BCR

Banker Customer Relationship : 

Banker Customer Relationship Prof S P Garg

Banker Customer Relationship : 

Banker Customer Relationship RBI ACT 1934 RBI ACT (Amendment) ACT 2006 BANKING REGULATION ACT1949 Banking Companies (Acquisition and Transfer of Undertaking) Act 1970 /1980 Banking Companies (Acquisition and Transfer of Undertaking) Act 1970 /1980 –Amendment in 2006 Negotiable Instrument Act 1881 Negotiable Instrument (Amendment and Misc Provisions) Act 2002 Indian Companies Act 1956

Banker Customer Relationship : 

Banker Customer Relationship Indian Contract Act 1872 Indian Partnership Act 1932 Bankers’ Book Evidence Act 1891 Indian Registration Act 1908 Transfer of Properties Act 1882 Indian Stamps Act 1899 Limitation Act 1963 Prevention of Money Laundering Act (PMLA), 2002.(with effect from 2005) Information Technology Act 2000 Right To Information Act 2005 Micro,Small and Medium Enterprises Development Act 2006

Banker Customer Relationship : 

Banker Customer Relationship Banking Regulation Act 1949: Section 5 (b):Banking as acceptance of deposits from public ,repayable on demand or otherwise and withdrawal by cheque ,draft order or otherwise , for the purpose of lending or investment . Section 5(c): a company which carries the business of banking is a Banking Company Section 6: Other functions viz remittances, hiring of lockers, discounting forex , govt transactions, letter of credit ,guaranteed etc,

Banker Customer Relationship : 

Banker Customer Relationship Who is Bank Customer: “ to constitute a customer there must be some recognizable course of habit of dealing in the nature of regular banking business” --- Sir John Paget “that protection shall be available to a banker collecting cheques/drafts on behalf of its customers”: Section 131 &131 A of NIACT Necessity of having an account

Banker Customer Relationship : 

Banker Customer Relationship Legal requirements: Age of maturity Sound mind Not debarred under any law Must be an offer/ proposal and acceptance Contractual relationship with commercial intentions Contract :an agreement enforceable at law Agreement: promise with consideration for each other Promise : a proposal when accepted becomes the promise Termination of relationship; by either party by notice or with the knowledge of death of the customer in case of debits, credits may continue ,or With knowledge of insanity/bankruptcy

Banker Customer Relationship : 

Banker Customer Relationship Banker -Customer relationship: When customer deposits in a bank ,the relationship is of Debtor- Creditor Banker is Debtor & customer is Creditor When bank grants loan or other facility to the customer,the relationship is of Creditor –Debtor Banker is Creditor & Customer is Debtor

Banker Customer Relationship : 

Banker Customer Relationship Lessor –Lessee or Licensor - Licensee : hiring of safe deposit lockers Agent –Principal: acceptance of bill for collection, remittances and regular payments of bills Bailee-Bailor ( acceptance of valuables, bonds, securities for safe custody. As custodian under Section 148 of Indian Contract Act1872 ) Trustee (besides bailee) –Beneficiary (valuables, securities. money without account, instruction to debit account for utilising for a specific purpose ,managing properties) Mortgagee- Mortgagor Pledgee –Pledger Transferee- Transferor Indemnity holder –indemnifier :duplicate drafts, FDRs (Section 124 of Indian Contract Act)

Banker Customer Relationship : 

Banker Customer Relationship Obligations of a Banker: Honour of Cheques subject to certain conditions ( properly drawn,sufficient balance,no legal restraint) under Section 31 of NI Act No closure of account unilaterally Issuance of passbook/statement of account Maintenance of Secrecy even after closure of the account unless required to do so : by law, in bank’s interest, as per consent of the customer Disclosures under compulsions of law Responsibility on behalf of employees No mandate for forged signature instrument Compliance of Standing instructions

Banker Customer Relationship : 

