Ancillary Services · One-liners

1 Name two RBI-operated electronic remittance rails.

RTGS and NEFT.

2 What is UTR and how many characters does it contain?

Unique Transaction Reference; 22-character identifier for RTGS transactions.

3 Which NPCI system replaced ECS for bulk recurring payments?

NACH (National Automated Clearing House).

4 Since when does NACH operate 24×7?

August 1, 2021.

5 Distinguish Safe Custody from Safe Deposit Locker.

Safe Custody: bank takes possession. Safe Deposit Locker: customer retains key and operates.

6 Can a bank insist on FD before allotting a locker?

No, except as security; allotment must be delinked from FD placement.

7 What trigger periods mandate bank contact for dormant lockers?

Medium-risk: 3 years; High-risk: 1 year of non-operation.

8 How must banks handle early locker surrender with advance rent?

Refund proportionate unutilised rent; no forfeiture allowed.

9 What minimum notice period for locker branch merger/closure?

2 months public notice; emergency cases as early as practicable.

10 What is the bank's liability cap for locker loss?

100 times the annual locker rent (RBI Master Direction, Jan 1, 2022).

11 For which losses is bank NOT liable under locker compensation?

Acts of God (earthquake, flood, lightning, cyclone) and sole customer negligence.

12 What must locker agreements prohibit?

Storing hazardous items: explosives, narcotics, biological hazards.

13 Under which sections of BR Act is Nomination governed?

Sections 45ZA to 45ZF of Banking Regulation Act, 1949.

14 Can a minor be nominated?

Yes; depositor must appoint major guardian-receiver to hold on minor's behalf.

15 Can a firm be appointed as nominee?

No; only natural persons can be nominees.

16 What is the legal status of a nominee?

Agent/trustee for legal heirs, not beneficial owner; must distribute proceeds per Will.

17 Can nominee get loan against deceased's deposit?

No loan allowed against deposit in deceased's name.

18 When can bank withhold payment to nominee?

Only on competent court's stay, prohibitory or injunction order.

19 When did Safe Deposit Locker Master Direction (RBI/2021-2022/86) become effective?

January 1, 2022.

20 What is the bank's liability cap for locker losses due to fire, theft, burglary, dacoity, robbery, building collapse, or employee fraud?

100 times the annual rent of the locker.

21 Which losses are excluded from bank liability under the Locker Master Direction?

Acts of God and customer negligence.

22 What security can a bank require for new locker allotment?

Term Deposit up to 3 years' rent plus break-open charges only.

23 After how many years of non-operation should a medium-risk locker dormancy notice be triggered?

3 years of non-operation.

24 After how many years of non-operation should a high-risk locker dormancy notice be triggered?

1 year of non-operation.

25 What public notice period is required before branch merger or locker facility shifting?

2 months' notice required.

26 Which sections of BR Act 1949 govern nomination for deposits and lockers?

Sections 45ZA to 45ZF BR Act 1949.

27 What is the standard nomination form for safe deposit lockers?

Form SL1 (locker nomination form).

28 What is the standard nomination form for deposits?

Form DA1 (deposit nomination form).

29 Can a bank insist on term deposit security from existing locker hirers during renewal?

No, security can be insisted only for new allotments.

30 What is the minimum transaction value for RTGS?

₹2,00,000 per transaction with no upper ceiling.

31 What is the per-transaction limit for IMPS?

₹5,00,000 per transaction.

32 What is the unique identifier issued for RTGS transactions?

22-character Unique Transaction Reference (UTR) number.

33 How many nominees can be appointed for a jointly-held locker?

Up to two nominees, one per joint holder.

34 Can a minor be appointed as a nominee in a bank account?

Yes, if a major guardian-receiver is also appointed.

35 Is a Succession Certificate valid for locker release without nomination?

No; Probate of Will or Letter of Administration is required.

36 Can a nominee take a loan against the depositor's fixed deposit?

No; nominee can only apply for premature payment or withdrawal.

37 What is the liability cap for bank-controlled locker losses?

100× annual rent, not 50×. No 50× rule exists in Master Direction.

38 Is bank liable for fire originating within its premises?

Yes, bank is liable for fire within its premises under locker rules.

39 Are natural calamities covered under bank's locker liability?

No. Acts of God (earthquake, flood, lightning) excluded; 100× cap doesn't apply.

