It includes Preface, ConAnnexure and Index Pages.

Description:

The book has been revised and updated with all latest judicial decisions and with banking developments. The latest Amendment 2020 of the Banking Regulation, 1949 and Amendment of 2018 and 2019 of the Reserve Bank of India Act, 1934 have been incorporated. Some salient features of this edition are inclusion of Virtual Currency (VC) in light of the judgment of the Supreme Court in Internet and Mobile Association of India v. Reserve Bank of India, AIR 2021 SC 2720. The most illustrious case on locker’s facility provided by the bank and its liability thereof decided by the Supreme Court in Amitabh Dasgupta v. United Bank of India, AIR 2021 SC 1193. As to dishonour of Cheques has been updated specially mention of in Re : expeditious trial of cases under Section 138 of N.I. Act, AIR 2021 SC 1957. This case deals with staying of proceedings under Section 138, quashing of proceedings of dishonour of cheques under Section 482 of Cr.P.C. This case also establishes principle of law that Consumer Courts have no inherent power either to review or recall order of issuance of process. In P. Mohan Raj v. M/s. Shah Brothers Ispat (P) Ltd., AIR 2021 SC 1308, proceedings under Section 142 has been termed as Quasi Criminal Proceedings. As to joint liability, the recent notable case is Alka Khandu v. Amar Shyam Prasad, AIR 2021 SC 1616. Insertion of Section 143-A providing interim compensation "to the complainant" and Section 148 providing "Power of Appellate Court to order payment pending appeal against conviction" in furtherance of aims and object of the Act. These two sections support compensatory justice in dishonour of cheques.

Table of Contents:

BANKING REGULATION ACT

Early History of Banking

History of Banking in India

The Presidency Banks

Banking Control in India

Law Merchants

The Negotiable Instruments Act, 1881

The Bankers’ Books Evidence Act, 1891

The Indian Companies Act, 1913

The Reserve Bank of India Act, 1934

Industrial Re-Construction Bank of India (IRBI)

Industrial Development Bank of India (IDBI)

Objectives

Main functions of IDBI

IDBI’s role as a catalyst

Schemes of Assistance

Regional Rural Banks (RRB)

SECURITY AND EXCHANGE BOARD OF INDIA (SEBI)

DEPOSITORY SYSTEM

Depository

Benefits of depository services

DEMATERIALISATION (DEMAT)

What is dematerialisation

Depository and its role

Depository participants (DPs) and their role

Rematerialisation

Benefit

MONEY LAUNDERING

Essential elements of money laundering

Legal set up in India

Role of banks

Offences and punishment

Bill to curb money laundering

The Banking Regulation Act, 1949

Main provisions of the Act


Origin of the word "Bank"

Definition : "Bank"

Statutory Definition

Banking Company

"Banks" and "Banking Companies" : Distinction

Exception of banking company

Accepting of deposits by unincorporated companies etc.

Approved Securities

Business of banking (Section 6)

Non-banking business

"Banker"

No satisfactory definition

Money lenders are not banker

Difference between banking and money lending

Who can be a Banker or Bank

I. Section 3 of Negotiable Instruments Act, 1881

II. Section 11 of the Companies Act, 1956

III. The Reserve Bank of India Act, 1934

IV. The Banking Regulation Act, 1949

Mere accepting deposit is not Banking

Essentials of Banking Company

Restriction on acceptance of deposits

Banking business by Co-operative Societies : S. 56(o) read with S. 22

Money Lender not a Banker

Financial Institutions as a banker

Is Co-operative Banks or Co-operative Societies are Banking Company Under Section 5(c)?

Application of the Act (Banking Regulation Act) to Co-operative Banks

TO WHICH CO-OPERATIVE SOCIETIES THE ACT DOES NOT APPLY?

Name of the Banking Company

Restrictions on use of "banker", "bank" and "banking" (Section 7) Exceptions

Application to Co-operative Society (Section 7)

RBI Circular binding on Co-operative Societies

Social Control of the Banking Companies

Two Significant Event

1) Social Control of the Banking Companies

History

Social Control

National Credit Council

Functions of N.C.C.

(2) Nationalisation of Banking Companies

I. First Phase of 14 Banks

II. Second Phase of six banks

Objects of Nationalisation

Why Nationalisation was preferred in spite of Social Control?

Nationalisation : Unconstitutional

"Rustam Cawasjee Cooper v. Union of India"—(Bank Nationalisation Case)

Ordinance Replaced : Validity of Nationalisation Upheld

Arguments for Nationalisation

Arguments against Nationalisation of banks

Reserve Bank’s policy on New Banks

Reserve Bank on Rural Banking

Minimising the Number of Banks (Planning of keeping only 7 Nationalised Banks)

Powers and Functions of Reserve Bank

1. As to Reserve Fund (S. 17)

2. As to cash reserve (S. 18)

2a. As to ‘repo’ and ‘reverse repo’ rate—See Sec. 12-AB of R.B.I. Act

3. As to loans and advances (S. 20)

4. As to licensing of banking companies (S. 22)

5. As to opening of new, transfer of existing, place of business etc. (S. 23)

6. As to maintenance of a percentage of assets (Ss. 24, 25)

7. As to monthly return, accounts and balance sheet

8. As to inspection (Power of Reserve Bank) (S. 35)

9. Power of the Reserve Bank to give direction (S. 35-A)

10. Further powers and functions of Reserve Bank (S. 36)

11. Power of control over management

12. Supersession of Board of Directors of Banking Company.

13. Acquisition of undertaking of Banking Companies (S. 36AE)

14. Power as to Suspension and winding up of Banking Companies (Ss. 36-B, 37 to 45) and (Ss. 45-A to 45-X)

15. Power as to Reconstruction and Amalgamation of Banking Companies (S. 44-A, 44-B, S. 45)

16. As agent of the Central Government or the State— See in RBI.

Commercial Banks

(A) Indian Banks and Foreign Banks

Foreign Banks in India

A new deal for Foreign Banks

The major theme

Origin of policy

(B) Scheduled Commercial Banks and Non-Scheduled Commercial Banks

Scheduled Commercial Banks

Conditions for inclusion in 2nd Schedule

Privileges and Facilities of Scheduled Banks

(C) Commercial Banks in Public and Private Sector

Public Sector Banks (PSBs)

Private Sector Banks

Private Sector Banks in India

Autonomy For Commercial Banks

Parameters for additional autonomy

Banking Company : Legal States

State of Public Authority

Guidelines for New Private Banks

Functions of Commercial Banks

I. Essential/Primary Functions

II. Subsidiary Functions

III. Miscellaneous Functions Services

(1) Accepting of Deposits

(2) Lending of Money

(3) Issuing of Notes

(4) Remittance of Funds

(5) Use of Cheque

(6) Agencies Services

(7) General Utility Services : Community

(8) General Utility Services

(9) International Banking Services

(10) Merchant Banking Services

PARA-BANKING ACTIVITIES/SERVICES

What are para-banking activities/services?

