General Lien does NOT apply when goods/securities are entrusted for a specific purpose (like safe custody or selling shares). In such cases, the banker acts as a Bailee/Trustee, and the specific purpose overrides the general right of lien.

Upon the death of the Karta, the bank must stop operations to determine the new Karta (usually the next eldest coparcener). While recent laws allow daughters to be coparceners and potentially Karta, the succession must be formally established before operations resume to avoid legal disputes.

For partnership firms, the threshold for identifying the beneficial owner is ownership of/entitlement to more than 15% of capital or profits of the partnership, or who exercises control through other means.

A Power of Attorney is an agency relationship. It is terminated automatically upon the death, insanity, or insolvency of either the Principal or the Agent. Therefore, in all three cases, the PoA ceases to be valid.

For Set-off, debts must be mutual: between the same parties, held in the same right and capacity. A bank cannot set off a customer's personal credit balance against a debit balance in their trust account or a joint account (unless all joint holders are liable).

The Act specifies the Father as the primary natural guardian. The Mother becomes the natural guardian only after the Father. (Note: This applies to boys and unmarried girls; for illegitimate children, the Mother is the primary guardian).

A minor can be appointed as a nominee. However, if the depositor dies while the nominee is still a minor, the payment is made to a person appointed by the depositor to receive the amount on behalf of the minor. Nomination is valid only for individuals, not Trusts/HUFs.

If a savings or current account witnesses no customer-induced transactions (credit or debit) for a continuous period of 2 years (24 months) , it is classified as inoperative/dormant to prevent fraud.

Based on the principle of natural justice and legal precedents (like Prosperity Ltd vs Lloyds Bank), a bank must provide reasonable notice to the customer before closing an account to allow them time to clear cheques and make alternate arrangements.

In safe custody, the goods are entrusted to the bank for a specific purpose (safety) to be returned later. The customer is the Bailor (owner), and the bank is the Bailee (custodian). This differs from a Locker where the bank is a Lessor.

Normally, the death of a partner dissolves the firm. However, regarding old transactions (cheques issued before death), the bank can pay them to avoid dishonor, provided the account has funds and the surviving partners don't object. The estate of the deceased partner remains liable for acts done before death.

According to RBI KYC norms: High Risk - Every 2 years; Medium Risk - Every 8 years; Low Risk - Every 10 years.

SDD is allowed for low-risk customers like SHGs to promote financial inclusion. For SHG savings accounts, CDD of all members is not required; CDD of office bearers suffices.

Normally, a bank collecting a cheque is an Agent. However, if the money is collected and held specifically *in trust* for a specific purpose (like investment) and not just credited to the general account, the relationship shifts to Trustee-Beneficiary.

Upon the death of one joint holder in an E or S account, the title to the deposit passes to the survivor. Being the sole owner now, the survivor has the right to cancel old nominations and make a fresh nomination.

PEPs are individuals who are or have been entrusted with prominent public functions (e.g., Heads of State, politicians). Due to potential involvement in bribery and corruption, they are classified as High Risk customers requiring Enhanced Due Diligence (EDD).

The Memorandum of Association (MoA) defines the company's relationship with the outside world and sets the limits (scope) of its operations. Any act outside the MoA is "Ultra Vires" (void). AoA defines internal rules.

Banks must report all cash transactions of the value of more than ?10 Lakh or its equivalent in foreign currency (integrally connected series of transactions in a month) to FIU-IND by the 15th of the succeeding month.

Order Nisi is a preliminary order asking the bank to freeze the funds and explain why they shouldn't be paid. Only after the Order is made "Absolute" does the bank pay the court.

A Garnishee Order suspends the operation of the account (freezes it) but does not terminate the relationship. The account can become active again if the order is revoked or satisfied. Death, closure, or insanity typically end the active contract.

An illiterate person CAN open a single account. While joint operation is allowed, it is not mandatory that they must open a joint account. The other safeguards (witness, photo, no cheque book) are standard.

Salaried employees, government departments, and small amounts balances are generally Low Risk. HNIs, Jewelers, and Non-face-to-face customers are usually Medium or High Risk due to higher money laundering potential.

In an F or S account, only the first named person (Former) can operate the account as long as they are alive. The Survivor gets rights only after the death of the Former.

The insanity of the Principal (customer) automatically terminates the agency/mandate. The agent's authority ceases immediately. Therefore, the bank must stop operations and dishonor the cheque to protect the principal's funds.

While CTRs are filed monthly (by 15th), STRs must be filed within 7 working days of the bank's Principal Officer determining that a transaction is suspicious.

Clayton's Rule states that in a running account, the first debit is discharged by the first credit (FIFO - First In, First Out), unless there is a contrary intention. This is vital for determining liability in overdrafts when guarantees are revoked.

Since an unregistered body has no separate legal existence, it cannot be sued in its own name. If the account goes into debit/overdraft, recovering money becomes legally complex as the bank has to sue individual members.

Entries in a passbook are strong evidence (prima facie) against the bank, but they are not conclusive. A bank can prove an entry was made by mistake (e.g., wrong credit) and reverse it, provided the customer hasn't altered their position based on that entry.

The 6 OVDs are: Passport, Driving License, Voter ID, MGNREGA Card, Aadhaar, and NPR Letter. PAN Card is mandatory for financial transactions but is technically not listed as an OVD for *address proof* in the core list, and Ration Card is definitely not an OVD anymore.

The bank has the right to combine accounts and set off dues BEFORE complying with the Garnishee order, provided the bank's debt was due and recoverable at the time the order was served.

While an HDC gets a better title than the transferor (curing defects like fraud or lack of consideration), Forgery is a nullity . A forged signature does not convey any title, and even an HDC cannot acquire a valid title on a forged instrument.

Section 87 of NI Act: Converting a Bearer cheque to Order is allowed and restricts the negotiability safely, so it is not considered a material alteration that voids the cheque. However, converting Order to Bearer is material and needs signature.

Section 85(1) protects the paying banker for order cheques if the endorsement purports to be regular (even if forged), provided the payment is made in Due Course (good faith and without negligence).

"Sans Recourse" means "without recourse". By adding this, the endorser denies liability to any subsequent holder if the instrument is dishonored.

The revised guidelines (2021) state that in case of incidents like fire, theft, burglary, or building collapse attributable to the bank's deficiency, the liability shall be 100 times the prevailing annual rent of the locker.

The authority to *draw* funds is joint, but the authority to *revoke* the mandate (stop payment) is individual. Any single joint holder can stop payment to protect the funds.

NEFT transactions are settled in batches (DNS), whereas RTGS transactions are settled individually and continuously (Real-Time Gross). Now both operate 24x7.

Limitations of Small Accounts: Total credits in a FY = ?1 Lakh; Balance at any point = ?50,000; Withdrawals in a month = ?10,000. No foreign remittances allowed.

CMS products focus on efficient inflow and outflow of funds (Collection and Payment services) to minimize idle cash and improve working capital management.

Protection to Collecting Banker (Section 131) applies only for crossed cheques collected for a customer in good faith and without negligence .

A Mandate is usually specific to a bank account and given on the bank's standard form. A PoA is a general legal document drafted on stamp paper that can cover various acts, including property and legal representation, beyond just banking.

An Executor derives authority from the Will (confirmed by Probate). An Administrator is appointed by the court (Letter of Administration) if there is no will. These documents validate their legal standing.

A Garnishee Order can only attach funds that solely belong to the judgment debtor. A joint account (A & B) cannot be attached for A's individual debt because the debt is not due to A alone. However, the reverse is true (A's account can be attached for a joint debt of A & B).

"Not Negotiable" does NOT restrict transferability. It restricts the property of "Negotiability" (the ability to give better title). Even a bona fide holder for value cannot get a good title if the transferor had a defective title (e.g., stolen cheque).

The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) manages the CKYCR to reduce the burden of producing KYC documents every time a customer opens a new relationship with a financial entity.

RBI advises banks to settle claims simply on indemnity for small amounts. Legal representation (Succession Certificate) should be insisted upon only in cases of large amounts or disputes to avoid harassment of heirs.

If the debtor doesn't intimate, the creditor has the discretion to appropriate the payment to any lawful debt actually due, even if it is barred by the law of limitation.

Current accounts offer fluidity and unlimited transactions (cheques, transfers) which incurs high operational costs for banks. Hence, no interest is paid (though RBI deregulated this, most banks still don't pay to maintain margins).

Once issued, a DD is a direct commitment of the bank to pay. The purchaser is not the drawer; the bank is. Therefore, the purchaser cannot simply stop payment like a personal cheque unless there is a court order or loss of instrument.

As per RBI guidelines on limiting customer liability, if the fraud/negligence/deficiency is on the part of the bank, the customer has Zero Liability , regardless of when they report it.

Changing the amount (sum payable) alters the character and liability of the instrument significantly. Without the drawer's authentication, this is a material alteration under Section 87, rendering the cheque void.

For foreign students, pending verification of local address, the account is operated with a condition that withdrawal should not exceed ?50,000 per month and total credits should not exceed ?1 Lakh in the financial year.

Unless there is a specific survivorship mandate (like Either or Survivor), a simple "Jointly" operated account implies joint ownership. Upon death, the contract ends, and the balance is payable jointly to the Survivor (B) and the Legal Heirs of A.

The guardianship terminates automatically when the minor attains majority. The bank must stop the guardian's operations and take fresh instructions and specimen signatures from the erstwhile minor.

In CTS, the Presenting/Collecting Bank captures the image of the cheque and sends the electronic data to the Paying Bank. The physical movement of the cheque is stopped (truncated) at the Collecting Bank's end.

Assignment involves the transfer of rights, title, and interest in the policy from the policyholder (assignor) to the bank (assignee). It is the correct mode for creating security on insurance policies.

