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Provides independent, expeditious and inexpensive forum to aggrieved bank customers. RBI introduced this scheme under powers granted under Banking Regulations Act 1949. Chief General Manager or General Manager of RBI will be appointed as Banking Ombudsman for a term not exceeding 3 years at a time. Banking Ombudsman takes care of the grievances of SERVICE DEFICIENCIES IN BANK INDUSTRY like in delayed collection of cheques, remittances, wrong debit/credit in deposit accounts and other ancillary/ advances area including fair practice code, credit card etc. and in loans- non- observance of RBI directives, delay in sanction or disbursement ,time schedules are included. The aggrieved customer can lodge his complaint in electronic mode also. Before lodging a complaint with Ombudsman the Customer should complain to the concerned bank first and wait for one month. The period within which a customer can lodge a complaint with Ombudsman is one year from the date of cause of action. The maximum award that will be given by Ombudsman is up to Rs.10lac. Any party can file appeal within 30 days on receiving award or the ombudsman rejecting his complaint to appeal authority. If the appeal is by the bank, it should be made with approval of CMD or ED or CEO only. One of the Deputy Governors will be appointed as Appellate Authority, in case the award given by the Ombudsman is not acceptable to the parties.
KNOW YOUR CUSTOMER (KYC)
KYC guidelines issued by RBI to check money laundering i.e. using of banking channel for conversion of illegal funds into legal funds and financial frauds. Suitable Guidelines were issued based on the recommendations of FINANCIAL ACTION TASK FORCE (FATF) on Anti money laundering (AML) standards and on combating financing of terrorism. Under KYC norms banks are expected to verify the identity proof and address proof like Passport, Pan CARD, Voter card, Driving license, Identity card to bank’s satisfaction, Letter from recognized public authority.
if issued it is permanent even if the person changes his/her profession or even change of address. . Now it is mandatory to have PAN all the existing Income tax assesses and future assesses and those who enter into financial transactions on behalf of self or on behalf of any others. GIR is GENERAL INDEX REGISTER number was earlier being allotted by the Income Tax department for assessees in olden days but ever since the PAN is in place GIR number system is now obsolete.Liberalized KYC Norms: Simplified criteria of identification and introduction to be followed in small deposit accounts where the debits should not exceed Rs. In the same case if the Depositor is a Senior Citizen then he has to submit Form No. Form for applying PAN is Form 49A. Concept of Form 15G and Form 15H ? Form 15G & Form 15H. All employers who deduct tax at source from employee’s salaries also must obtain TAN number. Hence all Bank branches shall individually apply for TAN. For One there is only One PAN. PAN number is being allotted to the Individuals by Income Tax Department. Tan number shall be quoted in all TDS/TCS returns. TAN means TAX DEDUCTION & COLLECTION ACCOUNT NUMBER. It is a TEN Digit Alphanumeric number. If a Depositor is not a Senior Citizen and his Taxable Income is within the exempted limits then he has to submit Form 15G to the Bank for not deducting tax at source.50. This is also a 10 Digit Alphanumeric number. Concepts of PAN. GIR and TAN? PAN is Permanent Account Number.15H. This number must be obtained by all the persons and organization those who are responsible for deducting Tax or collecting tax and remitting the same to the Income Tax department. a/c can be introduced by person having satisfactory accounts for 6months and self certification on address along with photograph. In case of interest paid/payable amounts are exceeded the Tax exempted limited then Form 15G and Form 15H shall not be accepted.00 lakhs and total transactions in a year does not exceed Rs.1lac) In these cases. 2lac (credit transaction should not exceed Rs.000 and Credit transactions should not exceed Rs 1. Even if any Government Office deducting TDS it also shall apply for TAN. The applicants have to submit Form 49B for allotment of TAN.
Nomination is available to a sole proprietor provided the sole proprietor is an individual. But the bank on payment to nominee is fully discharged.. and incase the prospective customer whose income comes from only Agriculture sources then he has to give a declaration in Form 61. Nomination continues on renewal of term deposit unless it is cancelled or changed. 04. then he has to submit a declaration in Form 60. Nomination is available for accounts which are in the name of individuals in their individual capacity. Need for Form 60 and Form 61 while opening accounts? While opening an account the prospective customer do not have PAN number. Nomination is available for all types of deposit accounts irrespective of nomenclature. Nomination is available in respect of both residents as well as nonresident accounts .f 01. 2010 depositor must submit PAN number otherwise the rate of TDS will be at 20%. Nomination can be made at any time during which the deposit is held with the bank. This information is to be given within three months in case of locker account. Nominee has to be an individual and hence a Firm. Trust etc cannot act a nominee. If a Depositor submitted Form 15G & 15H but PAN number not submitted the Bank has to deduct Tax at the rate applicable or at 20% whichever is higher. Nomination facility is obligatory for banks. it is not available for Partnerships. Trust. It can also be made available for old account. Club etc. He is duty-bound to pass on the money to the legal heir. So the legal heir can claim money from the nominee. Club. Nomination is available only for deposit accounts and not for loan accounts. Company. On death of a person. He is not the owner. FEATURES OF NOMINATION ACT Nomination is available for a) Deposit accounts b) Safe custody articles and Lockers. if six months lapse and no person turns up.e. Nomination is available for joint account of individuals.As per the budget pronouncements w. Ltd company. the bank has to inform the nominee about nomination in case of deposit account. i. In nomination act the nominee is treated as an agent for receiving money.e.