Purpose of formation of subsidiary companies

Para Banking Companies : N.B.F.C.

Foreign Exchange business/Services

New banking facility for urban slum dwellers in Bhopal

Step to promote IT-enabled financial inclusion package

Licensing of Banking Companies

(1) Necessity of License

At the Commencement of the Act

(2) Procedure of License

(3) Condition for license : [Section 22(3)1

(4) Cancellation of License : Section 22(4)

(5) Appeal and remedy against cancellation [Section 22(5)]

Banking Licence to Postal Department

Unlicensed Banking

Opening of New Branches and Transfer of Existing Place of Business : (Section 23)

Exception

1. Temporary New Branch

2. Change of place of business

Conditions for granting permission [Section 23(2)]

Revocation of permission [Section 23(4)]

Place of business

Restrictions on Opening of New Branches by Co-operative Societies

R.B.I. Circular is binding

Liability of Reserve Bank

LIBERALISED BRANCH AUTHORISATION POLICY

OPERATIONAL GUIDELINES OF BRANCH LICENSING

System of Banking

(1) Central Banking

(2) Unit Banking

Advantage of Unit Banking

Disadvantages of Unit Banking

(3) Branch Banking

(4) Group Banking

(5) Chain Banking

Proxy Banking in India

Reasons for setting-up of Proxy Banking

Benefits to rurals

(6) Merchant Banking Service

Banker’s Merchant Bankers

(7) Universal Banking

Objective

RBI guidelines on Universal Banking

(8) Narrow Banking

What is narrow banking?

What are advantages

What is status of narrow banking in India?

(9) Retail Banking

Background

Basic characteristics

(10) Weekly Banking

RBI releases new rules for private players in banking sector

Minimum equity

Draft rules

RBI’s concern over rising instances of frauds in retail banking

Rating of Banks

Rating Criteria

CAMELS rating criteria

Parameters for rating a bank

Rating Symbols—Domestic Banks

Internet Banking (E-Banking)

Definition

Internet banking in India—NET Banking

Services through E-Banking

Advantage of Internet Banking

Security Precautions

RBI proposes new payment systems

PROVISIONS RELATING TO CERTAIN OPERATIONS OF BANKING COMPANIES

(1) Preservation of records (S. 45-Y)

(2) Return of paid instruments (S. 45-Z)

(3) (i) Nomination for payment of deposit money (S. 45-ZA)

Who can be nominee

Can a minor be a nominee

Rights of nominee

Rights of successor of the depositor

(ii) Notice of claims of other persons regarding deposits not receivable (S. 45-ZB)

(iii) Nomination for return of articles kept in safe custody (S. 45-ZC)

(iv) Notice of claims of other persons regarding articles not receivable (S. 45-ZD)

(v) Nomination for release of contents of safety lockers (S. 45-ZE)

(vi) Notice of claims of other persons regarding safety lockers not receivable (S. 45-ZF)

Chapter IV

Banks and Customers Relation

I. Who is a bank or banker?

II. Who is a Customer?

Frequency anticipated

Dealing to be of a Banking Nature

Essential requisite of Relation

Account—Is Nexus of Relation

Contractual Relation

III. Services rendered by Banks : (Banking Services)

(i) General Services : [Services to depositors and borrowers]

(ii) Ancillary Service

(iii) Special Banking Services

(iv) General Utility Services for all

IV. Relationship Between Banker and Customer

1. Debtor and Creditor

Deposit amount as a debt

Nature of Fixed Deposit : "A Debt"

Fixed Deposit "either or survivor" clause : Meaning

Instructed deposit : not debt

Conditions for payment of deposit amount

Favoured or Privileged Debtor

Taking re-possession by use of force—Unlawful

Discounting of Cheques

Collection of Cheques

2. Trustee and beneficiary

Banker as a trustee and customer as a beneficiary Ccestui que trust)

Deposit of money with Specific Instruction

Safe Custody in Lockers : [See in the Chapter of Bailor and Bailee]

3. Principal and Agent

Other Agency Services

No bank provides service without authority of the customer

4. Trader and Customer (Consumer)

Continuance of Banker’s Service

Mortgage of Joint FDR

5. Bailee and Bailor Relation

Deposit in the account does not amount bailment

Safe Custody of Customer’s valuables

Knowledge of the contents of the lockers

(i) Locker user register

(ii) Safe Custody register

(iii) Withdrawl of articles register

6. Guarantor and Beneficiary

Bank Guarantee

7. Mortgager and Mortgagee

8. Pawnor and Pawnee

9. Lessor and Lessee

Termination of Banker and Customer Relationship

(A) Termination by the customer

(B) Termination by the Banker

I. Under the operation of Law

II. Undesirable Accounts

Reasonable notice to close account

Commercial Viability for maintaining account :

Undesirable Account

Dormant Account

Inoperative (others)

Inoperative (10 years and over) unclaimed deposits

Non-performing Account (NPA)

Non-performing Assets (NPA)

Introduction

NPAs, what is?

INTRODUCTION TO NPA

Types of NPA

Reasons Behind NPA

Effects of NPA on Banks & Financial Institutions

Bad loan of some big banks

Obligations (duties) and rights of banker and customer

I. Banker’s Obligations : Statutory duties of Banks

1. Obligation (duty) to honour cheques

(i) There must be sufficient funds

(ii) The funds must be properly applicable to the payment of the cheque

(iii) The banker must be duly required to pay

(iv) Presentation of cheques within working hours of business

(v) Presentment of cheque within a reasonable time

(vi) Presentment of cheque at the branch where account is kept

(vii) Not a case of justified dishonour

Application of the Garnishee Order to Various Types of Accounts

Rights of the Attaching Creditor

Attachment Order Issued by Income-Tax Authorities

Extension of Liability

2. Obligation to maintain Secrecy of Accounts. '

I. Disclosure of Information Required by Law

II. Disclosure Permitted by Banker’s Practices and Usages

Risks of Unwarranted and Unjustifiable Disclosure

3. Obligation to honour guarantee

4. Obligation to honour letter of Credit

5. Obligation as to recovery of debts

6. Dropping of cheques in drop boxes for collection

Remedies for refusal

Depositing of Cheques by Phone


7. Obligation (duty) to maintain correct account of the customer

8. Not to convert excess credit as overdraft

II. Banker’a Right

1. Right of General Lien

Exceptions to the Right of Lien

2. Banker’s Right of Set-off

Nature of Set-off

Set-off in Joint Account

FDR before Maturity

FDR After Maturity

Set-off in Fixed Deposit

3. Right of Appropriation (Rule in Clayton’s Case)

Clayton’s Case

(1) Appropriation by the debtor

(2) Appropriation by the Creditor (Section 60)

