGS is Rs.1 lakh. There is no upper ceiling for RTGS transactions. No minimum or maximum stipulation has been fixed for EFT and NEFT transactions.
Q4. What is the time taken for effecting funds transfer from one account to another under RTGS?
Ans. Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary's account within two hours of receiving the funds transfer message.
Q.5 Would the remitting customer receive an acknowledgement of money credited to the beneficiary's account?
Ans The remitting bank receives a message from the Reserve Bank that money has been credited to the receiving bank. Based on this the remitting bank can advise the remitting customer that money has been delivered to the receiving bank.
Q.6 Would the remitting customer get back the money if it is not credited to the beneficiary's account? When?
Ans Yes. It is expected that the receiving bank will credit the account of the beneficiary instantly. If the money cannot be credited for any reason, the receiving bank would have to return the money to the remitting bank within 2 hours. Once the money is received back by the remitting bank, the original debit entry in the customer's account is reversed.
Q.7 Till what time RTGS service window is available?
Ans The RTGS service window for customer's transactions is available from 9.00 hours to 15.00 hours on week days and from 9.00 hours to 12.00 noon on Saturdays i.e. to accept the customer transactions for settlement at the RBI during 9.00 hours to 15.00 hours on week days and between 9.00 hours and 12.00 noon on Saturday. However, the timings between these hours would vary depending on the customer timings the branches have. For inter-bank transactions, the service window is available from 9.00 hours to 17.00 hours on week days and from 9.00 hours to 14.00 hours on Saturdays.
Q.8 What about Processing Charges/Service Charges for RTGS transactions?
Ans While RBI has waived its processing charges for all electronic payment products till March 31, 2008, levy of service charges by banks is left to the discretion of the respective banks. The bank-wise details of charges levied are available on the RBI website – www.rbi.org.in.
Q.9 What is the essential information that the remitting customer would have to furnish to a bank for the remittance to be effected?
Ans: The remitting customer has to furnish the following information to a bank for effecting a RTGS remittance:
1. Amount to be remitted2. His account number which is to be debited3. Name of the beneficiary bank4. Name of the beneficiary customer5. Account number of the beneficiary customer 6. Sender to receiver information, if any7. The IFSC code of the receiving branch
Q.10 How would one know the IFSC code of the receiving branch?
Ans. The beneficiary customer can obtain the IFSC code from his branch. The IFSC code is also available in the cheque leaf. This code number and bank branch details can be communicated by the beneficiary to the remitting customer.
Q.11 Do all bank branches in India provide RTGS service?
Ans No, all the bank branches in India are not RTGS enabled. As on January 31, 2007 more than 26,000 bank branches are RTGS enabled. The list of such branches is available on RBI website
Q.12 Is there any way that a remitting customer can track the remittance transaction?
Ans It would depend on the arrangement between the remitting customer and the remitting bank. Some banks with internet banking facility provide this service. Once the funds are credited to the account of the beneficiary bank, the remitting customer gets a confirmation from his bank either by an e-mail or by a short message on the mobile.
Q.13. Whom do I can contact, in case of non-credit or delay in credit to the beneficiary account?
Ans Contact your bank / branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted at -
The Chief General Manager,Reserve Bank of India,Customer Service Department,1st Floor, Amar Building, Fort,Mumbai-400001

Q.14 How much volume and value of transactions are routed through RTGS on a typical day?
Ans On a typical day, RTGS handles about 14000 transactions a day for an approximate value of Rs.1,50,000 crore.
Q.15 How can a remitting customer know whether the bank branch of the beneficiary accepts remittance through RTGS?
Ans For a funds transfer to go through RTGS, both the sending bank branch and the receiving bank branch would have to be RTGS enabled. The lists are readily available at all RTGS enabled branches. Besides, the information is available at RBI website. Considering that more than 26,000 branches at more than 3,000 cities/ towns and taluka places are covered under the RTGS system, getting this information would not be difficult.




CHAPTER -8

BE CAREFULL ABOUT YOUR BANKING TRANSACTIONS

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The banking technology is going to be advanced in the coming days and the day is not for away when you will not be required to visit your bank for your banking business. But this also requires your personal attention to be carefull about your banking operations. After having dealt with several operations in your bank account you should be able to reconcile these operations also . the best way is to examine your statement of bank account issued to you from time to time. This includes the Pass book of your account also.
Before issuing a cheque or depositing money/cheque in to your account you may also be keeping a separate account of your financial transactions.
The statement of your account issued by your bank gives you a detailed review of the activity in your account for a specific period of time. Have you ever checked whether or not your personal records match with the statement of accounts issued by your banker?
PLEASE CHECK THE STAEMENT OF YOUR ACCOUNT ISSUED BY YOUR BANK.
When you receive the bank STATEMENT look from top of it for started and ending dates. Please examine every debit and credit mentioned in the bank statement with your personal record. In case you find any discrepancies you are required to report them to the bank. There always remains a limited period during which you must repot to your bank about any discrepancy.
In case of unauthorized debits or wrong debits in your account you have to be very vigilant and stake your claim before the bank. With the advanced technology of using ATM , ECS, NIFT, RTGS etc. it becomes more important that you remain always alert in operation of your account.
Recently it has been noticed that most of the credit cards being coloned by unscrupulous persons and innocent card holders have to pay heavily for the purchases they have never done.
Now a days banks are recovering different type of charges, Like incidental charge, charge for not keeping minimum required balance in your account, Cheque returning charges, Cheque Book issue charges. Please obtain a copy of service charges from your bank and check whether any debit made in your account for the above reasons is according to bank’s declared policy.
What are you getting from banks for your amounts kept with them
In case you are marinating a Saving Account with any bank the rate of interest is same for all banks that is @ 3.5%. a SAVING ACCOUNT I
Savings Bank Accounts are meant to promote the habit of saving among the citizens while allowing them to use their funds when required. The main advantage of Savings Bank Account is its high liquidity and safety. On top of that Savings Bank Account earn moderate interest too. The rate of interest is decided and periodically reviewed by the Government of India. Presently, the rate of interest is 3.5% compounded half yearly.
The system of calculating interest on the amount kept by you in your Saving account is typical.
You earn interest on the minimum balance kept in your account from 10th day of a month till the last day of the same month. From date one of a month till date 10th ou earn no interest in a saving account. From date 10 to the last date of the month whatever the minimum amount was available on a particular date shall be taken into account to reckon and calculate the monthly products for the purpose of paying interest. For example if you kept Rs One lac in your account till 8th day of a month and withdrew Rs. 95 thousands on 9th day . Again you deposited Rs. One lac in your account on 20th day of the month. Your money with bank with minimum balance of Rs 5 thousand remained with the bank from the date 10 to the last date and this will be the amount for which you shall be paid interest by the bank.
It is therefore necessary that you keep a close look on the balance of your amount in a saving account with any bank. And if funds are likely to be required immediately these should be kept in the form of fixed deposit account which earn more rate of interest. For one of nationalized bank rates of interest paid on fixed deposits is given below but it is subject to change from time to time but in the long these are beneficial in comparison with saving accounts;
APPENDIX- 1

BASIC FUNCTIONS OF RBI
The preamble of Reserve Bank of India describes the basic function of the Reserve Bank of India:-
To regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary security in India and generally to operate the currency and credit system of the country to its advantage.
Financial Supervision
The Reserve Bank of India performs the functions under the guidance of of the Board of Financial Supervision in brief known as (BFS). The board was constituted in 1994 as a committee of the central board of directors of the Reserve Bank of India.

Objectives
Primary objective of BFS to undertake consolidated supervision of the financial sector comprising commercial Banks, Financial Institutions and Non-Banking Financial Companies.
Functions of BFS
Some of the functions of BFS include:-
-Restructurings the system of Bank Inspections
-Introduction of off-site surveillance
-Strengthening the role of statutory auditors and
-Strengthening of the internal defenses of supervised institutions

There is certain legal frame work also for Reserve Bank of India and most important is Banking Act governing banking operations like:-
Formulates, Implements and monitors the monetary policy.
Marinating price stability and ensuring adequate flow of credit to productive sectors.
Prescribes broad parameters of banking operations within which the country’s banking and financial system functions.
Maintains public confidence in the system, protects depositors interest and provide cost effective banking services to the public
Reserve Bank of India is also Banker to the Government, performs merchant banking functions for the central and state governments and also acts as their banker. It is also a Banker to Banks. It maintains banking accounts of all the scheduled banks.

APPENDIX-2
Payment Instruments in India
There are different types of methods for making/receiving payments through different type of instruments. Some of these instruments are explained below;

CHEQUES
A cheque is a bill of exchange payable on demand and is drawn on a banker.. A cheque is not cash, as it does not assume the finality of payment. The funds may not be available with the drawer or the drawer may have withdrawn funds from his bank account in the interim leading to the possibility of cheque being dishonored on presentation. In addition the banks levy a collection charge based on the value of the cheque as well as postal charges in case of outstation cheques. It also takes some time to realize the proceeds of outstation cheques. For these reasons, the cheque is not always acceptable in several business transactions particularly where the drawer and the payee are not known to each other. In many commercial transactions, the seller of goods and services prefer to have a payment instrument where the sum of money payable to the payee is guaranteed. The Demand Draft is one such instrument.

DEMAND DRAFT
A Demand Draft is a pre-paid negotiable instrument, wherein the drawee bank undertakes to make payment in full when the instrument is presented by the payee for payment. The Demand Draft is made payable on a specific branch of a bank at a specified centre. In order to obtain payment, the beneficiary has either to present the instrument directly to the branch concerned or have it collected through clearing mechanism. However a draft does not satisfy the definition of a bill of exchange because it is not “drawn by one person on another”.
BANKER’CHEQUE
A Banker Cheque is another payment instrument which is used by Banks to settle payment obligations on behalf of their customers. The instrument is granted by the Bank for its full value and is similar to a Demand Draft. In practice these instruments are payable at the branch of issue and are used for payment within the local clearing jurisdiction.

PAYORDRS/PAYMENT ORDERS
Payment orders are issued by banks for payments made on behalf of the bank. These instruments are signed by a Banker and carry the guarantee of the bank on the availability of the funds. These instruments are also payable on the branch of issue.

TRANSFER PAY ORDERS
These instruments do not fall in the category of cheques, drafts, payment orders etc. These instruments are part of internal functioning of banks and are not handed over to customers. These are used by bank to carry out the instructions of its customer to transfer funds from their bank acoounts to some other account in some other branch of the same bank The instruments are sent by the concerned branch to other branch for crediting the proceeds as per instruction of the customer.

TRAVELLER CHEQUES

APPENDIX-3

NOMINATION
Whenever a bank account is opened it must be made a point to appoint a nominee in each bank account opened by a person individually or jointly. The banks also do insist for appointing a nominee by its customers in their accounts. Making a nomination in bank accounts helps to receive the money by an appointed nominee in case of the death of the account holder/s without going into the legal hustles of the law of succession.. In case no nomination has made it becomes very difficult for the legal heir of customer to receive money from the bank account of a customer in case of his death. The provision of nomination has been adequately made in The Banking Regulation Act.

NOMINATION FOR PAYMENT OF DEPOSITOR”S MONEY
(1) Where a deposit is held by a banking company to the credit of one or more persons, the depositor or , as the case may be, all depositors together , may nominate, in the prescribed manner, ONE person to whom in the event of the death of the sole depositor or the death of all the depositors, the amount of deposit may be returned by the banking company,
(2) Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of such deposits, where a nomination made in the prescribed manner purports to confer on any person the right to receive the amount of deposit from the banking company, the nominee shall on the death of the sole depositor, or as the case may be, on the death of all the depositors, become entitled to all the rights of the sole depositor or, as the case may be, of the depositors, in relation to such deposit to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner.
(3) Where nominee is minor, it shall be lawful for the depositor making the nomination to appoint in the prescribed manner any person to receive the amount of deposit in the event of his death during the minority of the nominee.

NOMINATION FOR RETURN OF ARTICLES KEPT IN SAFE CUSTODY

(1) Where any person leaves any article in safe custody with a banking company, such person may nominate, in prescribed manner, ONE person to whom in the event of the death of the person leaving the article in safe custody, such article may be returned by the banking company.
(2) Where the nominee is minor, it shall be lawful for the person making the nomination to appoint, in the prescribed manner any person to receive the article deposited in the event of his death during the minority of the nominee.
(3) Where any such locker is hired from a banking company by two or more individuals jointly and under the contact of hire the locker is to be operated under the joint signatures, such hires can nominate ONE OR MORE persons to whom, in the event, of death of such joint hirers, the bank may give jointly with the surviving joint heir or joint heirs the access to the locker and liberty to remove contents of such locker.


APPENDIX-4
1.Currency Arrangements
The currency of India consists of coins issued under the Indian Coinage Act, 1906, as amended from time to time, one rupee notes issued by the Ministry of Finance and bank notes issued by Reserve Bank of India. Under the provisions of the Reserve Bank of India Act, 1934, the sole right to issue bank notes in India has been vested in the Reserve Bank with effect from April 1935.
Under Section 14 of the Indian Coinage Act, 1906, the following coins have been issued since April, 1957 :-
Silver Alloy - Rupees ten
Pure Nickel - One Rupee, 50 paise and 25 paise
Aluminium Bronze - 20 paise and 10 paise
Bronze - 1 paisa
Aluminium Magnesium - 5 paise, 3 paise, 2 paise and 1 paisa
The rupee is legal tender up to any amount, the 50 paise coins for any sum not exceeding ten rupees and other coins not exceeding one rupee.
Bank notes issued by the Reserve Bank are of demotional values of two rupees, five rupees, ten rupees and one hundred rupees in Ashoka Pillar and Mahatma Gandhi designs and are legal tender throughout India.
One rupee notes issued by the Central Government are unlimited legal tender, and these notes are treated as rupee coin for all purposes of the Reserve Bank of India Act.
Under Section 39 of the Reserve Bank of India Act, the Bank required to issue rupee coin on demand in exchange for Bank notes and currency notes of the Government of India and issue currency notes or Bank notes o demand in exchange for coin which is legal tender under the Indian Coinage Act, 1906. The bank supplies in exchange for currency notes or Bank notes of two rupees or upwards, currency notes or bank notes of lower value or other coins which are legal tender under the Indian Coinage Act, 1906, in such quantities as may, in the opinion of the bank be required for circulation. Although no person has a legal claim to obtain coins for notes presented at a treasury or a sub-treasury this accommodation is given whenever possible and all applications for exchange are granted provided that the coins or notes applied for are available subject to limitation imposed by the Reserve bank or the Central Government.
2.Resource
1. The control of the Resource operation of the Government of India and of States, vests in the Reserve Bank. This work is conducted under the control of the Bank by a number of currency officers each of whom is in charge of an Issue Department of the bank and is responsible for the work of one or more States within his jurisdiction.
2. The cash balance of each Government is made up of the balance in its account with the Reserve Bank and the balances at its treasuries and sub-treasuries situated at places where the cash business is not conducted by the Reserve Bank of India and its branches and agencies. At places where the cash business is conducted by the bank, Government receipts are paid into and all Government disbursements are made from the Bank and the Bank is responsible for the distribution and maintenance of funds according to requirements at these places. This is arranges by the Currency Offices. Each Government is responsible for keeping in its accounts at the Reserve bank a sum sufficient to enable the bank to met the disbursements which the bank has to make on its account at its various branches and agencies. At treasuries and sub-treasuries situated at places where there is no branch or agency of the Bank, Government holds the Treasury Officer responsible for keeping sufficient funds to meet all Government disbursements and for maintaining the balances as low as possible in order that money may not be locked up unnecessarily.
3.Funds in India
1. The Currency Officers are responsible for the distribution of funds within their jurisdiction. It is the duty of the currency officers to keep all the treasuries in their jurisdiction adequately supplied with all kinds of coins and notes and to arrange for the transfer of funds between treasuries and the Bank and for the remittance of notes and coins between treasuries and currency offices.
2. The transfer of funds between treasuries and sub-treasuries and branches and agencies of the Reserve bank is effected for the most part through the medium of currency chests belonging to the Reserve Bank of India. These chests are maintained at Non-Banking treasuries and sub-treasuries to prevent the unnecessary locking up of funds in treasury balances and to facilitate the transfer of funds from and to such balances.
3.3 Under provisions of the Reserve Bank of India Act, the amount of currency and bank notes in circulation which constitute the liabilities of the Issue Department of the Bank should not exceed the assets of that Department held in gold, sterling securities, rupee coin (including rupee notes) and rupees securities. A portion of these assets is held in various currency chests in the form of rupee coins and rupee notes. The currency and bank notes held in these chests are not notes in circulation but pass into circulation only when they are transferred to the treasury balances. Assuming that there are no transactions else where, the deposit of currency and bank notes held in these chests are not notes in circulation but pass into circulation only when they are transferred to the treasury balances. Assuming that there are no transactions else where, the deposit of currency and bank notes in a currency chest decreases the amount of such notes in circulation and the deposit of rupees and rupee notes in the chest increases the assets of the Issue Department of the Bank. A deposit of notes or coin in a currency chest thus enables the back to issue notes else where up to the amount deposited without increasing the total amount of notes in circulation. If, therefore, a transfer of funds from the treasury balance at ‘A’ to the treasury balance at ‘B’ is required, this can be effected at short notice and without the actual remittance of coins and notes by transferring money from the treasury balance to the currency chest at ‘A’ and transfer of the same amount from the currency chest to the treasury balance at ‘B’. a currency chest thus enables the treasury balance at a treasury or a sub-treasury to be kept a t a low figure as it is always possible to replenish the balance quickly by a transfer of money from the currency chest wherever funds are required in Treasury. It also obviated the necessity for frequent remittances of coins and notes as surplus fund can always be deposited into the currency chests and made available for use elsewhere, pending a convenient occasion for remittance.
4. The Reserve Bank of India provides facilities to the Public for remittance of moneys from one place to another. These remittances are arranged for by the issue of Telegraphic transfers or Reserve Bank drafts to and from places where the Reserve Bank has its own offices or is represented by its agencies. In order to provide similar facilities for the remittance of moneys from and to places where there is no office of the Reserve Bank or branch of the State Bank and to discourage the remittance of notes through the post by the Public, Telegraphic Transfers and Reserve Bank drafts are also issued by Government treasuries acting as Treasury Agencies of the Reserve Bank for the purpose.
"Government of India" Notes.
The idea of issuing paper currency by the Government was promulgated by Sir James Wilson, the Finance Member in the Executive Council of the Viceroy, in 1859. It was adopted by his successor Samuel Laving in 1861, with substantial changes which ultimately made the issue of currency notes quite rigid in it’s structure. Accordingly, an act was passed in 1861, empowering the Government of India to issue currency notes. It also provided for establishing the necessary bureaucratic setup for effective functioning of the issue, circulation and encashment of the notes.
By the provisions of this act, certain "circles" were established for the issue of notes. These circles had sub-circles under them. The post of Circle- Commissioner was created to supervise the issue of notes within the circle; and the Supreme Commissioner of Issue, reporting to the Finance Member, was to be responsible for the issue of notes in general. The number of these circles varied over the successive years. Initially, the notes issued in a particular circle were not circulated in another circle, and their encashment was possible only at that circle or a sub-circle office under it.
The first notes issued under the act of 1861 bear the portrait of Queen Victoria in the top left corner. The notes were printed in England on a watermarked paper. The watermark incorporated signatures of Lord Canning, The Viceroy and Samuel Laving, the Finance Member. The known notes are issued by the circle of Calcutta (with sub-circles at Allahabad, Lahore and Nagpur), Bombay and Madras. These notes are extremely rare. Their denominations range as 10 Rupees, 20 Rupees, 50 Rupees, 100 Rupees, 500 Rupees and 1,000 Rupees. They bear the signature of the Commissioner of issue. The notes issued at a sub-circle also have an endorsement by the subordinate commissioner.
The simple form of these notes led to instances in which forgeries were reported. Soon afterwards, the government decided to change the design substantially, incorporating better security features such as a green under print denoting the denomination for the promise text, use of guilloche designs and alterations in the quality of the paper and the watermark. The watermark now incorporated a code which denoted the date of manufacture of the paper. The system of issue through circles and sub-circles was not changed. In fact, many more sub-circles were established. These revised notes are known in denominations of 5, 10, 20, 50, 100, 500, 1000 & 10000.
In the early 20th century, it was realized that paper currency was getting more and more popular. It was therefore desired that the rigidity afforded to the issue of notes be minimized. As a measure towards this end, notes were "universalized", i.e. the restriction on their encashment at the original circle of issue was removed. This was done in a gradual manner; the low denominations were universalized first, whereas the higher denominations of 100 and upwards were universalized much later. However, the names of the issuing circles was retained in these notes, in full or as initials. In about 1903, a new design with a red under print was employed for the notes of 5, 10 and 50 Rupees.
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APPENDIX-5
Forged currency notes
In everyday life one is required to use the money mostly in form of currency notes. But one does not whether he is handling with forged currency notes . It is therefore more important to know the main features of the currency notes issued by the Reserve Bank of India. Designs of bank notes issued by the Reserve Bank of India since 1967 are given below
Year
Size
Watermark
Front
Back
I. Rs.10 notes



1967
137x63mm
Ashoka Pillar
Purple colour. Numeral 10 in the centre.
Value of the note in 14 languages. The oval seascape with country craft.
1968
-do-
-do-
Blue black colour. Promise clause, guarantee clause and signature printed in bilingual.
-do-
RBI’s name in Hindi added.
1969
-do-
-do-
Blue Black colour. ‘Ten Rupees’ instead of ‘Rupees Ten’.
Mahatma Gandhi’s Portrait.
1970
-do-
Ashoka Pillar with spinning wheels.
Hindi version of RBI incorporated in place of English and vice versa. Hindi rendering of Guarantee clause, promise clause and Governor’s signature have been interchanged. ‘¬¸÷¡¸Ÿ¸½¨¸ ¸¡¸÷¸½’ incorporated. Watermark window and numbering panel enlarged.
Bilingual seal incorporated
1975
-do-
-do-
Dark brown, umber and blue colour. Numeral ‘10’ printed in dark brown. Intaglio printing. Languages scroll on left and Ashoka Pillar emblem on right.
Pale brown, Ochre blue and green colour. A circle with two Peacocks on branch of a tree. Deer, horses, bird and lotus.
1992
-do-
-do-
Overall colour scheme in pale pink, magneta and yellow
Shalimar garden
1996
-do-
Portrait of Mahatma
Overall colour scheme in mauve brown, orange and pink.
Intricate guilloche and floral patterns


Gandhi with multidirectional lines in the watermark window.
Portrait of Mahatma Gandhi. Embedded security thread containing the words "žøø£÷ø RBI’ readable on both sides when held against light.
with profiles of an elephant,rhinoceros and tiger’s faces. Value of note in 15 Indian languages.
II. Rs.20 notes