Technically, "Lien" is the right to retain goods. An FDR represents money (a debt owed by the bank). You cannot have a lien on your own debt. The correct legal concept for adjusting FD against a loan is "Set-off". However, loosely in banking, it is often called lien.

In a locker with a survivorship clause ("Either or Survivor"), the bank is validly discharged by allowing the survivor to access and remove contents. The bank need not insist on the presence of legal heirs unless there is a court order restraining it.

Under the Companies Act, a Public Limited Company needs a Certificate of Commencement of Business in addition to the Certificate of Incorporation to start operations and borrow money. Private companies only need Incorporation cert.

A general mandate to operate an account does not imply the authority to borrow money or overdraw the account, which creates a debt liability for the principal. This power must be explicitly stated.

Section 85(2) provides that where a cheque is originally expressed to be payable to bearer, the banker is discharged by payment in due course to the bearer of the instrument, notwithstanding any endorsement whether in full or in blank appearing thereon. This means the banker need not verify the regularity of endorsements on a bearer cheque because the title passes by delivery, and endorsements are legally superfluous for negotiation.

In a significant shift for consumer protection, the revised RBI guidelines mandate that the Bank shall bear the cost of stamp paper and other expenses related to the execution of the locker agreement for both new and existing locker hirers. This ensures standardization and removes the financial burden of documentation from the customer.

The Maker-Checker principle acts as a critical internal control mechanism. It mandates that for any transaction (especially financial or sensitive data changes), there must be at least two individuals involved: one to initiate/create (Maker) and another to verify/authorize (Checker/Authorizer). This segregation of duties minimizes the risk of internal fraud, unauthorized transactions, and human error.

While the Resolution of the Managing Committee specifies who will operate the account *currently*, the Bye-laws are the fundamental governing rules that define the *constitution* of the society, the powers of the committee, election rules, and the procedure for appointing signatories. The bank must verify that the resolution passed is consistent with the powers conferred by the Bye-laws.

As per RBI guidelines, if 5 or more counterfeit notes are detected in a single transaction, the Nodal Bank Officer must file an FIR (First Information Report) with the local police station immediately. For less than 5 notes, a consolidated report is sent to the police at the end of the month. In all cases, notes must be impounded and stamped "COUNTERFEIT BANKNOTE"; they must never be returned to the depositor.

The RBI mandates that banks must resolve failed ATM transactions (wrong debits) within 5 calendar days (T+5) from the date of transaction. Beyond this period, the bank is liable to pay a compensation of ?100 per day of delay to the account holder, without waiting for a formal complaint/claim from the customer.

Clayton's Rule (First-In-First-Out for appropriation) implies that subsequent credits into a running account discharge the earliest debits. If a guarantee is revoked or a partner dies (terminating liability), the bank must break the account (stop operations) immediately. If they continue the account, new credits will pay off the old "guaranteed" debt, while new debits will create a new "unsecured" debt, leaving the bank exposed.

To protect customers, RBI mandates that a duplicate DD must be issued within 14 days. If there is a delay beyond this period, the bank must pay interest at the rate applicable for Fixed Deposits of corresponding maturity to the purchaser, to compensate for the loss of use of funds.

Trustees have only those powers granted by the Trust Deed. If they borrow for an unauthorized purpose, the act is Ultra Vires (beyond powers). The Trust estate cannot be bound by such acts. The bank can only look to the trustees personally for recovery, making it a high-risk situation.

The Ombudsman scheme aims to resolve "Deficiency in Service." It specifically excludes complaints arising from the commercial judgment/decisions of the bank, such as whether to grant a loan or the interest rate charged (unless not as per RBI guidelines), to avoid interfering in business autonomy.

Section 131 protects a banker collecting crossed cheques. Section 131A explicitly applies this chapter to Demand Drafts drawn by one branch of a bank upon another, ensuring that collecting bankers get the same protection for DDs as they do for cheques.

RBI guidelines mandate that if the beneficiary account cannot be credited for any reason, the destination bank must return the transaction to the originating bank within 2 hours of the completion of the batch in which the transaction was processed (B+2).

To ensure timely service to the bereaved family, banks are mandated to settle claims in deceased accounts within 15 days of receiving the claim application complete in all respects. This applies to accounts with nomination/survivorship clauses as well as those without.

The Right of Set-off applies only to financial debts (money owed by bank vs money owed to bank). The contents of a locker are physical goods entrusted for safe custody (Lease/Bailment relationship), not a sum of money owed by the bank to the customer. Therefore, Set-off is legally impossible; the bank cannot just open the locker and take the contents.

RBI Guidelines are strict: No account can be opened without proper KYC ("No KYC, No Account"). Furthermore, refusal to provide standard information or non-cooperation is a red flag for potential money laundering, warranting the bank to consider filing an STR with FIU-IND.

The definition of Payment in Due Course (Sec 10) has three pillars: 1. Payment according to apparent tenor. 2. Payment in good faith. 3. Payment without negligence to any person in possession thereof. If the bank is negligent (e.g., ignores a visible alteration), it is not Payment in Due Course and protection is lost.

Unlike a court Garnishee Order (which usually attaches only present balances), Income Tax Attachment Orders (under Sec 226(3) of IT Act) are generally "continuing" in nature. They bind the bank to remit any funds held *at that time* OR *subsequently held* for the assessee until the tax demand is met or the order is revoked.

The Resident Foreign Currency (RFC) account is specifically designed for returning NRIs to park their foreign currency earnings (pension, savings abroad) without converting them to Rupees, protecting them from exchange rate risk. NRE/FCNR accounts must be closed/converted upon return.

To support vulnerable groups, RBI mandates banks to provide basic banking services at the doorstep for senior citizens over 70 and differently-abled persons. This includes pick-up of cash/instruments, delivery of cash, KYC documents pickup, and delivery of DDs/cheque books.

A "Full" or "Special" endorsement specifies the person to whom or to whose order the money is to be paid (e.g., "Pay to B or Order" signed A). This converts a bearer instrument back into an order instrument, adding security.

Post the Hindu Succession (Amendment) Act, 2005, daughters have the same rights as sons and are considered Co-parceners by birth in their own right. Wives and daughters-in-law are members but not co-parceners (they cannot demand partition).

Under Article 22 of the Limitation Act, 1963, the period is 3 years. Crucially, time starts running NOT from the deposit date, but from the date the customer makes a demand for payment and the bank refuses it. Until a demand is made, the limitation does not expire.

RBI guidelines strictly specify that the V-CIP must be operated by officials of the Regulated Entity (Bank) only. Business Correspondents (BCs) or Direct Selling Agents (DSAs) are NOT authorized to conduct the video interaction to ensure data security and accountability.

This is incorrect. RBI has mandated that banking facilities including ATM/Debit Cards and Net Banking should be offered to visually impaired persons without discrimination. Banks must ensure ATMs are accessible (talking ATMs). Denying a card is a violation.

As per RBI directive (effective April 1, 2012), the validity period of Cheques, Drafts, Pay Orders, and Banker's Cheques is reduced from 6 months to 3 months from the date of the instrument.

Bailment involves the delivery of goods from one person to another for a specific purpose. In Safe Custody, the customer delivers the goods to the bank. In a Locker, there is no delivery of goods (the customer retains control), so it is Lease, not Bailment. FD is a debt.

Since December 2019, NEFT operates on a 24x7x365 basis with half-hourly batches. There are 48 half-hourly batches every day. (Note: RTGS is real-time, NEFT is batch-wise).

The Comprehensive Compensation Policy aims to cover various deficiencies in service, including delays in cheque collection, ATM failures, unauthorized debits, and payment of interest for delays in returns, ensuring customer rights are protected.

Section 51A of UAPA empowers the Central Government to freeze, seize or attach funds and other financial assets or economic resources held by, on behalf of, or at the direction of any individual or entity listed as a terrorist.

A Special PoA is restricted to the specific act mentioned (e.g., selling a specific property or operating a specific account). It contrasts with a General PoA, which gives broader powers. The bank must verify the specific limits.

A Small Account (opened without full KYC) can be extended for another 12 months if the customer provides proof that they have applied for any of the OVDs (like Voter ID, NREGA card, etc.) during the first 12 months.

Clayton's Rule applies specifically to running accounts (like Cash Credit, Overdraft) where debits and credits are continuous. In a Term Loan, the account is not a running account; payments are appropriated towards interest first and then principal, not based on FIFO of debits.

Only the Karta (Manager) has the implied authority to operate the account and bind the family/firm. Other coparceners can operate only if the Karta grants them a specific mandate/power of attorney.

Section 125 of the NI Act permits a holder to convert a general crossing into a special crossing. This enhances security and is not considered a material alteration that voids the instrument.

The bank has the discretion to break open the locker after following due procedure (giving notice, allowing reasonable time). The contents must be inventoried in the presence of independent witnesses and kept in safe custody.

Since the money was entrusted for a specific purpose, the bank holds it as a Trustee. In liquidation, trust money does not form part of the bank's general assets, so the customer has a preferential claim over general creditors.

Banks must ensure they do not have any accounts in the names of individuals/entities appearing in the lists of terrorists approved by the UN Security Council (e.g., Al-Qaida Sanctions List), as circulated by the RBI.

A partner acts as an agent for the firm. An agent cannot delegate his authority to another (sub-agent) unless expressly authorized. Therefore, a PoA for operating the firm's account requires the joint consent/signature of all partners.

Under Section 31 of the NI Act, a banker is liable to compensate the drawer for any loss or damage caused by wrongful dishonor. This includes damages for injury to the customer's credit and reputation in the market.

Under Section 184 of the Contract Act, a minor can be an agent between the principal and third parties. The minor is not personally liable, but their acts bind the Principal. Banks usually discourage this due to risk.