(3) Appropriation by law (Section 61)

4. Banker’s Right to Charge Interest, Incidental Charges, etc.

Charge on Cheque Book

5. Right to ask Succession Certificate

6. Right to publish defaulting borrowers

Inclusion of name of borrower in list of defaulter

II. The Obligation and Right of customers to his banker

1. Not to draw cheques without sufficient Fund

2. Drawing Cheques with reasonable care

3. To repay overdrawings

4. To pay charges of the bank

5. To communicate or inform facts

6. To make demand for repayment of deposit

Customer’s Accounts and Banks

Why Bank Accounts?

Deposit Accounts

Classification of Customer’s Accounts

Regulation of Competition in Banking

Classification of Deposits

(A) Demand Deposits

(B) Time Deposits

I. Fixed Deposit Accounts

Fixed Deposits in Joint Names

Change in Names

Nature of Joint Fixed Account

Joint Fixed Deposit qua Joint Account

Fixed deposits : Renewal

II. SAVINGS BANK ACCOUNTS

Recurring Deposit or Cumulative Deposit Accounts

III. CURRENT ACCOUNTS

Return of unclaimed Deposits (Section 26)

Banking Service of NRIs in India

What are the various facilities available to NRIs/OCBs?

Opening of Accounts : Procedure

Bank Accounts of every Adult by 2016

Fixed Deposit Account

Opening of Current and Savings Accounts

1. Application on the Prescribed Form

2. Introduction of the Applicant

3. Specimen Signature

4. Photograph of the Applicant

5. Compulsory quoting of PAN/GIR number

6. Initial Deposits (Amount)

Current Account

Fixed Deposits must be opened with Rs. 100.00 without any upper limit.

Recurring Deposits are opened with minimum Rs. 100.00 and maximum of Rs. 10,000.00.

Pay-in-Slip

Operating the Bank Account

MICR Cheques

CTS-2010: Cheque Truncation System-2010

Legal Aspects of Entries in the Pass Book

Passbook to constitute an Authentic Record

Amount inadvertently credited : A Debt

Effect of the Customer Signing Confirmation Slips

Duty of Customer to examine pass book recognised in U.S.A.

Duty of the Customer

Recovery of excess amount

Effect of False Entry in Pass Book

Maintenance of Accounts

Precautions to be taken by the banker and the customer

Closing of a Bank Account

Closing of Accounts on Commercial Viability

Dormant/Inoperative Accounts

Special Types of Banker’s Customers

MINOR

Legal Provisions Regarding Guardianship of a Minor

Kid’s Banking Account (Children)

Kid’s Banking

Minors over 10 years can open SB account : RBI

MARRIED WOMAN

PARDANASHIN WOMAN

ILLITERATE PERSONS

LUNATICS

TRUSTEES

EXECUTORS AND ADMINISTRATORS

CUSTOMER’S ATTORNEY

JOINT HINDU FAMILY

PARTNERSHIP FIRM

JOINT STOCK COMPANIES

1. Examination of Documents

2. Copy of the Board’s Resolutions

3. The Borrowing Power of the Company

4. Registration of Charges under the Companies Act

5. Director’s Personal Accounts

CLUBS, SOCIETIES AND CHARITABLE INSTITUTIONS

Capital and Share Capital

(1) Only ordinary or Equity shares

(2) Share Capital Ratio

(3) Voting Rights

Requirement as to minimum paid-up Capital and Reserves (Section 11)

Paid-up Capital and Reserves

Minimum paid up Capital & Reserve for a co-operative

(1) No Banking Business allowed [Section 11(1)1

(2) Foreign Banking Company (not less than 15 lakh rupees) [Section 11(2)]

(3) Other Banking Companies [Section 11(3)]

Deposits of foreign company [Section 11(4)]

Not exceeding 2Vi% paid-up rate of shares

Comment of Sections 17 & 18

Demand and Time liability

Scheduled Banks [Exempted from Sections 17 & 18]

Cash Reserve Ratio (CRR)

CRR controls liquidity and constrains inflation

Interest on Cash Reserve

Applicability to Co-operative Banks

A banking company cannot be a holding company

Loans and Advances

Comment on Section 20

Power to remit debts

Waiver of Commercial Loan

Nature of Guidelines

Powers of the Court

Lending of Funds

Basic Principles of Lending

1. Principle of Safety

2. Principle of profitability

3. Principle of Liquidity

4. Principle of Purpose

5. Principle of risk spread

6. Principle of Security

7. National Interest

FORMS OF ADVANCES

1. Cash Credit Commitment Charge

2. Overdrafts

3. Loans

Classification of Loans and Advances

Securities for Bank Advances

General principles of Secured Advances

Advances Against Documents of Title to Goods

Risk in case of Advances Against Documents

Advances Against Life Insurance Policies

Merits of Life Insurance Policy as Security

Demerits of Life Insurance Policy

Precaution to be taken by the banker

Classification of modes of securities

Pledge

Who can pledge?

Rights of a banker as a pledgee

Duties of the Pledgee Bank

Mortgage

Essential Features of Mortgage

Kinds of Mortgages

Rights of Mortgagee

Right to sue and Right to realise the Security distinct Rights

SUB-MORTGAGE

ASSIGNMENT

Loans to Companies

Charge

Characteristics of Floating Charge

Crystallisation of Floating Charge

Registration and Modification of Charges

Documents to be obtained

Board Resolution

Borrowing Capacity

Common Seal

REGISTRATION, MODIFICATION AND SATISFACTION OF CHARGE

Registration of charges created on the assets of a company

COMPROMISE SETTLEMENT THROUGH LOK ADALATS

R.B.I. GUIDELINES ON LOK ADALATS

DRT LOK ADALATS

HYPOTHECATION

Legal aspects in Hypothecation

GUARANTEE

Guarantee as a security for Banker’s advance

Economic Functions of the Guarantee

Essential features of Guarantee

Contract of Indemnity

Indemnity and guarantee distinguished

Kinds of guarantee

Liability under bank guarantee

Letters of Credit and Bank Guarantees

No Arbitration about Bank Guarantee

Surety’s liability co-extensive with that of the principal debtor

Banker’s claim against a bankrupt surety’s estate

Surety’s Rights and Liabilities

Condition precedent to liability

Cheque given as security

Discharge of Surety’s liability

Effect of Debt Relief Act

Restrictions on power to remit Debts

Surety’s Rights

Rights against the principal debtor

Right against the creditor

Right against Co-sureties

IX

Management of Banking Companies

(1) Constitution of the Board of Directors

(2) Prohibition Employment of Managing Agents

(3) Prohibition Employment of Certain Person

(4) Prohibition to be managed by certain persons (Section 10)

