Bank Theory

Banker - Operational Aspects of Deposit Accounts Banker – Operational Aspects of Deposit Accounts Salient Features of Deposit Accounts Deposit accounts allow customers to deposit money in a bank, earning interest depending on the account type. These include Savings Accounts, Current Accounts, Fixed Deposits, and Recurring Deposits. Features include easy fund access, security, nomination, and interest earnings. Interest on Deposit Accounts Interest is paid based on the account type and RBI guidelines. Savings accounts earn nominal interest, while fixed and recurring deposits offer higher returns. Interest is generally compounded quarterly. Prohibitions & Exemptions Banks are prohibited from paying interest on current accounts. KYC norms must be followed. Exemptions are granted for specific government accounts and organizations under RBI or central directives. Inoperative Accounts & Unclaimed Deposits Accounts with no activi...

Banker - Operational Aspects of KYC Banker - Operational Aspects of KYC Know Your Customer (KYC) Norms KYC is a mandatory process for banks and financial institutions to identify and verify the identity of their clients. This process includes Customer Identification Procedure (CIP), Customer Due Diligence (CDD), and Enhanced Due Diligence (EDD) for high-risk customers. Wire Transfers Wire transfers involve the electronic movement of funds from one bank account to another. As per RBI and FATF guidelines, wire transfers must be accompanied by complete originator and beneficiary information, particularly for cross-border transactions. Other Operations - Regulations Operational aspects of banking are regulated under the Prevention of Money Laundering Act (PMLA), RBI Master Directions, and FATF guidelines. Banks must ensure compliance with KYC, record-keeping, risk categorization, and periodic review. Central KYC Records Registry (CKYCR) T...