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Category Archives: Knowledge Capsule

  • What is virtual card/prepaid card?

    What is virtual card/prepaid card?

    Prepaid cards also known as virtual cards. They are issued by the banks and non bank entities against the value paid in advance by the cardholder. PPIs that can be issued in the country are classified under three types viz. (i) Closed System PPIs, (ii) Semi-closed System PPIs, and…

  • What is debit card and its advantage?

    What is debit card and its advantage?

    Debit cards are issued by banks by linking it to inddividual custmers like SB/Current account holders,(in case of properietory concerns of Current Account/Cash Credit account,card will be issued in the name of the proprietor). The debit cards are akin to credit cards; the only difference is that the debit…

  • What is Credit card and its advantage?

    What is Credit card and its advantage?

    Banks are issuing credit cards to their customers as well as to general public. The bank on receipt of application from individuals for credit cards, process the same and decides about issuing the cards and fixing credit limit on the basis of the creditworthiness of the customers.The credit cards…

  • What is a forged instrument? (Cheque/bill/Promissory note)

    An instrument (negotiable instrument like cheque/bill of exchange/promissory note) is called forged instrument when forgery takes place in signature of the drawer, signature of the endorser, and alteration in name of the payee, alteration in amount, alteration in date etc. validated by forged signature.  A forged instrument is meaningless…

  • What is the RBI guidelines on return/ despatch of dishonoured cheques?

    What is the RBI guidelines on return/ despatch of dishonoured cheques?

    In terms of RBI guidelines the paying bank should return dishonoured cheques presented through clearing houses strictly as per the return discipline prescribed for respective clearing house in terms of Uniform Regulations And Rules for Bankers’ Clearing Houses. According to RBI circular DBOD.No.BC.74/09.07.001/91-92 dated 28th January 1992, RBI had…

  • What is Prevention of Money Laundering Act? / PML Act 2002

    What is Prevention of Money Laundering Act? / PML Act 2002

    Prevention of Money Laundering Act, 2002 came into force with effect from July 1; 2005.  The Government of India has enacted PML Act to prevent money-laundering and to provide for confiscation of property derived from or involved in, money-laundering.  The Directorate of Enforcement in the Department of Revenue, Ministry…

  • What is safe deposit locker and how to operate?

    What is safe deposit locker and how to operate?

    Safe deposit lockers are specially designed lockers which are generally kept at specially built strong rooms for keeping the valuable of hirer. In India safe deposit lockers are available in most of the Bank branches. These lockers of different sizes like small, medium, large, extra-large are purchased from reputed…

  • What is Consumer Protection Act 1986 (CPA/COPRA)?

    What is Consumer Protection Act 1986 (CPA/COPRA)?

    The Consumer Protection Act (COPRA) 1986 was enacted by the Government of India. The act  spells out the rights of the Consumer and the responsibilities of the supplier. The law provides the establishment of consumer councils and other authorities for the settlement of consumers’ disputes and for matters connected…

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