Prohibition to be managed by Political Persons

(5) Prohibition of Common Directors

(6) Appointment of Whole-time Chairman

Chairman on part-time basis

Qualification of Chairman

Disqualification of Chairman

Powers of Reserve Bank of India

Control over Management

1. Election of New Directors Added by Act 95 of 1956 w.e.f. (14-1-1957). :

2. Power of Reserve Bank to remove managerial and other persons (Section 36-AA) Section 36-AA provides

3. Amendments of provisions relating to appointments of managing directors, etc. to be subject to previous approval of Reserve Bank. (Section 35-B)

Overriding effect of this part II-A

4. Power of Reserve Bank to appoint additional directors (Section 36-AB)

5. PART II-AB

Supersession of Board of Directors of Banking Company

Acquisition of the undertaking of Banking Companies Power of Central Government Maintenance of a percentage of assets (Section 24).

Return unclaimed Deposits

Monthly returns and power to call for other returns and information (Section 27).

Suspension and Winding up of Banking Companies

(A) Suspension of Banking Business

(1) By High Court

Appointment of special Authority [Section 37(3)]

Powers of Reserve Bank [Section 37(4)]

(2) By Central Government (Section 45)

Effect of Moratorium

Duration of Moratorium

(B) Winding up of the Banking Companies

Inspection

Powers of Reserve Bank [Section 35(4), (5) and (6)]

Circumstances when a Banking Company deemed unable to pay its debts

Voluntary Winding up

Proceedings of Winding up

Appointment of Court Liquidator (Section 38-A).

Special Provisions for Speedy Disposal of Winding up Proceedings

(C) Reconstruction and Amalgamation of Banking Companies

Forms of reconstruction and amalgamation

Powers and Functions of Reserve Bank of India

Procedure for amalgamation of banking companies (Section 44-A)

Restriction on compromise or arrangement between banking company and creditors

Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation (Section 45)

MERGERS & ACQUISITIONS

Issues in Mergers

Constitution of Tribunal: Banking Tribunal

Tribunal to have powers of Civil Court

MISCELLANEOUS

Letters of Credit (Documentary Credits)

Definition

Circular Notes

Circular Cheques

Travellers’ Cheques

Special Features of travellers’ Cheque

Difference between Traveller’s cheque and Circular cheque

Kinds of Letters of Credits

Basic Features

(i) Traveller’s Letter of Credit

Essential features of Traveller’s Letter of Credit

(ii) Letters of Commercial Credit

Parties to the Letters of Credit

(1) In case of Travellers' Letter of Credit

(2) In case of letter of Commercial Credit

Classifications of Letter of Commercial Letters of Credit

(1) Revocable and Irrevocable Letters of Credit

As per Article 1 of the Uniform Customs and Practice for Documentary Credits

(2) Fixed and Revolving Credit

(3) Documentary and Clean Credit

(4) With and Without Recourse" Credit

(5) Transferable and Non-transferable Credit

(6) Confirmed and Unconfirmed Letters of Credit

Performance guarantees

Advantage of a Letter of Credit

(A) To the beneficiary

(B) Advantages of Letter of Credit to the Buyer (or Importer)

THE LIABILITY OF THE ISSUING BANKER

Distinction between Irrevocable Letter of Credit and Bank Guarantee

OPENING OF A LETTER OF CREDIT

UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS

General Provisions

A. Form and Notification of Credits

B. Liabilities and Responsibilities : Examination of Documents

C. Documents

D. Miscellaneous Provisions relate to :

E. Transfer

Computer Banking : E-Banking

BANKING THROUGH TECHNOLOGY

A Shift Towards A Cashless Society

STANDS-ALONE COMPUTER SYSTEM

MULTI-USER SYSTEMS

BRANCH AUTOMATION

COMPUTER

CLASSIFICATION OF COMPUTERS

GENERATIONS OE COMPUTER

USE OF COMPUTERS

COMPONENTS OF COMPUTER

HARDWARE

INPUTS DEVICES

OUTPUT DEVICES

STORAGE DEVICES

STORAGE SYSTEM

Floppy disk

Magnetic tape

Hard disk

Optical disk or compact disk (CD)

BANKNET

RBINET

I-net

NICNET

IBA SWADHAN NETWORK

INFINET

Intra-bank

Inter-bank

INTERNET

Face-Book

CORE BANKING SOLUTIONS

Essential requirement of CBS

Advantages

Customer


Banks

ELECTRONIC PAYMENT SYSTEM & RELATED ISSUES

REAL TIME GROSS SETTLEMENT SYSTEM (RTGS)

Process of RTGS

Present status of RTGS in India

AUTOMATED TELLER MACHINE (ATM)

HAWK

Personal Identification Number (PEN)

PLASTIC CARDs (PLASTIC MONEY)

CHARGE CARD

CREDIT CARD

DEBIT CARD

GOLD CARD

SMART CARD

SWITCH CARD

CO-BRANDED CARD

ELECTRONIC PURSE

Advantages of plastic cards

ELECTRONIC CASH

CHEQUE TRUNCATION

ELECTRONIC CHEQUES

BANKING SERVICES THROUGH INFORMATION

TECHNOLOGY : Applications

Mobile ATM

UPDATION OF TRANSACTIONS IN BANKS

SIGNATURE STORAGE & RETRIEVAL

BANK AUTOMATION

INTERNET BANKING IN INDIA—RESERVE BANK OF INDIA GUIDELINES

Technology and Security Standards

Legal Issues

Regulatory and Supervisory Issue

IMPACT OF COMPUTER TECHNOLOGY

Impact on customer services

Impact on Employees

Impact on services

Impact on organizational structure and orientation

INFORMATION TECHNOLOGY ACT, 2000

Validity of eCom in india

Banking through Mobiles

Mobile Banking Service

Mobile Way to Financial Inclusion

RBI’s Draft norms on mobile payments

Long-term goal

Infrastructure

Registration

DIGITAL SIGNATURES

E-COMMERCE

ELECTRONIC FUNDS TRANSFER

Procedure

SPECIAL ELECTRONIC FUNDS TRANSFER SYSTEM

PARTICIPANTS

SEFT-PROCESS FLOW

Transmission/Submission of SEFT Data File to the SEFT centre

Receiving NCC transmitting NCC Data File to the beneficiary banks

Data validation at receiving SEFT Service Branch

IBA’s ELECTRONIC CLEARING SERVICE

MAGNETIC INK CHARACTER RECOGNITION (MICR)

Banking Ombudsman

What is Banking Ombudsman

Nature of Jurisdiction

Rationale of Appointing Banking Ombudsman.

