*A credit card is a small plastic card around 8.5
cm by 5.5 cm.
has the name and the account number of
the holder embossed on it. In addition, the
end of the month and year up to which the
card is valid will also be embossed and has a
specimen signature panel on the reverse.
limit up to which the cardholder can
make purchases in a month is also informed to
the cardholder, this limit is called the cardlimit.
*A part of this limit is permitted to be used for
withdrawing cash for emergency purposes and
service fee for such withdrawals is levied.
*On Us and Off Us Transaction.
*Cardholder can pay in installments.
*A service fee is charged on the rest amount
payment of which is deferred.
*Limited in what can be done.
*Payment pretty straight forward.
*Requires credit check & approval.
*Market seems to be at saturation
*Banks can take up departmentally or establish separate
subsidiary. If departmentally no RBI permission is
required otherwise required.
*Banks with TNW of above 100 crores can take up this
*Co-branded cards may also be issued.
*Should strictly follow BCSBI (Banking codes and
Standards Board of India) code and IBA guidelines.
*Details are provided in M.C. No. 13/71 on July 2, 2012
To the cardholder:
*Make trouble-free travel or purchase.
*It allows him to draw cash too.
*It inculcates a sense of financial
discipline in them.
*Provides a proof of purchase
*Exposure to banking inspirations.
*Extends additional facilities like
insurance cover/discount, etc.
*Increase in sales.
*Preferred locations by a cardholder.
*Less need for the merchant
*Advertising and promotional support on
a national scale.
*Development of a prestigious clientele
*Scope and potential for better profitability
out of share earned from the trader’s
*Helps in establishing banking relationship
with new customers.
*Provides additional customer service to the
*Better network spread of cardholders and
their increased use.
*Savings of expenses on cash
holding/stationery printing and manpower to
*Same as credit card in many aspects.
*Difference is that the account of the cardholder
is debited as soon as each transaction is notified
to the issuer.
*If the balance is insufficient to cover the debit,
the transaction will be rejected.
*It replaces the requirement of carrying cash or
cheque book when the transactions are being
A charge card is a card that provides a payment method enabling
the cardholder to make purchases which are paid for by the card
issuer, to whom the cardholder becomes indebted.
The cardholder is obligated to repay the debt to the card issuer
in full by the due date, usually on a monthly basis, or be subject
to late fees and restrictions on further card use.
The difference between the credit and charge card is that in case
of charge card, the amount becomes payable immediately on the
debit to the account.
*No line of credit – must be paid off each month.
*Heavy penalties for late payment.
*In the past most retail stores offered one.
*Profitable for the stores.
*Single retailer version limited use.
*Multi functional (debit, stored-value, credit)
*Simple cards to very complex (based on chip
*High security & fraud protection
*Requires special reader
*Contact & contactless technologies
*Can have multiple currencies (i.e.
cash, points, etc.)
* Mostly for foreign travel, amount is preloaded
* Issued subject to FEMA 1999 guidelines
* Tie with Both Visa and Master card
* All Major currencies being used. Choice left to the individual
* This card cannot be used in Nepal and Bhutan
* Only one card per currency is permitted
* If it is multiple currency two or more cards may be issued.
(Amount subject to ceiling as per FEMA).
* Max of US $10000 for tourism and personal travel and US $
25000 for business visits.
*To keep valuables /
documents etc. in a
locker on payment
*The place where
the SDL kept is
called Safe Deposit
Acceptance of deposits is prohibited. However, to cover 3 year rent
and charges for breaking open may be taken as a deposit.
* Branches should maintain a wait list.
* Should acknowledge the application given by the customer
* Staff should be adequately trained
* Ensure strict security arrangement
* Once the locker is allotted, the agreement obtained from the customer
a copy of which should also be given to the customer.
* Non operative lockers for more than one year in the case of High Risk
Customer and 3 years in the case of MR customer should be closely
* After due notice if the hirer does not turn up for operation, consider
break opening the same.
* After the due notice in case the customer turns up, take a specific
letter as to why the locker was not operated for a long time then
permit the operation of the locker.
* All the keys should be embossed with the Bank name and the locker
Execute an agreement containing terms
The rent for locker is collected in
For operating locker customer to sign
Locker to be opened with master key
and customer key
For closing the locker, the customer
need to apply his key only
*SL1 & 1A for recording the nomination
*SL2 for cancellation of the nomination
*SL3 & 3A for variation of the nomination
*Only one nominee is permitted except in the
case of joint account operated jointly
*There can be more than one nominee in case of
joint locker account (max 2)
*In case of nomination of a locker, where the
joint holder dies the guardian of the nominee
joins the other locker holder in obtaining the
delivery of the content
*Minor can also be appointed as a nominee
however delivery will be to the guardian only
Type of Locker
Size (height X width in inches
12 3/8 X 15