When a sole depositor of safe custody article dies, the article deposited in the bank may be returned to the nominee if nomination is available. The nominee shall submit death certificate of deceased depositor and identification of nominee. If there is no nomination available, article may be returned to the legal representative of the deceased…
The Consumer Protection Act (COPRA) 1986 was enacted by the Government of India. The act spells out the rights of the Consumer and the responsibilities of the supplier. The law provides the establishment of consumer councils and other authorities for the settlement of consumers’ disputes and for matters connected therewith. Sec. 2 (1) (d) of…
The provisions of nomination are found in various financial products like Life Insurance, Provident Fund, Gratuity, Co-operative societies and banking regulation acts (section 45ZC to 45 ZF) and Banking companies (Nomination) rules 1985 and the relevant provisions of Indian Succession Act. Nomination facility is available only to individual depositors and not to any person in…
When an insolvency petition has been filed in the Court, in respect of a customer of the bank, the bank shall immediately stop paying cheques drawn by the customer irrespective of cheque dated before or after the date of the petition. While dealing with such accounts, bankers need be to extra careful. Any act of…
CFT is acronym to Combating the Financing of Terrorism (CFT). Financing of terrorism means providing financial support to terrorist or terrorist organizations intended to achieve political, religious, or ideological goals through violence and the threat of violence against civilians. The flow of funds may reach to those terrorists from legitimate religious or cultural organizations or…
Banks are required to periodically update their customers’ KYC details under Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002. As per latest review and directives of RBI, periodic full KYC exercise will be required to be done for…
The National Consumer Disputes Redressal Commission is in short known as NCDRC. It is a quasi-judicial commission in India established in 1988 under the Consumer Protection Act of 1986 with its head office in New Delhi. A Consumer who has purchased products or services for his/her personal use (not for commercial purpose or resale) is…
Q: Is there any upper limit for loans against security of NRI’s term deposits like FCNR/NRE? Ans.: Except usual margin requirement, no upper ceiling is prescribed for loans to NRIs or third parties in India against security of FCNR/NRE deposits. However, the loan shall be for the purpose other than the investments specified in FEMA…
A Power of attorney (POA) is a written instruction by which one person is empowered to act on behalf of another. That is to say, to do any lawful act or series of lawful acts on behalf of the principal person by his agent. The Power of Attorney can be made in two types, special…
The mandate and power attorney are the rights cast upon a third person to act on behalf of the principal person/s. The rights of mandate and power of attorney holders are very similar in the operation of bank accounts but they are issued for different reasons and purposes. A mandate, is a simple letter of authority,…