Jurisdiction of the Banking Ombudsman

PREREQUISITE FOR COMPLAINT WITH OMBUDSMAN

AWARD BY THE BANKING OMBUDSMAN

Procedure of filing complaint

Special Feature of Complaint

Ombudsman washes hands of Internet banking frauds

COMPROMISE SETTLEMENT THROUGH LOK ADALATS

IMPORTANT ASPECTS

DEBTS RECOVERY TRIBUNALS (DRT)

RATIONALE FOR SETTING UP DRT

DRT APPLICABILITY

CONSTITUTION OF DRT

DEBTS RECOVERY APPELLATE TRIBUNAL

DRT NOT A CIVIL COURT

PROCEDURE FOLLOWED BY THE TRIBUNALS

Debts Recovery Tribunal (DRT) and Banking Ombudsman

Order of DRT is not a decree

Reserve Bank of India

Royal Commission

THE RESERVE BANK OF INDIA ACT, 1934

CHAPTER I—PRELIMINARY

CHAPTER II—INCORPORATION CAPITAL, MANAGEMENT AND BUSINESS

Business which the Reserve Bank of India may transact (S. 17)

Central Banking System in India

Nationalisation of Reserve Bank of India

CHAPTER III—POWER AND FUNCTIONS OF RESERVE BANK

(A) Power and Functions under the Reserve Bank of India Act, 1934

(1) Issuance of Currency : Monopoly of note-issue Distribution of Currency Notes and Coins PIL for seeking proper distribution of currency

and coins : S. 38 of RBI Plastic Money

(2) Banker to the Government

(3) Banker’s Bank

(4) Control of Banks

(5) Controller of Credits

(6) Compliance of Statutory Reserves

(7) Collection of information

BOARD FOR FINANCIAL SUPERVISION (BFS)

(8) Maintenance of external value

(9) Monetary Controller of the Country

Dealing in repo or reverse repo (S. 12-AB)

(10) Other promotional and developmental function

(11) As agent of the Central Government

The acting of agent of Central Government (S. 11-A)

The Reserve Bank of India and its Promotional Role

Reserve Bank of India as Controller of Commercial Banks

Master Circular (S. 35)

Supervisory Functions : Separated

Non-Banking Financial Institutions : Control and Regulations

RBI grants licences to 10 small banks

RBI for large co-operative to turn into banks

1. Definition of ‘Deposit’

Restrictions on accepting ‘Deposits’

2. Requirement of registration and net owned fund (S. 45-LA).

3. Maintenance of percentage of assets (S. 45IB).

4. Reserve fund (S. 45IC).

5. Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money (S. 45IJ).

6. Power of Bank to determine policy and issue directions (S. 45JA).

7. Power of Bank to collect information from non-banking institutions as to deposits and to give directions

(S. 45K).

8. Power of Bank to call for information from financial institution and to give direction (S. 45L).

9. Duty of non-banking institutions to furnish statements etc., required by Bank (S. 45-M).

10. Power and duties of auditors (S. 45-MA).

11. Power of Bank to prohibit acceptance of deposit and alienation of assets (S. 45-MB).

12. Power of Bank to file winding up petition (S. 45-MC).

13. Inspection (S. 45N).

14. Deposits not to be solicited by unauthorised person (S. 45-NA).

15. Disclosure of information (S. 45-NB).

16. Power of bank to exempt (S. 45-NC).

17. Chapter IIIB to override other laws (S. 45Q).

18. Power of Company Law Board to offer repayment of deposit (S. 45-QA).

19. Nomination by depositors (S. 45-QB).

20. Power to issue search warrants (S. 45-T).

21. Not to open subsidiaries abroad

REGULATION OF TRANSACTIONS IN DERIVATIVES, MONEY MARKET INSTRUMENTS, SECURITIES, ETC.

CHAPTER IV—GENERAL PROVISIONS

CHAPTER IV—PENALTIES

THE NEGOTIABLE INSTRUMENTS ACT, 1881

Introduction

Act 26 of 1881

Statement of Objects and Reasons of the Negotiable

Instruments (Amendment and Miscellaneous Provisions) Act, 2002

Negotiable Instruments

Definition of Negotiable Instruments

Salient features or essential characteristics of a Negotiable Instrument

Negotiable Instrument as Assets of the holder

Instrument v. Document

"Negotiable Instruments are luggage without carrier"

I. Promissory Note

Promissory Note or Receipt

What constitutes promissory notes

I.O.U.

Specimen of Promissory Note

Essentials of Promissory Note

(1) In writing

(2) An undertaking to pay

(3) Unconditional promise or undertaking to pay

Denial of borrower

(4) Signed by the maker

(5) The sum must be certain

(6) Money only

(7) Parties must be certain

(8) Must be stamped

Rebuttal of presumption of consideration Liability of the Successor under the pronote Exceptions

Bank Notes or Currency Notes

II. The Bill of Exchange (Section 5)

Definition

Specimen of Bill of Exchange

Parties to Bill of Exchange

Essentials of Bill of Exchange

Drawee must be certain

Payee must be certain

Fictitious or non-existing payee

Bearer bill payable on demand

Of Bills in Sets

Five certainties of a bill of exchange

Difference between Promissory note and Bill of Exchange

III. Cheque

Definition

Definition According to English Law

All Cheques are bills but all bills are not cheques

Specimen of Cheque

Essential feature of a cheque

Parties to a cheque

Cheque in foreign currencies

Difference between Cheques and Bills of Exchange

Difference between cheque and Promissory Notes

Kinds of Negotiable Instruments

(1) Inland and Foreign Instruments

Inland Instruments (Section 11)

Foreign instruments (Section 12)

(2) Ambiguous and Clean Instruments (Section 17)

(3) Bearer or order instruments (Section 13)

Payable to order

Payable to bearer

Once a bearer always a bearer

Exception

(4) Inchoate Instrument (Section 20)

Is Filling of inchoate instrument a material alteration?

