Collection of Instruments and the Cheque Collection Policies of Banks in India
National Consumer Disputes Redressal Commission has framed Cheque Collection Policies (CCPs) of Banks. The policy framed by the Commission covers the time frame for the collection of local and outstation cheques. The time frame for Local Clearing: The credit and debits of the local cheque shall be given on the same day or at the…
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Submission of Records by Banks to Statutory Authorities
Banks and other financial institutions are required to submit various returns, many of which are statutory under the RBI Act of 1934, the Banking Regulation Act of 1949, FEMA 1999, the SEBI Act of 1992, Income Tax 1961, etc. Submission frequency of these returns varies from daily, weekly, fortnightly, monthly, quarterly, half-yearly, and annual. Regulatory…
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LFAR and Statutory Audit in Banks
What is a Long Form Audit Report (LFAR)? : LFAR (Long Form Audit Report) must be issued by Statutory Auditors apart from the standard audit report that is required as per regulatory requirements. LFAR serves as a vital tool for auditors and their team members, the audit process providing detailed insights into the bank’s operations,…
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Photographs of Account Holders mandatory in banks with some exceptions
While opening all new accounts banks should mandatorily obtain photographs of the depositors/account holders who are authorized to operate the accounts in terms of the Master Directions of RBI. The customers’ photographs should be recent and the cost of photographs to be affixed on the account opening forms may be borne by the customers. Only…
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Prohibition and exemption under the Banking Regulation Act
The Reserve Bank of India has been issuing statutory guidelines to commercial banks under the Banking Regulation Act 1949. The banks in India accordingly shall follow the terms and conditions as specified in the regulations in respect of deposits accepted by the banks. The detailed guidelines of the banking regulator cover the following matters. Exemptions…
Personal accounts and other customer accounts in Banks
A personal account is a bank account maintained by a natural person for his personal transactional needs. Personal account is a relative term to distinguish it from business accounts. The accounts of other types of bank customers are maintained by artificial persons (legal entities). Personal accounts of individuals in the bank include: SB account, Current…
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