An "Account Payee" crossing directs the collecting banker to credit the proceeds ONLY to the account of the payee named. If the banker collects it for someone else (an endorsee), they lose statutory protection under Section 131 because it is considered negligence.

The 6 core OVDs are Passport, Driving License, Voter ID, NREGA Card, Aadhaar, NPR Letter. Utility bills are "Simplified Measures" or Deemed OVDs allowed primarily for address proof for low-risk customers when OVD doesn't have the current address.

An SI creates an agency relationship where the bank agrees to pay "subject to availability of funds." If funds are insufficient, the bank is not obligated to pay or create an overdraft, and thus is not liable for the lapsed policy.

Upon the appointment of a Liquidator, the directors become functus officio (lose their office/powers). The bank must stop the operation of the account by directors and allow operations only by the Liquidator.

In a Simple Mortgage (Section 58(b) of Transfer of Property Act), the mortgagor binds himself personally to pay the debt but does NOT deliver possession of the property to the mortgagee.

Payment in Due Course must be "in accordance with the apparent tenor". A post-dated cheque becomes payable only on or after the date on its face. Paying it earlier violates the tenor and is negligent, stripping the bank of statutory protection.

The Goiporia Committee (1990) was a landmark committee that recommended time norms for various banking transactions and measures to improve customer service in banks.

Where neither party appropriates, the law applies the payment to discharge debts in chronological order (oldest first), irrespective of whether they are time-barred or not.

PMLA rules mandate that identification records (KYC) must be preserved for 5 years from the date of cessation of the relationship with the client.

A resident PoA holder in an NRE account can operate it for local payments in India. However, they are generally NOT allowed to repatriate funds abroad, except in very specific cases like remitting to the account holder himself.

An endorsement in blank (just the signature) converts an Order instrument into a Bearer instrument, meaning it can now be transferred by mere delivery.

Banks typically do NOT allow lockers to be hired by minors (even with guardians) because a minor cannot be bound by the locker contract (lease agreement). Locker facility is for adults who can contract.

Every deposit (credit) by the borrower or debit (withdrawal) acts as an acknowledgment of the continuing relationship, resetting the limitation clock. Thus, it is 3 years from the last operation.

While the Core Banking System handles day-to-day transactions (OLTP), the Data Warehouse stores historical data from various sources to facilitate analysis, MIS reporting, and strategic decision-making (OLAP).

Public Trusts are required to be registered under the Public Trusts Act in many states. The Certificate of Registration issued by the Charity Commissioner is a key KYC document confirming the legal existence of the Public Trust.

A banker is bound to know the drawer's signature (their customer) but cannot possibly know the signatures of all payees and endorsees in the world. Hence, statutory protection is given if the endorsement appears regular.

Under Section 130 of the Transfer of Property Act, the transfer of an actionable claim can only be effected by the execution of an instrument in writing signed by the transferor (Assignment).

Banks must file the CTR for transactions occurring in a calendar month by the 15th day of the following month.

Executing SIs involves administrative effort and liability. Banks are permitted to levy reasonable service charges for setting up and executing SIs, provided these are transparently communicated.

Unlike an Executor (whose authority starts from death), an Administrator is appointed by the Court. Therefore, their legal authority commences strictly from the date the Letter of Administration is granted.

Under the Turnover Method (recommended for limits up to ?5 Crore), the working capital requirement is assessed at 25% of the projected turnover. Out of this, the bank provides 20% as limits, and the borrower brings in 5% as margin.

While Domestic Commercial Banks and Foreign Banks (20+ branches) have a target of 40% of ANBC, RRBs and SFBs have a higher mandatory target of 75% of ANBC to ensure credit flow to underserved sectors.

To enforce credit discipline, RBI mandates that for large borrowers (= ?150 Cr), at least 60% of the working capital limit must be utilized as a WCL (Demand Loan) and the balance 40% as Cash Credit (CC).

Equitable Mortgage is created under Section 58(f) of the Transfer of Property Act by delivery of title deeds with an intent to create security. It is popular due to low cost (no registration needed) but can only be created in notified towns.

Classification criteria for Small Enterprise: Investment = ?10 Cr AND Turnover = ?50 Cr. Since both conditions are met (8 < 10 and 45 < 50), it is a Small Enterprise.

The KCC limit is scientific: It considers the Scale of Finance (fixed by District Level Technical Committee) multiplied by area, plus a 10% margin for household expenses and 20% for farm asset maintenance.

Income Recognition and Asset Classification (IRAC) norms state that income from NPAs is not recognized on an accrual basis but is booked as income only when it is actually received (Cash basis).

"Weaker Sections" include small/marginal farmers, SC/STs, SHGs, distressed farmers, and artisans. Medium Enterprises are part of the MSME category but not the "Weaker Sections" sub-target.

The Debt-Equity Ratio (Total Debt / Shareholder's Equity) measures the leverage of a company. A lower ratio indicates higher solvency and financial stability in the long run.

Pledge involves the bailment (delivery of possession) of goods as security for a debt. The Bank (Pledgee) holds possession, while the Borrower (Pledgor) retains ownership rights.

RBI guidelines mandate that no collateral and no margin will be charged for loans to SHGs up to ?10 Lakh. Recently, the collateral-free limit for SHGs under NRLM was enhanced to ?20 Lakh.

The LC is opened by the Issuing Bank at the request of the Buyer (Importer). Therefore, the Buyer is the Applicant who instructs the bank to open the credit in favor of the seller (Beneficiary).

Section 13(2) notice is the first step. It gives the borrower a period of 60 days to pay the dues. If they fail, the bank can take possession under Section 13(4).

For Metros (population >= 10 lakh), the housing loan limit for PSL is ?35 Lakh (provided the total cost of the dwelling unit does not exceed ?45 Lakh). For other centers, the loan limit is ?25 Lakh.

A Garnishee Order attaches debts owed BY the bank TO the customer (credit balance). An unutilized CC/OD limit is a facility to borrow; it represents money the customer CAN borrow, not money the customer OWNS. Hence, it cannot be attached.

KVIC is the single nodal agency at the national level for the PMEGP scheme. At the state level, it is implemented through State KVIC Directorates, State KVIBs, and DICs.

After becoming NPA (overdue > 90 days), an asset enters the "Sub-standard" category. It stays in this category for up to 12 months. If it remains NPA beyond 12 months, it moves to "Doubtful" category.

Surprisingly, Hypothecation was not defined in Indian law until the SARFAESI Act, 2002 (Section 2(n)). It refers to a charge on movable property without delivery of possession.

The Lead Bank assesses the borrower's needs, appraises the project, and coordinates with other member banks for documentation and disbursement.

Guarantees are of two types: Performance (ensuring work is done) and Financial (ensuring money is paid). A Financial Guarantee assures the beneficiary that the debt will be repaid if the borrower defaults.

Loans to individuals for educational purposes, including vocational courses, not exceeding ?20 lakh will be considered as eligible for priority sector classification.

The pecuniary jurisdiction of DRTs applies to cases where the debt due to any bank or financial institution is ?20 Lakh or above.

Assignment involves the transfer of rights to claim a debt or benefit. It is used for Actionable Claims like insurance policies and book debts. (Immovable = Mortgage; Goods = Pledge/Hypothecation).

MCLR replaced Base Rate in 2016. Note: EBLR later replaced MCLR for retail/MSME loans in 2019, but MCLR specifically replaced Base Rate as the internal benchmark.

This penal provision is designed to ensure timely payments to MSMEs. The interest is compounded with monthly rests at 3 times the Bank Rate.

The standard interest subvention is 2%, making the effective rate 7%. Prompt repayment gets an additional 3% subvention, bringing the effective interest rate down to 4%.

For Doubtful Assets (D1 - up to 1 year), the provision on the secured portion is 25%. For the unsecured portion, it is always 100%.

Character refers to the borrower's integrity and intent to repay. Capacity refers to ability (cash flow). Capital is their own contribution. Collateral is security. Conditions refer to economic factors.

DPG secures the payment of installments for capital goods purchased on credit. If the buyer defaults on an installment, the bank pays.

Lok Adalats are an effective forum for settling smaller NPA cases (suit-filed or pre-litigation) up to a ceiling of ?20 Lakh, offering a quick and low-cost resolution.

ANBC is defined as Net Bank Credit (NBC) plus investments made by banks in non-SLR bonds held in the HTM category, plus other investments eligible to be treated as priority sector. This ensures that banks don't shift assets to investments to lower their lending targets.

Under DAY-NULM, an interest subsidy is provided on loans to the urban poor for setting up individual or group enterprises. The subsidy is the amount of interest charged by the bank over and above 7% per annum.

For classification as MSME and to avail benefits under the PSL norms (and other government schemes), obtaining Udyam Registration is mandatory. Without it, the unit cannot be classified as MSME by the bank.

The KCC limit is sanctioned for a period of 5 years, subject to an annual review. The cardholder can draw funds within this limit as per their cropping pattern and requirements.

Loans up to ?5 crore per borrower for setting up schools, drinking water facilities, and sanitation facilities in Tier II to Tier VI centers are classified as Priority Sector Lending.

Book debts are movable current assets. Since possession cannot be handed over to the bank (unlike pledge), a charge is created by way of Hypothecation of book debts. (Assignment is also a legal mode, but Hypothecation is the common banking practice for working capital limits against receivables).

According to NABARD/RBI guidelines, the loan amount can be 4 times the corpus for the first dose, rising to 8 times (or ?20 Lakh, whichever is higher) for mature SHGs with a good repayment track record.

The coverage limit under CGTMSE was enhanced from ?2 Crore to ?5 Crore (?500 Lakh) to encourage lending to the MSE sector without collateral.

In a running account (CC/OD), credits reduce the debit balance. Without a Letter of Continuity, these credits could be legally argued to have discharged the original DP Note. This letter confirms that the security continues to cover the fluctuating balance.