(5) Time and demand instrument

Demand instruments

‘At sight’, On presentment, "After sight"

Instrument payable on demand

(6) Open Cheques and Crossed Cheques

Digital Cheques (Inserted by Amendment 2002)

Truncated cheque [(Section 6(b)]

"Cheques in electronic form" [Section 6(a)]

Electronic Cheque "Golden Cheques"

Validity of Cheques

"Stale Cheque"

Antedated and Postdated cheques

Antedated cheque

Postdated cheque

Postdated Cheque and Cheating

Clone Cheque and Fraud

‘Stop Payment’ of Postdated Cheque

Maturity of the Instrument

Importance of maturity

Maturity the meaning (Section 22)

Instrument payable on demand

"At sight", "on presentment" and "on demand"

"After Sight", after date"

Instrument payable on demand (Section 19)

Maturity of "time" or "usance" instruments

Usance Bill

Rules of Maturity of Usance bill

Days of Grace

English law

Essentiality of days of Grace

Calculation of Maturity

(1) Bill and note payable many months after date or sight : Usance (Section 23)

(2) Bill and note payable many days after date or sight

"Next preceding business day"

For example

What are Negotiable Instruments?

Quasi-Negotiable Instruments

English Law

Bill of Lading or Airway Bill

Railway Receipt (R/R)

Share Certificate

Share Warrant

Dividend Warrant

Treasury bill or note

Share and debentures

Fixed Deposit Receipt

Letter of Credit

Government Promissory Notes

Postal orders and Money orders

Traveller’s Cheque

"Liability of the paying banker"

Life Insurance Policy

Currency Notes

Hundi

Banker’s Drafts/Demand Drafts

Is Banker’s Draft a Negotiable Instrument?

Is Banker’s Draft a Cheque?

Countermanding (stop payment of draft)

Issue Duplicate Draft

Payment of Bank Draft

A. Parties to Instrument

B. Capacity to Parties

Minor

Position of Minor

Agency

Express Agency

Parties to Instruments

Maker and Drawer

Drawer and Drawee in case of need

Drawee

Acceptor and Acceptor for honour

Acceptor for honour

Payee

Fictitious name as act of forgery

Holder and Holder in due Course

Conditions for holder

A thief and finder cannot be holder

De jure holder

Right of holder

Holder in due course

Conditions for holder in due course

(1) and (2) Possessor, payee or endorsee

Whether original payee can be a holder in due course

Indian Position

(3) Consideration

(4) Before maturity

Exception : Accommodation bill

Demand Instruments

Cheque payable on demand

(5) Without notice and good faith Due care and caution

Irregular Endorsement negates holder in due course

"Good faith"

"Due Care and Caution" as Test of Good Faith

Rule of gross negligence

Rules of Honesty

Modem law (Rules of Honesty)

"Holder for Value"

Presumption of "Holder in Due Course"

Privileges of a Holder in due course

Difference between Holder and Holder in due course

Rights of Holder

Privileges of a Holder in Due Course

(C) Liability of the Parties of the Instruments Liability of drawer of bill and cheque (Section 30)

Liability of maker of the note acceptor of the bill

Liability of the maker of note (Section 32)

Liability of the acceptor of the bill (Section 32)

(1) Acceptor bound, although endorsement forged (Section 41)

(2) Acceptance of a bill drawn in fictitious name (Section 42)

(3) Acceptor or endorser bound notwithstanding previous alteration (Section 88)

Liability of drawee of cheques (Section 31)

Liability of the drawee of the bill

Who can accept

Position of drawee in case of need after acceptance

Holder and Holder in due course

Liability of Endorser and Endorsee

(D) Discharge from liability on Notes, Bills and Cheques

Discharge from liability

(I) Discharge of the Instrument

(1) By cancellation

(2) By Release [Section 82(b)]

(3) By payment

Payment in due course

(i) Apparent tenor

Re-issuing of the bill

(ii) Payment in good faith

(iii) Without negligence

(iv) and (v) To any person in possession and to any person who is entitled to receive payment.

To whom payment should be made

Order instrument

Forged endorsement

(4) By acceptor becoming holder of the bill (Section 90)

(5) Where cheque not duly presented and drawer damaged thereby (Section 84)

(II) Discharge of some parties

(1) Cancellation of endorser’s liability [Section 82(a)]

(2) By Release of endorser’s liability [Section 82(b)]

(3» By allowing drawee more than 48 hours for acceptance (Section 83)

4 By qualified acceptance (Section 86)

Examples of qualified acceptance

(5) For non-presentment for acceptance of a bill of exchange. (S. 61)

(6) By Material Alteration (Sections 87, 88 and 89)

(i) Intentional alteration

(ii) Alteration must be material

English Law

Examples of material alteration

(iii) Alteration to carry-out the intention of original parties

(iv) Alteration not apparent

Promissory note is not required to be filled up by the maker himself

Extinction of debt (Suit on consideration)

As to truncated cheques

Alteration by a stranger

Alteration which does not affect validity of the instruments

Is Revalidating of Cheque Material Alteration?

Is completion of inchoate cheque material alteration?

Acceptor or endorser bound notwithstanding previous alteration (Section 88)

Effect of Material Alteration (Section 87)

Chapter XVI

Negotiation

Difference between "Transfer" and "Negotiation" "Negotiation"

"Negotiation" and "assignment" distinguished

(1) As to title

(2) Presumption of Consideration

(3) Mode of transfer

(4) Notice of transfer

(5) No stamping

Modes of Negotiation

How Negotiation is made?

