These definitions explain the meaning of words and terms used in the Code. They are not precise legal or technical definitions.
An Automated Teller Machine [ATM] is a machine in which a customer can use his card along with PIN to get cash, information and other services.
An independent dispute resolution authority set up by the Reserve Bank to deal with disputes that individuals and small businesses have with their banks.
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, smart and ATM cards.
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 and outstation cheques and instruments deposited with the bank for credit to an account. The policy inter alia deals with
- cheque purchase requests
- timeframe 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.
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.
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.
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.
A Demat account refers to dematerialised account and is an account in which the stocks of investors are held in electronic form.
- "Savings deposit" 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.
Equity means a part of capital of a corporate entity which is represented by the shares of the company whether in physical or in dematerialized form.
Electronic Clearing Service
It is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House.
Fixed rate of interest
Fixed Rate of Interest on a loan means that interest rate is fixed for the entire period of the loan or it may be revised after the first few years depending upon the terms and conditions of loan.
Floating rate of interest
Floating Rate of Interest on a loan means that interest rate is not fixed but is linked to Reference Rate and would vary with changes in the latter.
A promise given by a person
Government bond means a security created and issued by the Government for the purpose of raising a public loan.
Inoperative / Dormant Account
An inoperative / dormant account is a savings bank or current account in which there are no transactions for over a period of two years.
A letter in a physical or electronic form.
National Electronic Funds Transfer (NEFT) system is a nationwide funds transfer system to facilitate transfer of funds from one bank branch to any other bank branch in the country.
The nomination facility enables the bank to: 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 safe deposit locker, in the event of the death of the hirer.
Out-of-Date [stale] Cheque
A cheque, presented for collection, three months after the date of issue of the cheque.
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.
A word or numbers or a combination on an access Code, which the customer has chosen, to allow him to use a phone or Internet banking service. It is also used for identification.
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.
The acronym 'RTGS' stands for Real Time Gross Settlement. RTGS system offers the fastest means of transfer of funds through banking channel. Settlement of transactions under RTGS takes place on one-to-one basis, which is termed as 'Gross' settlement and in 'real time' i.e. without any waiting period.
It is the benchmark rate of interest of a bank to which interest on loans sanctioned under floating rate of interest is linked. The Reference rate of interest is determined/ modified by individual banks in accordance with their policies.
Senior Citizen is a person of over sixty years of age.
A smart card is a plastic card about the size of a credit card, with an embedded microchip which can process data. It provides a secure way of identification, authentication and storage of data. It can be used for telephone calling, electronic cash payments, and other applications.
A schedule detailing charges levied by a bank on the products and services offered by it to its customers.
This is a cheque, which is returned 'unpaid' [bounced] by the bank.