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BANKING TERMS & ABBREVIATIONS Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and
1) What do you know by currency chest? Hyderabad. At other locations, the savings bank account
Currency chests are operated by RBI so that they can holders can transact a minimum of five transactions
provide good quality currency otes to the public. (including both financial and non-financial
However, RBI has appointed commercial banks to open transactions) free of charge in a month at other bank
and monitor currency chests on behalf of RBI. The cash ATMs. Similarly, Basic Savings Bank Deposit Account
kept in currency chests is considered to be kept in RBI. holders will continue to get five free transactions. Banks
on their own can decide to offer more number of
2) What is a small coin depot? transactions free of cost to their customers. In case of
The bank branches are also authorised to establish charges to be levied on customers, the customer can be
Small Coin Depots to stock small coins. The Small Coin charged a maximum of Rs. 20/- per transaction (plus
Depots also distribute small coins to other bank service tax, if any) by his/her bank.
branches in their area of operation.
Q.5 What should a customer take in case of failed
3) What are soiled, mutilated and imperfect ATM transaction at other bank/white label ATMs,
banknotes? when his / her account is debited?
1. "Soiled note" means a note which, has become dirty Ans. The customer should file a complaint with the card
due to usage and also includes a two piece note issuing bank at the earliest. This process is applicable
pasted together wherein both the pieces presented even if the transaction was carried out at another
belong to the same note, and form the entire note. bank’s/non-bank’s ATM. In case of WLAs, the contact
2. Mutilated banknote is a banknote, of which a
portion is missing or which is composed of more DICGC (Deposit Insurance and Credit
than two pieces. Guarantee Corporation of India)
3. Imperfect banknote means any banknote, which is 1. Which banks are insured by the DICGC?
wholly or partially, obliterated, shrunk, washed, Commercial Banks: All commercial banks including
altered or indecipherable but does not include a branches of foreign banks functioning in India, local
mutilated banknote. area banks and regional rural banks are insured by the
4. DICGC.
Q.1 what is an Automated Teller Machine (ATM)? 2. What does the DICGC insure?
Ans. Automated Teller Machine is a computerized In the event of a bank failure, DICGC protects bank
machine that provides the customers of banks the deposits that are payable in India. The DICGC insures all
facility of accessing their account for dispensing cash deposits such as savings, fixed, current, recurring, etc.
and to carry out other financial & non-financial except the following types of deposits.
transactions without the need to actually visit their (i) Deposits of foreign Governments;
bank branch. (ii) Deposits of Central/State Governments;
(iii)Inter-bank deposits;
Q.2 What is White Label ATMs (WLAs)? (iv)Deposits of the State Land Development Banks with
Ans. ATMs set up, owned and operated by non-banks the State co-operative bank;
are called White Label ATMs. Non-bank ATM operators
are authorized under Payment & Settlement Systems Banking ombudsman scheme
Act, 2007 by the Reserve Bank of India. 1) The Banking Ombudsman Scheme enables a bank
customer for filing of complaints relating to certain
Q.3 What is Personal Identification Number (PIN)? services rendered by banks.
Ans. PIN is the numeric password which is separately 2) The Banking Ombudsman is a senior official
mailed / handed over to the customer by the bank while appointed by the Reserve Bank of India to redress
issuing the card. Most banks require the customers to customer complaints against deficiency in certain
change the PIN on the first use. Customer should not banking services.
disclose PIN to anybody, including to bank officials. 3) All Scheduled Commercial Banks, Regional Rural
Customers should change the PIN at regular intervals. Banks and Scheduled Primary Co-operative Banks are
covered under the Scheme.
Q.4. Is the customer charged for ATM transactions? 4) The Banking Ombudsman does not charge any fee for
Ans. With effect from November 01, 2014, Savings bank filing and resolving customers’ complaints.
account holders can do a minimum of three transactions 5) The maximum compensation which a BO can help a
(including both financial and non-financial complainant to get is Rs. 10 lakhs.
transactions) free of charge in a month at other bank
Special Drawing Rights (SDRs):-It is a reserve asset Prime Lending Rate (PLR): The rate at which banks
(known as ‘Paper Gold’) created within the framework lend to their best (prime) customers. It is usually less
of the International Monetary Fund in an attempt to than normal interest rate.
increase international liquidity, and now forming a part
of countries official forex reserves along with gold, Wholesale Banking: Wholesale banking is different
reserve positions in the IMF and convertible foreign from Retail Banking as its focus is on providing for
currencies. financial needs of industry and institutional clients.