1972
147X63mm
Ashoka Pillar
Saffron colour . Ashoka Pillar emblem on the right and language panel on the left side.
Bold lettering in Hindi appears centrally in a horizontal panel, flanked by figures 20 at the corner. Picture of Parliament House. On the left value in Indian languages
1975
-do-
Small Ashoka Pillar with chain of spinning wheels. Resin treated paper
Red, blue, mauve and pale yellow colour. Numerical 20 in dark mauve on a light yellow lotus shaped design. Language scroll on the left and Ashoka Pillar emblem on right. The printing bleeds off on all sides but not in corners which are paper white. Bilingual names, clauses and signature.
Dry offset printing. Red, blue and mauve colour. Chariot wheel of Konark Sun temple at the centre. Watermark window in pale blue is surrounded by an ornamental design in perfect register with corresponding design on obverse of the note.
2001
-do-
Mahatma Gandhi Portrait
The security thread totally embedded with the letters 'Bharat' (in Hindi) and 'RBI' The colour is predominantly reddish orange. The Ashoka Pillar has been replaced by the Mahatma Gandhi's Portrait in dark red while the Ashoka Pillar has been shifted to the left side bottom corner and the size is smaller. The numeral 20, RBI seal, Mahatma Gandhi's Portrait, RBI Legend, Guarantee and Promise clauses, Governor's Signature and Ashoka Pillar inset are in intaglio. The words RBI and the numeral 20 in Micro letters appear alternatively behind the Mahatma Gandhi's Portrait. An identification mark by way of a small vertical rectangle in raised form appears on the left side of the note to facilitate the visually impaired to identify the denomination of the note. The numbers in the number panel are printed in red.
The central theme depicts the Indian coastal line with coconut grooves. The value of the note appears in 15 languages in a vertical panel in the left hand side.
III. Rs.50 notes
1975
147X73mm
Ashoka Pillar with chain of wheels.
Mauve colour with hues of blue green and purple. Numeral 50 in dark brown. Language scroll on left and Ashoka Pillar emblem on right. Printing bleeds off on all sides except at corners.
Mauve, brown and yellow colours. Parliament House at the centre. Watermark window in pale mauve, surrounded by an ornamental design which is in perfect register with corresponding design on the obverse.
1981
Do
-do-
Intaglio-fast blue, yellow red. Ashoka Pillar and languages in deep violet colours, rest in deep green and brown colours. below Ashoka Pillar emblem.
Dry offset-yellowish brown and body in deep purple colour. Parliament House with National flag on top
1997
-do-
Portrait of Mahatma Gandhi with multidirectional lines in the window.
Yellow, blue and violet colour. Ashoka Pillar replaced by Mahatma Gandhi Portrait in blue. Security thread totally embedded inside the note the letters and 'RBI’.A small black solid square on the left hand side of the watermark to help the visually impaired to identify the denomination of the note.
A panoramic view of India’s Parliament House with floral patterns above and filigree patterns on the sides. The value of the note in 15 Indian languages.
2005
-do-
Electrolyte watermark of denomina-tional numeral located alongside the existing Mahatma Gandhi Watermark
Machine readable windowed demetalised clear text magnetic security thread with inscriptions `Bharat’ (in Hindi) and RBI which fluoresces in yellow on both sides under U.V.light –width 1.4 mm. Omron anti-photocopying feature has been included with a different colour shade. The Intaglio Printing i.e. raised prints is more prominent in the name of the Bank in Hindi and English, the Reserve Bank Seal, guarantee and promise clause, Ahsoka Pillar Emblem on the left, RBI Governor’s signature. A square in intaglio on the left of the watermark window with increased depth of engraving helps the visually impaired to identify the denomination Optical fibres are in dual colour. The small floral design printed both on the front (hollow) and back(filled up) of the banknote in the middle of the vertical band next to the watermark window has an accurate back to back registration so that the numeral appears as one when seen against the light..
Year of printing is incorporated at the printing stage on the reverse of the banknote.
IV.Rs.100 notes
1967
157X73mm
Ashoka Pillar
Blue colour. Numeral 100 appears prominently in centre. Ashoka Pillar emblem on the right.
Vertical panel of 14 Indian languages on left. Hirakud Dam in the background in a circular frame.
1969
-do-
-do-
Blue colour and promise clause, Guarantee clause and Governor's signature in bilingual.
Picture of Mahatma Gandhi in a sitting posture with Sevagram Ashram in the background in a circular frame.
1975
-do-
Ashoka Pillar with spinning wheels.
Intaglio deep blue with hues of blue, brown, pink and dark green. Numeral 100 in dark blue. Watermark window light blue. RBI's name, promise clause, Guarantee clause and Governor's signature in bilingual. Language scroll on left and Ashoka Pillar emblem on right. Printing bleeds off on all sides except at corners.
Intaglio deep blue and brown shade of corn, agricultural operations, Tea plantation and hydro electric power project. `Watermark’ window is surrounded by an ornamental design which is in perfect register with similar design on the obverse.
1979
-do-
-do-
One side intaglio blue, red and deep green, Tints of reddish and yellowish green shade. below Ashoka Pillar emblem.
Dry-offset. Black and maroon colours. Tint design in greenish blue and brownish shades.
2005
-do-
Electrolyte watermark of denominational numeral located alongside the existing Mahatma Gandhi Watermark.
Machine readable windowed demetalised clear text magnetic security thread with inscriptions `Bharat’ (in Hindi) and RBI on notes of Rs.100 with exclusive colour shift. Colour of the thread shall shift from green to blue when viewed from different angles. It will fluoresce in yellow on the reverse and the text will fluoresce on the obverse under U.V.light –width – 2 m.m. Omron anti-photocopying feature has been included with a different colour shade. The Intaglio Printing i.e.raised prints is more prominent in the name of the Bank in Hindi and English, the Reserve Bank Seal, guarantee and promise clause, Ahsoka Pillar Emblem on the left, RBI Governor’s signature. A square in intaglio on the left of the watermark window with increased depth of engraving helps the visually impaired to identify the denomination Optical fibres are in dual colour. The small floral design printed both on the front (hollow) and back(filled up) of the banknote in the middle of the vertical band next to the watermark window has an accurate back to back registration so that the numeral appears as one when seen against the light.
Year of printing is incorporated at the printing stage on the reverse of the banknote.
V. Rs.500 notes
1987
167X73mm
Ashoka Pillar with spinning wheels.
Printed by dry offset and intaglio process. Background colours in peacock blue, ochre and green. Portrait of Mahatma Gandhi, Ashoka Pillar emblem, Promise clause & language panel are printed in intaglio. Five black horizontal relief lines in intaglio on the left side of the watermark to help the visually impaired to identify the denomination of the note.
Background showing rising sun. Background colours in deep green, orange and sky blue. Mahatma Gandhi leading a group of people.
1997
-do-
Portrait of Mahatma Gandhi with the multidirectional lines in the watermark window.
Printed by offset and intaglio process. Colour scheme is predominantly in yellow, green, mauve and brown. Mahatma Gandhi’s portrait is dark brown in colour. Mahatma Gandhi's portrait, RBI legend guarantee and promise clauses, Ashoka Pillar inset and Governor’s signature are in intaglio. A windowed security thread, partly visible from the front but totally embedded inside. Letters žøø£÷ø and RBI are printed on the thread. Green vertical band behind the Mahatma Gandhi portrait where latent image of 500 is printed. A small black solid circle in intaglio on the left hand side of the watermark to help the visually impaired to identify the denomination of the note.
Mahatma Gandhi leading a group of people in brown colour with floral patterns appearing above and filigree patterns on each side of this theme. A vertical panel of 15 languages appear on the left. All the above features are in intaglio.
2000
-do-
-do-
The colours are predominantly mild yellow, mauve and brown. Mahatma Gandhi’s portrait is in light brown. Numeral 500 printed in Optically Variable Ink (OVI) in Green to Blue colour shift. Except these changes, other designs are same as of 1997 series notes.
The design is the same as is on the 1997 series note.
VI. Rs.1000/- notes
2000
177X73mm
Portrait of Mahatma Gandhi with multidirectional lines in the watermark window.
Colour is generally pink (light peach colour with grey offset background). Mahatma Gandhi’s portrait is brown in colour. Mahatma Gandhi’s portrait, numeral 1000, RBI seal, RBI legend, guarantee and promise clause, Governor’s signature are in intaglio printing. Left hand number panel in red colour and right hand number panel in blue colour. Numeral 1000 printed in Optically Variable Ink (OVI) in Green to Blue colour shift. Optically variable (colour shifting) windowed security thread with magnetic property and containing text 1000 RBI'. Green vertical band behind the Mahatma Gandhi portrait where latent image of 1000 is printed. A small black solid diamond shape mark in intaglio on the left hand side of the watermark to help the visually impaired to identify the denomination of the note.
The theme depicts the overall development of the Indian economy in three colour intaglio. The 15 language panel is on the left side.














APPENDIX-6
Banknotes in Mahatma Gandhi Series - Security Features
The Reserve Bank has the sole authority to issue bank notes in India. Reserve Bank, like other central banks the world over, changes the design of banknotes from time to time. The Reserve Bank has introduced banknotes in the Mahatma Gandhi Series since 1996 and has so far issued notes in the denominations of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000 in this series. These notes contain distinct easily recognizable security features to facilitate the detection of genuine notes vis-à-vis forgeries.
Security Features:
Watermark
Security Thread
Latent Image
Microlettering
Intaglio
Identification Mark
Fluorescence
Optically Variable Ink
See through Register

WatermarkThe Mahatma Gandhi Series of banknotes contain the Mahatma Gandhi watermark with a light and shade effect and multi-directional lines in the watermark window.
Security ThreadRs.1000 notes introduced in October 2000 contain a readable, windowed security thread alternately visible on the obverse with the inscriptions ‘Bharat’ (in Hindi), ‘1000’ and ‘RBI’, but totally embedded on the reverse. The Rs.500 and Rs.100 notes have a security thread with similar visible features and inscription ‘Bharat’ (in Hindi), and ‘RBI’. When held against the light, the security thread on Rs.1000, Rs.500 and Rs.100 can be seen as one continuous line. The Rs.5, Rs.10, Rs.20 and Rs.50 notes contain a readable, fully embedded windowed security thread with the inscription ‘Bharat’ (in Hindi), and ‘RBI’. The security thread appears to the left of the Mahatma's portrait. Notes issued prior to the introduction of the Mahatma Gandhi Series have a plain, non-readable fully embedded security thread.
Latent ImageOn the obverse side of Rs.1000, Rs.500, Rs.100, Rs.50 and Rs.20 notes, a vertical band on the right side of the Mahatma Gandhi’s portrait contains a latent image showing the respective denominational value in numeral. The latent image is visible only when the note is held horizontally at eye level.
Microlettering This feature appears between the vertical band and Mahatma Gandhi portrait. It contains the word ‘RBI’ in Rs.5 and Rs.10. The notes of Rs.20 and above also contain the denominational value of the notes in microletters. This feature can be seen better under a magnifying glass.
Intaglio Printing
The portrait of Mahatma Gandhi, the Reserve Bank seal, guarantee and promise clause, Ashoka Pillar Emblem on the left, RBI Governor's signature are printed in intaglio i.e. in raised prints, which can be felt by touch, in Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000 notes.
Identification Mark
A special feature in intaglio has been introduced on the left of the watermark window on all notes except Rs.10/- note. This feature is in different shapes for various denominations (Rs. 20-Vertical Rectangle, Rs.50-Square, Rs.100-Triangle, Rs.500-Circle, Rs.1000-Diamond) and helps the visually impaired to identify the denomination.
Fluorescence
Number panels of the notes are printed in fluorescent ink. The notes also have optical fibres. Both can be seen when the notes are exposed to ultra-violet lamp.
Optically Variable Ink
This is a new security feature incorporated in the Rs.1000 and Rs.500 notes with revised colour scheme introduced in November 2000. The numeral 1000 and 500 on the obverse of Rs.1000 and Rs.500 notes respectively is printed in optically variable ink viz., a colour-shifting ink. The colour of the numeral 1000/500 appears green when the note is held flat but would change to blue when the note is held at an angle.
See through Register
The small floral design printed both on the front (hollow) and back (filled up) of the note in the middle of the vertical band next to the Watermark has an accurate back to back registration. The design will appear as one floral design when seen against the light.
Legal provisions against counterfeiting
Printing and circulation of forged notes are offences under Sections 489A to 489E of the Indian Penal Code and are punishable in the courts of law by fine or imprisonment or both.


















APPENDIX-7

Facilities for Exchange of Soiled and mutilatedcurrency notes
The facilities provided to the members of public for exchange of their soiled, mutilated etc. notes are as under.
Soiled Notes
Soiled notes are those which have become dirty and slightly cut. Notes which have numbers on two ends, i.e. notes in the denomination of Rs.10 and above which are in two pieces, are also treated as soiled note. The cut in such notes, should, however, not have passed through the number panels. All these notes can be exchanged at the counters of any public sector bank branch, any currency chest branch of a private sector bank or any Issue Office of the Reserve Bank of India. There is no need to fill any form for doing this.
Mutilated Notes
Notes which are in pieces and/or of which the essential portions are missing can also be exchanged. Essential portions in a currency note are name of issuing authority, guarantee, promise clause, signature, Ashoka Pillar emblem/portrait of Mahatma Gandhi, water mark. Refund value of these notes is, however, paid as per RBI(Note Refund) Rules. These can also be exchanged at the counters of any public sector bank branch, any currency chest branch of a private sector bank or any Issue Office of the RBI without filling any form.
Other facilities for exchange
To suit public convenience, the exchange facility for mutilated notes is also offered through TLR(Triple Lock Receptacle) covers. Members of public can obtain from the Enquiry Counter of the Reserve Bank a TLR cover and put their notes in the cover with particulars, such as, name, address, denominations of notes deposited, etc. filled in the columns provided on the cover, close it and deposit it in a box called Triple Lock Receptacle against issue of a paper token. This box is kept at the Enquiry counter at each Issue Office of the Reserve Bank. The admissible exchange value of the mutilated notes will be remitted by means of a bank draft or a pay order. Mutilated notes can also be sent to any of the RBI offices by registered/insured post.
Excessively soiled, brittle, burnt notes
Notes which have become excessively soiled, brittle or are burnt and, therefore, cannot withstand normal handling can be exchanged only at Issue Office of the RBI. Persons holding such notes may approach the Officer-in-charge of the Claims Section, Issue Department of the Reserve Bank for this purpose.






APPENDIX-8
CITIZENS' CHARTER
1. Objective of the Citizens' Charter
This Citizen's Charter provides information on various facilities provided by the Reserve Bank of India in the matter of exchange of notes and coins and the common standards of the services provided at RBI Issue Offices and commercial bank branches.
2. Services Available at RBI Issue Offices
The RBI Offices, where Issue Department is functioning, offer the facility to members of the public to exchange their notes including soiled and mutilated notes and coins including incurrent or worn out coins. The Bank is committed to provide exchange facility free of cost at its counters during business hours.
3. Names of RBI Offices which provide exchange facilities
The facilities are provided at the counters of the Bank's Regional Offices located at Ahmedabad, Bangalore, Belapur (Navi Mumbai), Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kochi, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram.
4 Exchange of notes into coins with the help of coin dispensers
Members of the general public can also get their notes exchanged into coins using the coin dispensers installed in the banking halls of the Reserve Bank's Regional Offices.
5. Exchange of soiled and mutilated notes and coins at the Bank's public counters
Members of the general public can avail themselves of the following facilities at the counters of the Bank's Offices.
(a) Exchange soiled notes. A note which has become limp or which has developed minor cuts due to wear and tear or which is disfigured by oil, colour, ink, etc. will be treated as soiled note. To facilitate easy exchange, notes which have been divided vertically through or near the centre with numbers intact are also treated as soiled notes. Notes on which political or religious slogans are written are not exchangeable under any circumstances.
(b) Exchange mutilated notes. A mutilated note is a note of which a portion is missing or a note which is composed of pieces, provided that the note presented is not less than half of the area of the note and that, if the note is composed of a note joined together, each piece is, in the opinion of the 'Prescribed Officer' [as defined in the RBI (Note Refund) Rules] identifiable as part of the same note.
(c) Exchange of coins including uncurrent coins into notes or coins.
6. Exchange of mutilated/cut notes received through the Triple Lock Receptacle or by Post In order to provide note exchange facility to members of the public who cannot wait at the Bank’s counters to tender their mutilated/cut notes, the Bank's Offices provide a facility of depositing mutilated/cut notes in a locked box called "Triple Lock Receptacle (TLR)". The TLR box is kept near a specified counter and notes can be dropped into the box in a closed cover which can be obtained from the enquiry counter. The tenderers are required to write
the particulars of the notes tendered by them, their name, address and bank account number on the cover. Members of the public can also send mutilated notes by insured and registered post to RBI Offices. In their own interest, such covers should be sent through Registered and Insured post. The exchange value of notes which are found payable under the Note Refund Rules is credited to the bank account of the tenderer through Electronic Clearing Service/Electronic Fund Transfer (EFT) which is at present free of cost. In case the tenderer does not have bank account or the place where he resides does not have a clearing service/provision of EFT, the exchange value is remitted by means of bank
draft/money order at the cost of the tenderer. The TLR facility is available onl for mutilated/cut notes and not for soiled notes.
7. General Conditions of Service
(i) The exchange facility over the Bank's counters is available during the business hours of the respective Regional Office and is free of cost.
(ii) The serial numbers of counters where exchange facility is made available at each Office are displayed at the banking hall of each Office of the Bank.
(iii) Mutilated/cut notes in closed covers are received in Triple Lock Receptacle upto one hour after the close of normal business hours.
(iv) The mutilated/cut notes are exchanged by the Bank as of grace under the Reserve Bank of India (Note Refund) Rules. When the mutilated/cut note is not found payable under the Rules, the same is rejected and rejection advice issued to the tenderer. The rejected note is retained by the bank and destroyed after four months.
(v) Notes/coins which are found to have been forged/ counterfeited are impounded and no value thereof is paid. Such notes/coins are retained by the Bank after issue of advice to the tenderer.
(vi) The security features of the bank notes issued by RBI are furnished as information to members of the public in the Bank's website
(vii) In case any member of the public faces any difficulty in getting the above exchange facilities at any RBI Offices or is asked for any bribe, he may record a complaint in the complaint book/register maintained at the enquiry counter of the Regional Office or bring it to the notice of the in-charge of the Issue Department of the respective RBI Office. The designation and addresses of the in-charges are furnished in the Annexure.
(xiv) The staff and officers of the Reserve Bank will treat each member of the public with courtesy and consideration. The staff will be helpful and will attend promptly to the customer's enquiries and complaints.
8. Exchange of soiled and mutilated notes and coins at the counters of commercial banks
(i) Offices of the Reserve Bank are located at selected centers. The Bank has, therefore, made arrangement for provision of the facility of exchange of soiled notes, exchange of notes to coins and coins to notes at the branches of scheduled commercial banks. While the facility for exchange of soiled notes is available at all branches of public sector banks and currency chest branches of private sector bank, the facility of exchange of mutilated / cut notes is available only at the currency chest branches of commercial banks. A list of the currency chest branches where the mutilated notes can be exchanged is available at the
enquiry counter of the RBI Offices. Such currency chest branches also have instructions to display notice board regarding availability of mutilated notes exchange facility. In case any such branch refuses to provide the exchange facility, aggrieved members of the public can complain to the Chairman and Managing Director/CEO of the commercial bank concerned. In case the grievance is not redressed, the matter may be brought to the notice of the
concerned Regional Office of Reserve Bank of India.
_(ii) Branches of other banks i.e. Co-operative Banks and Regional Rural Banks are expected to exchange notes and coins at their convenience. They, however, do not have powers to exchange mutilated notes.
9. Suggestion/Comment
In case any member of the public has any suggestion/comment to offer in regard to the Citizens' Charter, he may write to the Chief General Manager, Department of Currency Management, Reserve Bank of India, Central Office, Shahid Bhagat Singh Marg, Mumbai - 400 001.





























Appendix-9

CUSTOMERS PROTECTIONS
The Banking industry in India has devised many methods to resolve the complaints of its customers effectively. In case of any problem the simple way is to lodge a written complaint with the bank concerned. The Banks in India have also arranged for its customers a HOST policy under which every bank has to appoint a host and declare his contact numbers to be displaced in each branch of every bank. The host is require to reply to the customer within 48 hours of receiving the complaint and requires a time of maximum of one month to resolve the complaint of any customer. In case the complaint is not resolved and the customer is not satisfied with the actions taken by the bank or its host, a customer can approach to the banking ombudsman for which a special law has been incorporated by the Reserve Bank of India. The text of the schemes are given below:

THE BANKING OMBUDSMAN SCHEME 2006
(including May 24, 2007 Amendments)
NOTIFICATION
Ref.RPCD.BOS.No. 441 /13.01.01/2005-06
December 26, 2005
In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (10 of 1949) and in
partial modification of its Notification Ref.RPCD.No.950/13.01.01/2001-02 dated 14th June 2002, being
satisfied that it is necessary in public interest and in the interest of banking policy to enlarge the extent and
scope of the authority and functions of Banking Ombudsman for redressal of grievances against deficiency
in banking services, concerning loans and advances and other specified matters, the Reserve Bank hereby
directs that all commercial banks, regional rural banks and scheduled primary co-operative banks shall
comply with the Banking Ombudsman Scheme, 2006 (hereinafter referred to as the ‘Scheme’) annexed
hereto and the Banking Ombudsman Scheme, 1995, the Banking Ombudsman Scheme, 2002 to the extent
specified in the Scheme.
2. The Scheme shall come into force from January 1, 2006.
(Usha Thorat )
1
THE BANKING OMBUDSMAN SCHEME 2006
(including May 24, 2007 Amendments)
The Scheme is introduced with the object of enabling resolution of complaints relating to certain services rendered by banks and to facilitate the satisfaction or settlement of such complaints.
CHAPTER I
PRELIMINARY
1. SHORT TITLE, COMMENCEMENT, EXTENT AND APPLICATION
(1) This Scheme may be called the Banking Ombudsman Scheme, 2006.
(2) It shall come into force on such date as the Reserve Bank may specify.
(3) It shall extend to the whole of India.
(4) The Scheme shall apply to the business in India of a bank as defined under the Scheme.
2. SUSPENSION OF THE SCHEME
(1) The Reserve Bank, if it is satisfied that it is expedient so to do, may by order suspend for such period as may be specified in the order, the operation of all or any of the provisions of the Scheme, either generally or in relation to any specified bank.
(2) The Reserve Bank may, by order, extend from time to time, the period of any suspension ordered as aforesaid by such period, as it thinks fit.
3. DEFINITIONS
(1) ‘award’ means an award passed by the Banking Ombudsman in accordance with the Scheme.
(2) ‘Appellate Authority’ means the Deputy Governor in charge of the Department of the Reserve Bank implementing the Scheme.
(3) ‘authorised representative’ means a person duly appointed and authorised by a complainant to act on his behalf and represent him in the proceedings under the Scheme before a Banking Ombudsman for consideration of his complaint.
(4) ‘Banking Ombudsman’ means any person appointed under Clause 4 of the Scheme.
(5) ‘bank’ means a ‘banking company’, a ‘corresponding new bank’, a ‘Regional Rural Bank’, ‘State Bank of India’ a ‘Subsidiary Bank’ as defined in Section 5 of the Banking Regulation Act, 1949 (Act 10 of 1949), or a
‘Primary Co-operative Bank’ as defined in clause (c) of Section 56 of that Act and included in the Second Schedule of the Reserve Bank of India Act, 1934 (Act 2 of 1934), having a place of business in India, whether such bank is incorporated in India or outside India.
(6) ‘complaint’ means a representation in writing or through electronic means containing a grievance alleging deficiency in banking service as mentioned in clause 8 of the Scheme.
(7) ‘Reserve Bank’ means the Reserve Bank of India constituted by Section 3 of the Reserve Bank of India Act, 1934 (2 of 1934).
(8) ‘the scheme’ means the Banking Ombudsman Scheme, 2006.
(9) ‘secretariat’ means the office constituted as per sub-clause (1) of clause 6 of the Scheme.
(10) ‘settlement’ means an agreement reached by the parties either by conciliation or mediation under clause 11 of the Scheme.