For Domestic Banks, "Export Credit" is allowed as PSL only up to 2% of ANBC or CEOBE (Credit Equivalent of Off-Balance Sheet Exposure), whichever is higher. This is much lower than the limit for Foreign Banks.

Section 17 of the Registration Act mandates that any non-testamentary instrument transferring interest in immovable property of value ?100 or upwards must be registered to be legally valid.

The categories are: Shishu (up to ?50k), Kishore (> ?50k to ?5 Lakh), and Tarun (> ?5 Lakh to ?10 Lakh). This classification targets different stages of business growth.

Special Mention Accounts (SMA) categorization helps in early recognition of stress. SMA-0 (1-30 days), SMA-1 (31-60 days) , and SMA-2 (61-90 days).

The LC limit is non-fund based. It depends on the estimated annual purchase of material (consumption) and the time taken from placing the order to the receipt of goods/retirement of bills (Lead Time/Usance period).

Under Priority Sector norms, loans for agriculture infrastructure (warehousing, market yards, cold chains) are capped at ?100 crore per borrower from the banking system.

Article 62 of the Limitation Act, 1963 provides a limitation period of 12 years for suits relating to payment of money secured by a mortgage or charge upon immovable property, calculated from when the money becomes due.

While a full renewal/assessment is annual, banks conduct Short Reviews (Quarterly or Half-yearly) to monitor the account's performance and ensure compliance with terms, based on QIS statements.

Packing Credit is a working capital advance provided *before* shipment to enable the exporter to procure raw materials, manufacture, and pack the goods based on a confirmed export order.

Udyam Registration is a one-time registration process. The certificate issued is valid for a lifetime, provided the enterprise updates its details annually.

A Loss Asset is one where loss has been identified by the bank or auditors and the asset is considered uncollectible. The entire amount (100%) must be provided for, irrespective of any collateral (since its value is negligible).

In Cash Credit, the Drawing Power (DP) is calculated based on the value of stocks and receivables declared in the monthly Stock Statement. It ensures the loan is backed by sufficient current assets.

CLSS provides interest subsidy on housing loans to eligible beneficiaries (EWS/LIG/MIG) under the PMAY (Urban) mission to promote affordable housing.

For bank recovery cases, the monetary ceiling for Lok Adalat jurisdiction is ?20 Lakh . Cases above this limit usually go to DRT.

Negative Lien is a negative covenant. It does not create a charge for the bank but prevents the borrower from pledging the assets to someone else, keeping them free for the bank if needed later.

Bank loans up to ?50 crore to Startups (as per definition of Ministry of Commerce and Industry) are eligible for finance under the priority sector.

RBI norms specify that an NPA account can be upgraded to Standard only when the entire overdue interest and principal are paid, bringing the account fully current.

Bridge loans are temporary, short-term loans meant to tide over the period until the long-term funding (like IPO proceeds or Term Loan disbursement) is received.

Under Section 18 of the Limitation Act, a written acknowledgment of liability signed by the borrower before the expiration of the prescribed period starts a fresh period of limitation from the time of signing.

DSCR measures the cash flow available to pay current debt obligations (Interest + Principal). DSCR < 1 means negative cash flow. Banks typically look for DSCR > 1.5 or 2 for Term Loans.

Banks are mandated not to accept collateral security in the case of loans up to ?10 lakh extended to units in the MSE sector. For loans above ?10 lakh up to ?2 crore, banks can use the CGTMSE guarantee cover instead of collateral.

Under Method II (which is more conservative and ensures a higher current ratio of 1.33:1), the borrower must finance 25% of the *Total Current Assets* from long-term sources. Hence, MPBF = (0.75 * CA) - CL.

Wilful default implies deliberate non-payment despite having the capacity to pay, diverting funds for other uses, or siphoning off funds without creating assets. Genuine business failure is not wilful default.

Under Section 17 of the SARFAESI Act, an appeal against the bank's enforcement action (like taking possession) must be filed with the DRT within 45 days from the date on which such measure was taken.

In "With Recourse" factoring, the factor advances money against invoices but does not indemnify the seller against bad debts. If the customer fails to pay, the factor reclaims the advance from the seller.

The critical condition under Section 58(f) of the Transfer of Property Act is that the act of delivery of title deeds must take place in a town notified by the State Government. The property itself can be located anywhere in India.

BEP analysis determines the level of sales volume at which the project makes neither profit nor loss (covers all costs). It assesses the viability and risk of a long-term project, making it crucial for Term Loan appraisal.

Stand Up India facilitates bank loans between ?10 lakh and ?1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.

It is a document issued by a parent company (or bank) to a lender, indicating its support for a subsidiary's loan obligations, but it falls short of a legally binding financial guarantee.

Previously, there were expense ceilings. Currently, under PSL norms, there is no cap on the total cost of education. Only the loan amount eligible for PSL classification is capped at ?20 Lakh.

The DRT Act empowers the Tribunal to pass interim orders (like attachment before judgment or injunction) to protect the interests of the bank and prevent the borrower from selling assets during the pendency of the case.

Financing on TReDS is "without recourse" to the seller. Once financed, the debt is assigned to the financier, and the Corporate Buyer is legally obligated to pay the financier on the due date.

Hypothecation agreements typically contain a clause empowering the bank to take possession of the goods in case of default. Once possession is taken, the charge converts from Hypothecation to Pledge.

As per RBI directives, interest on loans should be charged at quarterly or shorter rests (like monthly). Charging interest at longer rests (like yearly) is not permitted as it reduces the effective yield.

Foreign banks with less than 20 branches have a total target of 40% of ANBC, but they are exempted from specific sub-targets for Agriculture and Weaker Sections. They can achieve their target largely through Export Credit.

Technical Write-off is an accounting entry to clean the balance sheet and reduce tax liability. It does NOT mean waiver of the debt; the bank continues its recovery efforts against the borrower.

The critical parameters for SHG grading (Panchasutra) are: Regular Meetings, Regular Savings, Regular Internal Lending, Regular Recoveries, and Maintenance of Books of Accounts.

A Techno-Economic Viability (TEV) study or Project Report details the technical aspects (technology, location, machinery) and economic viability, crucial for long-term funding decisions.

For a DP Note (payable on demand), the limitation is 3 years from the date of the note , not from the date of demand (Article 35, Limitation Act).

Under Section 38 of the Insurance Act, 1938, notice of assignment must be served to the Insurer to register the bank's interest. Without this, the assignment is not binding on the Insurer.

For a smooth takeover, the new bank needs the exact outstanding amount (Foreclosure letter) and details of security documents to ensure proper transfer of liability and collateral.

SARFAESI action cannot be taken if the amount due is less than ?1 Lakh OR if the remaining debt is less than 20% of the original principal and interest (Section 31(j)). This prevents misuse for small balances.

Cluster-based financing allows banks to assess risks better, reduce transaction costs, and provide tailored services to similar units located in a geographical cluster (e.g., Tirupur textile cluster).

To promote affordable housing, RBI allows an LTV ratio of up to 90% for loans up to ?30 Lakh. For loans between ?30L-?75L, it is 80%.

Pari-Passu means "on equal footing". It ensures that in case of liquidation or asset sale, all member banks share the proceeds proportionally to their dues, without any priority to one over the other.

The RDDBFI Act bars Civil Courts from entertaining any matter which the DRT is empowered to determine, to ensure speedy recovery through the specialized tribunal.

The subsidy is kept in a TDR in the name of the beneficiary for a lock-in period of 3 years. It is adjusted against the loan only after successful verification of the unit after 3 years.

Availability of funds is the lower of the Sanctioned Limit or the Drawing Power. Since DP (backed by assets) is lower, the borrower can only draw up to ?8 Lakh.

Particular Lien (e.g., repairer's lien) is restricted to the specific goods on which labor/skill was exercised, unlike Banker's General Lien which extends to general balance.

Bank credit to NBFCs (excluding MFIs) for on-lending is allowed under PSL up to an overall cap of 5% of the individual bank's total priority sector lending.

Revolving Fund (RF) is a seed capital given to SHGs to supplement their own savings, allowing them to lend more internally and build financial discipline before accessing larger bank loans.

CISF is a corpus fund provided to community institutions like CLFs or VOs (not directly to SHGs) to be used for lending to SHGs for their livelihood plans and socio-economic development.

The Recovery Officer (RO) is the statutory authority within the DRT framework empowered to execute the Recovery Certificate by attaching and selling the debtor's assets.

Loans up to ?30 crore to borrowers for purposes like solar based power generators, biomass-based power generators, wind mills, micro-hydel plants, etc., are eligible for PSL.

WCG represents the portion of current assets that needs to be financed. It is calculated by subtracting "Other Current Liabilities" (excluding bank borrowings) from Total Current Assets. The bank finances a part of this gap.

A public company is strictly prohibited from giving any financial assistance for the purchase of its own shares or lending against the security of its own shares (Buy-back is a separate process). Banks also cannot lend against their own shares (BR Act Sec 20).

RBI has directed that penalties should be treated as "Penal Charges" and not "Penal Interest" that gets added to the interest rate and capitalized. This ensures fairness and prevents capitalization of penal components.

The MSMED Act establishes the MSEFC to arbitrate and settle disputes related to delayed payments. MSEFC awards are binding and have the effect of a court decree.

PSLCs are valid only for the financial year in which they are traded. Their validity expires on March 31st, and banks must buy fresh certificates for the next year if shortfalls persist.

CRILC reporting is mandatory for all borrowers having aggregate fund-based and non-fund-based exposure of ?5 Crore and above. This helps in early stress detection.

PMAY mandates female ownership (sole or joint) to promote women empowerment. The house must be registered in the name of the female head or jointly with the male head.

DSRA typically holds an amount equal to 3-6 months of debt service obligations (Interest + Principal). It acts as a safety buffer to ensure timely repayment even if project cash flows are temporarily disrupted.

