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 of raising a public
loan.
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 :
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.
Originator
An organization, which collects payments from a customer's account in line with
customer's 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.
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