CHAPTER II
ESTABLISHMENT OF OFFICE OF BANKING OMBUDSMAN
4. APPOINTMENT & TENURE
(1) The Reserve Bank may appoint one or more of its officers in the rank of Chief General Manager or General Manager to be known as Banking Ombudsmen to carry out the functions entrusted to them by or under the Scheme.
(2) The appointment of Banking Ombudsman under the above Clause may be made for a period not exceeding three years at a time.
5. LOCATION OF OFFICE AND TEMPORARY HEADQUARTERS
(1) The office of the Banking Ombudsman shall be located at such places as may be specified by the Reserve Bank.
(2) In order to expedite disposal of complaints, the Banking Ombudsman may hold sittings at such places within his area of jurisdiction as may be considered necessary and proper by him in respect of a complaint or reference before him.
6. SECRETARIAT
(1) The Reserve Bank shall depute such number of its officers or other staff to the office of the Banking Ombudsman as is considered necessary to function as the secretariat of the Banking Ombudsman.
(2) The cost of the Secretariat shall be borne by the Reserve Bank.
CHAPTER III
JURISDICTION, POWERS AND DUTIES OF BANKING OMBUDSMAN
7. POWERS AND JURISDICTION
(1) The Reserve Bank shall specify the territorial limits to which the authority of each Banking Ombudsman appointed under Clause 4 of the Scheme shall extend.
(2) The Banking Ombudsman shall receive and consider complaints relating to the deficiencies in banking or other services filed on the grounds mentioned in clause 8 and facilitate their satisfaction or settlement by agreement or through conciliation and mediation between the bank concerned and the aggrieved parties or by passing an Award in accordance with the Scheme.
(3) The Banking Ombudsman shall exercise general powers of superintendence and control over his Office and shall be responsible for the conduct of business thereat.
(4) The Office of the Banking Ombudsman shall draw up an annual budget for itself in consultation with Reserve Bank and shall exercise the powers of expenditure within the approved budget on the lines of Reserve Bank of India Expenditure Rules, 2005.
(5) The Banking Ombudsman shall send to the Governor, Reserve Bank, a report, as on 30th June every year, containing a general review of the activities of his Office during the preceding financial year and shall furnish such other information as the Reserve Bank may direct and the Reserve Bank may, if it considers necessary in the public interest so to do, publish the report and the information received from the Banking Ombudsman in such consolidated form or otherwise as it deems fit.

CHAPTER IV
PROCEDURE FOR REDRESSAL OF GRIEVANCE
8. GROUNDS OF COMPLAINT
(1) A complaint on any one of the following grounds alleging deficiency in banking or other services may be filed with the Banking Ombudsman having jurisdiction:
(a) non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;
(b) non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof;
(c) non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof;
(d) non-payment or delay in payment of inward remittances ;
(e) failure to issue or delay in issue of drafts, pay orders or bankers’ cheques;
(f) non-adherence to prescribed working hours ;
(g) failure to honour guarantee or letter of credit commitments ;
(h) failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents;
(i) delays, non-credit of proceeds to parties' accounts, non-payment of deposit or nonobservance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings, current or other account maintained with a bank ;
(j) delays in receipt of export proceeds, handling of export bills, collection of bills etc., for exporters provided the said complaints pertain to the bank's operations in India;
(k) complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank-related matters;
(l) refusal to open deposit accounts without any valid reason for refusal;
(m) levying of charges without adequate prior notice to the customer;
(n) non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/Debit card operations or credit card operations;
(o) non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees);
(p) refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;
(q) refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities;
(r) forced closure of deposit accounts without due notice or without sufficient reason;
(s) refusal to close or delay in closing the accounts;
(t) non-adherence to the fair practices code as adopted by the bank; and
(u) any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services.
(2) A complaint on any one of the following grounds alleging deficiency in banking service in respect of loans and advances may be filed with the Banking Ombudsman having jurisdiction:
(a) non-observance of Reserve Bank Directives on interest rates;
(b) delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications;
(c) non-acceptance of application for loans without furnishing valid reasons to the applicant; and
(d) non-observance of any other direction or instruction of the Reserve Bank as may be specified by the Reserve Bank for this purpose from time to time.
(3) The Banking Ombudsman may also deal with such other matter as may be specified by the Reserve Bank from time to time in this behalf.
9. PROCEDURE FOR FILING COMPLAINT
(1) Any person who has a grievance against a bank on any one or more of the grounds mentioned in Clause 8 of the Scheme may, himself or through his authorised representative (other than an advocate), make a complaint to the Banking Ombudsman within whose jurisdiction the branch or office of the bank
complained against is located. Provided that a complaint arising out of the operations of credit cards, shall be filed before the Banking Ombudsman within whose territorial jurisdiction the billing address of the card holder is located and not the place where the bank concerned or the credit card processing unit is located.
(2) (a) The complaint in writing shall be duly signed by the complainant or his authorized representative and shall be, as far as possible, in the form specified in Annexure ‘A’ or as near as thereto as circumstances admit, stating clearly:
(i) the name and the address of the complainant,
(ii) the name and address of the branch or office of the bank against which the complaint is made,
(iii) the facts giving rise to the complaint,
(iv) the nature and extent of the loss caused to the complainant, and
(v) the relief sought for .
(b) The complainant shall file along with the complaint, copies of the documents, if any, which he proposes to rely upon and a declaration that the complaint is maintainable under sub-clause (3) of this clause.
(c) A complaint made through electronic means shall also be accepted by the Banking Ombudsman and a print out of such complaint shall be taken on the record of the Banking Ombudsman.
(d) The Banking Ombudsman shall also entertain complaints covered by this Scheme received by Central Government or Reserve Bank and forwarded to him for disposal.
(3) No complaint to the Banking Ombudsman shall lie unless:-
(a) the complainant had, before making a complaint to the Banking Ombudsman, made a written representation to the bank and the bank had rejected the complaint or the complainant had not received any reply within a period of one month after the bank received his representation or the complainant is not satisfied with the reply given to him by the bank;
(b) the complaint is made not later than one year after the complainant has received the reply of the bank to his representation or, where no reply is received, not later than one year and one month after the date of the representation to the bank;
(c) the complaint is not in respect of the same subject matter which was settled or dealt with on merits by the Banking Ombudsman in any previous proceedings whether or not received from the same complainant or along with one or more complainants or one or more of the parties concerned with the subject matter;
(d) the complaint does not pertain to the same subject matter, for which any proceedings before any court, tribunal or arbitrator or any other forum is pending or a decree or Award or order has been passed by any such court, tribunal, arbitrator or forum;
(e) the complaint is not frivolous or vexatious in nature; and
(f) the complaint is made before the expiry of the period of limitation prescribed under the Indian Limitation Act, 1963 for such claims.
10. POWER TO CALL FOR INFORMATION
(1) For the purpose of carrying out his duties under this Scheme, a Banking Ombudsman may require the bank against whom the complaint is made or any other bank concerned with the complaint to provide any information or furnish certified copies of any document relating to the complaint which is or is alleged to be in its possession.
Provided that in the event of the failure of a bank to comply with the requisition without sufficient cause, the Banking Ombudsman may, if he deems fit, draw the inference that the information if provided or copies if furnished would be unfavourable to the bank.
(2) The Banking Ombudsman shall maintain confidentiality of any information or document that may come into his knowledge or possession in the course of discharging his duties and shall not disclose such information or document to any person except with the consent of the person furnishing such information or
document. Provided that nothing in this clause shall prevent the Banking Ombudsman from disclosing information or document furnished by a party in a complaint to the other party or parties to the extent considered by him to be reasonably required to comply with any legal requirement or the principles of natural justice and fair play in the proceedings.
11. SETTLEMENT OF COMPLAINT BY AGREEMENT
(1) As soon as it may be practicable to do, the Banking Ombudsman shall send a copy of the complaint to the branch or office of the bank named in the complaint, under advice to the nodal officer referred to in subclause (3) of clause 15, and endeavour to promote a settlement of the complaint by agreemen between the complainant and the bank through conciliation or mediation.
(2) For the purpose of promoting a settlement of the complaint, the Banking Ombudsman may follow such procedure as he may consider just and proper and he shall not be bound by any rules of evidence.
(3) The proceedings before the Banking Ombudsman shall be summary in nature.
12. AWARD BY THE BANKING OMBUDSMAN
(1) If a complaint is not settled by agreement within a period of one month from the date of receipt of the complaint or such further period as the Banking Ombudsman may allow the parties, he may, after affording the parties a reasonable opportunity to present their case, pass an Award or reject the complaint.
(2) The Banking Ombudsman shall take into account the evidence placed before him by the parties, the principles of banking law and practice, directions, instructions and guidelines issued by the Reserve Bank from time to time and such other factors which in his opinion are relevant to the complaint.
(3) The award shall state briefly the reasons for passing the award.
(4) The Award passed under sub-clause (1) shall specify the amount, if any, to be paid by the bank to the complainant by way of compensation for the loss suffered by him and may contain any direction to the bank.
(5) Notwithstanding anything contained in sub-clause (4), the Banking Ombudsman shall not have the power to pass an award directing payment of an amount which is more than the actual loss suffered by the complainant as a direct consequence of the act of omission or commission of the bank, or ten lakh rupees whichever is lower.
(6) In the case of complaints arising out of credit card operations, the Banking Ombudsman shall, while determining the amount of compensation payable, take into account the loss of the complainant’s time, expenses incurred by the complainant, financial loss, harassment and mental anguish suffered by the complainant.
(7) A copy of the Award shall be sent to the complainant and the bank.
(8)1 An award shall lapse and be of no effect unless the complainant furnishes to the bank concerned within a period of 30 days from the date of receipt of copy of the Award, a letter of acceptance of the Award in full and final settlement of his claim. Provided that no such acceptance may be furnished by the complainant if he has filed an appeal under sub. clause (1) of clause 14.
(9)2 The bank shall, unless it has preferred an appeal under sub. clause (1) of clause 14, within one month from the date of receipt by it of the acceptance in writing of the Award by the complainant under sub-clause
(8), comply with the Award and intimate compliance to the Banking Ombudsman.
13. REJECTION OF THE COMPLAINT3
The Banking Ombudsman may reject a complaint at any stage if it appears to him that the complaint made is;
(a) not on the grounds of complaint referred to in clause 8 or
(b) beyond the pecuniary jurisdiction of Banking Ombudsman prescribed under clause 12
(5) or
(c) frivolous, vexatious, malafide; or
(d) without any sufficient cause; or
(e) that it is not pursued by the complainant with reasonable diligence; or
1 Substituted by Notification: CSD.BOS. 4638 /13.01.01/2006-07 May 24, 2007.
2 Substituted by Notification: CSD.BOS. 4638 /13.01.01/2006-07 May 24, 2007.
3Substituted by Notification: CSD.BOS. 4638 /13.01.01/2006-07 May 24, 2007.
(f) in the opinion of the Banking Ombudsman there is no loss or damage or inconvenience caused to the complainant; or
(g) requiring consideration of elaborate documentary and oral evidence and the
proceedings before the Banking Ombudsman are not appropriate for adjudication of such complaint. ”
14. APPEAL BEFORE THE APPELLATE AUTHORITY:
(1)4 Any person aggrieved by an Award under clause 12 or rejection of a complaint for the reasons referred to in sub. clauses (c) to (g) of clause 13, may within 30 days of the date of receipt of communication of Award or rejection of complaint, prefer an appeal before the Appellate Authority;
Provided that in case of appeal by a bank, the period of thirty days for filing an appeal shall commence from the date on which the bank receives letter of acceptance of Award by complainant under sub. clause (8) of clause 12; Provided that the Appellate Authority may, if he is satisfied that the applicant had sufficient cause for not making the appeal within time, allow a further period not exceeding 30 days; Provided further that appeal may be filed by a bank only with the previous sanction of the Chairman or, in his absence, the Managing Director or the Executive Director or the Chief Executive Officer or any other officer of equal rank.”
(2) The Appellate Authority shall, after giving the parties a reasonable opportunity of being heard
(a) dismiss the appeal; or
(b) allow the appeal and set aside the Award; or
(c) remand the matter to the Banking Ombudsman for fresh disposal in accordance with such directions as the Appellate Authority may consider necessary or proper; or
(d) modify the Award and pass such directions as may be necessary to give effect to the Award so modified; or
(e) pass any other order as it may deem fit.
(3) The order of the Appellate Authority shall have the same effect as the Award passed by Banking Ombudsman under clause 12 or the order rejecting the complaint under clause 13, as the case may be.
4 Substituted by Notification: CSD.BOS. 4638 /13.01.01/2006-07 May 24, 2007.

15. BANKS TO DISPLAY SALIENT FEATURES OF THE SCHEME FOR COMMON KNOWLEDGE OF
PUBLIC.
(1) The banks covered by the Scheme shall ensure that the purpose of the Scheme and the name and
address of the Banking Ombudsman to whom the complaints are to be made by the aggrieved party are displayed prominently in all the offices and branches of the bank in such manner that a person visiting the
office or branch has adequate information of the Scheme.
(2) The banks covered by the Scheme shall ensure that a copy of the Scheme is available with the designated officer of the bank for perusal in the office premises of the bank if anyone desires to do so and notice about the availability of the Scheme with such designated officer shall be displayed along with the notice under sub-clause (1) of this clause.
(3) The banks covered by the Scheme shall appoint Nodal Officers at their Regional/Zonal Offices and inform the respective Office of the Banking Ombudsman under whose jurisdiction the Regional/Zonal Office falls. Th Nodal Officer so appointed shall be responsible for representing the bank and furnishing information to the Banking Ombudsman in respect of complaints filed against the bank.
CHAPTER V
MISCELLANEOUS
16. REMOVAL OF DIFFICULTIES
If any difficulty arises in giving effect to the provisions of this Scheme, the Reserve Bank may make such provisions not inconsistent with the Banking Regulation Act, 1949 or the Scheme, as it appears to it to be necessary or expedient for removing the difficulty.
17. APPLICATION OF THE BANKING OMBUDSMAN SCHEMES, 1995 AND 2002
The adjudication of pending complaints and execution of the Awards already passed, before coming into force of the Banking Ombudsman Scheme, 2006, shall continue to be governed by the provisions of the respective Banking Ombudsman Schemes and instructions of the Reserve Bank issued thereunder.

Annexure ‘A’
FORM OF COMPLAINT (TO BE LODGED ) WITH THE BANKING OMBUDSMAN
(FOR OFFICE USE ONLY)
Complaint No. ………of year ..…
Date ……………………..
(TO BE FILLED UP BY THE COMPLAINANT)
To
The Banking Ombudsman
(*Territorial jurisdiction,
Place of BO’s office……)
Dear Sir,
Sub: Complaint against …………………….(Name of the bank’s branch) of
…………………………………………………………………………………(Name of the Bank)
Being aggrieved the complainant named herein has submitted a complaint with the above referred bank.
Details of the complaint are as under:
1. NAME OF THE COMPLAINANT ………………
2. FULL ADDRESS OF THE COMPLAINANT ……………………
……………………
…………………… 27
PIN CODE ………………..
PHONE NO. / FAX NO.……………………
3. COMPLAINT AGAINST (NAME AND FULL
ADDRESS OF THE BRANCH/ BANK ) ………………………….
………………………….
PIN CODE …………………….
PHONE NO. / FAX NO. …………………….
4. PARTICULARS OF BANK ACCOUNT
(Please state nature of account viz. Savings bank/current/cash credit/term deposit/loan account etc. related
to the subject matter of the complaint being made )
…………………………………………………………………………………
12
5. (a) DATE OF REPRESENTATION BY THE COMPLAINANT TO
THE BANK ……………………….
(Please enclose three copies of the representation)
(b) Whether any reminder was sent by the complainant? YES /NO
(If yes, please enclose three copies of the reminder)
6. SUBJECT MATTER OF THE COMPLAINT
(Please refer to Clause 8 of the Scheme)
……………………………………………………………………………..
7. DETAILS OF THE COMPLAINT
(If space is not sufficient Please enclose separate sheet)
……………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………
……………………………………………………………………………………..
28
8. (a) Whether any reply (Within a period of one month after the bank concerned received the
representation) has been received? YES / NO
(If yes, please enclose ‘three copies’ of the bank’s reply)
(b) Whether the representation has been rejected ? YES/ NO
(If yes, please enclose ‘three copies’ of the bank’s letter)
(c) Whether the complainant has received any other final decision of the bank?
YES/ NO
(If yes, please enclose ‘three copies’ of the bank’s letter conveying its final decision)
9 NATURE OF RELIEF SOUGHT FROM THE BANKING OMBUDSMAN
………………………………………………………………………………
( Please enclose ‘three copies’ of documentary proof, if any, in support of your claim)
10. NATURE AND EXTENT OF MONETARY LOSS, IF ANY, CLAIMED BY THE COMPLAINANT BY WAY
OF COMPENSATION Rs.……………….
(Please enclose documentary proof, if any, to show that such loss is actual loss caused as a direct consequence of alleged omission or commission of the bank)
11. LIST OF DOCUMENTS ENCLOSED
(Please enclose ‘three copies’ of all the documents)

12. DECLARATION
1. I/ We , the complainant/s herein declare that:
(a) the information furnished herein above is true and correct; and
(b) I/ We have not concealed or misrepresented any fact stated in aforesaid columns and the documents submitted herewith.
2. The complaint is filed before expiry of period of one year reckoned in accordance with the provisions of Clause 9(3) (a) and (b) of the Scheme.
3. (a) The subject matter of the present complaint has never been brought before the Office of the Banking Ombudsman by me/ or by any one of us or by any of the parties concerned with the subject matter to the best of my/ our knowledge.
(b) The subject matter of the present complaint is not in respect of the same which was settled through the Office of the Banking Ombudsman in any previous proceedings.
(c) The subject matter of the present complaint has not been decided by any forum/court/arbitrator.
4. I/We authorise the bank to disclose any such information/ documents furnished by us to the Banking Ombudsman and disclosure whereof in the opinion of the Banking Ombudsman is necessary and is required for redressal of any other complaint or our complaint.
5. I/We have noted the contents of the Banking Ombudsman Scheme, 2006.
Yours faithfully,
(Signature of Complainant)
NOMINATION – (If the complainant wants to nominate his representative to appear and make submissions on his behalf before the Banking Ombudsman or to the Office of the Banking Ombudsman, the following declaration should be submitted.)
30
I/We the above named complainant/s hereby nominate Shri/Smt………………………………………….. who
is not an Advocate and whose address is
……………………………………………………………………………………………………………………………
… as my/our REPRESENTATIVE in all proceedings of this complaint and confirm that any statement, acceptance or rejection made by him/her shall b binding on me/us. He/She has signed below in my presence.
ACCEPTED
(Signature of Representative)


(Signature of Complainant)
What do the terms CRR and SLR mean?
CRR, or cash reserve ratio, refers to a portion of deposits (as cash) which banks have to keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank deposits is totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby, inflation.
Besides the CRR, banks are required to invest a portion of their deposits in government securities as a part of their statutory liquidity ratio (SLR) requirements.
The government securities (also known as gilt-edged securities or gilts) are bonds issued by the Central government to meet its revenue requirements. Although the bonds are long-term in nature, they are liquid as they can be traded in the secondary market.
Since 1991, as the economy has recovered and sector reforms increased, the CRR has fallen from 15 per cent in March 1991 to 5.5 per cent in December 2001. The SLR has fallen from 38.5 per cent to 25 per cent over the past decade.
What impact does a cut in CRR have on interest rates?
From time to time, RBI prescribes a CRR or the minimum amount of cash that banks have to maintain with it. The CRR is fixed as a percentage of total deposits. As more money chases the same number of borrowers, interest rates come down.
Does a change in SLR and gilts products impact interest rates?
SLR reduction is not so relevant in the present context for two reasons:
First, as part of the reforms process, the government has begun borrowing at market-related rates. Therefore, banks get better interest rates compared to earlier for their statutory investments in government securities.
Second, banks are still the main source of funds for the government.
This means that despite a lower SLR requirement, banks' investment in government securities will go up as government borrowing rises. As a result, bank investment in gilts continues to be high despite the RBI bringing down the minimum SLR to 25 per cent a couple of years ago.
Therefore, for the purpose of determining the interest rates, it is not the SLR requirement that is important but the size of the government's borrowing programme. As government borrowing increases, interest rates, too, rise.
Besides, gilts also provide another tool for the RBI to manage interest rates. The RBI conducts open market operations (OMO) by offering to buy or sell gilts.
If it feels interest rates are too high, it may bring them down by offering to buy securities at a lower yield than what is available in the market.

Appendix-10
Protection for Bank Depositors
Bank deposits up to Rs.100000.00 (Rupees One Lakh Only) in respect of each depositor are fully protected by the Deposit Insurance and Credit Guarantee Corporation under the Deposit Insurance Scheme. The Scheme covers all commercial banks (including Regional Rural Banks) operating in India and also co-operative banks in States and Union Territories to which the Scheme has been extended by the Central Government. These Banks are registered as insured banks with the Corporation.
The Corporation’s liability in respect of insured deposits will arise in the following cases:
· If a Bank goes into liquidation: The Corporation will arrange to pay to every depositor directly or through the liquidator the amount due to him under the insurance scheme.
· If a bank is reconstructed or amalgamated with another bank and the scheme the scheme of reconstruction or amalgamation does not entitle a depositor to get credit for the full amount of his deposit: The Corporation will arrange to pay the reconstructed bank or the amalgamated bank an amount equivalent to the shortfall between the amount due to the depositor under the insurance scheme and the amount of deposit of credit received by him under the scheme of reconstruction or amalgamation.
FAQs
DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION (DICGC)
DICGC is a wholly owned subsidiary of the Reserve Bank of India, Since 1962, it is engaged in providing deposit insurance for depositors of banks against loss of part or all of their deposits arising from bank failures. Deposit Insurance is compulsory as well as automatic for the bank and thus no bank can remain uninsured by the DICGC except those cooperative banks where the concerned State Governments are yet to pass the required legislation. The purpose of this brochure is to explain the deposit insurance coverage that DICGC provides.
1. Which banks are insured by DICGC?
Commercial Banks
All commercial banks, including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by DICGC.