For a continuing guarantee, the liability arises only when the guarantee is invoked. The limitation period starts running from the date the bank issues a demand notice to the guarantor invoking the guarantee.

Goods left for safe custody are entrusted for a specific purpose, making the bank a Bailee. This specific purpose overrides the general lien. A bank cannot exercise lien over items in safe custody or lockers.

A Bank Guarantee is an independent contract. The bank is obligated to pay upon proper invocation "without demur," irrespective of underlying disputes between the parties. The bank is dealing with documents, not goods or disputes.

Priority Sector includes Agriculture, MSME, Export Credit, Education, Housing, Social Infrastructure, Renewable Energy, and Others (Weaker Sections). CSR loans to corporates are not part of this.

To encourage exports, the government has mandated that "Exports of goods or services or both" shall be excluded while calculating the turnover for MSME classification purposes.

Upon restructuring (changing terms due to financial difficulty), a standard asset is immediately downgraded to Sub-standard . It can be upgraded to Standard only after satisfactory performance during the "specified period" (usually 1 year).

A decrease in assets (like selling stock or collecting debtors) releases cash, so it is a Source of funds. An increase in assets consumes cash (Use).

The SARFAESI Act definition of "Security Interest" includes hypothecation. Banks can take possession of hypothecated movables (like vehicles, stock) directly after issuing the Section 13(2) notice and waiting for 60 days.

To protect consumers, banks are prohibited from levying foreclosure charges on floating rate term loans sanctioned to individual borrowers for non-business purposes (e.g., Home Loans, Auto Loans).

CRPs are community members (usually women from successful SHGs) who provide support to new groups, driving the community-driven implementation model of NRLM.

ACABC loans are classified under Ancillary Activities within the Agriculture sector, as they provide professional extension services to farmers.

Under Section 77 of the Companies Act, 2013, charges on a company's assets (movable or immovable) must be registered with RoC. However, Pledge is exempted from this requirement. Hypothecation and Mortgage charges must be registered.

An account becomes NPA if interest/principal remains overdue for a period of more than 90 days. If unpaid on March 31, the 90-day period ends on June 29. It becomes NPA on June 30 (91st day).

Banks may allow borrowers to draw beyond the limit for urgent needs. This is known as a Temporary Overdraft (TOD) or Ad-hoc limit, usually charged at a higher interest rate.

Under Section 176 of the Contract Act, if the Pawnor defaults, the Pawnee may sell the thing pledged on giving the Pawnor reasonable notice of the sale . No court order is needed.

IRR is the break-even discount rate that equates the present value of cash inflows with the present value of cash outflows (NPV = 0). If IRR > Cost of Capital, the project is viable.

To simplify financial inclusion, RBI guidelines state that KYC verification of only the authorized office bearers (representatives) is sufficient to open an SHG account. KYC of all members is not needed.

While the limit for firms/borrowers is ?30 Crore, for individual households , the loan limit for renewable energy purposes is capped at ?10 Lakh per borrower.

Under the Security Interest (Enforcement) Rules, the authorized officer must serve a 30-day notice to the borrower informing them of the sale of the immovable property.

In a Full Mesh Topology, every device has a dedicated point-to-point link to every other device. If one link fails, data can take an alternative path, ensuring zero downtime for critical systems.

Parameter files act as the rulebook for the CBS. Changes in interest rates or product features are made here without altering the source code, allowing flexibility.

While some banks add QR codes, it is not a mandatory standard feature prescribed under CTS-2010 standards (unlike Void Pantograph, UV Logo, and Watermark).

In Brown Label ATMs, the machine and lease are owned by a third party, but the branding and cash handling are done by the sponsor bank. (White Label ATMs are fully non-bank owned).

The IIN is a 6-digit number issued by NPCI that identifies the bank to which the customer's Aadhaar is linked, enabling Aadhaar-based routing.

INFINET is the communication backbone for the Indian Banking and Financial Sector, managed by IDRBT. It secures critical inter-bank applications like RTGS, NEFT, and NDS.

Blockchain (Distributed Ledger Technology) allows for programmable contracts (Smart Contracts) that automatically execute, enforce, and verify the terms of an agreement without intermediaries.

Phishing typically uses spoofed emails or fake websites to trick users into revealing credentials. It is a "Social Engineering" attack.

The standard UPI limit is ?1 Lakh per day. (Note: For specific categories like IPOs, Retail Direct Scheme, and Medical/Education, the limit has been enhanced to ?5 Lakh, but the general limit remains ?1 Lakh).

EOD is a critical batch process that runs at the end of the business day to ensure all transactions are posted, accounts balanced, and system date is moved to the next working day.

STP means the payment message flows from the remitting bank to the RBI and then to the beneficiary bank automatically without any manual intervention, ensuring speed and accuracy.

In online transactions, the physical card is not presented to a merchant. Authentication relies on details (Card No, CVV, Expiry) and 2FA (OTP), making it a CNP transaction.

2FA combines: 1. Knowledge (PIN/Password), 2. Possession (Card/Token/Phone), 3. Inherence (Fingerprint/Iris). "Desire" is not an authentication factor.

The National Payments Corporation of India (NPCI) functions as the Bharat Bill Payment Central Unit (BBPCU) responsible for setting standards and operating the BBPS.

Hypertext Transfer Protocol Secure (HTTPS) uses TLS/SSL encryption to secure the data transferred between the user's browser and the bank's server, preventing eavesdropping.

AI algorithms analyze vast data for patterns (Fraud Detection), interact with customers (Chatbots), and assess risk profiles (Credit Scoring) efficiently.

While the facility is available for cheques of ?50,000 and above, banks have the discretion to make it mandatory for cheques for amounts of ?5 Lakh and above to prevent high-value fraud.

The Customer Information File (CIF) or Customer ID is the unique key assigned to a customer. Multiple accounts (Savings, Loan, FD) are linked to this single CIF to provide a 360-view of the customer relationship.

Skimming involves placing a discreet device over the card slot to read the magnetic stripe data, which is then used to clone the card for fraudulent use.

The Reserve Bank of India regulates PPIs under the Payment and Settlement Systems Act, 2007. Issuers must obtain authorization from RBI.

Like the mythical wooden horse, a Trojan appears useful/harmless to trick the user into installing it, after which it executes malicious code (stealing data, creating backdoors).

A firewall acts as a barrier between a trusted internal network and untrusted external networks (internet), blocking unauthorized access while permitting legitimate traffic.

Data integrity ensures that data remains unaltered during storage, transmission, and processing, which is vital for banking financial records.

The limit for IMPS transactions was enhanced from ?2 Lakh to ?5 Lakh to facilitate larger instant transfers.

Digital channels (Internet/Mobile) have negligible marginal costs compared to physical infrastructure (Branch/ATM) or human-assisted channels.

Asymmetric encryption (Public Key Infrastructure) is crucial for digital banking security (like SSL/TLS) because it allows secure exchange of data without sharing the private secret key.

e-NACH reduces the turnaround time for mandate registration by using electronic authentication via Netbanking or Debit Card, replacing physical paper mandates.

Interest calculation for millions of accounts is resource-intensive. Batch processing runs this as a background job (usually at night) to avoid slowing down the system during banking hours.

V-CIP uses video chat and geotagging to verify the customer remotely. RBI treats it as equivalent to physical KYC, allowing full account functionality.

UPI LITE allows users to make small value transactions (up to ?500) without entering a UPI PIN, improving success rates and reducing load on the core banking system.

Service-Oriented Architecture (SOA) breaks down banking functions into distinct, self-contained units ("services") like account validation, interest calculation, etc. These services can be reused across different channels (Mobile, ATM, Net Banking), reducing development time for new products and ensuring consistency across the bank's technology ecosystem.

ISO 20022 uses the MX message format (based on XML), which carries much more data than the older MT format. This "rich data" allows banks to transmit detailed remittance information, improve anti-money laundering (AML) screening, and automate reconciliation processes, significantly reducing errors in cross-border payments.

Initially set at ?5,000, the RBI enhanced the limit for e-mandates on cards and UPI for recurring payments (like subscriptions, insurance premiums) to ?15,000 without the need for Additional Factor of Authentication (AFA/PIN) during the transaction execution, improving convenience for users.

Pharming is more dangerous because it manipulates the DNS (Domain Name System) server or the user's host file. Even if the user types the correct website address (e.g., www.bank.com), they are redirected to a fraudulent site without clicking any suspicious link, making it harder to detect than Phishing.

NFC (Near Field Communication) is a short-range wireless connectivity standard. It allows two devices (the card and the POS terminal) to communicate when they are brought within a few centimeters (typically < 4 cm) of each other, enabling "Tap and Pay".

BBPS has a tiered structure. The Biller Operating Unit (BOU) is the entity responsible for onboarding billers (like electricity boards, telecom companies) into the BBPS ecosystem. The Customer Operating Unit (COU) interacts with the customer (payer).

A Data Warehouse acts as a central repository of integrated historical data. Data Mining uses algorithms on this warehoused data to discover hidden patterns, correlations, and insights (e.g., predicting which customers are likely to default or identifying cross-selling opportunities).

SaaS is a cloud model where software applications are hosted by a vendor and made available to customers over the internet (e.g., Google Drive, CRM software), eliminating the need for banks to install and maintain the software locally.

In a DDoS attack, the traffic comes from hundreds or thousands of sources (zombie computers/bots), making it nearly impossible to stop the attack simply by blocking a single IP address. This makes DDoS much more destructive and harder to mitigate than simple DoS.

To enhance security, RBI mandated that merchants and payment aggregators cannot save actual card details (Card-on-File). They must use "Tokens" generated by the Card Network/Issuer. Only the Issuer and Network can store the real data.

