Senior Citizen

Senior Citizen is a person of over sixty years of age.

Tariff Schedule

The schedule containing charges levied by a bank on the products and

services offered by it to its customers.

Substandard

A substandard asset would be one, which has remained NPA for a period

less than or equal to 12 months.

Repossession

Repossession is the process by which a creditor with a loan secured on

house or goods (e.g. car) takes possession of the security, if the debtor does

not repay as per the terms of the loan agreement.

Reasonable

Governed by or being in accordance with reason and sound thinking; being

within the bounds of common sense; not excessive or extreme.

PIN

A confidential number, use of which along with a card allows customers to

pay for articles/services, withdraw cash and use other electronic services

offered by the bank.

Password

A word or a set of numbers or an alphanumeric combination for an access

code, which the customer has chosen, to allow him to use a phone or Internet

banking service. It is also used for identification.

Overdue

Any amount due to the bank under any credit facility is ‘overdue’ if it is not

paid on the due date fixed by the bank.

Out-of-date (stale) cheque

A cheque, which has not been paid because the date written on the cheque

is a date exceeding three months from the time of its presentation.

No Frills’ Account

‘No Frills ‘account is a basic banking account. Such account requires

either nil balance or very low minimum balance. Charges applicable to

such accounts are low. Services available to such account are limited.

Merchant Services

Merchant services generally refer to merchant accounts allowed to trading

and service establishments for acceptance of payments through credit/

debit cards. The cards may be accepted over the counter through card

terminals i.e. Point of Sale (POS) machines or over phone or through internet.

Mail

Mail is a letter in a physical or electronic form.

Letter of Credit

A letter of credit is a document issued by a bank, which usually provides an

irrevocable undertaking for payment to a beneficiary against submission of

documents as stated in the Letter of Credit.

Permanent Account Number (PAN)

The Permanent Account Number (PAN) is an all India unique Number having

ten alphanumeric characters allotted by the Income Tax Department, Government of India. It is issued in the form of a laminated card. It is permanent and will not change with change of address of the assessee or change of Assessing Officer.

Payment and Settlement System

Payment and Settlement System means financial system creating the means

for transferring money between suppliers and user of funds usually by

exchanging debits or credits among financial institutions.

Smart Card

A smart card is a plastic card about the size of a credit card, with an

embedded microchip which can process data. It provides a secure way

of identification, authentication and storage of data. It can be used for

telephone calling, electronic cash payments, and other applications.

Real Time Gross Settlement

The acronym ‘RTGS’ stands for Real Time Gross Settlement. RTGS system

offers the fastest means of transfer of funds through banking channel.

Settlement of transactions under RTGS takes place on one-to-one basis,

which is termed as ‘Gross’ settlement and in ‘real time’ i.e. without any

waiting period.

Reference rate

It is the benchmark rate of interest of a bank to which interest on loans

sanctioned under floating rate of interest is linked. The Reference Rate

of interest is determined/modified by individual banks in accordance with

their policies.

Smart Cards

A smart card is a plastic card about the size of a credit card, with an

embedded microchip which can process data. It provides a secure way of

identification, authentication and storage of data. It can be used for telephone

calling, electronic cash payments, and other applications.

Security

Represents assets used as support for a loan or other liability. In the event

of the borrower defaulting on the loan, the lender bank can claim these

assets in lieu of the sum owed.

Primary security is the asset created out of the credit facility extended to the

borrower and / or which is directly associated with the business / project of

the borrower for which the credit facility has been extended.

Collateral security is any other security offered for the said credit facility.

For example, hypothecation of jewellery, mortgage of house etc.