Co-operative Banks
All State, Central and primary cooperative banks, also called urban cooperative banks, functioning in States which have amended the local Co-operative Societies Act empowering the Reserve Bank to order the Registrar of Cooperative Societies of the State to liquidate, amalgamate or reconstruct a cooperative bank and to supersede its committee of management, are insured by DICGC. At present all States other than the State of Arunachal Pradesh, Meghalaya, Mizoram, Nagaland, and the Union Territories of Chandigarh and Lakshadweep are covered by DICGC.
Primary cooperative societies are not insured by DICGC.
2. What does DICGC insure?
DICGC insures all deposits such as savings, fixed, current, recurring, etc. deposits except the following types of deposits
(i) Deposits of foreign Governments
(ii) Deposits of State / Central Governments
(iii) Inter-bank deposits
(iv) Certificates of deposit
(v) Deposits of the stat land development banks with the stat cooperative banks
(vi) Deposits taken as cash collaterals
(vii) Deposits which are created by transferring subordinated liabilities, at least 6 months prior to a bank failure or moratorium, whichever is earlier and
(viii) Deposits held abroad.
3. What is the maximum deposit amount insured by DICGC?
Each depositor in a bank is insured up to a maximum of Rs.1,00,000 (Rupees One Lakh ) for both principal and interest amount held by him in the same right and capacity as on the date of liquidation/cancellation of bank’s license.
4. How will you know whether your bank is insured by DICGC or not?
DICGC while registering the banks as insured banks advises them to display prominently at their branches that the depositors’ money up to Rupees one lakh is insured by DICGC. Besides, the banks are also required to indicate in the account opening forms the extent of insurance cover available to the depositor. In case of doubt, depositor should make specific enquiry from the branch official in this regard.
5. What is the ceiling on amount of insured deposits kept by one person in different branches of a bank?
The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount up to Rupees on lakh is paid.
6. Does DICGC insure just the principal on an account or both principal and accrued interest?
DICGC insures principal and interest up to a maximum amount of Rs. One lakh. For example, if an individual had an account with a principal amount of Rs.95000 plus accrued interest of Rs.4000 the total amount insured by the DICGC would be Rs.99000. If, however, the principal amount in that account was Rs. One lakh, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.
7. Can deposit insurance be increased by depositing funds into several different accounts all at the same bank?
No. All funds held in the same type of ownership at the same bank are added together before deposit insurance is determined. If the funds are in different types of ownership, or are deposited into separate banks they would be separately insured.
8. Are deposits in different banks separately insured?
Yes. If you have deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank.
9. If I have my funds on deposit at two different banks, and those two banks are closed on the same day, are my funds added together, or insured separately?
Your funds from each bank would be insured separately, regardless of the date of closure.
10. What is the meaning of deposits held in the same right and capacity and different right and capacity?
If a person opens in his name more than one account in a bank, for example Mr. Sinha opens one savings account and one or more fixed deposit accounts, all the accounts are considered in the same right and capacity and insurance coverage is limited to a maximum of Rupees one lakh. But if Mr. Sinha opens a joint account, the joint account is considered in different right and capacity and insurance coverage is provided separately from any deposits individually owned by the joint depositors. Each joint account owned by a combination of different persons is insured up to Rupees One Lakh.

Can the bank deduct the amount of dues payable by the depositor?
Yes. Banks have right to set off their dues from the amount of deposits. The deposit insurance is available after netting of such dues.
Who pays the cost of deposit insurance?
Deposit insurance premium is borne by the insured banks.
When is DICGC liable to pay?
If a bank goes into liquidation:
DICGC is liable to pay to each depositor through the liquidator, the amount of his deposit up to Rupees One Lakh within two months from the date of receipt of claim list from the liquidator.
If a bank is reconstructed or amalgamated/merged with another bank:
DICGC pays the bank concerned, the difference between the amount due to depositor under the insurance scheme and the amount received by him under the reconstruction/amalgamation scheme within two months from the date of receipt of claim list from the transferee bank/Chief Executive Officer of the insured bank as the case may be.
14. Does the DICGC directly deal with the depositors of failed banks?
No. In the event of a bank’s liquidation, the liquidator prepares depositor wise claim list and sends it to the DICGC for the scrutiny and payment. DICGC pays the money to liquidator who is liable to pay to the depositors. In the case of amalgamation/merger of banks, the amount due to each depositor is paid to the transferee bank.
15. Can any insured bank withdraw from the DICGC coverage?
No. The deposit insurance scheme is compulsory and no bank can withdraw from it.
16. Can DICGC withdraw deposit insurance coverage from any bank?
Deposit Insurance coverage of a bank may be withdrawn if it has been prohibited from receiving fresh deposits; or its license has been cancelled by the Reserve Bank; or it has been ordered to be would up; or it has transferred all deposit liabilities in India to any other institution; or it ceases to be a banking company/eligible co-operative bank; or a liquidator has been appointed in pursuance of a resolution for voluntary winding up of its affairs; or a scheme of compromise or arrangement or reconstruction has been sanctioned by any competent authority and the said scheme does not permit acceptance of fresh deposit; or it has been amalgamated with any other bank/co-operative society.
The Corporation may cancel the registration of an insured bank if it fails to pay the premium for three consecutive periods. In the event of DICGC withdrawing its coverage from any bank for default in the payment of premium the public will be notified through newspapers.
The depositors will continue to have the benefit of Deposits Insurance on the amount of deposit held by them as on the date of withdrawal of coverage.
The following are the Scheduled Banks in India (Public Sector):
State Bank of India
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Andhra Bank
Allahabad Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Overseas Bank
Indian Bank
Oriental Bank of Commerce
Punjab National Bank
Punjab and Sind Bank
Syndicate Bank
Union Bank of India
United Bank of India
UCO Bank
Vijaya Bank
The following are the Scheduled Banks in India (Private Sector):
Vysya Bank Ltd
Axis Bank Ltd
Indusind Bank Ltd



The following are the Scheduled Foreign Banks in India:
American Express Bank Ltd.
ANZ Gridlays Bank Plc.
Bank of America NT & SA
Bank of Tokyo Ltd.
Banquc Nationale de Paris
Barclays Bank Plc
Citi Bank N.C.
Deutsche Bank A.G.
Hongkong and Shanghai Banking Corporation
Standard Chartered Bank
The Chase Manhattan Bank Ltd.
Dresdner Bank AG.
The following are the Scheduled Banks in India (Public Sector):
State Bank of India
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Andhra Bank


Banking code of conduct

Introduction
This is a voluntary Code, which sets minimum standards of banking practices for banks to follow when they are dealing with individual customers. It provides protection to yo and explains how banks are expected to deal with you for your day-to-day operations In the Code, 'you' denotes the customer and 'we', the bank the customer deals with.

1.1 Objectives of the Code

The Code has been developed to

a. promote good and fair banking practices by setting minimum standards in dealing with
you;
b. increase transparency so that you can have a better understanding of what you can
reasonably expect of the services;
c. encourage market forces, through competition, to achieve higher operating standards;
d. promote a fair and cordial relationship between you and your bank;
e. foster confidence in the banking system.