Banker Customer Relationship Disclosures Under: Banker’s Books Evidence Act 1891: Section 4: certified copies as prima facie evidence Section 5 :right to maintain secrecy Section 6 : if court orders Code of Criminal Procedure Act 1973 Tax laws: I T Act 1961,Wealth Tax Act, All Statutory Acts viz, RBI Act, BR Act, SEBI Act

Banker Customer Relationship : 

Banker Customer Relationship Rights of a Banker: Banker’ lien: Section 171 0f Indian Contract Act right to retain goods Right of set-off: to combine two or more accounts in the same name and in the same right, when debt has become due, after due notice Right of appropriation :when instruction not clear Right to charge interest, service charges Compliance of Garnishee (Order 21 Rule 46 0f the code of Civil Procedure ) or attachment order

Slide 12: 

Mandate:authority given by an account holder in favour of a third person (mandatory) to do certain acts on his behalf, to operate the account, generally for a short period,not applicable to the institutions Power of Attorney(P/A): A document executed by one person (donor) in favour of another person (donee) to act on behalf of the former,as per the authority given in the document. General or Special Stamped document Executed in the presence of Notary/Magistrate P/A Holer to sign as: Per pro --------- Constituted Attorney Principal can revoke at any time,stands revoked by the death,insanity, or insolvency.

Banker Customer Relationship : 

Banker Customer Relationship Clayton’s Rule: in case of multiple debts ,credits to be appropriated as: To discharge a particular debt as per the instructions of the debtor If debtor/circumstances do not indicate, as per the discretion of the creditor When neither party indicates,to discharge in order of time First to discharge interest and then principal in chronological order

Banker Customer Relationship : 

Banker Customer Relationship Banking Code and Standards Board of India (BCSBI): Established in 2006 by RBI For greater transparency, enhancing banking practices to customer service ,customer awareness, customer confidence, additional protection to customers, responsive grievance redressal system Fair treatment to customers :important pillar sets minimum standards of banking practices for banks to follow when dealing with individual customers. It provides protection to CUSTOMERS and explains how banks are expected to deal with THEM for THEIR day-to-day operations.

Banker Customer Relationship : 

Banker Customer Relationship Customer as defined by BCSBI: 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.

Banker Customer Relationship : 

Banker Customer Relationship Applicability of Code : to all the products and services, whether provided by branches or subsidiaries, agents acting on behalf of banks across the counter, over the phone, by post, through interactive electronic devices, on the internet or by any other method. a. Current accounts, savings accounts, term deposits, recurring deposits, PPF accounts and all other deposit accounts b. Payment services such as pension, payment orders, remittances by way of Demand Drafts, wire transfers and all electronic transactions e.g. RTGS, EFT, NEFT c. Banking services related to Government transactions d. Demat accounts, equity, Government bonds

Slide 17: 

e. Indian currency notes exchange facility f. Collection of cheques, safe custody services, safe deposit locker g. Loans, overdrafts and guarantees h. Foreign exchange services including money changing i. Third party insurance and investment products sold . j. Card products including credit cards, debits cards, ATM cards,smart cards and services (including credit cards offered by subsidiaries/companies promoted by banks).

Banker Customer Relationship : 

Banker Customer Relationship Key Commitments: To Act Fairly And Reasonably In All Dealings To Help To Understand How Financial Products And Services Work To Help to Use Account Or Service By: a. Providing regular appropriate updates b. Keeping informed about changes in the interest rates, charges or terms and conditions c. Displaying in branches for information i. Services provided ii. Minimum balance requirement for Savings Bank accounts and No Frills accounts and charges for non-maintenance of minimum balance

Banker Customer Relationship : 

Banker Customer Relationship To Deal Quickly And Sympathetically With Things That Go Wrong To Treat All Personal Information As Private And Confidential To Adopt And Practice A Non - Discrimination policy on the basis of age, race, gender, marital status,religion or disability. Information on transparency basis on Tariff Schedule, Interest Rates, Terms And Conditions Do Not Call , Information related to Credit Reference Agencies Collection of dues :repayment schedule, awareness and adoption of a defined process in accordance with the laws of the land for recovery of dues Handling of complaints, grievances and feedback: internal mechanism and Banking Ombudsman Scheme

