Operational Guidelines on Joint Accounts of Illiterate and Visually Impaired Persons
Banks are required to extend financial services to all sections of society, including illiterate and visually impaired individuals, while ensuring operational safety and compliance with regulatory norms. The following guidelines outline the procedures and limitations applicable to the opening and operation of accounts by such customers. 1. Joint Accounts Between Two Illiterate Persons Ordinarily, banks…
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Trust Receipt under the contract of pledge
“Trust Receipt” under the contract of pledge In “trust receipt” under the contract of pledge, the borrower gets his assets/goods released from the pledge, only on full payment of his dues which automatically terminates contract of pledge. However in case of Key cash Credit or Key Loan, if bank desire to release the assets/goods retained…
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Essence of Pledge and Pledgee’s right & duties
Pledge is only a special kind of bailment where the object of the delivery of assets/goods is to provide a security for a loan or for the fulfillment of an obligation. Section 148 of the Indian Contract Act, 1872 defines the” bailment”. Section 172 to 176 of the Indian Contract Act, 1872 deals with pledge…
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Definition of Assignment and actionable claim
When the rights, title and interest in debts due or accruing due to a person are transferred to another person, it is called assignment and actionable claim means any claim other than the debt to mortgage of immovable property or hypothecation or pledge of goods and receivables. Transfer of Life Insurance Policy, National Saving Certificates, Supply bills…
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Joint accounts of persons using thumb impression: RBI guidelines
[This blog offers information on how banks open accounts of illiterate persons, blind and partially blind persons other disabled persons] Blind, illiterate, and other disabled persons can open and make certain bank account operations using thumb impressions. Bankers customarily extend helping hand to the disabled persons like sick/old/incapacitate who cannot be physically present to the…
KYC/AML guidelines for opening bank account made simple
RBI has been imposing heavy penalties on banks that have not complied or the account opened in contravention of various directions and instructions issued by it, which includes failure to obtain adequate documents for opening accounts, failure to carry out identification procedures, and failure to examine the control structure of entities. However, to help the…
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