1.2 Application of Code
1.3 Unless it says otherwise, all parts of this Code apply to all the products and services listed below, whether they are provided by branches or subsidiaries across the counter, over the phone, by post, through interactive electronic devices, on the internet or by any other method. However, all products discussed here may or may not be offered by all banks.
a. Current accounts, savings account, term deposits, recurring deposit, PPF accounts
and all other deposit accounts.
b. Payment services such as pension, payment orders, remittances by way of Demand
Drafts and wire transfers.
c. Banking services related to Government transactions.
d. Demat accounts, equity, government bonds.
e. Indian currency notes exchange facility.
f. Collection of cheques, safe custody services, safe deposit locker facility
g. Loans and overdrafts.
h. Foreign exchange services including money changing.
i. Third party insurance and investment products sold through our branches.
j. Card products including credit cards, debits cards, ATM cards and services (including credit cards offered by our subsidiaries/companies promoted by us).
The meanings of (key) words in bold black have been given in the Glossary.
2 Key Commitments
2.1 Our key commitments to you
2.1.1 To Act Fairly And Reasonably In All Our Dealings With You By:
a. Providing minimum banking facilities of receipt and payment of cash/ cheques at the
bank’s counter.
b. Meeting the commitments and standards in this Code, for the products and services we
offer, and in the procedures and practices our staff follow.
c. Making sure our products and services meet relevant laws and regulations in letter and
spirit.
d. Ensuring that our dealings with you rest on ethical principles of integrity and
transparency.
e. Operating secure and reliable banking and payment systems.
2.1.2 To Help You To Understand How Our Financial Products And Services Work By:
a. Giving you information about them in any one or more of the following languages: Hindi, English or the appropriate local language.
b. Ensuring that our advertising and promotional literature is clear and not misleading
c. Ensuring that you are given clear information about our products and services, the terms and conditions and the interest rates/service charges, which apply to them.
d. Giving you information on what are the benefits to you, how you can avail of the benefits what are their financial implications and whom you can contact for addressing you queries and how.
2.1.3 To Help You Use Your Account Or Service By:
a. Providing you regular appropriate updates.
b. Keeping you informed about changes in the interest rates, charges or terms and
conditions.
2.1.4 To Deal Quickly And Sympathetically With Things That Go Wrong By:
a. Correcting mistakes promptly and cancelling any bank charges that we apply due to our mistake.
b. Handling your complaints promptly.
c. Telling you how to take your complaint forward if you are still not satisfied you can higher authority.
d. Providing suitable alternative avenues to alleviate problems arising out of technological failures.
2.1.5 To Treat All Your Personal Information as Private and Confidential
We will treat all your personal information as private and confidential subject to matters
mentioned in para number 5 below.
2.1.6 To Publicise the Code We will
a. provide you( existing customer) with a copy of the Code
b. provide you ( new customer) with a copy of the Code when you open your
account;
c. make this Code available on request either over the counter or by electronic
communication or mail;
d. make available this Code at every branch and on our website; and
e. ensure that our staff are trained to provide relevant information about the Code
and to put the Code into practice.
2.1.7 To adopt and practice a Non - Discrimination Policy
We will not discriminate on the basis of age, race, gender, marital status, religion or disability.
3 Information
You can get information on interest rates, common fees and charges through any one of the following:
a. Looking at the notices in our branches ;
b. Phoning our branches or help-lines;
c. Looking on our website;
d. Asking our designated staff/help desk ;or
e. Referring to the service guide/Tariff Schedule.
3.1 Before You Become a Customer we will:
a. give you clear information explaining the key features of the services and products you
tell us you are interested in;
b. give you information on any type of products and services which we offer and that may suit your needs;
c. tell you if we offer products and services in more than one way [for example, through
ATMs, on the Internet, over the phone, in branches and so on] and tell you how to find
out more about them;
d. tell you what information we need from you to prove your identity and address, for us to comply with legal, regulatory and internal policy requirements.
3.2 When You Become a Customer we will:
a. give you more information on the key features of the product, including applicable
interest rates/ fees and charges;
b. give you extra information on your rights and responsibilities especially regarding
availing of nomination facility offered on all deposit accounts, articles in safe custody
and safe deposit vaults;
c. automatically register your name under ‘Do Not Call ‘ Service. We will not
inform/extend to you through telephone calls/SMSs/ emails any new product /service unless and until you inform us in writing that you consent to avail of this information/ service.
3.3 Interest Rates
We will give you information on
a. the interest rates which apply to your accounts, both deposit and loan.
b. when we will pay interest on your deposits, or charge interest on your loan accounts.
c. how we apply interest to your account and method of calculation of interest.
Changes in interest rates
We will inform you when we change interest rates on our products.
3.4 Tariff Schedule
Fees & Charges
a. We will display in our branches :
i) a notice about the Tariff Schedule and that you can ask to see this
free of cost ;
ii) a list of services which are rendered free of charge.
iii) a notice incorporating charges leviable for non maintenance of minimum balances in the savings bank account, collection of outstation cheques, issue of Demand Draft and cheques books, account statement , account closure and charges for
deposit/withdrawal at ATM locations .
b. We will give you details in our Tariff Schedule of any charges applicable to the products and services chosen by you .
c. We will also provide you information about the penalties liable in case of nonobservance/ violation of any of the terms and conditions governing the product/ services chosen by you.
Changes in Fees & Charges
If we increase any of these charges or introduce a new charge, it will be notified one month prior to the revised charges being levied / becoming effective.
3.5 Terms and Conditions
a. When you become a customer or avail of a product/ service for the first time, we will
advise you the relevant terms and conditions for the service you have asked us to provide.
b. All terms and conditions will be fair and will set out respective rights especially with
regard to nomination facility and liabilities & obligations clearly and as far as possible in
plain and simple language.
Changes to Terms and Conditions
a. When you become a customer, we will tell you of changes to terms and conditions
through any of the following channels :-
i) Account statements/ Pass book
ii) ATMs
iii) Notice Board at each branch
iv) Internet, including email and website
v) Newspaper
b. Normally, changes will be made with prospective effect giving notice of one month.
c. If we have made any change without notice we will notify the change within 30
days . If such change is to your disadvantage, you may within 60 days and without
notice close your account or switch it without having to pay any extra charges or
interest.
d. If we have made a major change or a lot of minor changes in any one year, we will,
on request give you a copy of the new terms and conditions or a summary of the
changes.
4 Advertising , Marketing and Sales
a. We will make sure that all advertising and promotional material is clear, and not
misleading.
b. In any advertising in any media and promotional literature that draws attention to a
banking service or product and includes a reference to an interest rate, we will also
indicate whether other fees and charges will apply and that full details of the relevant
terms and conditions are available on request .
c. If we avail of the services of third parties for providing support services, we will require that such third parties handle your personal information (if any available to such third parties) with the same degree of confidentiality and security as we would.
d. We may, from time to time, communicate to you various features of our products availed by you. Information about our other products or promotional offers in respect of our products/services, will be conveyed to you only if you have given your consent to receive such information/ service either by mail or by registering for the same on our website or on our phone banking/customer service number.
e. We have prescribed a code of conduct for our Direct Selling Agencies (DSAs) whose
services we may avail to market our products/ services which amongst other matters
requires them to identify themselves when they approach you for selling our products
personally or through phone.
f. In the event of receipt of any complaint from you that our representative/courier or DSA has engaged in any improper conduct or acted in violation of this Code, we shall take appropriate steps to investigate and to handle the complaint and to make good the loss.
5 Privacy and Confidentiality
We will treat all your personal information as private and confidential [even when you are no longer a customer], and shall be guided by the following principles and policies. We will not reveal information or data relating to your accounts, whether provided by you or therwise, to anyone , including other companies entities in our group, other than in the ollowing exceptional cases:
a If we have to give the information by law
b If there is a duty towards the public to reveal the information
c. If our interests require us to give the information (for example, to revent fraud) but we will not use this as a reason for giving nformation about you or your accounts [including your name and address] to anyone else, including other companies in our group,
for marketing purposes
d. If you ask us to reveal the information, or if we have your permission
e. If we are asked to give a banker's reference about you, we will need your written
permission before we give it.
f. We, will explain to you the extent of your rights under the existing legal framework for accessing the personal records that we hold about you
g. We will not use your personal information for marketing purposes by anyone including ourselves unless you specifically authorize us to do so.
5.1 Credit Reference Agencies
a. When you open your account, we will tell you when we may pass your account details to credit reference agencies and the checks we may make with them.
b. We may give information to credit reference agencies about the personal debts you owe us if:
i) You have fallen behind with your payments;
ii) The amount owed is not in dispute; and
iii) You have not made proposals we are satisfied with for repaying your debt,
following our formal demand
c. In these cases, we will intimate you in writing that we plan to give information about the debts you owe us to credit reference agencies. At the same time, we will explain to you the role of credit reference agencies and the effect the information they provide can have on your ability to get credit.
d. We may give credit reference agencies other information about the day-to-day running of your account if you have given us your permission to do so.
e. We will provide you with a copy of the information that we have given to the credit
reference agencies about you, or provide their leaflets that explain how credit referencing
works.
6 Collection of Dues
Whenever we give loans, we will explain to you the repayment process by way of amount, tenure and periodicity of repayment. However if you do not adhere to repayment schedule, a defined process in accordance with the laws of the land will be followed for recovery of dues.
The process will involve reminding you by sending you notice or by making personal visits and/ or repossession of security if any.
Our collection policy is built on courtesy, fair treatment and persuasion. We believe in
fostering customer confidence and long-term relationship. Our staff or any person authorized to represent us in collection of dues or/and security repossession will identify himself/herself and display the authority letter issued by us and upon request display(ing) to you his/ her identity card issued by the bank or under authority of the bank. We will provide you with all the information regarding dues and will endeavor to give sufficient notice for payment of dues.
All the members of the staff or any person authorised to represent our bank in collection or/and security repossession would follow the guidelines set out below:
a. You would be contacted ordinarily at the place of your choice and in the absence of any specified place at the place of your residence and if unavailable at your residence, at the place of business/occupation.
b. Identity and authority to represent would be made known to you at the first instance.
c. Your privacy would be respected.
d. Interaction with you would be in a civil manner
e. Normally our representatives will contact you between 0700 hrs and 1900 hrs, unless
the special circumstances of your business or occupation require otherwise.
f. Your requests to avoid calls at a particular time or at a particular place would be honored as far as possible.
g. Time and number of calls and contents of conversation would be documented.
h. All assistance would be given to resolve disputes or differences regarding dues in a
mutually acceptable and in an orderly manner.
i. During visits to your place for dues collection, decency and decorum would be
maintained.
j. Inappropriate occasions such as bereavement in the family or such other calamitous
occasions would be avoided for making calls/visits to collect dues.
6.1 Security Repossession Policy Statement:
We will follow a security repossesion policy in consonance with the law. A copy of the
policy will be made available on request.
7 Complaints, Grievances and Feedback
7.1 Internal Procedures
a. If you want to make a complaint, we will tell you
i) How to do this
ii) Where a complaint can be made
iii) How a complaint should be made
iv) When to expect a reply
v) Whom to approach for redressal
vi) What to do if you are not happy about the outcome.
vii) Our staff will help you with any questions you have.
b. When you become a customer, we will tell you where to find details of our procedure for handling complaints fairly and quickly.
c. If your complaint has been received in writing, we will endeavour to send you an
acknowledgement/ a response within a week. If your complaint is relayed over phone at
our designated telephone helpdesk or customer service number we shall provide you a
complaint reference number and keep you informed of the progress within a reasonable
period of time.
d. After examining the matter, we will send you our final response or explain why we need more time to respond and shall endeavour to do so within six weeks of receipt of your complaint and will tell you how to take your complaint further if you are still not satisfied.
7.2 Banking Ombudsman Service
a. We will display on our website and in all our branches a notice explaining that we are
covered by the Banking Ombudsman Scheme, 2006 of the Reserve Bank of India. Copy
will be made available on request at a nominal charge .
b. Within 30 days of lodging a complaint with us, if you do not get a satisfactory response from us and you wish to pursue other avenues for redressal of grievances, you may approach Banking Ombudsman appointed by Reserve Bank of India under Banking
Ombudsman Scheme, 2006. Salient features of the Banking Ombudsman Scheme are
displayed in the branch notice boards and the scheme itself is displayed on our website.
Our staff would explain the procedure in this regard.
8.Products and Services
8.1 Deposit Accounts
You may open different type of accounts with us such as, savings accounts, term deposits, current accounts including ‘No Frills’ Account etc with us. You may open such accounts in
the following styles
i) Single
ii) Joint
iii) Joint (Either or Survivor)
iv) Joint (Former or Survivor)
v) Joint (Latter or Survivor)
vi) Or in any other style
The above may be opened by you with or without nomination facility. We will explain the implications of the foregoing accounts as also the nomination facilities at the time of opening of the account.
We will also inform you about liquid deposit facility, sweep account and similar types of
products offered by us and their implications and procedures involved, at the time of opening of account.
Account Opening and Operation of Deposit Accounts
Before opening any deposit account, we will
a. carry out due diligence as required under "Know Your Customer" (KYC) guidelines of
the bank ;
b. ask you to submit or provide necessary documents or proofs to do so;
c. obtain only such information to meet with our KYC ,Anti Money Laundering or any
other statutory requirements . In case any additional information is asked for, it will be
sought separately and we will specify the objective of obtaining such additional
information. Providing such information will be voluntary;
d. provide the account opening forms and other material to you. The same will contain
details of essential information required to be furnished and documents to be produced
for verification and/or for record for meeting the KYC requirements;
e. explain the procedural formalities and provide necessary clarifications sought by you
while opening a deposit account;
f. at the time of opening of the account, make available to you the details of the
insurance cover in force under the insurance scheme, subject to certain limits and
conditions offered by the Deposit Insurance and Credit Guarantee Corporation of India
(DICGC);
Changing your account
a. If you are not happy about your choice of current or savings account (except for term
deposit account) within 14 days of making your first payment into the account , we will help you switch to another of our accounts or we will give your money back with any interest it may have earned. We will ignore any notice period and any extra charges.
b. If you decide to close your current/savings account we will close your account within five working days of receiving your instructions.
c. If you want to transfer your account to another branch of our bank we will do so. Your
account at the new branch will be operationalised within two weeks of receiving your
request, subject to your complying with the required KYC formalities at the new branch. We will intimate you as soon as the account is operationalised. The new branch will be
provided with information on your standing instructions/direct debits if any.
d. We will cancel any bank charges you would have to pay as a result of any mistake or
unnecessary delay by us when you transfer your current account to or from us.
8.1.1 Savings/Current Accounts
When you open a Deposit Account, we will
a. inform you about number of transactions, cash withdrawals, etc., that can be done free
of charge within a given period;
b. inform you about the kind of charges, if any, in case of exceeding such limits. Details of the charges will be included in the Tariff Schedule;
c. inform you of the rate at which interest is paid on your savings deposits, how it is
calculated and its periodicity.
Minimum balance
The minimum balance to be maintained in the Saving Bank account will be displayed in our branches.
For deposit products like Savings Bank Account and Current Account or any other type of Deposit Account, we will inform you
a. about minimum balances to be maintained as part of terms and conditions governing
operation of such accounts;
b. about charges which will be levied in case of failure to maintain minimum balance in the account by you. Details of the charges will be included in the Tariff Schedule.
Charges
Specific charges for issue of cheque books, additional/duplicate statement of accounts,
duplicate pass book, copies of paid cheques, folio charges, debit card, ATM card, verification of signature, return of cheque for insufficient balance, change in mandate or style of account etc., will be included in our Tariff Schedule. Concessions or relief given (such as perpetual waiver of renewal fee on lifetime credit cards) will not be withdrawn during the original validity period of the concession/relief.
Statements
a. To help you manage your account and check entries in it, we will provide you with a
monthly statement of account, unless this is not appropriate for the type of account you
have [like an account where you have a passbook].
b. You can ask us to provide you with account statements more often than is normally
available on your type of account, at a charge. This charge will be indicated in the Tariff
Schedule.
c. You will be able to see your last few transactions at the counter. You will also be able
to see the transactions on ATM or through your Internet account wherever such facilities
are available with us.
d. We will also send you statement of accounts by e-mail, or through our secure Internet
banking service, if you so desire, provided we have such facility with us.
8.1.2 Term Deposits
Premature Withdrawal of Term Deposit
We will
a. inform you the procedure for withdrawal of term deposit before maturity;
b. disclose the interest rates policy for premature withdrawal of term deposit.
Renewal of Overdue Term Deposits
We will tell you the interest rate applicable in case you renew the deposits after the date of maturity.
Advances against Deposits
We will explain facility of loan/overdraft available against term deposits.
8.1.3 ‘No Frills’ Account
We will make available a basic banking ‘No Frills’ Account either with ‘nil’ or very low
minimum balances. The charges applicable for various services/ products in such an account will be indicated in a separate Tariff Schedule. The nature and number of transactions in such accounts may be restricted, which will be made known to you at the time of opening of the account in a transparent manner.
8.1.4 Accounts of Minors
We will tell you if enquired how a minor can open a Deposit Account and how it can be
operated.
8.1.5 Special Accounts
We will make our best efforts to make it easy and convenient for our special customers like senior citizens, physically challenged persons and illiterate persons to bank with us. This will include making convenient policies, products and services for such applicants and customers. We will inform the procedure for opening of the account and other terms and conditions toblind /other physically challenged persons provided he/she calls on the Bank personally along with a witness who is known to both such person and the bank.
Normally no cheque book facility is provided to illiterate persons and blind persons. However, to meet periodic repayment of retail loans, utility bills etc. we will consider issuing of cheque book with safeguards to protect your interest.
8.1.6 Dormant/ Inoperative Accounts
We will a. tell you when you open your account, what period of inoperation of the account would render your account being classified as dormant/ inoperative account. You will also be informed three months before your account is classified as dormant, inoperative or treated as unclaimed account and the consequences including the charges for reactivation thereof as per the Tariff Schedule;
b. tell you the procedure to be followed if you want to activate the account .
8.1.7 Closing Your Account
Under normal circumstances, we will not close your account without giving you at least 30 days notice. Examples of circumstances, which are not ‘normal’, include improper conduct of account etc. In all such cases, you will be required to make alternate arrangements for cheques already issued by you and desist from issuing any fresh cheques on such account.
8.2 Clearing Cycle / Collection Services
We will
a. tell you about the clearing cycle for local instruments and the outstation instruments
including details such as when you can withdraw money after lodging collection
instruments and when you will be entitled to earn delayed interest as per our Cheque
Collection Policy.
b. provide details, if we offer immediate credit for outstation cheques, including the
applicable terms and conditions, such as the limit up to which instruments tendered by
you can be credited, operating accounts satisfactorily, etc.
c. proceed as per our cheque collection policy and provide all assistance for you to obtain
a duplicate cheque/instrument in case a cheque instrument tendered by you is lost in
transit
d. give the above information when you open your account and whenever you ask us. If
there is any change in our policy, the revised policy will be displayed on our website and
at all our branches.
8.3 Cash Transactions
We will accept cheques/ cash and dispense cash at counters wherever your account is
maintained. We will exchange soiled/mutilated notes and/ or small coins at such of our
branches as per RBI Directives.
For transactions above a specified amount we may require you to furnish your PAN Number.
8.3.1 Direct debits and standing instructions
We will
a. at the time of opening the account tell you how direct debits/standing instructions work
and how you may record/cancel them and the charges connected with them. Charges
will be levied as per the Tariff Schedule as amended from time to time;
b. act upon mandates given by you for direct debits [say Electronic Clearing Service
( ECS)] and other standing instructions. In case of any delay or failure in executing the
mandate resulting in financial loss or additional cost, we will compensate as per the
compensation policy of the bank. If the mandate cannot be executed due to insufficient
balance in your account, we will levy charges as per the Tariff Schedule as amended
from time to time;
c. send a remittance advice to the recipient of the remittance at the time of making the
remittance in case of Electronic Clearing Service (ECS) when we act as an agent of the
remitter;
d. refund your account with interest as soon as it is determined that it is unauthorisedly/erroneously debited from your account under a direct debit and compensate you as per the compensation policy of the bank;
8.4 Stop Payment Facility
We will
a. accept stop payment instruction from you in respect of cheques issued by you.
Immediately on receipt of your instructions we will give acknowledgement and take
action provided these cheques have not already been cleared by us.
b. levy charges, if any, and the same will be included in the Tariff Schedule as amended
from time to time.
c. In case a cheque has been paid after stop payment instructions are acknowledged, we
will reimburse and compensate you as per the compensation policy of the bank.
8.5 Cheques / Debit instructions issued by you
We will
a. keep original cheques/debit instructions paid from your account or copies or images of
the same, for such periods as required by law;
b. give you the cheque /debit instruction or a copy thereof as evidence as long as records
are available with us. If there is a dispute about a cheque paid/debit instructions from
your account, in case the request is made within a period of one year, no charge will be
levied and beyond a period of one year charges will be levied as per the Tariff
Schedule;
c. tell you how we will deal with unpaid cheques and out-of-date [stale] cheques. We
will charge for the cheques returned unpaid for want of balance in the account. The
details of charges to be levied will be included in the Tariff Schedule as amended from
time to time.
8.6 Branch closure/ shifting
If we plan to close our branch or if we move our branch, we will give you
a. notice of three months if there is no other branch of any bank functioning at your centre and inform you how we will continue to provide banking services to you;
b. notice of two months , if there is a branch of any other bank functioning at your centre.
8.7 Settlement of claims in respect of Deceased Account holders
8.7.1 We will follow a simplified procedure for settlement of accounts of deceased accounts holders.
a. Accounts with survivor/nominee clause
In case of a deposit account of a deceased depositor where the depositor had utilized the
nomination facility and made a valid nomination or where the account was opened with the survivorship clause ("either or survivor", or "anyone or survivor", or "former or survivor" or "latter or survivor"), the payment of the balance in the deposit account to the survivor(s)/nominee of a deceased deposit account holder will be provided
i) the identity of the survivor(s)/nominee(s) and the fact of the death of the a
holder, is established through appropriate documentary evidence;
ii) there is no order from the competent court restraining the bank from making
payment from the account of the deceased; and
iii) it has been made clear to the survivor(s) / nominee that he would be receive
the payment from the bank as a trustee of the legal heirs of the deceased depositor, i.e., such payment to him shall not of the right or claim which any person may have against the survivor(s) / nom whom the payment is made.
The payment made to the survivor(s) / nominee, subject to the foregoing conditions, wou
constitute a full discharge of the bank's liability. In such cases, payment to the survivor(s) / nominee of the deceased will be made without insisting on production of succession certificate, letter of administration or probate, etc. or obtaining bond of indemnity or surety from the survivor(s)/nominee, irrespective of the amount standing to the credit of the deceased account holder.
b. Accounts without the survivor/nominee clause
In case where the deceased depositor had not made any nomination or for the accounts
than those styled as "either or survivor" (such as single or jointly operated accounts), we will adopt a simplified procedure for repayment to legal heir(s) of the depositor keeping in view the imperative need to avoid inconvenience undue hardship to the common person.
Keeping in view our risk management systems, we will fix a minimum threshold limit, for balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled wit insisting on production of
any documentation other than a letter of indemnity.
c. Premature Termination of term deposit accounts
In the case of term deposits, we will incorporate a clause in the account opening form i
the effect that in the event of the death of the depositor, premature termination of term deposits would be allowed conditions subject to which such premature withdrawal would be permitted would also be specified in the account form. Such premature withdrawal would not attract any penal charge.
d. Treatment of flows in the name of the deceased depositor
In order to avoid hardship to the survivor(s) / nominee of a deposit account, we will
obtain appropriate agreement / authorization from the survivor(s) / nominee with regard to the treatment of pipeline flows in the name of the deceased account holder. In this regard, we will consider adopting either of the
following two approaches:
i) We could be authorized by the survivor(s) / nominee of a deceased account
holder to open an account styled as,'Estate of Shri ________________, the Deceased' where all the pipeline flows in the name of the deceased account holder could be allowed to be credited, provided no withdrawals are made.
OR
ii) We could be authorized by the survivor(s) / nominee to return the pipeline flows to
the remitter with the remark "Account holder deceased" and to intimate the survivor
(s) / nominee accordingly. The survivor(s) / nominee / legal heir(s) could then
approach the remitter to effect payment through a negotiable instrument or through
ECS transfer in the name of the appropriate beneficiary.
8.7.2 Time limit for settlement of claims
We will endeavor to settle the claims in respect of deceased depositors and release payments
to survivor(s) / nominee(s) within a period not exceeding 15 days from the date of receipt of the claim subject to the production of proof of death of the depositor and suitable identification of the claim(s), to the bank's satisfaction.
8.8 Safe Deposit Lockers
We will give you the complete details of the rules and the procedures applicable for the safe deposit lockers and also safe deposit of valuables, in case we offer the service.
8.9 Foreign Exchange Services
a. When you buy or sell foreign exchange, we will give you information on the services,
details of the exchange rate and other charges which apply to foreign exchange
transactions. If this is not possible, we will tell you how these will be worked out.
b. If you want to transfer money abroad, we will tell you how to do this and will give you:
i) A description of the services and how to use them;
ii) Details of when the money you have sent abroad should get there and the
reasons for delays, if any.
iii) The exchange rate applied when converting to the foreign currency (if this is
not possible at the time of the transaction, we will let you know later what the rate is);
iv) Details of any commission or charges, which you will have to pay and a warning that the person receiving the money may also, have to pay the foreign bank’s charges.
v) We will tell you if the information provided by you for making a payment abroad
is adequate or not. In case of any discrepancies or incomplete documentation,
we will advise you immediately and assist you to rectify/complete the same.
vi) If money is transferred to your bank account from abroad, we will tell you the
original amount received and charges if any levied. If the sender has agreed to pay all charges, we will not take any charges when we pay the money into your account.
vii) We will guide you about regulatory requirements or conditions relating to foreign
exchange services offered by us as and when requested by you.
viii) In case of delay beyond the day when the amount is due for credit, you will be compensated (a) for any loss on account of interest for due period beyond the due date and (b) also for adverse movement of forex rate as per the compensation policy of the bank.
ix) All certificates required to be issued under regulatory/statutory instructions will
be issued free of charge.
8.10 Remittances within India
If you want to remit money within India we will inform you how to effect and will
a. give description of services and how to use them;
b. suggest to you the best way to send the money to suit your needs;
c. disclose the details of all charges including commission that you will
have to pay for the service as per the Tariff Schedule as amended from time to time.
In case of any delay we will compensate you as per the compensation policy of the bank for the loss/additional expenses incurred by you.
8.11 Lending
Before we lend you any money or increase your overdraft, credit card limit or other borrowing, we will assess whether you will be able to repay it.
If we cannot help you, we will communicate in writing the reason(s) for rejection where the amount of loan applied for does not exceed Rupees Two Lakhs. If you want us to accept a guarantee or other security from someone for your liabilities, we may ask you for your permission to give confidential information about your finances to the person giving the guarantee or other security, or to their legal adviser. We will also : a. encourage them to take independent legal advice to make sure that they understand their commitment and the possible consequences of their decision( where appropriate, the documents we ask them to sign will contain this recommendation as a clear and obvious notice);
b. tell them that by giving the guarantee or other security they may become liable instead
of, or as well as, you; and
c. tell them what their liability will be .
8.11.1 Loan Products
Applications for loans and their processing
a. At the time of sourcing a loan product, we will provide information about the, interest
rates applicable, as also the fees/charges, if any, payable for processing, pre-payment
options and charges if any and any other matter which affects the interest of the
borrower, so that a meaningful comparison with those of other banks can be made and
informed decision can be taken by you.
b. Normally all particulars required for processing the loan application will be collected by us at the time of application. In case we need any additional information we will contact you immediately.
c. We will convey you the credit limit along with the terms and conditions thereof.
d. We will supply authenticated copies of all the loan documents executed by you at our
cost along with a copy each of all enclosures quoted in the loan document on request;
e. We will not discriminate on grounds of sex, caste and religion in the matter of lending.
However, this does not preclude us from instituting or participating in schemes framed for different sections of the society.
f. We will process request for transfer of borrowal account, either from the borrower or
from a bank/financial institution, in the normal course.
8.12Guarantee
When you are considering to be a guarantor to a loan, we will tell you about
a. your liability as guarantor;
b. the amount of liability you will be committing yourself to the bank;
c. circumstances in which we will call on you to pay up your liability;
d. whether we have recourse to your other monies in the bank if you fail to pay up as a
guarantor;
e. whether your liabilities as a guarantor are limited to a specific quantum or are they
unlimited; and
f. time and circumstances in which your liabilities as a guarantor will be discharged as
also the manner in which we will notify you about this. We will keep you informed of any material adverse change/s in the financial position of the borrower to whom you stand as a guarantor.
8.13General Information
We will:
a. Give you information explaining the key features of our loan and credit card products
including applicable fees and charges while communicating the sanction of the
loan/credit card
b. Advise you what information/documentation we need from you to enable you to apply.
We will also, advise you what documentation we need from you with respect to your
identity, address, employment etc., and any other document that may be stipulated by
statutory authorities (e.g. PAN details), in order to comply with legal and regulatory
requirements
c. Verify the details mentioned by you in the credit card application by contacting you at
your residence and / or on business telephone numbers and / or physically visiting your
residence and/or business addresses through agencies appointed by us for this purpose, if deemed necessary by us.
d. If we offer you an overdraft, or an increase in your existing overdraft limit, we will tell
you if your overdraft is repayable on demand or otherwise. We will,if required also
advise about the method of calculation of overdrawn amount thereof and also the
computation of interest on overdue loan amount .
8.14Credit card
8.14.1 General information
a. While you apply for card, we will explain the relevant terms and conditions such as fees and interest charges, billing and payment, method of computation of overdues renewal and termination procedures, and any other information that you may require to operate the card.
b. We will advise you of our targeted turn around time while you are availing / applying for a product / service.
c. We will send a service guide/member booklet giving detailed terms and conditions,
losses on your account that you may be liable if your card is lost / misused and other
relevant information with respect to usage of your card along with your first card.
d. If you do not recognize a transaction, which appears on your card statement, we will
give you more details if you ask us. In cases, where we do not accept your contention
we will give you evidence that you had authorized the transaction, in question.
8.14.2 Issuance of Credit Card / PIN
a. We will dispatch your credit card /PIN only to the mailing address mentioned by you or to the alternate address provided by you (if we are unable to deliver at the mailing address) through courier / post. Alternatively, if you desire we shall deliver your credit card/PIN at our branches after due identification.
b. We may also issue deactivated (not ready to use) credit card if we consider your profile
appropriate for issuing credit card and such deactivated card will become active only
after you take steps for activation as required and subject to such other conditions as
may be specified.
c. We will extend a loan/credit facility/enhance credit limit on your card only with your
consent.
d. PIN (personal identification number) whenever allotted, will be sent to you separately at your mailing address.
8.14.3 Credit card statements
a. To help you manage your credit card account and check details of purchases/cash
drawings using the credit card, we will offer you free of cost a facility to receive credit
card transaction details either via monthly mail and , if you so desire also through the
internet. Credit card statement will be dispatched on a predetermined date of every
month free of cost at your mailing address
b. In the event of non-receipt of this information, we expect you to get in touch with us so
that we can arrange to resend the details to enable you to make the payment and
highlight exception, if any in a timely manner.
c. We will let you know / notify changes in schedule of fees and charges and terms and
conditions. Normally, changes (other than interest rates and those which are a result of
regulatory requirements) will be made with prospective effect giving notice of at least one month. The changes will be notified along with the monthly statement of account or copy thereof .
9 Protecting Your Accounts
9.1 Secure and Reliable Banking and Payment Systems We will co-operate as an industry so that you enjoy secure and reliable banking and payment
systems you can trust. We will install CCTV for close surveillance as part of security
arrangements.
9.2 Keeping Us Up To Date
Please make sure you let us know as soon as possible when you change your:
a. Name;
b. Address;
c. Phone number; or
d. E-mail address (if this is how we communicate with you).
9.3 Checking Your Account
a. We recommend that you check your statement or passbook regularly. If there is an entry, which seems to be wrong, you should tell us as soon as possible so that we can investigate the same. Regular checks on direct debits and standing orders will help you be sure the money is going where you want it to.
b. If we need to investigate a transaction on your account, you should co-operate with us
and with the police/ other investigative agencies if we need to involve them.
9.4 Taking Care
The care of your cheques, passbook, cards, PINs and other security information by you, is essential to help prevent fraud and protect your accounts. Please make sure that you follow the advice given below:
a. Do not
i) keep your cheque book and cards together;
ii) keep the blank cheque leaves signed;
iii) allow anyone else to use your card, PIN, password or other security
information;
iv) write down or record your PIN, password or other security information;
v) give your account details password or other security information to
anyone.
b. Always
i) write clearly the name of the person you are paying the cheque to, if
you send cheque through the post, it will help to prevent fraud. We will
recommend that you write such cheques for instance with carbon paper
on the reverse to avoid chemical alterations;
ii) choose your new PIN carefully ,if you change your PIN ;
iii) memorize your PIN, password and other security information, and
destroy the written communication if any of the same as soon as you
receive it;
iv) take reasonable steps to keep your card safe in your personal custody
and your PIN, password and other security information secret at all times;
v) keep your card receipts safe and dispose them off carefully
vi) write on the cheque the name of the account holder [ABC Bank Account - XYZ], if you are paying a cheque into a bank account .You should draw a line through unused space on the cheque so unauthorized person cannot add extra numbers or names.
c. We will advise you what you can do to protect your card/ cheque book from misuse
d In the event your cheque book, passbook or ATM/Debit card has been lost or stolen, or
that someone else knows your PIN or other security information, we will, on your notifying us, take immediate steps to try to prevent these from being misused.
e. It is essential that you tell us as soon as you can if you suspect or discover that your cheque book, passbook, card has been lost or stolen or someone else knows your PIN,
password or other security information.
f. You could tell us about the loss by phone at our 24 hour toll free number given to you
and send us a written confirmation to that effect immediately. Alternatively, you may
advise us by email to the address we have given you for this purpose.
g. You may be liable for misuses until the time that we have been notified.
9.5 Internet Banking
Online banking is safe and convenient as long as you take a number of simple precautions.
Please make sure you follow the advice given below:
a. Visit our Internet banking site directly. Avoid accessing the site through a link from
another site or an email and verify the domain name displayed to avoid spoof websites.
b. Ignore any e-mail asking for your password or PIN and inform us of the same for us to
investigate the same. Neither the police nor we will ever contact you to ask you to reveal
your online banking or payment card PINs, or your password information.
c. We advise you not to use cyber cafés /shared PCs to access our Internet banking site.
d. We advise you to update your PC with latest anti-virus and spy ware software regularly.
You may install security programmes to protect against hackers, virus attacks or
malicious 'Trojan Horse' programmes. A suitable firewall installed in a computer to
protect your PC and its contents from outsiders on the Internet is recommended.
e. Disable the 'File and Printing Sharing' feature on your operating system.
f. Log off your PC when not in use
g. Do not store your ID/PIN in the Internet Explorer Browser
h. Check your account and transaction history regularly
i. Follow our advice – our websites are usually a good place to get help and guidance on
how to stay safe online.
9.6 Cancelling Payments
If you want to cancel a payment or series of payments you have authorised, you should do the following:
a. To stop payment of a cheque or cancel standing instruction given, or a direct debit you
must tell us in writing
b. To cancel a direct debit, you inform us. We recommend that you inform the originator of the direct debit also.
c. It may not be possible to cancel payments if you do not give notice of your decision to
cancel.
d. Cancellation of credit card payments will be subject to other terms and conditions as may be stipulated.
9.7 Liability for Losses
a. If you act fraudulently, you will be responsible for all losses on your account. If you act without reasonable care, and this causes losses, you may be responsible for them.
b. Unless you have acted fraudulently or without reasonable care, your liability for the
misuse of your card will be limited to the amount stipulated in the terms and conditions
governing the issue of the card.
c. You may be liable for misuses on account of loss of your PIN or compromise of your
password or of other secured information until the time that we have been notified and
we have taken steps to prevent misuse.
10 MONITORING
The Banking Codes and Standards Board of India whose directors include members of the Governing Council monitor the Code. The contact details are as follows:
12 Review of the Code
This Code will be reviewed within a period of three years. The review will be undertaken in a transparent manner.
Annex: Glossary
These definitions explain the meaning of words and terms used in the Code. They are not
precise legal or technical definitions.
ATM
An automated teller machine [ATM] is a machine in which a customer can use their card along with PIN to get cash, information and other services.
Banking Ombudsman
An independent dispute resolution authority set up by the Reserve Bank to deal with disputes that individuals and small business have with their banks.
Card
A general term for any plastic card, which a customer may use to pay for goods and services or to withdraw cash. In this Code, it includes debit, credit, or ATM cards.
Credit Card
A Credit Card is a plastic card with a credit facility, which allows you to pay for goods and services or to withdraw cash
Cheque Collection Policy
Cheque Collection Policy refers to the policy followed by a bank in respect of the various local cheques and outstation instruments deposited with the bank for credit to an account The policy interalia deals with
• cheque purchase requests
• time frame for credit of cheques
• payment of interest in case of delay in collection of cheques
• instant credit of local and outstation cheques
• cheques instruments lost in transit and charges for such collection
Customer
A person who has an account [including a joint account with another person or an account held as an executor or trustee or as a Karta of an HUF, but not including the accounts of sole traders/ proprietorships , partnerships, companies, clubs and societies] or who avails of other products/ services from a bank.
Current Account
A form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount.
Deceased Account
A Deceased account is a deposit account in which case either the single account holder has deceased or in case of joint accounts one or more of joint account holders has/have deceased
Demat Account
A Demat account refers to dematerialised account and is an account in which the stocks of investors are held in electronic form.
Deposit Accounts:
• "Savings deposits" means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank
during any specified period;
• "Term deposit" means a deposit received by the Bank for a fixed period withdrawable
only after the expiry of the fixed period and includes deposits such as Recurring /
Double Benefit Deposits / Short Deposits / Fixed Deposits /Monthly Income
Certificate /Quarterly Income Certificate etc.
• "Notice Deposit" means term deposit for specific period but withdrawable on giving at
least one complete banking day's notice;
Dormant / Inoperative Account
A dormant/inoperative account is a savings bank or current account which is not operated
upon for a period specified by the bank.
Equity
Equity means a part of capital of a corporate entity which is represented by the shares of the company whether in physical or in dematerialised form
Electronic Clearing System
The Electronic Clearing System (ECS) is an online transmission system which permits the electronic transmission of payment information by the banks / branches to the Automated Clearing House (ACH) via a communication network.
Guarantee
A promise given by a person
Government Bond
Government bond means a security, created and issued, by the Government for the purpose
Mail
A letter in a physical or electronic form.
'No Frills' Account
'No Frills 'account is a basic banking account. Such account requires either nil minimum
balance or very low minimum balance. Charges applicable to such accounts are low. Services available to such account is limited.
Nomination facility
The nomination facility enables the bank to :
Originator
An organization, which collects payments from a customer's account in line with customer's make payment to the nominee of a deceased depositor, of the amount standing to the credit of the depositor, return to the nominee, the articles left by a deceased person in the bank's safe custody, release to the nominee of the hirer, the contents of a safety locker, in the event of the death of the hirer instructions.
Other security information
A selection of personal facts and information [in an order which the customer knows], which may be used for identification when using accounts.
Out-of-date [stale] cheque
A cheque, which has not been paid because the date written on the cheque is of a date
exceeding six months from the time of its presentation.
PAN Number
The Permanent Account Number is an all India unique Number having ten alphanumeric
Characters allotted by the Income Tax Department, Government of India. It is issued in the form of a laminated card. It is permanent and will not change with change of address of the assessee or change of Assessing Officer.
Password
A word or numbers or a combination or an access Code, which the customer has chosen, to allow them to use a phone or Internet banking service. It is also used for identification.
Payment and Settlement Systems
Payments and Settlement Systems mean financial system creating the means for transferring money between suppliers and user of funds usually by exchanging debits or credits among financial institutions.
PIN [personal identification number]
A confidential number, use of which along with a card allows customers to pay for articles/ services, withdraw cash and use other electronic services offered by the bank.
Security Represents assets used as support for a loan or other liability.
Senior Citizen
Senior Citizen is a person of over sixty years of age.
Tariff Schedule
The charges levied by a bank on the products and services offered by it to its customers
Unpaid Cheque
This is a cheque, which is returned 'unpaid' [bounced] by the bank.












