Banker Customer Relationship : 

Banker Customer Relationship Deposit Accounts including No frill accounts with or without nomination facility Before opening any deposit account, to carry out due diligence as required under “Know Your Customer”(KYC) guidelines ,to obtain necessary documents or proofs to meet with KYC ,Anti Money Laundering or any other statutory requirements Dormant/ Inoperative Accounts Guidelines on remittances, loan products, guarantees,safe deposit lockers,foreign exchange services,credit cards,debitcards, mobile banking,e banking Most Important Terms and Conditions (MITC)

Banker Customer Relationship : 

Banker Customer Relationship ‘Know Your Customer’ (KYC) guidelines : under Section 35A of the Banking Regulation Act 1949 have been revisited in the context of: the Recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering (AML) Standards and on Combating Financing of Terrorism (CFT), and the paper issued on Customer Due Diligence (CDD) for banks by the Basel Committee on Banking Supervision

Banker Customer Relationship : 

Banker Customer Relationship For the purpose of KYC policy: A ‘Customer’ is  defined as : a person or entity that maintains an account and/or has a business relationship with the bank; one on whose behalf the account is maintained (i.e. the beneficial owner); beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, and any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

Banker Customer Relationship : 

Banker Customer Relationship KYC Policy: Key Elements a) Customer Acceptance Policy;b) Customer Identification Procedures;c) Monitoring of Transactions; andd) Risk Management.

Banker Customer Relationship : 

Banker Customer Relationship Customer Identification ProcedureFeatures to be verified and documents that may be obtained from customers Accounts of individuals:- Legal name and any other names used and Correct permanent address  (i) Passport  (ii) PAN card (iii) Voter’s Identity Card (iv) Driving licence (v) Identity card (subject to the bank’s satisfaction) (vi) Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of bank Verification of address : (i) Telephone bill (ii) Bank account statement (iii) Letter from any recognized public authority (iv) Electricity bill (v) Ration card (vi) Letter from employer (subject to satisfaction of the bank)( any one document which provides customer information to the satisfaction of the bank will suffice)

Banker Customer Relationship : 

Banker Customer Relationship Accounts of companies: Name of the company Principal place of business Mailing address of the companyTelephone/Fax Number   Certificate of incorporation and Memorandum & Articles 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 allotment letter Copy of the telephone bill

Banker Customer Relationship : 

Banker Customer Relationship Accounts of partnership firms- Legal name- Address- Names of all partners and their addresses- Telephone numbers of the firm and partners  (i) Registration certificate, if registered (ii) Partnership deed (iii) Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf (iv) Any officially valid document identifying the partners and the persons holding the Power of Attorney and their addresses (v) Telephone bill in the name of firm/partners

Banker Customer Relationship : 

Banker Customer Relationship Accounts of trusts & foundations- Names of trustees, beneficiaries and signatories- Names and addresses of the founder, the managers/directors and the beneficiaries- Telephone/fax numbers  (i) Certificate of registration, if registered (ii) Power of Attorney granted to transact business on its behalf (iii) Any officially valid document to identify the trustees, beneficiaries and those holding Power of Attorney, founders/managers/ directors and their addresses (iv) Resolution of the managing body of the foundation/association (v) Telephone bill

Banker Customer Relationship : 

Banker Customer Relationship DICGC (wholly owned subsidiary of RBI): The functions of the DICGC are governed by the provisions of 'The Deposit Insurance and Credit Guarantee Corporation Act, 1961' (DICGC Act) and 'The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961' framed by the Reserve Bank of India in exercise of the powers conferred by sub-section (3) of Section 50 of the said Act

Banker Customer Relationship : 

Banker Customer Relationship Insurance coverage Initially, under the provisions of Section 16(1) of the DICGC Act, the insurance cover was limited to Rs.1,500/- only per depositor(s) for deposits held by him (them) in the "same right and in the same capacity" in all the branches of the bank taken together. However, the Corporation has raised this limit with the prior approval of the Central Government. Accordingly, the insurance limit was enhanced from time to time as follows: Rs. 5,000/- with effect from 1st January 1968Rs. 10,000/- with effect from 1st April 1970Rs. 20,000/- with effect from 1st January 1976Rs. 30,000/- with effect from 1st July 1980Rs. 1,00,000/- with effect from 1st May 1993 onwards.