A thief or finder cannot be holder

Delivery of the Instrument

Exception

(1) Negotiation by Delivery (Section 47)

Exception

(2) Negotiation by endorsements (Section 48)

Limitations of Sections 47 and 48

Application of Section 58 to Sections 47 and 48

(i) Negotiation (endorsement) of lost instrument

(ii) Instrument obtained by means of an offence

(a) By an offence i.e., by theft

(b) and (c) by fraud and unlawful consideration

Endorsement

1. Definition and Essential features

Place of endorsement

Essential features of Endorsement

Who can endorse

Minor as endorser

2. Kinds of Endorsement

(A) Blank or Full Endorsement

Blank Endorsement

Effects of Blank endorsement

(1) Conversion of order instrument into bearer instrument

(2) Negotiation by delivery

(3) Conversion into full (Section 49)

Full Endorsement

(B) Restrictive or Conditional Endorsement

Restrictive Endorsement (Section 50)

Conditional Endorsement (Section 52)

Conditional endorsement and conditional delivery

Some Examples of conditional endorsement

(C) Whole or Partial Endorsement (Section 56)

(D) Facultative Endorsement

3. General Principles of Endorsement, or Conditions to a valid Endorsement, or Rules of Endorsement.

Other Forms of Endorsements

Effects of Endorsement

Duration of Negotiability (Section 60)

Payment before maturity

Chapter XVII

Presentment

What is presentment

Kinds of Presentment

(1) Presentment for Acceptance (Section 61)

(a) To whom presented and by whom accepted

(b) Time and place of acceptance

(c) Presentment through post-office

(d) Within reasonable time

When presentment for acceptance is necessary

Purpose of presentment of acceptance

When presentment for acceptance is not necessary

Effects of non-presentment of acceptance

(2) Presentment of promissory note for sight (Section 62)

(3) Presentment for payment

Instrument Payable on demand (Section 74)

Instrument payable after date or sight (Section 66)

Presentment for payment of promissory note payable by instalments (Section 67)

Rules as to presentment of payment

(a) Place of Presentment

(b) Hours of Presentment

(c) Within reasonable time Excuse of delay

(d) To whom presentment for acceptance be made

(4) Presentment of cheque in order to charge the drawee

Bank

Presentment of cheque for payment

Presentment of Truncated Cheque [(Section 64(2)]

Waiver of presentment [Section 76(c)]

Effects and consequences of non-presentment

Dishonour and Notice thereof

(A) Dishonour by Non-Acceptance (Section 91)

(B) Dishonour by Non-Payment Notice of dishonour

By and to whom notice should be given (Section 93)

Mode in which notice may be given (Section 94)

Party receiving must transmit notice of dishonour (Section 95)

Agent for presentment (Section 96)

When party to whom notice is given is dead (Section 97)

When notice of dishonour is unnecessary (Section 98)

Of Noting and Protest

Noting (Section 99)

Protest (Section 100)

Contents of protest (Section 101)

Notice of protest (Section 102)

Protest for non-payment after dishonour by non-acceptance (Section 103)

Protest of foreign bills (Section 104)

When noting equivalent to protest (Section 104-A)

Of Reasonable Time

Reasonable time (Section 105)

Reasonable time of giving notice of dishonour (Section 106)

Reasonable time for transmitting such notice (Section 107)

Of Payment and Interest

To whom payment should be made (Section 78)

Interest when rate specified (Section 79)

Interest when no rate specified (Section 80)

Of Compensation

Rules as to compensation (Section 117)

Special rules of Evidence

Presumptions as to negotiable instruments of consideration (Section 118)

Presumption on proof of protest (Section 119)

Estoppel against denying original validity of instrument (Section 120)

Estoppel against denying capacity of payee to indorse (Sec. 121)

Estoppel against denying signature or capacity of prior party (Section 122)

Chapter XVIII

Crossing of Cheques

Legal Recognition of Crossing

Object of the Crossing : Why crossing?

What is Crossing

Kinds and modes of crossing

(A) General Crossing (Section 123)

Essential of general crossing

(B) Special Crossing (Section 124)

Essentials of special crossing

(1) as to name of a Specific Bank

(2) As to drawing of parallel lines

(3) As to payment

Effects of Crossing

Who may Cross (Section 125)

(1) The following persons may cross a cheque

(2) Crossing of Cheques after issue Payment of Crossed Cheques

(a) Payment of generally crossed cheques

To a Banker : Collecting Banker

(b) Payment of specially crossed cheques

To a Specified Banker : Collecting Banker

(c) Payment in due course of crossed cheque

(d) Payment out of the due course of crossed cheques (Sec. 129)

"Not Negotiable’ Crossing Section 130)

Effects of ’not negotiable" crossed cheque

"Account Payee' or "Account Payee only" crossing

Examples of Account Payee Crossing

Directions of the Reserve Bank of regarding Account Payee cheque

Opening of Crossing (Cancellation of Crossing)

Precautions by paying Banker

Obliteration or erasing of crossing

Crossing as a material part of cheque

Whether crossing constitutes material part of the cheque?

Protection of Collecting Banker (Section 131)

Who is Collecting Banker?

The essential conditions for protection

(1) For a customer

(2) For Crossed Cheques

(3) As agent

(4) Good faith and without negligence

Marking of Cheques

PART IV

Chapter XIX

Law of Dishonour of Cheques

Ss. 138 to 142 by Act of 1988 : Ss. 143 to 147 by Act of 2002

Statutory Provisions

Aims and objects of the Chapter

Regulatory Offence

Cheque as speedy vehicle of commerce

Object of Ss. 143 to 147

Justified Dishonour : When Banker may Dishonour the Cheques?

Answers in Case of Dishonoured Cheques

Dishonour of Cheques : A New Era

Cheque Bouncers Beware

Nature of Dishonour of Cheques (S. 138)

Who is Liable for Dishonour of Cheques :

Application of Doctrine of Double Jeopardy

Conditions for Constituting Offence and Prosecution

(A) Condition for Commission of Offence

1. Issuance of Cheque for Discharge of Debt or Liability

Debt or Other Liability

Presumption of Debt or Liability : S. 139

No mens rea

"Denial of Consideration" : No proof of Debt or Liability

Purpose behind presumption

2. Presentment of Cheque for Payment [Section 138(a)]

Presentment at drawee bank

Public Holiday is to be excluded

Successive Presentment of Cheques

Successive presentment even after giving notice under

Section 138(b)

Presentment and Depositing of Cheque

Tips for Safe Deposit of Cheques

Revalidation of a Stale Cheque

3. Cheque is returned unpaid by the Bank

‘Stop Payment’ or ‘Account Closed’

Deemed Dishonour

"Stop payment" of post dated cheque

‘Account Blocked’

Drawer’s Notice not to Present Cheque

Cheque drawn on a closed account

4. Notice of Demand for payment [Section 138(b)]

(i) Notice in Writing

Separate notice to each director not required

Mode of Notice

Presumption of Service of Notice : Deemed service of notice

No deemed service of notice

(ii) By the Payee or Holder in Due Course

Sole Proprietor as a payee/holder in due course

(iii) Demand for Payment

(iv) Notice within Statutory Period of 30 days : Sec. 138(c)

To whom notice is to be sent

As Protection to drawer

Cause of Action : When arises

Cognizance

(B) Conditions for taking Cognizance of Offence

(1) Upon a complaint : complaint case

Who can be Complainant

Complaint by holder of Power of Attorney

Complaint Sans (without Signature

Purchaser of cheque

Cheque drawn an a joint account

Endorsee far coflectaon of a cheque

(2) Complaint within statutory period

Directions

Premature Complaint : Before cause of Action arises

No complaint no cognizance : See above.