ANNEXURE-12
Bankers' Fair Practice Code of Indian Banks' Association
One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking System. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives / advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalization in the financial system and deregulation of interest rates, banks are now free to formulate deposit products within the broad guidelines issued by RBI .
This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. The document recognises the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposits accounts, payment of interest on various deposit accounts, closure of deposit accounts, method of disposal of deposits of deceased depositors, etc., for the benefit of customers. It is expected that this document will impart greater transparency in dealing with the individual customers and create awareness among customers of their rights. The ultimate objective is that the customer will get services they are rightfully entitled to receive without demand.
While adopting this policy, the bank reiterates its commitments to individual customers outlined in Bankers' Fair Practice Code of Indian Banks' Association. This document is a broad framework under which the rights of common depositors are recognized. Detailed operational instructions on various deposit schemes and related services will be issued from time to time
Types of Deposit Accounts : -
While various deposit products offered by the Bank are assigned different names. The deposit products can be categorised broadly into the following types. Definition of major deposits schemes are as under : -
i) "Demand deposits" means a deposit received by the Bank which is withdrawable on demand;
ii) "Savings deposits" means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank during any specified period;
iii) "Term deposit" means a deposit received by the Bank for a fixed period withdrawable only after the expiry of the fixed period and include deposits such as Recurring / Double Benefit Deposits / Short Deposits / Fixed Deposits /Monthly Income Certificate /Quarterly Income Certificate etc.
iv) Notice Deposit means term deposit for specific period but withdrawable on giving atleast one complete banking day's notice;
v) "Current Account" means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit;
Account Opening and Operation of Deposit Accounts
A) The Bank before opening any deposit account will carry out due diligence as required under "Know Your Customer" (KYC) guidelines issued by RBI and or such other norms or procedures adopted by the Bank. If the decision to open an account of a prospective depositor requires clearance at a higher level, reasons for any delay in opening of the account will be informed to him and the final decision of the Bank will be conveyed at the earliest to him.
B) The account opening forms and other material would be provided to the prospective depositor by the Bank. The same will contain details of information to be furnished and documents to be produced for verification and or for record, it is expected of the Bank official opening the account, to explain the procedural formalities and provide necessary clarifications sought by the prospective depositor when he approaches for opening a deposit account.
C) For deposit products like Savings Bank Account and Current Deposit Account, the Bank will normally stipulate certain minimum balances to be maintained as part of terms and conditions governing operation of such accounts. Failure to maintain minimum balance in the account will attract levy of charges as specified by the Bank from time to time. For Saving Bank Account the Bank may also place restrictions on number of transactions, cash withdrawals, etc., for given period. Similarly, the Bank may specify charges for issue of cheques books, additional statement of accounts, duplicate pass book, folio charges, etc. All such details, regarding terms and conditions for operation of the accounts and schedule of charges for various services provided will be communicated to the prospective depositor while opening the account.
D) Savings Bank Accounts can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI) from time to time)
Current Accounts can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc.
Term Deposits Accounts can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts, etc.
E) The due diligence process, while opening a deposit account will involve satisfying about the identity of the person, verification of address, satisfying about his occupation and source of income. Obtaining introduction of the prospective depositor from a person acceptable to the Bank and obtaining recent photograph of the person/s opening / operating the account are part of due diligence process.
F) In addition to the due diligence requirements, under KYC norms the Bank is required by law to obtain Permanent Account Number (PAN) or General Index Register (GIR) Number or alternatively declaration in Form No. 60 or 61 as specified under the Income Tax Act / Rules.
G) Deposit accounts can be opened by an individual in his own name (status : known as account in single name) or by more than one individual in their own names (status : known as Joint Account) . Savings Bank Account can also be opened by a minor jointly with natural guardian or with mother as the guardian (Status : known as Minor's Account). Minors above the age of 10 will also be allowed to open and operate saving bank account independently.
H) Operation of Joint Account - The Joint Account opened by more than one individual can be operated by single individual or by more than one individual jointly. The mandate for operating the account can be modified with the consent of all account holders. The Savings Bank Account opened by minor jointly with natural guardian / guardian can be operated by natural guardian only.
I) The joint account holders can give any of the following mandates for the disposal of balance in the above accounts :
i. Either or Survivor : If the account is held by two individuals say, A & B, the final balance alongwith interest, if applicable, will be paid to survivor on death of anyone of the account holders.
ii. Anyone or Survivor/s : If the account is held by more than two individuals say, A, B and C, the final balance alongwith interest, if applicable, will be paid to the survivor on death of any two account holders.
The above mandates will be applicable to or become operational only on or after the date of maturity of term deposits. This mandate can be modified by the consent of all the account holders.
J) A the request of the depositor, the Bank will register mandate / power of attorney given by him authorizing another person to operate the account on his behalf.
K) The term deposit account holders at the time of placing their deposits can give instructions with regard to closure of deposit account or renewal of deposit for further period on the date of maturity. In absence of such mandate, the Bank will seek instructions from the depositor/s as to the disposal of the deposit by sending an intimation before 15 days of the maturity date of term deposit.
L) Nomination facility is available on all deposit accounts opened by the individuals. Nomination is also available to a sole proprietory concern account. Nomination can be made in favour of one individual only. Nomination so made can be cancelled or changed by the account holder/s any time. While making nomination, cancellation or change thereof, it is required to be witnessed by a third party. Nomination can be modified by the consent of account holder/s. Nomination can be made in favour of a minor also.
Bank recommends that all depositors avail nomination facility. The nominee, in the event of death of the depositor/s, would receive the balance outstanding in the account as a trustee of legal heirs. The depositor will be informed of the advantages of the nomination facility while opening a deposit account.
M) A statement of account will be provided by the Bank to Savings Bank as well as Current Deposit Account Holders periodically as per terms and conditions of opening of the account.. Alternatively, the Bank may issue a Pass Book to these account holders.
N) The deposit accounts may be transferred to any other branch of the Bank at the request of the depositor.
Interest Payments
i) Interest shall be paid on saving account at the rate specified by Reserve Bank of India directive from time to time. However, term deposit interest rates are decided by the Bank within the general guidelines issued by the Reserve Bank of India from time to time.
ii) In terms of Reserve Bank of India directives, interest shall be calculated at quarterly intervals on term deposits and paid at the rate decided by the Bank depending upon the period of deposits. In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted value. The interest on term deposits is calculated by the Bank in accordance with the formulae and conventions advised by Indian Banks' Association.
iii) The rate of interest on deposits will be prominently displayed in the branch premises. Changes, if any, with regard to the deposit schemes and other related services shall also be communicated upfront and shall be prominently displayed.
iv) The Bank has statutory obligation to deduct tax at source if the total interest paid / payable on all term deposits held by a person exceeds the amount specified under the Income Tax Act. The Bank will issue a tax deduction certificate (TDS Certificate) for the amount of tax deducted. The depositor, if entitled to exemption from TDS can submit declaration in the prescribed format at the beginning of every financial year.
MINORS' ACCOUNTS
i) The minor can open Savings Bank Account and the same can be operated by the natural guardian or by minor himself / herself, if he/she is above the age of 10 years. The account can also be opened jointly.
ii) On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / guardian, fresh specimen signature of erstwhile minor duly verified by the natural guardian would be obtained and kept on record for all operational purposes.

ACCOUNT OF ILLITERATE / BLIND PERSON
The Bank may at its discretion open deposit accounts other than Current Accounts of illiterate person. The account of such person may be opened provided he/she calls on the Bank personally along with a witness who is known to both the depositor and the Bank. Normally, no cheque book facility is provided for such Savings Bank Account. At the time of withdrawal/ repayment of deposit amount and/or interest, the account holder should affix his / her thumb impression or mark in the presence of the authorized officer who should verify the identity of the person. The Bank will explain the need for proper care and safe keeping of the passbook etc. given to the account holder. The Bank official shall explain the terms and conditions governing the account to the illiterate / blind person.
ADDITION OR DELETION OF THE NAME/S OF JOINT ACCOUNT HOLDERS
The bank may at the request of all the joint account holders allow addition or deletion of name/s of joint account holder/s if the circumstances so warrant or allow an individual depositor to add the name of another person as a joint account holder.
CUSTOMER INFORMATION
The customer information collected from the customers shall not be used for cross selling of services or products by the Bank, their subsidiaries and affiliates. If the Bank proposes to use such information, it should be strictly with the consent of the accountholder.
SECRECY OF CUSTOMER'S ACCOUNTS
The Bank shall not disclose details / particulars of the customer's account to a third person or party without the expressed or implied consent from the customer. However, there are some exceptions, viz. disclosure of information under compulsion of law, where there is a duty to public to disclose and where interest of the Bank requires disclosure.
PREMATURE WITHRAWAL OF TERM DEPOSIT
The Bank on request from the depositor, at its discretion may allow withdrawal of term deposit before completion of the period of the deposit agreed upon at the time of placing the deposit. The Bank shall declare their penal interest rates policy for premature withdrawal of term deposit. The Bank shall make depositors aware of the applicable rate along with the deposit rate.
PREMATURE RENEWAL OF TERM DEPOSIT
Incase the depositor desires to renew the deposit by seeking premature closure of an existing term deposit account, the bank will permit the renewal at the applicable rate on the date of renewal, provided the deposit is renewed for a period longer than the balance period of the original deposit. While prematurely closing a deposit for the purpose of renewal, interest on the deposit for the period it has remained with the bank will be paid at the rate applicable to the period for which the deposit remained with the bank and not at the contracted rate.
RENEWAL OF OVERDUE TERM DEPOSITS
i) When a term deposit is renewed on maturity, on renewed deposit interest rate for the period specified by the depositor as applicable on the date of maturity would be applied. If request for renewal is received after the date of maturity, such overdue deposits will be renewed with effect from the date of maturity at interest rate applicable as on the due date, provided such request is received within 14 days from the date of maturity. In respect of overdue deposits renewed after 14 days from the date of maturity, interest for the overdue period will be paid at the rates decided by the Bank from time to time. .
ADVANCES AGAINST DEPOSITS
The Bank may consider request of the depositor/s for loan / overdraft facility against term deposits duly discharged by the depositor/s on execution of necessary security documents. The Bank may also consider loan against deposit standing in the name of minor, however, a suitable declaration stating that loan is for the benefit of the minor, is to be furnished by the depositor - applicant.
SETTLEMENT OF DUES IN DECEASED DEPOSIT ACCOUNT
i) If the depositor has registered nomination with the Bank; - the balance outstanding in the account of the deceased depositor will be transferred to the account of / paid to the nominee after the Bank satisfies about the identity of the nominee, etc.ii) The above procedure will be followed even in respect of a joint account where nomination is registered with the Bank.iii) In a joint deposit account, when one of the joint account holders dies, the Bank is required to make payment jointly to the legal heirs of the deceased person and the surviving depositor(s). However, if the joint account holders had given mandate for disposal of the balance in the account in the forms such as "either or survivor, former / latter or survivor, anyone of survivors or survivor; etc., the payment will be made as per the mandate to avoid delays in production of legal papers by the heirs of the deceased.iv) In the absence of nomination and when there are no disputes among the claimants, the Bank will pay the amount outstanding in the account of deceased person against joint application and indemnity by all legal heirs or the person mandated by the legal heirs to receive the payment on their behalf without insisting on legal documents up to the limit approved by the bank's board. This is to ensure that the common depositors are not put hardship on account of delays in completing legal formalities
INTEREST PAYABLE ON TERM DEPOSIT IN DECEASED ACCOUNT
i) In the event of death of the depositor before the date of maturity of deposit and amount of the deposit is claimed after the date of maturity, the Bank shall pay interest at the contracted rate till the date of maturity. From the date of maturity to the date of payment, the Bank shall pay simple interest at the applicable rate obtaining on the date of maturity, for the period for which the deposit remained with the Bank beyond the date of maturity; as per the Bank's policy in this regard.
ii) However, in the case of death of the depositor after the date of maturity of the deposit, the bank shall pay interest at savings deposit rate obtaining on the date of maturity from the date of maturity till the date of payment.


Insurance Cover for Deposits
All bank deposits are covered under the insurance scheme offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions. The details of the insurance cover in force, will be made available to the depositor.
Stop Payment Facility
The Bank will accept stop payment instruction from the depositors in respect of cheques issued by them. Charges, as specified, will be recovered.
Dormant Accounts
Accounts which are not operated for a considerable period of time will be transferred to a separate dormant / inoperative account status in the interest of the depositor as well as the Bank. The depositor will be informed of charges, if any, which the Bank will levy on dormant / inoperative accounts. The depositor can request the Bank to activate the account for operating it.
Safe Deposit Lockers
This facility is not offered through all bank branches and wherever the facility is offered, allotment of safe deposit vault will be subject to availability and compliance with other terms and conditions attached to the service. Safe deposit lockers may be hired by an individual (being not a minor) singly or jointly with another individual(s), HUFs, firms, limited companies, associates, societies, trusts etc. Nomination facility is available to individual(s) holding the lockers singly or jointly. In respect of lockers held in joint names, up to two nominees can be appointed. Joint locker holders can give mandate for access to the lockers in the event of death of one of the holders on the lines similar to those for deposit accounts. In the absence of nomination or mandate for disposal of contents of lockers, with a view to avoid hardship to common persons, the bank will release the contents of locker to the legal heirs against indemnity on the lines as applicable to deposit accounts
Redressal of complaints and grievances
Depositors having any complaint / grievance with regard to services rendered by the Bank has a right to approach authority(ies) designated by the Bank for handling customer complaint / grievances. The details of the internal set up for redressal of complaints / grievances will be displayed in the branch premises. The branch officials shall provide all required information regarding procedure for lodging the complaint. In case the depositor does not get response from the Bank within 60 days from date of complaint or he is not satisfied with the response received from the Bank, he has a right to approach Banking Ombudsman appointed by the Reserve Bank of India.


ANNEXURE-13
THE RIGHT TO INFORMATION ACT, 2005
[15th June, 2005]
An Act to provide for setting out the practical regime of right to information for citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority, the constitution of a Central Information Commission and State Information Commissions and for matters connected therewith or incidental thereto.
Whereas the Constitution of India has established democratic Republic;
And whereas democracy requires an informed citizenry and transparency of information which are vital to its functioning and also to contain corruption and to hold Governments and their instrumentalities accountable to the governed;
And whereas revelation of information in actual practice is likely to conflict with other public interests including efficient operations of the Governments, optimum use of limited fiscal resources and the preservation of confidentiality of sensitive information;
And whereas it is necessary to harmonise these conflicting interests while preserving the paramountcy of the democratic ideal;
Now, therefore, it is expedient to provide for furnishing certain information to citizens who desire to have it.
Be it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:—


(1)

This Act may be called the Right to Information Act, 2005.
(2)

It extends to the whole of India except the State of Jammu and Kashmir.
(3)

The provisions of sub-section (1) of section 4, sub-sections (1) and (2) of section 5, sections 12, 13, 15,16, 24 , 27 and 28 shall come into force at once, and the remaining provisions of this Act shall come into force on the one hundred and twentieth day of its enactment.


In this Act, unless the context otherwise requires,—
(a)

"appropriate Government" means in relation to a public authority which is established, constituted, owned, controlled or substantially financed by funds provided directly or indirectly—

(i)
by the Central Government or the Union territory administration, the Central Government;

(ii)
by the State Government, the State Government;
(b)

"Central Information Commission" means the Central Information Commission constituted under sub-section (1) of section 12;
(c)

"Central Public Information Officer" means the Central Public Information Officer designated under sub-section (1) and includes a Central Assistant Public Information Officer designated as such under sub-section (2) of section 5;
(d)

"Chief Information Commissioner" and "Information Commissioner" mean the Chief Information Commissioner and Information Commissioner appointed under sub-section (3) of section 12;
(e)

"competent authority" means—

(i)
the Speaker in the case of the House of the People or the Legislative Assembly of a State or a Union territory having such Assembly and the Chairman in the case of the Council of States or Legislative Council of a State;

(ii)
the Chief Justice of India in the case of the Supreme Court;

(iii)
the Chief Justice of the High Court in the case of a High Court;

(iv)
the President or the Governor, as the case may be, in the case of other authorities established or constituted by or under the Constitution;

(v)
the administrator appointed under article 239 of the Constitution;
(f)

"information" means any material in any form, including records, documents, memos, e-mails, opinions, advices, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a public authority under any other law for the time being in force;
(g)

"prescribed" means prescribed by rules made under this Act by the appropriate Government or the competent authority, as the case may be;
(h)

"public authority" means any authority or body or institution of self- government established or constituted—

(a)
by or under the Constitution;

(b)
by any other law made by Parliament;

(c)
by any other law made by State Legislature;

(d)
by notification issued or order made by the appropriate Government, and includes any—


(i)
body owned, controlled or substantially financed;


(ii)
non-Government organization substantially financed, directly or indirectly by funds provided by the appropriate Government;
(i)

"record" includes—

(a)
any document, manuscript and file;

(b)
any microfilm, microfiche and facsimile copy of a document;

(c)
any reproduction of image or images embodied in such microfilm (whether enlarged or not); and

(d)
any other material produced by a computer or any other device;
(j)

"right to information" means the right to information accessible under this Act which is held by or under the control of any public authority and includes the right to—

(i)
inspection of work, documents, records;

(ii)
taking notes, extracts or certified copies of documents or records;

(iii)
taking certified samples of material;

(iv)
obtaining information in the form of diskettes, floppies, tapes, video cassettes or in any other electronic mode or through printouts where such information is stored in a computer or in any other device;
(k)

"State Information Commission" means the State Information Commission constituted under sub-section (1) of section 15;
(l)

"State Chief Information Commissioner" and "State Information Commissioner" mean the State Chief Information Commissioner and the State Information Commissioner appointed under sub-section (3) of section 15;
(m)

"State Public Information Officer" means the State Public Information Officer designated under sub-section (1) and includes a State Assistant Public Information Officer designated as such under sub-section (2) of section 5;
(n)

"third party" means a person other than the citizen making a request for information and includes a public authority.





Subject to the provisions of this Act, all citizens shall have the right to information.
(1)

Every public authority shall—

(a)
maintain all its records duly catalogued and indexed in a manner and the form which facilitates the right to information under this Act and ensure that all records that are appropriate to be computerized are, within a reasonable time and subject to availability of resources, computerized and connected through a network all over the country on different systems so that access to such records is facilitated;

(b)
publish within one hundred and twenty days from the enactment of this Act,—


(i)
the particulars of its organization, functions and duties;


(ii)
the powers and duties of its officers and employees;


(iii)
the procedure followed in the decision making process, including channels of supervision and accountability;


(iv)
the norms set by it for the discharge of its functions;


(v)
the rules, regulations, instructions, manuals and records, held by it or under its control or used by its employees for discharging its functions;


(vi)
a statement of the categories of documents that are held by it or under its control;


(vii)
the particulars of any arrangement that exists for consultation with, or representation by, the members of the public in relation to the formulation of its policy or implementation thereof;


(viii)
a statement of the boards, councils, committees and other bodies consisting of two or more persons constituted as its part or for the purpose of its advice, and as to whether meetings of those boards, councils, committees and other bodies are open to the public, or the minutes of such meetings are accessible for public;


(ix)
a directory of its officers and employees;


(x)
the monthly remuneration received by each of its officers and employees, including the system of compensation as provided in its regulations;


(xi)
the budget allocated to each of its agency, indicating the particulars of all plans, proposed expenditures and reports on disbursements made;


(xii)
the manner of execution of subsidy programmes, including the amounts allocated and the details of beneficiaries of such programmes;


(xiii)
particulars of recipients of concessions, permits or authorisations granted by it;


(xiv)
details in respect of the information, available to or held by it, reduced in an electronic form;


(xv)
the particulars of facilities available to citizens for obtaining information, including the working hours of a library or reading room, if maintained for public use;


(xvi)
the names, designations and other particulars of the Public Information Officers;


(xvii)
such other information as may be prescribed and thereafter update these publications every year;

(c)
publish all relevant facts while formulating important policies or announcing the decisions which affect public;

(d)
provide reasons for its administrative or quasi-judicial decisions to affected persons.
(2)

It shall be a constant endeavour of every public authority to take steps in accordance with the requirements of clause (b) of sub-section (1) to provide as much information suo motu to the public at regular intervals through various means of communications, including internet, so that the public have minimum resort to the use of this Act to obtain information.
(3)

For the purposes of sub-section (1), every information shall be disseminated widely and in such form and manner which is easily accessible to the public.
(4)

All materials shall be disseminated taking into consideration the cost effectiveness, local language and the most effective method of communication in that local area and the information should be easily accessible, to the extent possible in electronic format with the Central Public Information Officer or State Public Information Officer, as the case may be, available free or at such cost of the medium or the print cost price as may be prescribed.