Banker Customer Relationship : 

Banker Customer Relationship Types of Deposits Covered DICGC insures all bank deposits, such as saving, fixed, current, recurring, etc. except the following types of deposits. (i) Deposits of foreign Governments;(ii) Deposits of Central/State Governments;(iii) Inter-bank deposits;(iv) Deposits of the State Land Development Banks with the State co-operative banks;(v) Any amount due on account of and deposit received outside India; (vi) Any amount which has been specifically exempted by the corporation with the previous approval of the RBI. deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank. 10 paise per Rs. 100 assessable deposits from the financial year 2005-06.

Banker Customer Relationship : 

Banker Customer Relationship Deposits held in joint accounts (revised w.e.f. April 26, 2007) If more than one deposit accounts (Savings, Current, Recurring or Fixed deposit) are jointly held by individuals in one or more branch of a bank say three individuals A, B & C hold more than one joint deposit accounts in which their names appear in the same order then all these accounts are considered as held in the same capacity and in the same right. Accordingly, balances held in all these accounts will be aggregated for the purpose of determining the insured amount within the limit of Rs. 1 lakh. However, if individuals open more than one joint accounts in which their names are not in the same order for example, A, B and C; C, B and A; C, A and B; A, C and B; or group of persons are different say A, B and C and A, B and D etc. then, the deposits held in these joint accounts are considered as held in the different capacity and different right. Accordingly, insurance cover will be available separately upto rupees one lakh to every such joint account where the names appearing in different order or names are different.

Banker Customer Relationship : 

Banker Customer Relationship

The Negotiable Instrument Act 1881(with effect from 01-03-1882) : 

The Negotiable Instrument Act 1881(with effect from 01-03-1882)

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Section 13(1) Negotiable Instrument :a promissory note ,bill of exchange or cheque payable either to order or to the bearer. Section 4:P Note :an instrument in writing (not being a bank note or a currency note )containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to, or to order of a certain person ,or to the bearer of the instrument Section 5:Bill of Exchange: an instrument in writing signed by the makercontaining an unconditional order directing a certain person to pay a certain sum of money and money only to or to order of a certain person ,or to his order to the bearer of the instrument on a certain fixed future date or on demand

Slide 35: 

Section 6 :Cheque: a bill of exchange drawn upon a specified bank only and payable on demand including the electronic image of a truncated cheque and a cheque in electronic form.no acceptance and stamping required bank draft :BE CD,CP, TBILL:PROMISSIONARY NOTES Share/Dividend warrant: Cheque

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Section 6 :the electronic image of a truncated cheque ( a cheque in physical form kept with the bank and further physical movement is through electonic image) and a cheque in electronic form (a mirror image of a cheque generated alongwith digital signature)now included in the definition of cheque with amendments in 2002 Also amendments in Bankers Books of Evidence Act1891 and Information Technology Act 2000 to include for acceptance of Electronic data and coverage of Cheque in IT Act

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Stale /out of date cheque: not presented within stipulated time (in general six months). Mutilated cheque: damaged ,torn. Mutiliated.No payment to mutiliated cheque Post dated cheque : date bearing subsequent to the date of presentation

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Common Characteristics of Negotiable Instruments:(Section 14) Negotiability and transferability (non transferable by suitable words) to be read alongwith Section 46,47,51,58 writing and signature Money Title ( a holder in due course has better title) No notice period required Consideration for value received (every holder is presumed to be holder in due course)