New law on Premature complaint

Premature Complaint under Section 142

Calculation of statutory period

A Controversy Resolved: As to Calculation of statutory period

A Controversy Resolved

Condonation of Delay

Condonation of Delay : No Retrospective effect

Clubomr of cases of dishonour

(3) By a Metropolitan Magistrate, or Magistrate of the First Class

Offence by Companies

Company as a Drawer

Section 141 is a Deeming Provision

Company’s prosecution sine qua non

Company must be arrayed as Principal Offender

Averment of in-charge of and responsible to the conduct of company—Necessary

At the time of commission of offence

Vicarious Liability

Constructive liability

Cheque drawn in personal capacity by the Managing Director

Defences by Officers of the Company

1. Without Knowledge

2. Exercise of due diligence

3. Nominated Directors

4. Resigned from directorship

5. Not duly charge

Jurisdiction of Court to try Cases

Jurisdiction : New Principle established

Place of presentation of cheque does not confer jurisdiction

Time limit to conclude trial

Complaint supported by sworn affidavit

Evidence on Affidavit : S. 145

Non obstante Clause

Summary Trial

Procedure for summary trials

Judgment in cases tried summarily

Compounding of offences : [Section 147]

Relation of S. 147 of N.I. Act and S. 320 of Cr.P.C.

Compounding at appellate stage

Guidelines for compounding of offences

Exception : Where Dishonour of Cheque no Offence

1. Dishonour of cheques other than insufficient fund

2. Without consideration

3. No debt or liability

4. Cheques are given as security or guarantee Cheque issued qua security

Liability of indeminifier

5. In case of compounding

6. Non-compliance of conditions of dishonour

7. Non-compliance of conditions of prosecution.

Section 482 of Cr.P.C. and quashing of complaints

Quashing of Proceedings under Section 138

Quashing of proceedings under Section 138 read with S. 141

Punishment and award of sentence

Award of sentence

Award of Compensation to the Complainant

Constructive approach

Running of sentence: Whether Concurrent or Consecutively

"Fast track Courts to be established

Object of N.I. Act defeated

Banks Generally used abbreviations

Chapter XX

Banking Services and Consumer Law

Object of Consumer Protection Act

Object of the Act Strengthened

Sections 138 and 142 are constitutional

Petitioner’s argument

‘Fallen on bad times’

Scope and Extent of the Act

(1) Additional Remedy—‘No Bar’

(2) Supplementary Remedy

(3) Alternative Remedy—‘No Bar’

Legislative Competence of Parliament

Arbitration Clause

Interpretation in Favour of Complainant (Consumer)

‘Any Other Law’ for the Time Being in Force

Railway Claims Tribunal Act, 1987

Employees’ State Insurance Act, 1948

Construing the Provisions of the Act

Limitation of the Act

Option of Relief

Banking Services

As to cheques

Duty to honour cheques

Collection of cheques, etc.

Payment of cheque despite stop notice

Duty to inform customer if cheque returned

Loss of cheque delivered for collection

Dishonour of Cheque

Dishonour of cheque without justification amounts to deficiency in services

Dishonour of Bank Draft

Defective bank draft

Delay in issuing duplicate bank draft

Locker

Complication about locker

Encashment of bank guarantee and letter of credit

Over Draft Facility

Credit Card

Suppressing letters of credit

Cancellation of credit card

Fixed deposit service

Claims of Interest

Bank’s service charges

MICR Cheques (Magnetic Ink Character Recognition)

Operation of deceased account

Realisation of security

Withdrawal without Pass Book

Payment Despite Stop Payment

Complex question of law and fact

rorum is Competent to Decide Complex Cases

No Abuse of the Process

WHO CAN FILE A COMPLAINT?

APPEALS

Liability of Bank for damages

Need guidelines for speedy Justice : 38 Lakhs cheque bouncing cases are pending across the country

Annexure

Banking Terminology

Adhar Rate

ACH

Accommodation Endorsement

Account

Account Activity

Account Analysis

Account Closing

Account Introduction

Account History

Account Payee

Accrued interest

ARC

Annuity

Available Balance

Axis

Average Daily Balance

Bad Debt Recovery

Bad Debts Ratio

Bailee

Bn

Balance of Account

Balance Owing

Bank Balance

Bank Charges

Bank Debits

Bank Draft

Bank Rate 6%

Bank Statement

Banking Credit

Bankrupt

Bill of Exchange (BOE)

Bond Rating

Bridge Loan

C.

Cash Reserve Ratio (CRR) 4%

CBS

Cheque

Cheque, Ante-dated

Cheque, Bearer

Cheque, Crossed

CTS

Cheque, Open

CAGR

Coupon

CDR

Credit Deposit Ratio (CDR)

Credit Risk

Current Account

Current Yield

CPR

Debit

Debit Card

Demand Deposit

Demand Loan

Deposits

Deposit Insurance And Credit Guarantee Corporation (DI & CGS)

Donee

DRT

Down Payment

Dwelling Unit

Electronic Banking

Electronic Clearing

Easy Money

EWS

Facsimile

Fixed Deposit Account

Fy

F.S.D.C.

FED

Foreign Currency

Foreign Trade

Forgery

Future Value

GCF

GDP

GNPA

IFSC

Interest on 360 day a year basis

Interest on calendar year basis

Internet banking

INBK

IRDA

Indian Bank Association (IBA)

MICR (Cheques)

Monetary Policy

Mortgage

MFIs

MFO

MSS

NABARD

N.C.C.

Mumbai Interbank Offered Rate (MIBOR)

Nationalised Banks

NBFCs

NFS

NEFT

NECS

NPCI

Nomination

Non-resident Accounts

Non-resident (External) Account

Non-resident (Foreign Currency) Accounts

Non-resident and Non-repatriable Account (NRNR)

NNPA

NPA

Non-Performing Account (NPA)

Nostro Account

One Time Settlement Scheme (O.T.S.)

Opening A Crossing

Order Cheque

Overdraft

p.a.

Pay Order

Pay-in-slip

Payment Stopped

Personal Loans

Private Banks

Probate

Promissory Note

PSU

Recurring Deposit Or Cumulative Deposit Account

Refer to Drawer

Relationship Banking

Repo Rate

Reverse Rate

Saving Deposit Account

SR

Standing Instructions

RTGS

CTS-2010 standard cheques

Stop Payment

SA

Term Deposit

Token

W3C