Explanation.—For the purposes of sub-sections (3) and (4), "disseminated" means making known or communicated the information to the public through notice boards, newspapers, public announcements, media broadcasts, the internet or any other means, including inspection of offices of any public authority.
(1)

Every public authority shall, within one hundred days of the enactment of this Act, designate as many officers as the Central Public Information Officers or State Public Information Officers, as the case may be, in all administrative units or offices under it as may be necessary to provide information to persons requesting for the information under this Act.
(2)

Without prejudice to the provisions of sub-section (1), every public authority shall designate an officer, within one hundred days of the enactment of this Act, at each sub-divisional level or other sub-district level as a Central Assistant Public Information Officer or a State Assistant Public Information Officer, as the case may be, to receive the applications for information or appeals under this Act for forwarding the same forthwith to the Central Public Information Officer or the State Public Information Officer or senior officer specified under sub-section (1) of section 19 or the Central Information Commission or the State Information Commission, as the case may be:
Provided that where an application for information or appeal is given to a Central Assistant Public Information Officer or a State Assistant Public Information Officer, as the case may be, a period of five days shall be added in computing the period for response specified under sub-section (1) of section 7.
(3)

Every Central Public Information Officer or State Public Information Officer, as the case may be, shall deal with requests from persons seeking information and render reasonable assistance to the persons seeking such information.
(4)

The Central Public Information Officer or State Public Information Officer, as the case may be, may seek the assistance of any other officer as he or she considers it necessary for the proper discharge of his or her duties.
(5)

Any officer, whose assistance has been sought under sub-section (4), shall render all assistance to the Central Public Information Officer or State Public Information Officer, as the case may be, seeking his or her assistance and for the purposes of any contravention of the provisions of this Act, such other officer shall be treated as a Central Public Information Officer or State Public Information Officer, as the case may be.
(1)

A person, who desires to obtain any information under this Act, shall make a request in writing or through electronic means in English or Hindi or in the official language of the area in which the application is being made, accompanying such fee as may be prescribed, to—

(a)
the Central Public Information Officer or State Public Information Officer, as the case may be, of the concerned public authority;

(b)
the Central Assistant Public Information Officer or State Assistant Public Information Officer, as the case may be,specifying the particulars of the information sought by him or her:Provided that where such request cannot be made in writing, the Central Public Information Officer or State Public Information Officer, as the case may be, shall render all reasonable assistance to the person making the request orally to reduce the same in writing.
(2)

An applicant making request for information shall not be required to give any reason for requesting the information or any other personal details except those that may be necessary for contacting him.
(3)

Where an application is made to a public authority requesting for an information,—

(i)
which is held by another public authority; or

(ii)
the subject matter of which is more closely connected with the functions of another public authority, the public authority, to which such application is made, shall transfer the application or such part of it as may be appropriate to that other public authority and inform the applicant immediately about such transfer:Provided that the transfer of an application pursuant to this sub-section shall be made as soon as practicable but in no case later than five days from the date of receipt of the application.
(1)

Subject to the proviso to sub-section (2) of section 5 or the proviso to sub-section (3) of section 6, the Central Public Information Officer or State Public Information Officer, as the case may be, on receipt of a request under section 6 shall, as expeditiously as possible, and in any case within thirty days of the receipt of the request, either provide the information on payment of such fee as may be prescribed or reject the request for any of the reasons specified in sections 8 and 9:
Provided that where the information sought for concerns the life or liberty of a person, the same shall be provided within forty-eight hours of the receipt of the request.
(2)

If the Central Public Information Officer or State Public Information Officer, as the case may be, fails to give decision on the request for information within the period specified under sub-section (1), the Central Public Information Officer or State Public Information Officer, as the case may be, shall be deemed to have refused the request.
(3)

Where a decision is taken to provide the information on payment of any further fee representing the cost of providing the information, the Central Public Information Officer or State Public Information Officer, as the case may be, shall send an intimation to the person making the request, giving—

(a)
the details of further fees representing the cost of providing the information as determined by him, together with the calculations made to arrive at the amount in accordance with fee prescribed under sub-section (1), requesting him to deposit that fees, and the period intervening between the despatch of the said intimation and payment of fees shall be excluded for the purpose of calculating the period of thirty days referred to in that sub-section;

(b)
information concerning his or her right with respect to review the decision as to the amount of fees charged or the form of access provided, including the particulars of the appellate authority, time limit, process and any other forms.
(4)

Where access to the record or a part thereof is required to be provided under this Act and the person to whom access is to be provided is sensorily disabled, the Central Public Information Officer or State Public Information Officer, as the case may be, shall provide assistance to enable access to the information, including providing such assistance as may be appropriate for the inspection.
(5)

Where access to information is to be provided in the printed or in any electronic format, the applicant shall, subject to the provisions of sub-section (6), pay such fee as may be prescribed:
Provided that the fee prescribed under sub-section (1) of section 6 and sub-sections (1) and (5) of section 7 shall be reasonable and no such fee shall be charged from the persons who are of below poverty line as may be determined by the appropriate Government.
(6)

Notwithstanding anything contained in sub-section (5), the person making request for the information shall be provided the information free of charge where a public authority fails to comply with the time limits specified in sub-section (1).
(7)

Before taking any decision under sub-section (1), the Central Public Information Officer or State Public Information Officer, as the case may be, shall take into consideration the representation made by a third party under section 11.
(8)

Where a request has been rejected under sub-section (1), the Central Public Information Officer or State Public Information Officer, as the case may be, shall communicate to the person making the request,—

(i)
the reasons for such rejection;

(ii)
the period within which an appeal against such rejection may be preferred; and

(iii)
the particulars of the appellate authority.
(9)

An information shall ordinarily be provided in the form in which it is sought unless it would disproportionately divert the resources of the public authority or would be detrimental to the safety or preservation of the record in question.
(1)

Notwithstanding anything contained in this Act, there shall be no obligation to give any citizen,—

(a)
information, disclosure of which would prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the State, relation with foreign State or lead to incitement of an offence;

(b)
information which has been expressly forbidden to be published by any court of law or tribunal or the disclosure of which may constitute contempt of court;

(c)
information, the disclosure of which would cause a breach of privilege of Parliament or the State Legislature;

(d)
information including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, unless the competent authority is satisfied that larger public interest warrants the disclosure of such information;


(e) information available to a person in his fiduciary relationship, unless the competent authority is satisfied that the larger public interest warrants the disclosure of such information;

(f)
information received in confidence from foreign Government;

(g)
information, the disclosure of which would endanger the life or physical safety of any person or identify the source of information or assistance given in confidence for law enforcement or security purposes;

(h)
information which would impede the process of investigation or apprehension or prosecution of offenders;

(i)
cabinet papers including records of deliberations of the Council of Ministers, Secretaries and other officers:


Provided that the decisions of Council of Ministers, the reasons thereof, and the material on the basis of which the decisions were taken shall be made public after the decision has been taken, and the matter is complete, or over:
Provided further that those matters which come under the exemptions specified in this section shall not be disclosed;

(j)
information which relates to personal information the disclosure of which has no relationship to any public activity or interest, or which would cause unwarranted invasion of the privacy of the individual unless the Central Public Information Officer or the State Public Information Officer or the appellate authority, as the case may be, is satisfied that the larger public interest justifies the disclosure of such information:


Provided that the information which cannot be denied to the Parliament or a State Legislature shall not be denied to any person.
(2)

Notwithstanding anything in the Official Secrets Act, 1923 nor any of the exemptions permissible in accordance with sub-section (1), a public authority may allow access to information, if public interest in disclosure outweighs the harm to the protected interests.
(3)

Subject to the provisions of clauses (a), (c) and (i) of sub-section (1), any information relating to any occurrence, event or matter which has taken place, occurred or happened twenty years before the date on which any request is made under secton 6 shall be provided to any person making a request under that section:


Provided that where any question arises as to the date from which the said period of twenty years has to be computed, the decision of the Central Government shall be final, subject to the usual appeals provided for in this Act.


Without prejudice to the provisions of section 8, a Central Public Information Officer or a State Public Information Officer, as the case may be, may reject a request for information where such a request for providing access would involve an infringement of copyright subsisting in a person other than the State.
(1)

Where a request for access to information is rejected on the ground that it is in relation to information which is exempt from disclosure, then, notwithstanding anything contained in this Act, access may be provided to that part of the record which does not contain any information which is exempt from disclosure under this Act and which can reasonably be severed from any part that contains exempt information.
(2)

Where access is granted to a part of the record under sub-section (1), the Central Public Information Officer or State Public Information Officer, as the case may be, shall give a notice to the applicant, informing—

(a)
that only part of the record requested, after severance of the record containing information which is exempt from disclosure, is being provided;

(b)
the reasons for the decision, including any findings on any material question of fact, referring to the material on which those findings were based;

(c)
the name and designation of the person giving the decision;

(d)
the details of the fees calculated by him or her and the amount of fee which the applicant is required to deposit; and

(e)
his or her rights with respect to review of the decision regarding non-disclosure of part of the information, the amount of fee charged or the form of access provided, including the particulars of the senior officer specified under sub-section (1) of section 19 or the Central Information Commission or the State Information Commission, as the case may be, time limit, process and any other form of access.
(1)

Where a Central Public Information Officer or a State Public Information Officer, as the case may be, intends to disclose any information or record, or part thereof on a request made under this Act, which relates to or has been supplied by a third party and has been treated as confidential by that third party, the Central Public Information Officer or State Public Information Officer, as the case may be, shall, within five days from the receipt of the request, give a written notice to such third party of the request and of the fact that the Central Public Information Officer or State Public Information Officer, as the case may be, intends to disclose the information or record, or part thereof, and invite the third party to make a submission in writing or orally, regarding whether the information should be disclosed, and such submission of the third party shall be kept in view while taking a decision about disclosure of information:
Provided that except in the case of trade or commercial secrets protected by law, disclosure may be allowed if the public interest in disclosure outweighs in importance any possible harm or injury to the interests of such third party.
(2)

Where a notice is served by the Central Public Information Officer or State Public Information Officer, as the case may be, under sub-section (1) to a third party in respect of any information or record or part thereof, the third party shall, within ten days from the date of receipt of such notice, be given the opportunity to make representation against the proposed disclosure.
(3)

Notwithstanding anything contained in section 7, the Central Public Information Officer or State Public Information Officer, as the case may be, shall, within forty days after receipt of the request under section 6, if the third party has been given an opportunity to make representation under sub-section (2), make a decision as to whether or not to disclose the information or record or part thereof and give in writing the notice of his decision to the third party.
(4)

A notice given under sub-section (3) shall include a statement that the third party to whom the notice is given is entitled to prefer an appeal under section 19 against the decision.
(1)

The Central Government shall, by notification in the Official Gazette, constitute a body to be known as the Central Information Commission to exercise the powers conferred on, and to perform the functions assigned to, it under this Act.
(2)

The Central Information Commission shall consist of—

(a)
the Chief Information Commissioner; and

(b)
such number of Central Information Commissioners, not exceeding ten, as may be deemed necessary.
(3)

The Chief Information Commissioner and Information Commissioners shall be appointed by the President on the recommendation of a committee consisting of—

(i)
the Prime Minister, who shall be the Chairperson of the committee;

(ii)
the Leader of Opposition in the Lok Sabha; and

(iii)
a Union Cabinet Minister to be nominated by the Prime Minister.


Explanation.—For the purposes of removal of doubts, it is hereby declared that where the Leader of Opposition in the House of the People has not been recognised as such, the Leader of the single largest group in opposition of the Government in the House of the People shall be deemed to be the Leader of Opposition.
(4)

The general superintendence, direction and management of the affairs of the Central Information Commission shall vest in the Chief Information Commissioner who shall be assisted by the Information Commissioners and may exercise all such powers and do all such acts and things which may be exercised or done by the Central Information Commission autonomously without being subjected to directions by any other authority under this Act.
(5)

The Chief Information Commissioner and Information Commissioners shall be persons of eminence in public life with wide knowledge and experience in law, science and technology, social service, management, journalism, mass media or administration and governance.
(6)

The Chief Information Commissioner or an Information Commissioner shall not be a Member of Parliament or Member of the Legislature of any State or Union territory, as the case may be, or hold any other office of profit or connected with any political party or carrying on any business or pursuing any profession.
(7)

The headquarters of the Central Information Commission shall be at Delhi and the Central Information Commission may, with the previous approval of the Central Government, establish offices at other places in India.
(1)

The Chief Information Commissioner shall hold office for a term of five years from the date on which he enters upon his office and shall not be eligible for reappointment:
Provided that no Chief Information Commissioner shall hold office as such after he has attained the age of sixty-five years.
(2)

Every Information Commissioner shall hold office for a term of five years from the date on which he enters upon his office or till he attains the age of sixty-five years, whichever is earlier, and shall not be eligible for reappointment as such Information Commissioner:
Provided that every Information Commissioner shall, on vacating his office under this sub-section be eligible for appointment as the Chief Information Commissioner in the manner specified in sub-section (3) of section 12:
Provided further that where the Information Commissioner is appointed as the Chief Information Commissioner, his term of office shall not be more than five years in aggregate as the Information Commissioner and the Chief Information Commissioner.
(3)

The Chief Information Commissioner or an Information Commissioner shall before he enters upon his office make and subscribe before the President or some other person appointed by him in that behalf, an oath or affirmation according to the form set out for the purpose in the First Schedule.
(4)

The Chief Information Commissioner or an Information Commissioner may, at any time, by writing under his hand addressed to the President, resign from his office:
Provided that the Chief Information Commissioner or an Information Commissioner may be removed in the manner specified under section 14.
(5)

The salaries and allowances payable to and other terms and conditions of service of —

(a)
the Chief Information Commissioner shall be the same as that of the Chief Election Commissioner;

(b)
an Information Commissioner shall be the same as that of an Election Commissioner:


Provided that if the Chief Information Commissioner or an Information Commissioner, at the time of his appointment is, in receipt of a pension, other than a disability or wound pension, in respect of any previous service under the Government of India or under the Government of a State, his salary in respect of the service as the Chief Information Commissioner or an Information Commissioner shall be reduced by the amount of that pension including any portion of pension which was commuted and pension equivalent of other forms of retirement benefits excluding pension equivalent of retirement gratuity:


Provided further that if the Chief Information Commissioner or an Information Commissioner if, at the time of his appointment is, in receipt of retirement benefits in respect of any previous service rendered in a Corporation established by or under any Central Act or State Act or a Government company owned or controlled by the Central Government or the State Government, his salary in respect of the service as the Chief Information Commissioner or an Information Commissioner shall be reduced by the amount of pension equivalent to the retirement benefits:


Provided also that the salaries, allowances and other conditions of service of the Chief Information Commissioner and the Information Commissioners shall not be varied to their disadvantage after their appointment.
(6)

The Central Government shall provide the Chief Information Commissioner and the Information Commissioners with such officers and employees as may be necessary for the efficient performance of their functions under this Act, and the salaries and allowances payable to and the terms and conditions of service of the officers and other employees appointed for the purpose of this Act shall be such as may be prescribed.
(1)

Subject to the provisions of sub-section (3), the Chief Information Commissioner or any Information Commissioner shall be removed from his office only by order of the President on the ground of proved misbehaviour or incapacity after the Supreme Court, on a reference made to it by the President, has, on inquiry, reported that the Chief Information Commissioner or any Information Commissioner, as the case may be, ought on such ground be removed.
(2)

The President may suspend from office, and if deem necessary prohibit also from attending the office during inquiry, the Chief Information Commissioner or Information Commissioner in respect of whom a reference has been made to the Supreme Court under sub-section (1) until the President has passed orders on receipt of the report of the Supreme Court on such reference.
(3)

Notwithstanding anything contained in sub-section (1), the President may by order remove from office the Chief Information Commissioner or any Information Commissioner if the Chief Information Commissioner or a Information Commissioner, as the case may be,—

(a)
is adjudged an insolvent; or

(b)
has been convicted of an offence which, in the opinion of the President, involves moral turpitude; or

(c)
engages during his term of office in any paid employment outside the duties of his office; or

(d)
is, in the opinion of the President, unfit to continue in office by reason of infirmity of mind or body; or

(e)
has acquired such financial or other interest as is likely to affect prejudicially his functions as the Chief Information Commissioner or a Information Commissioner.
(4)

If the Chief Information Commissioner or a Information Commissioner in any way, concerned or interested in any contract or agreement made by or on behalf of the Government of India or participates in any way in the profit thereof or in any benefit or emolument arising there from otherwise than as a member and in common with the other members of an incorporated company, he shall, for the purposes of sub-section (1), be deemed to be guilty of misbehavior.
(1)

Every State Government shall, by notification in the Official Gazette, constitute a body to be known as the ......... (name of the State) Information Commission to exercise the powers conferred on, and to perform the functions assigned to, it under this Act.
(2)

The State Information Commission shall consist of—

(a)
the State Chief Information Commissioner, and

(b)
such number of State Information Commissioners, not exceeding ten, as may be deemed necessary.
(3)

The State Chief Information Commissioner and the State Information Commissioners shall be appointed by the Governor on the recommendation of a committee consisting of—

(i)
the Chief Minister, who shall be the Chairperson of the committee;

(ii)
the Leader of Opposition in the Legislative Assembly; and

(iii)
a Cabinet Ministrer to be nominated by the Chief Minister.


Explanation.—For the purposes of removal of doubts, it is hereby declared that where the Leader of Opposition in the Legislative Assembly has not been recognised as such, the Leader of the single largest group in opposition of the Government in the Legislative Assembly shall be deemed to be the Leader of Opposition.
(4)

The general superintendence, direction and management of the affairs of the State Information Commission shall vest in the State Chief Information Commissioner who shall be assisted by the State Information Commissioners and may exercise all such powers and do all such acts and things which may be exercised or done by the State Information Commission autonomously without being subjected to directions by any other authority under this Act.
(5)

The State Chief Information Commissioner and the State Information Commissioners shall be persons of eminence in public life with wide knowledge and experience in law, science and technology, social service, management, journalism, mass media or administration and governance.
(6)

The State Chief Information Commissioner or a State Information Commissioner shall not be a Member of Parliament or Member of the Legislature of any State or Union territory, as the case may be, or hold any other office of profit or connected with any political party or carrying on any business or pursuing any profession.
(7)

The headquarters of the State Information Commission shall be at such place in the State as the State Government may, by notification in the Official Gazette, specify and the State Information Commission may, with the previous approval of the State Government, establish offices at other places in the State.
(1)

The State Chief Information Commissioner shall hold office for a term of five years from the date on which he enters upon his office and shall not be eligible for reappointment:


Provided that no State Chief Information Commissioner shall hold office as such after he has attained the age of sixty-five years.
(2)

Every State Information Commissioner shall hold office for a term of five years from the date on which he enters upon his office or till he attains the age of sixty-five years, whichever is earlier, and shall not be eligible for reappointment as such State Information Commissioner:


Provided that every State Information Commissioner shall, on vacating his office under this sub-section, be eligible for appointment as the State Chief Information Commissioner in the manner specified in sub-section (3) of section 15:


Provided further that where the State Information Commissioner is appointed as the State Chief Information Commissioner, his term of office shall not be more than five years in aggregate as the State Information Commissioner and the State Chief Information Commissioner.
(3)

The State Chief Information Commissioner or a State Information Commissioner, shall before he enters upon his office make and subscribe before the Governor or some other person appointed by him in that behalf, an oath or affirmation according to the form set out for the purpose in the First Schedule.
(4)

The State Chief Information Commissioner or a State Information Commissioner may, at any time, by writing under his hand addressed to the Governor, resign from his office:


Provided that the State Chief Information Commissioner or a State Information Commissioner may be removed in the manner specified under section 17.
(5)

The salaries and allowances payable to and other terms and conditions of service of—

(a)
the State Chief Information Commissioner shall be the same as that of an Election Commissioner;

(b)
the State Information Commissioner shall be the same as that of the Chief Secretary to the State Government:


Provided that if the State Chief Information Commissioner or a State Information Commissioner, at the time of his appointment is, in receipt of a pension, other than a disability or wound pension, in respect of any previous service under the Government of India or under the Government of a State, his salary in respect of the service as the State Chief Information Commissioner or a State Information Commissioner shall be reduced by the amount of that pension including any portion of pension which was commuted and pension equivalent of other forms of retirement benefits excluding pension equivalent of retirement gratuity:


Provided further that where the State Chief Information Commissioner or a State Information Commissioner if, at the time of his appointment is, in receipt of retirement benefits in respect of any previous service rendered in a Corporation established by or under any Central Act or State Act or a Government company owned or controlled by the Central Government or the State Government, his salary in respect of the service as the State Chief Information Commissioner or the State Information Commissioner shall be reduced by the amount of pension equivalent to the retirement benefits:


Provided also that the salaries, allowances and other conditions of service of the State Chief Information Commissioner and the State Information Commissioners shall not be varied to their disadvantage after their appointment.
(6)

The State Government shall provide the State Chief Information Commissioner and the State Information Commissioners with such officers and employees as may be necessary for the efficient performance of their functions under this Act, and the salaries and allowances payable to and the terms and conditions of service of the officers and other employees appointed for the purpose of this Act shall be such as may be prescribed.
(1)

Subject to the provisions of sub-section (3), the State Chief Information Commissioner or a State Information Commissioner shall be removed from his office only by order of the Governor on the ground of proved misbehaviour or incapacity after the Supreme Court, on a reference made to it by the Governor, has on inquiry, reported that the State Chief Information Commissioner or a State Information Commissioner, as the case may be, ought on such ground be removed.
(2)

The Governor may suspend from office, and if deem necessary prohibit also from attending the office during inquiry, the State Chief Information Commissioner or a State Information Commissioner in respect of whom a reference has been made to the Supreme Court under sub-section (1) until the Governor has passed orders on receipt of the report of the Supreme Court on such reference.
(3)

Notwithstanding anything contained in sub-section (1), the Governor may by order remove from office the State Chief Information Commissioner or a State Information Commissioner if a State Chief Information Commissioner or a State Information Commissioner, as the case may be,—


(a) is adjudged an insolvent; or

(b)
has been convicted of an offence which, in the opinion of the Governor, involves moral turpitude; or

(c)
engages during his term of office in any paid employment outside the duties of his office; or

(d)
is, in the opinion of the Governor, unfit to continue in office by reason of infirmity of mind or body; or

(e)
has acquired such financial or other interest as is likely to affect prejudicially his functions as the State Chief Information Commissioner or a State Information Commissioner.
(4)

If the State Chief Information Commissioner or a State Information Commissioner in any way, concerned or interested in any contract or agreement made by or on behalf of the Government of the State or participates in any way in the profit thereof or in any benefit or emoluments arising therefrom otherwise than as a member and in common with the other members of an incorporated company, he shall, for the purposes of sub-section (1), be deemed to be guilty of misbehaviour.
(1)

Subject to the provisions of this Act, it shall be the duty of the Central Information Commission or State Information Commission, as the case may be, to receive and inquire into a complaint from any person,—

(a)
who has been unable to submit a request to a Central Public Information Officer or State Public Information Officer, as the case may be, either by reason that no such officer has been appointed under this Act, or because the Central Assistant Public Information Officer or State Assistant Public Information Officer, as the case may be, has refused to accept his or her application for information or appeal under this Act for forwarding the same to the Central Public Information Officer or State Public Information Officer or senior officer specified in sub-section (1) of section 19 or the Central Information Commission or the State Information Commission, as the case may be;

(b)
who has been refused access to any information requested under this Act;

(c)
who has not been given a response to a request for information or access to information within the time limit specified under this Act;

(d)
who has been required to pay an amount of fee which he or she considers unreasonable;

(e)
who believes that he or she has been given incomplete, misleading or false information under this Act; and

(f)
in respect of any other matter relating to requesting or obtaining access to records under this Act.
(2)

Where the Central Information Commission or State Information Commission, as the case may be, is satisfied that there are reasonable grounds to inquire into the matter, it may initiate an inquiry in respect thereof.
(3)

The Central Information Commission or State Information Commission, as the case may be, shall, while inquiring into any matter under this section, have the same powers as are vested in a civil court while trying a suit under the Code of Civil Procedure, 1908, in respect of the following matters, namely:—

(a)
summoning and enforcing the attendance of persons and compel them to give oral or written evidence on oath and to produce the documents or things;

(b)
requiring the discovery and inspection of documents;

(c)
receiving evidence on affidavit;

(d)
requisitioning any public record or copies thereof from any court or office;

(e)
issuing summons for examination of witnesses or documents; and

(f)
any other matter which may be prescribed.
(4)

Notwithstanding anything inconsistent contained in any other Act of Parliament or State Legislature, as the case may be, the Central Information Commission or the State Information Commission, as the case may be, may, during the inquiry of any complaint under this Act, examine any record to which this Act applies which is under the control of the public authority, and no such record may be withheld from it on any grounds.
(1)

Any person who, does not receive a decision within the time specified in sub-section (1) or clause (a) of sub-section (3) of section 7, or is aggrieved by a decision of the Central Public Information Officer or State Public Information Officer, as the case may be, may within thirty days from the expiry of such period or from the receipt of such a decision prefer an appeal to such officer who is senior in rank to the Central Public Information Officer or State Public Information Officer as the case may be, in each public authority:


Provided that such officer may admit the appeal after the expiry of the period of thirty days if he or she is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.
(2)

Where an appeal is preferred against an order made by a Central Public Information Officer or a State Public Information Officer, as the case may be, under section 11 to disclose third party information, the appeal by the concerned third party shall be made within thirty days from the date of the order.
(3)