NPCI launched RuPay to provide a domestic, cost-effective alternative to international card schemes like Visa and Mastercard, reducing the reliance on cross-border payment processing.

In Star Topology, all nodes connect directly to a central device (hub/switch). It is a single point of failure; if the hub goes down, communication between all connected nodes stops.

NACH Credit is a "Push" system used to distribute funds to many beneficiaries (One-to-Many) like subsidies or salaries. NACH Debit is a "Pull" system used to collect funds from many payers (Many-to-One) like utility bills or loan repayments.

Zero Trust assumes that threats exist both inside and outside the network. It requires strict identity verification for every person and device trying to access resources, regardless of whether they are sitting within the network perimeter or outside.

This feature allows Full-KYC Wallet users to scan any standard UPI QR code of a merchant and pay using their wallet balance, breaking the closed-loop restriction of wallets.

The Delivery Channel Interface allows transactions initiated at various touchpoints (ATMs, Phones) to be routed to the Core Banking System for processing and response.

LSPs act as the interface for digital loans. RBI mandates that LSPs must be monitored by the Regulated Entities, and the loan disbursal/repayment must flow directly between the RE and the borrower, bypassing the LSP's pool account.

The Void Pantograph is a hidden feature. When a cheque is photocopied or scanned, the word "VOID" or "COPY" clearly appears on the copy, making it impossible to use the copy for fraud.

Ransomware (like WannaCry) encrypts the user's data and demands a ransom (usually in crypto) for the decryption key. It is a major threat to banking data availability.

FASTag is a reloadable tag employing RFID technology. It is affixed on the vehicle's windscreen and enables automatic deduction of toll charges when the vehicle passes through the toll plaza.

VPN creates an encrypted "tunnel" over the internet. It is essential for Work From Home scenarios or connecting remote branches securely to the CBS without a dedicated leased line.

mPOS is a cost-effective alternative to traditional bulky POS machines. It allows small merchants to accept card payments using their mobile phones linked to a small card reader.

e-Rupee is the digital form of legal tender issued by the RBI. Unlike cryptocurrencies (which are private and volatile), CBDC is sovereign currency and exchanges 1:1 with cash.

This principle ensures that a teller can only access cash modules, while a loan officer accesses loan modules, preventing unauthorized access and potential fraud.

NEFT operates in half-hourly batches throughout the day (24x7). In a 24-hour cycle, there are 48 batches (00:30 to 00:00).

Payment Card Industry Data Security Standard (PCI-DSS) is a set of security standards designed to ensure that all companies that accept, process, store or transmit credit card information maintain a secure environment.

Bharat QR is an interoperable QR code solution that enables customers to pay using their debit/credit cards (by scanning via banking app) without needing a physical POS terminal.

Big Data is characterized by high Volume (amount of data), high Velocity (speed of data generation), and high Variety (structured and unstructured data types).

LAN covers a building; WAN covers countries; MAN covers a city (like a cable TV network or city-wide bank branch connectivity).

Currently, CTS operates in 3 grids: Northern Grid (New Delhi), Southern Grid (Chennai), and Western Grid (Mumbai). All cheques are cleared through one of these grids.

The RBI-DPI comprises 5 broad parameters: Payment Enablers, Payment Infrastructure (Demand-side factors), Payment Infrastructure (Supply-side factors), Payment Performance, and Consumer Centricity. The Base Period for the index has been set as March 2018 (Score = 100). It helps in mapping the deepening of digital payments in India accurately.

FAR is a critical security metric. It measures the likelihood that the biometric security system will incorrectly accept an access attempt by an unauthorized user. In high-security banking applications (like vaults or server rooms), the system is tuned to have an extremely low FAR, even if it means a slightly higher False Rejection Rate (FRR).

EMV (Europay, Mastercard, and Visa) is the global standard for chip-based debit and credit cards. Unlike magnetic stripes which contain static data that can be easily copied/skimmed to create counterfeit cards, EMV chips generate a unique transaction code for every transaction, making cloning extremely difficult and enhancing security.

A Payment Gateway acts as a technological pipe to transmit data. A Payment Aggregator (PA) facilitates merchants to accept various payment instruments without the need for the merchant to create a separate payment integration system of their own. PAs handle the actual funds, settling them to merchants, and are thus regulated by RBI (Guidelines on PA/PG).

Vishing stands for "Voice Phishing." Criminals pose as bank officials, RBI agents, or tech support over a phone call to create a sense of urgency (e.g., "Your card is blocked") and manipulate victims into sharing OTPs, PINs, or passwords. Smishing involves SMS; Phishing involves Email.

RPA uses software "bots" to mimic human actions for routine tasks. It is ideal for processes that are repetitive, prone to human error, and follow strict rules (like account opening forms processing, reconciliation of ATM transactions), freeing up humans for higher-value work.

MPLS is a routing technique that directs data based on short path labels rather than long network addresses. It is highly reliable, secure (acts like a private network), and supports Quality of Service (QoS), ensuring that critical banking transactions get priority over other traffic like emails.

RBI permits FLDG arrangements between Regulated Entities (Banks/NBFCs) and their partner LSPs (Fintechs), subject to a strict cap of 5% of the amount of the loan portfolio. This ensures the lender still holds the primary credit risk while allowing fintech innovation.

A Honeypot is a security mechanism set up to detect, deflect, or counteract attempts at unauthorized use of information systems. It consists of a computer, data, or network site that appears to be part of a network, but is actually isolated and monitored, looking like a valuable target to hackers.

While the general UPI transaction limit is ?1 Lakh, NPCI has enhanced the limit to ?5 Lakh for specific use cases like IPO applications, RBI Retail Direct Scheme, and payment for educational/medical institutions to encourage digital adoption for high-value payments.

Data Centers are rated from Tier 1 to Tier 4 based on uptime and redundancy. Tier 4 is the highest standard, offering Fault Tolerance (no single point of failure), independent dual-powered cooling/power paths, and 99.995% uptime guarantee, crucial for 24x7 banking operations.

A System Audit looks at the technical aspects (hardware, software, security settings). A Process Audit looks at the human/operational aspect—whether users are following the Standard Operating Procedures (SOPs), like password hygiene, maker-checker discipline, and authorization workflows.

Green Banking aims to reduce the carbon footprint. Technologies that promote paperless transactions (Net banking, E-Statements, Mobile Wallets) directly support this by saving paper and reducing the need for physical transport.

RBI allows outsourcing of non-core activities (like IT support, hardware maintenance). However, Core Management Functions , including decision-making regarding credit, policy formulation, internal audit, and compliance, cannot be outsourced as it compromises the bank's control and accountability.

Smart contracts are digital protocols (code) deployed on a blockchain. They automatically execute transactions (like releasing funds) only when specific pre-defined conditions are triggered (e.g., goods delivered), eliminating the need for intermediaries and increasing trust.

The IFSC structure is: First 4 chars = Bank Code (Alphabetic); 5th char = 0 (Zero) (Reserved for future use); Last 6 chars = Branch Code (Numeric/Alphabetic). Example: SBIN0001234.

CTS standards mandate using the TIFF (Tagged Image File Format) . Three images are captured: 1. Front Grayscale (for visual details), 2. Front Black & White (Binary, for MICR reading), 3. Back Black & White (Binary, for endorsements).

MMID is a 7-digit random number issued by the bank to the customer upon registration for mobile banking. The first 4 digits represent the unique bank code, and the last 3 digits identify the user account. It enables fund transfers using just Mobile No + MMID, preserving privacy of account details.

RSA (Rivest–Shamir–Adleman) is the most widely used Asymmetric Encryption algorithm. It uses two different keys: a Public Key to encrypt data and a Private Key to decrypt it. This is the foundation of secure internet communication (SSL/TLS).

Operational CRM handles customer touchpoints. Analytical CRM works in the backend, analyzing the vast data generated by Operational CRM to provide insights (e.g., "Which customer is likely to buy a home loan?") using Data Mining and BI tools.

NETC (National Electronic Toll Collection) is the flagship program of NPCI developed to meet the electronic tolling requirements of the Indian market using RFID technology (FASTag).

CBDC is sovereign currency in digital form. Unlike bank deposits (liability of the commercial bank), CBDC is a direct claim on the Central Bank. It does not typically earn interest (to prevent it from competing with bank deposits) and exchanges at par with cash.

Cassettes are the removable boxes inside the ATM safe where cash is loaded. Typically, an ATM has 4 cassettes, each configured for a specific denomination (e.g., ?500, ?100, ?200).

MT 103 is the standard format for cross-border customer wire transfers. MT 202 is for bank-to-bank transfers. MT 700 is for Letter of Credit issuance.

A Private Cloud is dedicated infrastructure for a single organization. It offers the highest level of security and control, which is essential for core banking data where data privacy regulations are strict. Public cloud is shared and generally used for non-critical apps.

ML models learn the customer's spending behavior over time. If a transaction occurs that is unusual (e.g., huge amount, strange location, odd time), the ML system flags it instantly as potential fraud, far faster and more accurately than rule-based systems.

To protect merchant funds, RBI mandates strict settlement timelines. For PAs, the final settlement to the merchant must happen typically by T+1 (where T is the date of transaction capture) to ensure liquidity for the merchant.

The AA framework is built on standardised Open APIs. These APIs allow Financial Information Providers (Banks) to share data with Financial Information Users (Lenders) securely and in real-time, only after the customer gives digital consent via the AA handle.

DLP tools monitor data in motion (network traffic), data at rest (storage), and data in use (endpoints) to ensure that sensitive/confidential data is not leaked, emailed, or uploaded to unauthorized external locations.

RBI launches thematic cohorts to encourage innovation in specific areas. The first cohort (2019) was "Retail Payments" (e.g., offline payments), the second was "Cross Border Payments", the third was "MSME Lending", and fourth was "Prevention of Financial Frauds".