Reserve Bank of India B. Within 2 year B. Within one month D. Finance Minister E. Concerned State Govt. where RBI office is located D. None of the above 2. What is the maximum period within which the aggrieved customer can approach OMBUSAMAN? A. What is the maximum amount for which the Award Can be given by OMBUDSMAN A. Take up the matter with concerned Bank Branch within 30 days of cause of action C. Approach Lok Adalat D. Transactions Acceptance of deposit Loan Collection of cherub/Sell of securities On behalf of customer Purchase of DD Payee of DD and issuing bank Safe custody of article Safe deposit of locker Agent Beneficiary Bailed Lesser Principal Trustee Baylor Lessee Banker Debtor Creditor Agent Customer Creditor Debtor Principal PRACTICE QUESTIONS 1.000 B. Rs 2.00. Banking Ombudsman is appointed by: A.Banker-Customer Relationship The relationship between banker and customer defers depending on the transaction. No such limitation period E. Can directly approach Banking Ombudsman E.00.000 . Within 1 year C. Before approaching Ombudsman what should the complainant do? A. Take up the matter with State Government B. Government of India C. Any of the above 3. None of the above 4. Rs 1.
000 D. AML Stands for A. Always money laundering D. Term Deposit Account D. CGM or GM of RBI B. Governor RBI I is an ex-officio Ombudsman D. The KYC does not include obtaining the following : A. Address Proof C. False B. Anti Money Laundering C. Anti Monitory Limit B. None of the above 9. whereas AML. KYC –Know Your Customer is to identify the Customer.000 E. Who will be appointed as Banking Ombudsman? A. Any of the above . True only in case of small amounts D. Not necessary in all cases E. Anytime Money Laundering E. Savings Account C.00. 7. Rs 10. None of the above 8. Deputy Governor of RBI C. Current Account B. Customer Profile D. Rs 5. Identity Proof B. No Frills Account E. Vehicle details of the customer E.Anti Money Laundering is to identify the Source of Income: A. None of the above 6. No limit 5.00. KYC norms are liberalized in case of following accounts: A. True C. Finance Secretary E. None of the above.C.
Nomination can be given only for: A. Current deposit 15. With reference to a cheque which of the following is the ‘drawee bank’? A. Limited Companies D. Partnership firms E. In case the prospective customer whose income comes from only Agriculture sources then he has to give a declaration in Form 61. Joint Individuals C. Money deposited at a bank that cannot be withdrawn for at fixed period of time is known as a _____: A. Form 60 E. Safe custody articles C. Checking Account C. The bank that collects cheque. Nomination is available for A. Form 61 D. None of the above 11. No Frills Accounts E. None of the above 14.to the Bank for not deducting tax at source A.10. . Only A B C 13. He has to submit form 60 D. Deposit accounts B. Individuals B. Form 15 H C. A. Term deposit B. None of the above 12. Lockers. D. True B. False C. and B E. No such requirement E. Only A. If a Depositor is not a Senior Citizen and his Taxable Income is within the exempted limits then he has to submit ---------------. Saving Bank deposit D. Form 15G B.
The bank of the Drawer of the Cheque E. Negotiable Instrument Act C. None of the above 19. Non Performing Asset (An asset which ceases to generate income) C. None of the above 18. Criminal Procedure Code D. Finance Ministry advised RBI to allow common ATMs to be owned and managed by Non Banking Institutions. No Profit Account D. Such ATMs are called: A. 20. Cheque Transfer System . An ECS transaction gets bounced and you are unable to recover your money from your customer. Non-Personal Accounts E. Expand NPA A. What is CTS A. C. Cash Transaction system (in banks) B. Base Rate is the rate below which no Bank can allow their lending to anyone.B. None of the above 16. Third Party ATMs D. D. Ministry of Commerce C Ministry of Finance d) RBI e) Interest Rate Commission of India 17. Salaries etc. The endorsee’s bank. NBFC ATMs B. Payment and Settlement Act E. The payee’s bank. Off Site ATMs C. White Label ATMs E. Who will fix this ‘Base Rate’ for Banks? A. Under which Act criminal action can be initiated? A. Individuals Banks Board B. Indian Contract Act (Note: ECS used for Electronic Clearing of cheques– Debit ECS for Collection of loan installments) and Credit ECS for payments like Dividends. Indian Penal Code B. No Provision Account B.
Cheque Truncation System D. This system already started in many states of India. only scanned images will be sent. This reduces the collection of cheques time considerably and is advantageous to the customers) ANSWERS 01 A 02 B 03 B 04 D 05 A 06 D 07 D 08 B 09 B 10 A 11 A 12 E 13 D 14 A 15 D 16 A 17 B 18 D 19 D 20 C . It is also called image based clearing. None of the above (CTS mean Cheque Truncation System – wherein instead of sending cheques physically to clearing house.C. Cash Transfer System E.
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