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Parties to Negotiable Instruments: P Notes : Maker ,Payee B Exchange: drawer (maker), drawee (on whose the bill is drawn), payee Cheque: drawer,drawee bank ,payee( who is going to receive the money).sometimes drawee and payee may be the same person Bearer /Order instruments

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Section 8: Holder : entitled to hold the instrument in his /her name and to receive the payment Section 9 : Holder in DUE COURSE: three considerations: consideration, before maturity, good faith( not by gift,illegal way,not after maturity, reasons to suspect) Section 10: Payment in due course according to apparent tenor, in good faith without negligence, payment to possessor, no reason to believe that a possessor is not entitled to receive

Slide 41: 

Section 11 & 12: inland and foreign Instruments Section15: Endorsement for the purpose of negotiation /transfer Section 17: ambiguous instruments Section 18:amount stated in words is paid ,when differ Section 26: Minor’s position : a minor may draw ,endorse,deliver and negotiate instruments so as to bind all parties except himself.

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Section 31:liability of the paying bank : to honour the cheque drawn on its account ,if sufficient balance other than stop payment,death,garnishee/attachment order,earmarked,setoff,not clear balance Protection available to paying bank in case of forged endorsements (not forged signature),material alteration

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Section 131: Duties of a collecting bank: A collecting banker may be held liable to the true owner of the instrument for the wrong conversion Protection if :collected for a customer (KYC Compliance),crossing prior to the receipt of cheque in the hands of collecting bank,acted in good faith and without negligence

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Section 85,128: protection to paying banker Section 87:authentication of any alteration Section 92: dishonour by non payment

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Section 123 and 124 : Crossing of Cheque:direction to the drawee banker not to pay over the counter General crossing :bears two parallel transverse lines across its face with/without the words “ & Co” / “not negotiable” Special :bears the name of a specfic banker in addition to two parallel transverse lines across its face Restrictive: bears across its face words as “Account Payee”/Account Payee ONLY” ,NO FURTHER TRANSFERABILITY “Not Negotiable” crossing: no further better title A collecting banker can convert a general crossing into a special crossing

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Return of the cheque: bank is bound to honour subject to certain conditions otherwise breach of contract and liable for action Some of the reasons for return of the cheque: Insufficient funds Exceeds arrangements Refer to drawer Payment stopped Closure of account by drawer Effects nor cleared ,present again

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Section 138 : Dishonour( bouncing) of CHEQUE for insufficiency of funds : (with effect from 1988 and 2002): criminal offense without prejudice to any other provision of the Act: imprisonment upto2 years, fine double the amount, or both provided presented within 6 months of its validity, demand made by notice within 30 days of return, drawer fails to make payment within 15 days of receipt of notice CASE LAWS: Criminal liability not on legal heirs/representatives. Even if cheque returned on account of closure of account Cheque may be presented any number of times during validity period A post dated cheque is deemed to has been drawn on the date it bears and within six months presented dor he purpose of calculation of period

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881 Section 141: offense by the Company (other than GOI,State Govt, Financial institution): company and individuals responsible for prosecution Section142: court can condone delay Section 143 :power to court for summarily trial Section 144: servicing of summons by Courier agencies Section 145: evidence of compliant byaffidavit Section 146: Bank’s slip prima facie evidence of certain facts Section 147: offenses are compoundable

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881

Negotiable Instrument Act 1881 : 

Negotiable Instrument Act 1881

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS Types of accounts: Current accounts Savings Bank accounts No Frill accounts (no balance or minimum balance) Recurring Accounts Term deposit accounts

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS Operation Mode: Single Jointly (both) Jointly :Either or Survivor Jointly: Former or Survivor Requirements: Due diligence as per KYC Policy Obtaining necessary documents

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS HUF: Hindus,sikhs,jains eligible Male members as coparceners Senior most as Karta Documents to be signed as karta and also in the personal capacity Karta liable as coparcener and in individual capacity (not other coparceners unless otherwise specified) Death of karta does not dissolve HUF,freshAOF/ HUFdeclaration to be taken