Vulnerability Assessment and Penetration Testing (VAPT) is a proactive security measure. While Vulnerability Assessment identifies potential weak points, Penetration Testing goes a step further by actively trying to exploit them to see how deep an attacker can get into the system, helping banks patch holes before real attacks occur.

IMPS offers two main modes: P2P (Person-to-Person) using Mobile Number + MMID, and P2A (Person-to-Account) using Account Number + IFSC. P2A is useful when the beneficiary is not registered for mobile banking but has a bank account.

RPO determines how much data the bank can afford to lose in a disaster. For example, if RPO is 15 minutes, it means backups must be done every 15 minutes, so at most 15 minutes of data is lost. Zero RPO means real-time data replication.

Hybrid Cloud offers the best of both worlds. Banks can maintain strict compliance and security for core customer data on on-premise/private clouds, while leveraging the massive computing power and lower cost of public clouds for testing, analytics, or peak loads.

Non-repudiation provides proof of the origin and integrity of data. Digital Signatures provide non-repudiation because only the sender has the private key to sign it; thus, they cannot later claim they didn't send it.

NIPL was incorporated in 2020 as a wholly-owned subsidiary of NPCI to internationalize India’s indigenous payment offerings like UPI and RuPay cards, partnering with countries like Singapore, UAE, and Nepal.

Media Access Control (MAC) address is a unique hardware identifier burned into the network card (Layer 2). Internet Protocol (IP) address is a software-assigned address that can change depending on the network location (Layer 3).

The API Gateway sits between the outside world (Fintech apps) and the bank's core systems. It enforces security (authentication, rate limiting), traffic management, and analytics for all incoming API requests.

Keyloggers run silently in the background, capturing everything typed on the keyboard. This is a common method used to steal Netbanking login credentials.

The Issuer Bank issues the tag to the customer (vehicle owner). The **Acquirer Bank** onboards the Toll Plaza operator and acquires the transaction when a vehicle passes through, routing it to the Issuer for debit.

Apache Hadoop is an open-source software framework used for distributed storage and processing of huge datasets (Big Data) using the MapReduce programming model.

"On-us" means the card/account and the terminal belong to the same bank. "Off-us" means they are different (e.g., SBI customer using an HDFC Bank BC point), requiring routing through the NPCI switch.

In Pretexting, the attacker impersonates someone else in authority (e.g., "I am calling from the Bank's Fraud Dept") to manipulate the victim into divulging sensitive data like OTPs.

UAT is crucial to ensure the software handles real-world scenarios correctly. It validates the business logic and usability from the perspective of the people who will actually use the system.

Agent Institutions recruit and manage physical agents (human touchpoints) to allow cash-based bill payments for customers who are not digitally savvy.

IoT refers to a network of physical objects embedded with sensors. Banks use it for collateral management (tracking smart warehouses/vehicles) and transforming payment experiences (smartwatches, cars).

Inherence refers to something the user "is" (Biometrics). Password is "Knowledge" (something you know). OTP/Card is "Possession" (something you have).

NLP is a branch of AI that gives computers the ability to understand, interpret, and respond to text and spoken words in the same way human beings can.

RBI mandates that the core funds of customers in a PPI must not be co-mingled with the company's own funds. An Escrow Account ensures these funds are ring-fenced and used only for settled payments.

Very Small Aperture Terminal (VSAT) allows data transmission via satellite, bypassing the need for physical cables, making it ideal for connecting ATMs and branches in difficult terrains.

BOD is a mandatory process run before any transaction can take place. It updates the system date, checks system health, and enables transaction posting for the new day.

Unlike generic phishing (casting a wide net), Spear Phishing targets specific victims using personalized information (name, role) to increase the success rate of the deception.

5G allows for faster data transfer with minimal delay (latency). This is crucial for real-time fraud detection, high-frequency trading, and immersive customer experiences.

RBI mandated authorized Payment System Operators (PSOs) to implement an ODR system for resolving disputes and grievances related to failed transactions in a transparent, rule-based, and automated manner.

Neobanks operate entirely online/mobile. In India, since RBI does not yet issue virtual banking licenses, they typically partner with licensed scheduled banks to hold customer deposits while providing a superior UI/UX layer.

SSL (Secure Sockets Layer) or its successor TLS (Transport Layer Security) encrypts the link between the web server and the browser, ensuring privacy and data integrity. It turns HTTP into HTTPS.

Big Bang involves switching the entire bank to the new system at once (usually over a weekend). It is riskier but faster than the Phased approach.

SWIFT gpi transformed cross-border payments by providing a unique tracking reference (UETR) that allows banks to track the status of the payment in real-time across the correspondent banking network.

Quantum computers can solve complex mathematical problems much faster than classical computers. This capability could allow them to crack asymmetric encryption algorithms (like RSA) that currently underpin banking security, necessitating a move to Post-Quantum Cryptography.

In SIM Swap, the attacker convinces the mobile operator to issue a new SIM card for the victim's number. Once activated, the attacker receives all SMS/OTPs intended for the victim, bypassing 2FA security.

Ethics is often defined as the rules of conduct recognized in respect to a particular class of human actions or a particular group or culture (external). Morality is more internal, referring to personal beliefs about right and wrong.

Insider Trading involves trading in a public company's stock by someone who has non-public, material information about that stock. It is illegal and unethical.

The POSH Act defines sexual harassment to include unwelcome physical contact, sexually colored remarks, showing pornography, or any other unwelcome physical, verbal or non-verbal conduct of sexual nature.

Whistleblowing is the act of drawing attention to perceived wrongdoing, misconduct, corruption, fraud, or unethical activity within a public or private organization. The policy protects them from retaliation.

An ethical dilemma arises when values conflict (e.g., Loyalty to a friend vs. Truthfulness to the employer). There is often no single "perfect" solution.

Corporate Governance focuses on ethical conduct, transparency, accountability, and fairness to all stakeholders. While profit is a goal, "at any cost" (ignoring ethics) violates governance principles.

Conflict of interest creates a risk that professional judgment or actions will be biased by a secondary interest (e.g., a loan officer approving a loan for their own relative).

BCSBI was set up to ensure that the banking system provides fair and transparent treatment to its customers. It issued codes setting minimum standards of banking practices.

The Golden Rule is a principle of treating others as one wants to be treated. It is a common maxim found in many religions and ethical systems.

Integrity involves honesty and consistency of character. It implies acting according to one's values regardless of the circumstances or lack of supervision.

Window dressing involves manipulating financial statements (e.g., temporarily boosting deposits at year-end) to make the company look better performing than it actually is. This violates the principle of transparency.

Work ethic is a value based on hard work and diligence. It includes being reliable, showing initiative, and maintaining high standards of quality.

Utilitarianism (associated with Jeremy Bentham and John Stuart Mill) is a consequentialist theory. It suggests that the moral worth of an action is determined by its contribution to overall utility (happiness/welfare).

A fiduciary relationship is one of trust, where one party (the banker) is duty-bound to act in the best interest of the other party (the customer), especially when managing their funds or giving advice.

Deontology (associated with Immanuel Kant) focuses on moral duties and rules. It argues that some acts are inherently right or wrong, regardless of their consequences.

The Chinese Wall policy is critical to manage conflicts of interest. It ensures that sensitive information obtained by one department does not leak to another department that could use it for unfair trading or advice.

Section 135 mandates that companies with a certain net worth, turnover, or profit must spend at least 2% of their average net profits of the immediately preceding three financial years on CSR activities.

The code ensures transparency in lending. It requires banks to provide comprehensive information about fees, charges, and terms, and to communicate reasons for loan rejection to avoid discrimination.

Moonlighting raises ethical concerns regarding loyalty, conflict of interest, and misuse of company time/resources. Many employment contracts prohibit it.

Virtue ethics emphasizes the development of virtuous character traits (like courage, honesty, wisdom). It asks "What sort of person should I be?" rather than "What should I do?"

Mis-selling is a major ethical issue where employees prioritize their sales targets or commissions over the customer's best interest (e.g., selling a long-term insurance policy to an elderly person who needs liquidity).

TBL suggests that companies should focus on social responsibility (People) and environmental sustainability (Planet) in addition to their economic performance (Profit).

Accepting significant gifts can create a sense of obligation in the employee towards the customer, leading to biased decisions (like approving a risky loan) and potential corruption.

Law provides the "floor" (minimum standards) of conduct enforced by the state. Ethics often sets a higher standard ("ceiling"). Something can be legal but unethical (e.g., adultery, breaking a promise), or illegal but ethical (e.g., breaking an unjust law).

Ethically, bankers have a duty to society to ensure their platforms are not exploited to harm the public or the nation. Negligence in KYC can facilitate crime.

Unlike Shareholder Theory (Friedman) which focuses on profit for owners, Stakeholder Theory (Freeman) argues that a business has a responsibility to all groups that have a stake in its operations.

To ensure sensitivity and fairness in handling complaints of sexual harassment against women, the Act mandates that the IC must be headed by a senior woman employee.

Banks have an implied contract of secrecy with their customers (Tournier's Case). Revealing information without consent or legal compulsion is a breach of trust and ethics.

For example, Courage is the golden mean between Cowardice (deficiency) and Rashness (excess). Ethical behavior is about balance.

Values are personal beliefs. Ethics are often external standards provided by institutions, groups, or culture to which an individual belongs (e.g., legal ethics, medical ethics).

It is an unethical practice where accountants use their knowledge of accounting rules to manipulate the figures reported in the accounts of a business.

An internal grievance redressal mechanism allows employees to report unfair treatment or harassment, ensuring justice and maintaining high morale and ethics.

This is a classic conflict of interest and a breach of fiduciary duty. The bank is prioritizing its own profit over the client's interest using privileged information.

Ethics goes beyond legal compliance ("Letter of the law") to the "Spirit of the law" and moral obligations.