40 How many nominees can each joint locker holder nominate?

One nominee each; up to two total nominees for jointly-operated locker per IBA rules.

41 What legal document is required to release locker contents of deceased?

Probate of Will or Letter of Administration. Succession Certificate invalid for lockers.

42 Can a minor be appointed as locker nominee?

Yes, if major guardian-receiver appointed to act during minority.

43 Can partnership firm's account have a nominee?

No. Only individual-capacity accounts eligible; firms, trusts, clubs excluded.

44 Does Succession Certificate override a registered deposit nominee?

No. Registered nominee takes full sum unless court issues stay/injunction order.

45 When was NEFT migrated to 24×7 settlement in half-hourly batches?

December 16, 2019 by RBI; 48 half-hourly batches, not 12 old batches.

46 What is RTGS minimum transaction limit?

₹2,00,000 with no upper ceiling; available 24×7×365.

47 What is NEFT minimum transaction limit?

No minimum, no maximum. Available 24×7×365 in 48 half-hourly batches.

48 What is IMPS per-transaction ceiling?

₹5,00,000 per transaction; available 24×7×365.

49 Can bank insist on fresh FD security from existing locker hirers?

No. Security deposit allowed only at new allotment, not existing hirers.

50 Is employee fraud covered under locker liability cap?

Yes, employee fraud within bank's liability; capped at 100× annual rent.

51 What are the UPI limits per NPCI Circular OC-185A (FY 2024-25)?

P2P ₹1,00,000/day; ₹5,00,000/transaction for verified categories (tax, IPO, insurance, hospitals).

52 Is nominee a beneficial owner or trustee for locker deposit?

Trustee/agent for legal heirs, not beneficial owner. Cannot get loan against deceased's deposit.

53 Can nominee claim premature payment from deceased's deposit?

Yes, nominee can claim premature payment, which is valid discharge for bank.

54 What is the validity period of Demand Draft and Pay Order?

3 months from date of issue per RBI norm; revalidation requires purchaser request.

55 What is RTGS minimum transaction amount and operating schedule?

₹2,00,000 minimum; operates 24×7×365 with no upper cap.

56 How many NEFT batches operate daily and what is the minimum?

48 half-hourly batches 24×7; no minimum amount prescribed.

57 What is standard UPI daily limit and per-transaction limit for verified categories?

₹1,00,000 daily; ₹5,00,000 per-transaction for verified merchants.

58 Define RTGS UTR and its length.

Unique Transaction Reference; 22 characters long for identification.

59 What is ECS-Debit used for; flow pattern?

Utility bills, EMI, SIP; many accounts debited to one credited.

60 What is ECS-Credit used for; flow pattern?

Dividend, salary, pension; one account debited to many credited.

61 What legal relationship governs Safe Custody and relevant Act?

Bailee–Bailor relationship; governed by Indian Contract Act, 1872.

62 What legal relationship governs locker and relevant Act?

Lessor–Lessee relationship; governed by Transfer of Property Act, 1882.

63 What is bank's liability cap for locker loss in fire, theft, fraud?

100 times annual rent; applies to fire, theft, burglary, dacoity, robbery, collapse, employee fraud.

64 Are Acts of God covered under locker liability cap?

No; Acts of God and customer negligence explicitly excluded from compensation.

65 Define dormant locker triggers for medium-risk and high-risk categories.

Medium-risk: 3 years non-operation; High-risk: 1 year non-operation.

66 Minimum public notice period for branch merger/shifting with lockers?

2 months minimum notice required; exceptions in genuine emergencies.

67 Can Term Deposit be precondition for new locker allotment?

No; RBI delinked FD from allotment. FD of 3 years' rent + break-open charges permitted as security only.

68 Which BR Act sections govern nomination for deposit accounts?

Sections 45ZA & 45ZB, Banking Regulation Act 1949.

69 Which BR Act sections govern nomination for safe custody?

Sections 45ZC & 45ZD, Banking Regulation Act 1949.

70 Which BR Act sections govern nomination for lockers?

Sections 45ZE & 45ZF, Banking Regulation Act 1949.

71 Is Succession Certificate valid for deceased depositor's locker claim?

No; Probate of Will or Letter of Administration required for locker access.

72 Can a minor be appointed nominee; if yes, what requirement?

Yes; a major guardian-receiver must be appointed to handle funds.

One-linersAncillary Services