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS Blind person: Obtain introduction and witness New photograph every third year Mention details of identification marks Payment/receipt to be witnessed by an independent person Noting to be done in the system Prefer to open joint account

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS Insolvent persons: All transactions made during six months invalid Cannot obtain credit Minors/lunatics can not be declared as insolvent Can act as agent under Indian Contract Act(Section201) Insane: Incapable for entering into any contract On notice ,operations to be stopped and balance to be disposed off as per court order In case of temporary disorder, on certification from doctor about mental soundness at the time of payment

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS Trusts,Societies, Clubs: Receive trust deed and read the provisions/bye laws Account to be opened as per authority/resolution Transfer of funds from trust account to individual trustee account to be done carefully To act jointly No further delegation unless otherwise mentioned On death of a trustee, court order needed, if not specified.In case of societies,operation to be stopped till new resolution received Any trustee can issue stop payment instructions Bank can open accounts of unregistered clubs, societies, associations, schools after satisfying

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS Executers :administrators: Executor: Person named in the will of the deceased person, on production of probate Administrator: person appointed by the Court on production of letter of administrator Payment can be stopped by any of the executors or administrators Upon death of one executor /administrator,powers vest with another survivors or as per new instructions

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS With or without Nomination facility: Nominations, alterations,variations etc, as per Bnking Companies Nominations Rules 1985 no nomination in case of company,firm, HUF,association,Trust In case of Minors account, legal guardian as nominee In case of self operated minor account, no nomination only individuals can be appointed as nominees Only one person to be appointed in case of lockers more than one up to the number of joint account holders) .survivor has to take the delivery along with nominee,Inventory to be prepared Incase of Capital Gains Account Scheme 1988, upto three nominations permissible In case of Pension Accounts, two nominations Foreign nationals can be nominees minor can be appointed Facility available for NRI accounts( on death proceeds to be remitted with the approval of RBI) In case of joint accounts all holders to nominate

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS Put the remark “NOMINATION OBTAINED” NOMINATION can be cancelled or changed( not in locker facility) Right of nominees would be only on death of the account holder Right is only for receipts of deposits not for operation of the account ,substitution of name, to avail loan against deposit In case nominee does not turn up within reasonable time (3 months) after death ,notice is to be sent Need to obtain Death certificate before payment In case of term deposit, premature payment can be done without penalty Incase of court order ,instructions are to be complied

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS : 

LIABILITY PRODUCTS:DEPOSIT ACCOUNTS

Slide 65: 

Slide 66: 

Correspondent Banking Correspondent banking is the provision of banking services by one bank (the “correspondent bank”) to another bank (the “respondent bank”). These services may include cash/funds management, international wire transfers, drawing arrangements for demand drafts and mail transfers, payable-through-accounts, cheques clearing etc. gather sufficient information to understand fully the nature of the business of the correspondent/respondent bank. Information on the other bank’s management, major business activities, level of AML/CFT compliance, purpose of opening the account, identity of any third party entities that will use the correspondent banking services, and regulatory/supervisory framework in the correspondent's/respondent’s country are of special relevance. Similarly, also ascertain from publicly available information whether  the other bank has been subject to any money laundering or terrorist financing investigation or regulatory action.  While it is desirable that such relationships should be established only with the approval of the  Board, in case the Boards of some banks wish to delegate the power to an administrative authority, they may delegate the power to a committee headed by the Chairman/CEO of the bank while laying down clear parameters for approving such relationships. Proposals approved by the Committee should invariably be put up  to the Board at its next meeting for post facto approval. The responsibilities of each bank with whom correspondent banking relationship is established should be clearly documented. In the case of payable-through-accounts, the correspondent bank should be satisfied that the respondent bank has verified the identity of the customers having direct access to the accounts and is undertaking ongoing 'due diligence' on them. The correspondent bank should also ensure that the respondent bank is able to provide the relevant customer identification data immediately on request.