A second appeal against the decision under sub-section (1) shall lie within ninety days from the date on which the decision should have been made or was actually received, with the Central Information Commission or the State Information Commission:


Provided that the Central Information Commission or the State Information Commission, as the case may be, may admit the appeal after the expiry of the period of ninety days if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.
(4)

If the decision of the Central Public Information Officer or State Public Information Officer, as the case may be, against which an appeal is preferred relates to information of a third party, the Central Information Commission or State Information Commission, as the case may be, shall give a reasonable opportunity of being heard to that third party.
(5)

In any appeal proceedings, the onus to prove that a denial of a request was justified shall be on the Central Public Information Officer or State Public Information Officer, as the case may be, who denied the request.
(6)

An appeal under sub-section (1) or sub-section (2) shall be disposed of within thirty days of the receipt of the appeal or within such extended period not exceeding a total of forty-five days from the date of filing thereof, as the case may be, for reasons to be recorded in writing.
(7)

The decision of the Central Information Commission or State Information Commission, as the case may be, shall be binding.
(8)

In its decision, the Central Information Commission or State Information Commission, as the case may be, has the power to—

(a)
require the public authority to take any such steps as may be necessary to secure compliance with the provisions of this Act, including—


(i)
by providing access to information, if so requested, in a particular form;


(ii)
by appointing a Central Public Information Officer or State Public Information Officer, as the case may be;


(iii)
by publishing certain information or categories of information;


(iv)
by making necessary changes to its practices in relation to the maintenance, management and destruction of records;


(v)
by enhancing the provision of training on the right to information for its officials;


(vi)
by providing it with an annual report in compliance with clause (b) of sub-section (1) of section 4;

(b)
require the public authority to compensate the complainant for any loss or other detriment suffered;

(c)
impose any of the penalties provided under this Act;

(d)
reject the application.
(9)

The Central Information Commission or State Information Commission, as the case may be, shall give notice of its decision, including any right of appeal, to the complainant and the public authority.
(10)

The Central Information Commission or State Information Commission, as the case may be, shall decide the appeal in accordance with such procedure as may be prescribed.
(1)

Where the Central Information Commission or the State Information Commission, as the case may be, at the time of deciding any complaint or appeal is of the opinion that the Central Public Information Officer or the State Public Information Officer, as the case may be, has, without any reasonable cause, refused to receive an application for information or has not furnished information within the time specified under sub-section (1) of section 7 or malafidely denied the request for information or knowingly given incorrect, incomplete or misleading information or destroyed information which was the subject of the request or obstructed in any manner in furnishing the information, it shall impose a penalty of two hundred and fifty rupees each day till application is received or information is furnished, so however, the total amount of such penalty shall not exceed twenty-five thousand rupees:


Provided that the Central Public Information Officer or the State Public Information Officer, as the case may be, shall be given a reasonable opportunity of being heard before any penalty is imposed on him:


Provided further that the burden of proving that he acted reasonably and diligently shall be on the Central Public Information Officer or the State Public Information Officer, as the case may be.
(2)

Where the Central Information Commission or the State Information Commission, as the case may be, at the time of deciding any complaint or appeal is of the opinion that the Central Public Information Officer or the State Public Information Officer, as the case may be, has, without any reasonable cause and persistently, failed to receive an application for information or has not furnished information within the time specified under sub-section (1) of section 7 or malafidely denied the request for information or knowingly given incorrect, incomplete or misleading information or destroyed information which was the subject of the request or obstructed in any manner in furnishing the information, it shall recommend for disciplinary action against the Central Public Information Officer or the State Public Information Officer, as the case may be, under the service rules applicable to him.


No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under this Act or any rule made thereunder.


The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in the Official Secrets Act, 1923, and any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act.


No court shall entertain any suit, application or other proceeding in respect of any order made under this Act and no such order shall be called in question otherwise than by way of an appeal under this Act.
(1)

Nothing contained in this Act shall apply to the intelligence and security organisations specified in the Second Schedule, being organisations established by the Central Government or any information furnished by such organisations to that Government:


Provided that the information pertaining to the allegations of corruption and human rights violations shall not be excluded under this sub-section:


Provided further that in the case of information sought for is in respect of allegations of violation of human rights, the information shall only be provided after the approval of the Central Information Commission, and notwithstanding anything contained in section 7, such information shall be provided within forty-five days from the date of the receipt of request.
(2)

The Central Government may, by notification in the Official Gazette, amend the Schedule by including therein any other intelligence or security organisation established by that Government or omitting therefrom any organisation already specified therein and on the publication of such notification, such organisation shall be deemed to be included in or, as the case may be, omitted from the Schedule.
(3)

Every notification issued under sub-section (2) shall be laid before each House of Parliament.
(4)

Nothing contained in this Act shall apply to such intelligence and security organisation being organisations established by the State Government, as that Government may, from time to time, by notification in the Official Gazette, specify:


Provided that the information pertaining to the allegations of corruption and human rights violations shall not be excluded under this sub-section:


Provided further that in the case of information sought for is in respect of allegations of violation of human rights, the information shall only be provided after the approval of the State Information Commission and, notwithstanding anything contained in section 7, such information shall be provided within forty-five days from the date of the receipt of request.
(5)

Every notification issued under sub-section (4) shall be laid before the State Legislature.
(1)

The Central Information Commission or State Information Commission, as the case may be, shall, as soon as practicable after the end of each year, prepare a report on the implementation of the provisions of this Act during that year and forward a copy thereof to the appropriate Government.
(2)

Each Ministry or Department shall, in relation to the public authorities within their jurisdiction, collect and provide such information to the Central Information Commission or State Information Commission, as the case may be, as is required to prepare the report under this section and comply with the requirements concerning the furnishing of that information and keeping of records for the purposes of this section.
(3)

Each report shall state in respect of the year to which the report relates,—

(a)
the number of requests made to each public authority;

(b)
the number of decisions where applicants were not entitled to access to the documents pursuant to the requests, the provisions of this Act under which these decisions were made and the number of times such provisions were invoked;

(c)
the number of appeals referred to the Central Information Commission or State Information Commission, as the case may be, for review, the nature of the appeals and the outcome of the appeals;

(d)
particulars of any disciplinary action taken against any officer in respect of the administration of this Act;

(e)
the amount of charges collected by each public authority under this Act;

(f)
any facts which indicate an effort by the public authorities to administer and implement the spirit and intention of this Act;

(g)
recommendations for reform, including recommendations in respect of the particular public authorities, for the development, improvement, modernisation, reform or amendment to this Act or other legislation or common law or any other matter relevant for operationalising the right to access information.
(4)

The Central Government or the State Government, as the case may be, may, as soon as practicable after the end of each year, cause a copy of the report of the Central Information Commission or the State Information Commission, as the case may be, referred to in sub-section (1) to be laid before each House of Parliament or, as the case may be, before each House of the State Legislature, where there are two Houses, and where there is one House of the State Legislature before that House.
(5)

If it appears to the Central Information Commission or State Information Commission, as the case may be, that the practice of a public authority in relation to the exercise of its functions under this Act does not conform with the provisions or spirit of this Act, it may give to the authority a recommendation specifying the steps which ought in its opinion to be taken for promoting such conformity.
(1)

The appropriate Government may, to the extent of availability of financial and other resources,—

(a)
develop and organise educational programmes to advance the understanding of the public, in particular of disadvantaged communities as to how to exercise the rights contemplated under this Act;

(b)
encourage public authorities to participate in the development and organisation of programmes referred to in clause (a) and to undertake such programmes themselves;

(c)
promote timely and effective dissemination of accurate information by public authorities about their activities; and

(d)
train Central Public Information Officers or State Public Information Officers, as the case may be, of public authorities and produce relevant training materials for use by the public authorities themselves.
(2)

The appropriate Government shall, within eighteen months from the commencement of this Act, compile in its official language a guide containing such information, in an easily comprehensible form and manner, as may reasonably be required by a person who wishes to exercise any right specified in this Act.
(3)

The appropriate Government shall, if necessary, update and publish the guidelines referred to in sub-section (2) at regular intervals which shall, in particular and without prejudice to the generality of sub-section (2), include—

(a)
the objects of this Act;

(b)
the postal and street address, the phone and fax number and, if available, electronic mail address of the Central Public Information Officer or State Public Information Officer, as the case may be, of every public authority appointed under sub-section (1) of section 5;

(c)
the manner and the form in which request for access to an information shall be made to a Central Public Information Officer or State Public Information Officer, as the case may be;

(d)
the assistance available from and the duties of the Central Public Information Officer or State Public Information Officer, as the case may be, of a public authority under this Act;

(e)
the assistance available from the Central Information Commission or State Information Commission, as the case may be;

(f)
all remedies in law available regarding an act or failure to act in respect of a right or duty conferred or imposed by this Act including the manner of filing an appeal to the Commission;

(g)
the provisions providing for the voluntary disclosure of categories of records in accordance with section 4;

(h)
the notices regarding fees to be paid in relation to requests for access to an information; and

(i)
any additional regulations or circulars made or issued in relation to obtaining access to an information in accordance with this Act.
(4)

The appropriate Government must, if necessary, update and publish the guidelines at regular intervals.
(1)

The appropriate Government may, by notification in the Official Gazette, make rules to carry out the provisions of this Act.
(2)

In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—

(a)
the cost of the medium or print cost price of the materials to be disseminated under sub-section (4) of section 4;

(b)
the fee payable under sub-section (1) of section 6;

(c)
the fee payable under sub-sections (1) and (5) of section 7;

(d)
the salaries and allowances payable to and the terms and conditions of service of the officers and other employees under sub-section (6) of section 13 and sub-section (6) of section 16;

(e)
the procedure to be adopted by the Central Information Commission or State Information Commission, as the case may be, in deciding the appeals under sub-section (10) of section 19; and

(f)
any other matter which is required to be, or may be, prescribed.
(1)

The competent authority may, by notification in the Official Gazette, make rules to carry out the provisions of this Act.
(2)

In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—

(i)
the cost of the medium or print cost price of the materials to be disseminated under sub-section (4) of section 4;

(ii)
the fee payable under sub-section (1) of section 6;

(iii)
the fee payable under sub-section (1) of section 7; and

(iv)
any other matter which is required to be, or may be, prescribed.
(1)

Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
(2)

Every rule made under this Act by a State Government shall be laid, as soon as may be after it is notified, before the State Legislature.
(1)

If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removal of the difficulty:


Provided that no such order shall be made after the expiry of a period of two years from the date of the commencement of this Act.
(2)

Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.


The Freedom of Information Act, 2002 is hereby repealed.


Form of oath or affirmation to be made by the Chief Information Commissioner/the Information Commissioner/the State Chief Information Commissioner/the State Information Commissioner
"I, ....................., having been appointed Chief Information Commissioner/Information Commissioner/State Chief Information Commissioner/State Information Commissioner swear in the name of Godsolemnly affirm that I will bear true faith and allegiance to the Constitution of India as by law established, that I will uphold the sovereignty and integrity of India, that I will duly and faithfully and to the best of my ability, knowledge and judgment perform the duties of my office without fear or favour, affection or ill-will and that I will uphold the Constitution and the laws.".


Intelligence and security organisation established by the Central Government

1.
Intelligence Bureau.

2.
Research and Analysis Wing of the Cabinet Secretariat.

3.
Directorate of Revenue Intelligence.

4.
Central Economic Intelligence Bureau.

5.
Directorate of Enforcement.

6.
Narcotics Control Bureau.

7.
Aviation Research Centre.

8.
Special Frontier Force.

9.
Border Security Force.

10.
Central Reserve Police Force.

11.
Indo-Tibetan Border Police.

12.
Central Industrial Security Force.

13.
National Security Guards.

14.
Assam Rifles.

15.
Special Service Bureau.

16.
Special Branch (CID), Andaman and Nicobar.

17.
The Crime Branch-C.I.D.- CB, Dadra and Nagar Haveli.

18.
Special Branch, Lakshadweep Police.

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Brief Background

Brief Background

Past Chairmen

Past Chairmen

Offices

Offices

Local Chapters

Local Chapters

Objective

Objective

Organisation

Organisation

Managing Committee

Managing Committee

Eligibility for Membership

Eligibility for Membership

Industry Vision 2010

Industry Vision 2010


KYC/AML Guidance Note

KYC/AML Guidance Note

RBI guidelines on KYC/AML

RBI guidelines on KYC/AML

Obligation of Banks

Obligation of Banks

PML Act, 2002

PML Act, 2002


IBA Fair Practice Code for Credit Card

IBA Fair Practice Code for Credit Card

IBA Model Code of Conduct for DSAs

IBA Model Code of Conduct for DSAs

RBI Guidelines on Credit Card Operations

RBI Guidelines on Credit Card Operations

RBI Report of the Working Group on Regulatory Mechanism for Credit Cards

RBI Report of the Working Group on Regulatory Mechanism for Credit Cards


Umbrella Organisation

Umbrella Organisation

SWIFT

SWIFT

RTGS

RTGS

Cheque Truncation

Cheque Truncation

NEFT/SEFT/EFT/ECS

NEFT/SEFT/EFT/ECS

FAQ-Source DPSS, RBI

FAQ-Source DPSS, RBI

Credit Cards

Credit Cards


BCSBI - write-up

BCSBI - write-up

Code of Bank's Committment to Customers

Code of Bank's Committment to Customers


Dearness Allowance for Bank Employees

Dearness Allowance for Bank Employees

Dearness Relief for Pensioners

Dearness Relief for Pensioners


Highlights of Settlement Dated 02/06/05

Highlights of Settlement Dated 02/06/05

Labour Laws

Labour Laws

Industrial Agreement

Industrial Agreement


Banks' Sports Board

Banks' Sports Board

Banks' Sports Board Events

Banks' Sports Board Events


Public Sector Banks

Public Sector Banks

Associate Banks of SBI

Associate Banks of SBI

Private Sector Banks

Private Sector Banks

Foreign Banks

Foreign Banks

Co-operative Banks

Co-operative Banks


All India Financial Institutions

All India Financial Institutions

National Level Co-operative Banks

National Level Co-operative Banks

Foreign Banks having representative offices in India

Foreign Banks having representative offices in India

State Level Co-operative Banks

State Level Co-operative Banks

District Level Co-operative Banks

District Level Co-operative Banks

National Level Federation of Co-operative

National Level Federation of Co-operative

State Level Association of Co-operative

State Level Association of Co-operative

District Level Association of Co-operative Banks

District Level Association of Co-operative Banks

Small Co-operative Banks(Working Funds>Rs.25 Crore)

Small Co-operative Banks(Working Funds>Rs.25 Crore)

Small Co-operative Banks(Working Funds>Rs.25 Crore)

Small Co-operative Banks(Working Funds>Rs.25 Crore)

Subsidiaries of Member Bank

Subsidiaries of Member Bank


Track Publications

Track Publications


Select Publications

Select Publications

Track Orders

Track Orders


Books & Prices

Books & Prices

Order Form

Order Form


Monthly issue

Monthly issue

Subscription Form

Subscription Form

IBA Bulletin Board

IBA Bulletin Board


IBA Code

IBA Code

Fair Practice Code

Fair Practice Code

Model Code

Model Code

Fair Practice COde for Credit Card Operations

Fair Practice COde for Credit Card Operations


FAQ (General)

FAQ (General)


Nomination Facility

Nomination Facility

MOP - Settlement of Claims

MOP - Settlement of Claims


Complaints

Complaints

Banking Ombudsman

Banking Ombudsman

Nodal officers

Nodal officers


Security Printers for printing of MICR cheques

Security Printers for printing of MICR cheques

MICR Grade Paper Manufacturers

MICR Grade Paper Manufacturers


IBA Annual Report

IBA Annual Report

IBA Committee Report

IBA Committee Report




About IBA >> Objective
>> Objective

To promote and develop in India sound and progressive banking principles, practices and conventions and to contribute to the developments of creative banking.
To render assistance and to provide various common services to Members and to the banking industry.
To develop and implement new ideas and innovations in banking services, operations and procedures.
To organize co-ordination and co-operation on procedural, legal, technical, administrative or professional problems and practices of banks and the banking industry.
3. To initiate advance planning for introduction of new systems or services in the banking industry.
4. To collect, classify and circulate statistical and other information on the structure and working of the banking system.
5. To act as a clearing house for dissemination and exchange of statistical data, information, views and opinions on the systems, procedures and practices, and organization and methods of banks and on the structure, working and operations of the banking system.
6. To explore, plan, co-ordinate and organize detailed surveys on banking, business, resources, personnel and management development programmes of banks and the banking industry.
7. To pool together talents and resources available with members and to organize exchange of expertise and experiences of members for simplifying forms and procedures, for reducing cost of operations, for increasing efficiency and productivity and for such other common purposes as may be necessary or relevant to banks and the banking industry.
8. To organize exchange of credit information and opinions, export information or information and views on any other aspects of interest to banks or the banking industry.
9. To promote education and knowledge of the law and practice of banking.
10. To issue periodical newsletters, bulletins or magazines and publish books, pamphlets or other literature on matters of interest to members and to the banking industry.
11. To project a good public image of banking as a service industry and develop good public relations.
12. To promote harmonious personnel relations in banking industry and to devise ways and means for involving banking personnel in the endeavours of banks for growth and development of banking and the economy of the country.
To organize, promote and afford facilities for indoor and outdoor games, any form of sports, recreation, sports competitions, events, cultural activities, social activities, fine arts, social meetings, entertainments and to organize meetings for the above purposes and to provide for purposes by purchasing, acquiring, taking on lease, own, hire or otherwise playing fields, grounds, buildings, pavilions and other facilities.
To give financial assistance to individuals or bodies, from out of its own funds, or by collection from its members, or from any other source, and for the purpose of such collection, to accept grants, donations, etc. in cash or kind from Government, its members, other organizations, members of the public, etc. and to collect subscriptions, membership and other fees and to levy fees or charges for the use of the facilities and to raise funds in any manner to strengthen the financial position of the Association, from time to time, for the purpose of providing education, training and facilities for imparting basic, advance knowledge and techniques in games, sports, cultural activities, social activities, fine arts, etc. and to give donations, technical and other assistance, sports equipments, sports facilities and expert guidance to organizers for this purpose whether its members or not and to conduct, organize, participate or to associate itself in State-Level, Nation, International Tournaments and competitions pertaining to sports, cultural activities, social activities, fine arts, etc., held in or outside India.
To found, establish, develop and finance a separate body for the promotion of objects contained in Clauses n, nn, nnn, and generally, and to register it as a Society and/or Public Trust, or a Company under the provisions or relevant Acts, as the case may be.
To maintain continuous communications with the representatives of bank employees, to conduct talks, discussions, and negotiations with them and to arrive at Settlements.
To provide assistance and guidance to members in interpretation and implementation of Awards, Settlements, etc.
To assist, advise and guide all members and the smaller members in particular on all their needs, difficulties and problems of growth, development and working.
To act as an agent or a representative of a member or members in respect of matters connected with any of their operations working or administration.
To maintain close co-ordination and liaison with Reserve Bank of India, All Financial Institutions, Chambers of Commerce, Organisations of Banking Industry, Management or Educational Institutes, Universities and such other Organisations for realizing the subject and purposes of the Association.
Generally to do all and any other thing that may be necessary or relevant for the realization of the objects and purposes of the Association directly or indirectly.
To carry on publicity for the purpose of educating public opinion with regard to the scope, importance and activities of the banking industry, for creative growth and development.
To do all and such other things as are incidental or conductive to the attainment of any or all of the above objects.
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Sunday, June 01, 2008

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To promote and develop in India sound and progressive banking principles, practices and conventions and to contribute to the developments of creative banking.
To render assistance and to provide various common services to Members and to the banking industry.
To develop and implement new ideas and innovations in banking services, operations and procedures.
To organize co-ordination and co-operation on procedural, legal, technical, administrative or professional problems and practices of banks and the banking industry.
13. To initiate advance planning for introduction of new systems or services in the banking industry.
14. To collect, classify and circulate statistical and other information on the structure and working of the banking system.
15. To act as a clearing house for dissemination and exchange of statistical data, information, views and opinions on the systems, procedures and practices, and organization and methods of banks and on the structure, working and operations of the banking system.
16. To explore, plan, co-ordinate and organize detailed surveys on banking, business, resources, personnel and management development programmes of banks and the banking industry.
17. To pool together talents and resources available with members and to organize exchange of expertise and experiences of members for simplifying forms and procedures, for reducing cost of operations, for increasing efficiency and productivity and for such other common purposes as may be necessary or relevant to banks and the banking industry.
18. To organize exchange of credit information and opinions, export information or information and views on any other aspects of interest to banks or the banking industry.
19. To promote education and knowledge of the law and practice of banking.
20. To issue periodical newsletters, bulletins or magazines and publish books, pamphlets or other literature on matters of interest to members and to the banking industry.
21. To project a good public image of banking as a service industry and develop good public relations.
22. To promote harmonious personnel relations in banking industry and to devise ways and means for involving banking personnel in the endeavours of banks for growth and development of banking and the economy of the country.
To organize, promote and afford facilities for indoor and outdoor games, any form of sports, recreation, sports competitions, events, cultural activities, social activities, fine arts, social meetings, entertainments and to organize meetings for the above purposes and to provide for purposes by purchasing, acquiring, taking on lease, own, hire or otherwise playing fields, grounds, buildings, pavilions and other facilities.
To give financial assistance to individuals or bodies, from out of its own funds, or by collection from its members, or from any other source, and for the purpose of such collection, to accept grants, donations, etc. in cash or kind from Government, its members, other organizations, members of the public, etc. and to collect subscriptions, membership and other fees and to levy fees or charges for the use of the facilities and to raise funds in any manner to strengthen the financial position of the Association, from time to time, for the purpose of providing education, training and facilities for imparting basic, advance knowledge and techniques in games, sports, cultural activities, social activities, fine arts, etc. and to give donations, technical and other assistance, sports equipments, sports facilities and expert guidance to organizers for this purpose whether its members or not and to conduct, organize, participate or to associate itself in State-Level, Nation, International Tournaments and competitions pertaining to sports, cultural activities, social activities, fine arts, etc., held in or outside India.
To found, establish, develop and finance a separate body for the promotion of objects contained in Clauses n, nn, nnn, and generally, and to register it as a Society and/or Public Trust, or a Company under the provisions or relevant Acts, as the case may be.
To maintain continuous communications with the representatives of bank employees, to conduct talks, discussions, and negotiations with them and to arrive at Settlements.
To provide assistance and guidance to members in interpretation and implementation of Awards, Settlements, etc.
To assist, advise and guide all members and the smaller members in particular on all their needs, difficulties and problems of growth, development and working.
To act as an agent or a representative of a member or members in respect of matters connected with any of their operations working or administration.
To maintain close co-ordination and liaison with Reserve Bank of India, All Financial Institutions, Chambers of Commerce, Organisations of Banking Industry, Management or Educational Institutes, Universities and such other Organisations for realizing the subject and purposes of the Association.
Generally to do all and any other thing that may be necessary or relevant for the realization of the objects and purposes of the Association directly or indirectly.
To carry on publicity for the purpose of educating public opinion with regard to the scope, importance and activities of the banking industry, for creative growth and development.
To do all and such other things as are incidental or conductive to the attainment of any or all of the above objects.