"Arm's length transaction" "Arm's length transaction" means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest.
"Associate" means an enterprise in which the Bank has significant influence and which is neither a subsidiary nor a joint venture of the Bank.
"Audit Committee of the Board (ACB)" ACB means a Committee of the Board constituted by the Board of Directors as per the guidelines of the Reserve Bank of India(RBI).
"Board" means Board of Directors of the Bank in terms of Section 9 (3) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
- ownership, directly or indirectly, of more than one half of the voting power of an enterprise or
- control of the composition of the board of directors of an enterprise
- a substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of an enterprise.
"Joint Venture" means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.
"Key Managerial Personnel (KMP)" mean those persons who have the authority and responsibility for planning, directing and controlling the activities of the Bank. As per RBI guidelines Key Managerial Personnel are the whole time directors of the Bank.
"Material Related Party Transaction" means a transaction with a related party if the transactions to be entered into individually or taken together with previous transactions during a financial year, exceeds ten percent of the annual consolidated business of the Bank as per the last audited financial statements of the Bank.
"Policy" means Related Party Transaction Policy.
"Related Party" -Parties are considered to related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.
As per the RBI Circular DBOD.NO.BP.BC.89/21.04.018/2002-03 DATED 29.03.2003, the related parties for a bank are its parent, subsidiary, associates/joint ventures, Key Managerial Personnel and relatives of Key Managerial Personnel.
"Relative" means the relative as defined under Section 45S of RBI Act, 1934 and the same is as under: (a) a person shall be deemed to be a relative of another, if and only, if -- (i) they are members of a Hindu undivided family or (ii) they are husband and wife; or (iii) the one is related to the other in the manner indicated in the List of relative below :-
- Mother (including step-mother)
- Son (including stepson)
- Son;s wife
- Daughter (including step-daughter)
- Father’s father
- Father’s mother
- Monther’s mother
- Mother’s father
- Son’s son
- Son’s son’s wife
- Son’s daughter
- Son’s daughter’s husband
- Daughter’s husband
- Daughter’s son
- Daughter’s son’s wife
- Daughter’s daughter
- Daughter’s daughter’s husband
- Brother (including step-brother)
- Brother’s wife
- Sister (including step-sister)
- Sister’s husband
"Significant Influence" means participation in the financial and/or operating policy decisions of an enterprise, but not control of those policies.
"Subsidiary" means a company:
(a) in which the Bank holds, either by itself and/or through one or more subsidiaries, more than one-half in nominal value of its equity share capital; or
(b) of which the Bank controls either by itself and/or through one or more subsidiaries, the composition of its Board of Directors.
"Government company" means the government company as defined in Section 2(45) of the Companies Act, 2013.