A Code of Ethics outlines the mission and values of the business, how professionals are supposed to approach problems, and the ethical principles based on the organization's core values.

This involves using one's authority to coerce others into unethical acts, which is a severe ethical violation.

Employees have a duty to use company assets for business purposes. Misusing them for personal gain is unethical and often illegal theft.

Benami accounts are used to hide the true identity of the beneficial owner, enabling the hiding of black money and evasion of taxes.

It is a distortion of moral vision that keeps ethical issues from coming into focus, often allowing individuals to act unethically without feeling guilty.

Reputation is a bank's most valuable asset. Unethical behavior destroys trust, leading to loss of customers and business, which is reputation risk.

The POSH Act mandates that at least one-half of the total members of the Internal Committee so nominated shall be women.

Professionalism is about conduct, behavior, and attitude. It requires possessing the necessary skills (competence) and adhering to ethical standards (integrity).

This is a new ethical challenge. If AI models are trained on biased past data (e.g., discriminating against a specific pin code or gender), the AI will replicate that bias, leading to unfair lending practices.

Confidentiality is the ethical value that directly supports the legal duty of secrecy. Without discretion, trust is broken.

Kickbacks are illegal payments made in return for a service or favor. It compromises the objectivity of the decision-maker.

Green Banking addresses the ethical obligation of businesses to protect the planet by reducing carbon footprints and funding eco-friendly projects.

Time theft occurs when an employee accepts pay for time they have not actually worked or have used for personal matters.

RBI introduced this scheme to provide a channel for employees/public to report corruption/misuse of power in Private Sector and Foreign Banks, similar to the CVC mechanism for PSBs.

From a deontological (duty) and virtue ethics perspective, respecting an employee's need for rest and family life treats them as ends in themselves, not just means to profit.

Nepotism undermines fairness and meritocracy, leading to poor organizational performance and resentment among other employees.

This code helps maintain market integrity by ensuring that those with privileged access to data do not exploit it at the expense of the general public.

Reliability and timeliness are core components of a good work ethic. Constantly being late or delaying work shows a lack of respect for the job and others.

Selling a high-risk product to a conservative investor violates the principle of suitability. Ethics demands that the product fits the customer, not just the bank's sales target.

This test relies on public scrutiny and shame. If you are uncomfortable with the public knowing your action, it is likely unethical.

Ethical competition involves competing on merit (product, service) rather than sabotage or deception. Spreading lies is unethical and potentially illegal (defamation).

Employees look to leaders for cues on acceptable behavior. If leaders act unethically, employees will follow suit, regardless of written policies.

Accountability is the willingness to accept responsibility for one's actions, decisions, and outcomes, whether good or bad.

Long-term trust and reputation are more valuable than short-term targets. Ethical banking requires putting the customer first.

True ethics is self-imposed. It involves doing the right thing because it is right, not just because it is the rule.

To ensure unbiased oversight of CSR activities, the Act mandates that the CSR Committee must include at least one Independent Director among its minimum three members.

Front Running is unethical because the broker profits at the expense of the client by stepping in front of the client's large order, which might have moved the market price.

This right reinforces the ethical and legal duty of confidentiality. Banks must secure customer data against unauthorized access and misuse.

He is weighing the consequences: the "greater good" (jobs/economic welfare) vs the harm (pollution). Utilitarianism looks at the net benefit to the maximum number of people.

Hostile work environment is a form of harassment where an employee feels unable to perform their duties due to the negative behavior of others (bullying, sexual harassment, discrimination).

The SEBI Committee on Corporate Governance constituted under the chairmanship of N.R. Narayana Murthy helped refine governance norms in India (Clause 49 of Listing Agreement).

Evergreening is a deceptive practice used to prevent a loan from being classified as NPA. It misleads stakeholders about the bank's health and eventually leads to bigger losses.

Attitudes have three components (ABC Model): Affective (Feeling), Behavioral (Action), and Cognitive (Belief/Thought). Affective deals with emotions (like/dislike).

Banks have an ethical obligation to be transparent about all costs associated with a product. Hiding charges deceives the customer and violates fair dealing norms.

Discrimination involves making unjustified distinctions between human beings based on the groups, classes, or other categories to which they are perceived to belong.

Software piracy violates the copyright of the creator (IPR). Banks must ensure all software used is legally licensed to maintain ethical standards.

"Tone at the Top" refers to the ethical atmosphere created by the leadership. If leaders demonstrate high ethical standards, it trickles down to the entire organization.

The policy emphasizes fairness, transparency, and accessibility. Customers must be informed of their rights and the mechanism to resolve disputes.

Belief: "I believe lying is risky." Value: "I value honesty." Values guide behavior and are deeply held convictions about priorities.

This prevents unauthorized access to sensitive bank data. Sharing passwords or opening suspicious emails violates security policies and ethics.

The committee oversees the implementation of the Code of Ethics, resolves dilemmas, and ensures that the organization adheres to its ethical commitments.

Using company assets (stationery, tech, funds) for personal gain without permission is unethical and constitutes theft of company property.

Exceptions to secrecy (Tournier's rules) include: 1. Compulsion of law 2. Duty to the public 3. Interest of the bank 4. Customer's consent.

While the line can be thin, the key is "Expectation of Reciprocity." If it's given to sway a business outcome, it's a bribe (unethical).

Applied Ethics examines specific controversial issues (like abortion, animal rights, corporate corruption) and uses ethical theories to resolve them.

The Government of India authorized CVC as the "Designated Agency" to receive written complaints for disclosure on any allegation of corruption or misuse of office under PIDPI Resolution.

Trading based on UPSI is the core of Insider Trading violations. It includes financial results, dividends, mergers, etc., that have not yet been made public.

Transparency prevents information asymmetry. Customers must know exactly what they are buying, including the fine print, to make informed decisions.

While some social interaction is normal, malicious rumors can destroy careers and teamwork (defamation). It violates the principle of respect for colleagues.

It suggests that "When in Rome, do as the Romans do." What is ethical in one culture (e.g., bribery as "gift giving") might be unethical in another.

It follows the letter of the law (compliance) but violates basic human rights and moral duty of care (ethics). This highlights the gap between law and ethics.

Transparency (Disclosure) and Recusal (stepping back) are the standard ethical procedures to handle conflicts of interest.

It mandates that banks must have a clearly laid out policy for redressal and compensate customers for financial loss due to the bank's deficiency.

As service providers, bankers represent their institution. Professional appearance and polite behavior build trust and confidence in customers.

Altruism is the opposite of egoism. It involves acting to benefit others, sometimes at a cost to oneself.

Transactions with related parties (relatives of directors) must be at "Arm's Length" (fair market terms) and fully disclosed to prevent conflict of interest and favoritism.

ESG is a framework used to assess the sustainability and ethical impact of a company. Investors increasingly use ESG criteria to screen investments.

Quid Pro Quo involves an authority figure making employment decisions contingent on the employee's submission to sexual advances.

RBI guidelines and the Constitution prohibit discrimination in access to banking services based on caste, creed, religion, or gender. It violates the Right to Fair Treatment.

The 3 questions are: 1. Is it legal? 2. Is it balanced? 3. How does it make me feel about myself? "Will I get caught" is a question based on fear of punishment, not ethics.

Due care involves taking reasonable steps to prevent harm. Negligence in basic security hygiene violates the duty of care towards customer data.

It measures the consistency between the organization's stated values and its actual behavior to identify areas for improvement.

It involves dishonesty (lying about contribution) and theft (stealing credit). It erodes team cohesion.

Banks are ethically and legally responsible for the conduct of their recovery agents. Harassment violates the customer's right to dignity and privacy.

Values are deep-seated beliefs shaped by early socialization (family/school) and later environment (culture/experience).

While anonymity makes investigation harder, the substance of the complaint matters. Ignoring it could allow fraud to continue. Retaliation (C) is unethical and illegal.

The Compliance Officer acts as the conscience keeper of the bank, mitigating regulatory and reputational risk.

Loyalty to the organization and ethical principles supersedes loyalty to an individual. "Following orders" is not a defense for illegal acts.

This is the "Right to Suitability." Selling inappropriate complex products violates this right (e.g., the 2008 derivatives misselling cases).

Utilitarianism is a form of Consequentialism. It holds that the "ends" determine the rightness of the "means".

Accepting valuable gifts creates a conflict of interest and resembles bribery. Refusal maintains integrity.

Independent directors are not part of the management team and have no pecuniary relationship with the company, allowing them to hold the management accountable without conflict of interest.

Employees have a duty to protect the bank's assets. Shortcuts that compromise safety are unethical and negligent.

Forced bundling exploits the customer's need for one product to sell another unwanted product. This restricts customer choice and is an unfair trade practice.

Legal ethics require a lawyer to provide the best defense for their client, regardless of personal belief in their guilt. This illustrates how professional ethics can differ from personal morality.

Excessive trading distracts from duties and may lead employees to use bank resources or information for personal gain.

When companies openly disclose information (good or bad), stakeholders (investors, customers) trust them more, reducing the cost of capital and enhancing reputation.

This is a fundamental human right and ethical principle to prevent gender-based wage discrimination.

Empowering customers with knowledge prevents fraud and helps them make better financial decisions, which is a duty of the bank.

Personal values are internal beliefs about what is right and wrong, such as honesty, courage, and kindness.

Falsifying data compromises the bank's risk management and integrity. It is fraud.

BRSR encourages companies to be accountable for their social and environmental impact, moving beyond just financial reporting.

Respect and professionalism are key to resolving workplace conflicts ethically.

This external grievance redressal mechanism ensures that customers have a recourse if the bank's internal mechanism fails.

This is a simple intuition test. If a decision causes guilt or anxiety (preventing sleep), it violates one's conscience and is likely unethical.