Banking Services and Operations

'Current account transaction' is a transaction other than a capital account transaction and such transaction includes payments due in connection with foreign trade, interest on loans and foreign travel, education and medical care of parents, spouse and children. 

In case the bank guarantees on behalf of one of its customers against some payment to be deposited by the customer in a pending court case, such guarantees are classified under statutory guarantees. 

Yes, a bank run means when people rush to withdraw funds from their bank accounts.

Yes, shadow banking and financial intermediaries - both are banking terms.

Barclays proposed merging with ABN AMRO in 2007 to create a global banking giant. The deal ultimately collapsed, and ABN AMRO was later acquired by a consortium of RBS, Fortis, and Santander.

The primary relationship between banker and customer is debtor-creditor. When a customer deposits money, the bank becomes the debtor (owes money to customer). When a customer takes a loan, the relationship reverses. Other relationships like bailor-bailee (for safe deposit) or trustee-beneficiary (for trusts) are secondary and specific to certain services.

A banker's pay order (also called manager's cheque or demand draft) is primarily used for making local payments within the same city or locality where the issuing branch is located. For inter-state or international payments, other instruments like demand drafts or wire transfers are typically used.

Safe deposit lockers allow nomination of more than one person as the locker contents may include items that need to pass to multiple beneficiaries. In contrast, savings accounts, fixed deposits, and loan accounts typically allow only one nominee to ensure clear succession and avoid disputes.

Current accounts are designed for regular business transactions and do not earn interest. Banks charge service fees and maintenance charges on these accounts to cover operational costs. Savings accounts, fixed deposits, and reinvestment accounts all earn interest, making them different from current accounts.

Current accounts typically require an introduction from an existing current account holder as part of KYC norms. This is because current accounts are used for business transactions and carry higher risk. Savings accounts, fixed deposits, and safe deposit accounts have simpler opening procedures.

Foreign banks and new generation private sector banks typically insist on higher minimum initial deposits compared to nationalized banks or state bank group. This is because they target premium customers and offer different service models. Old private sector banks and nationalized banks generally have lower initial deposit requirements.

When an account is not operated for a specified period (usually 1-2 years, varying by bank), it becomes dormant or inoperative. This is a regulatory and security measure. Frozen, attached, or segregated accounts have different meanings related to legal actions or specific classifications.

When a customer wants to close an account, bankers typically try to understand the reason and may attempt to retain the customer through feedback and persuasion. However, if the customer insists on closure, the bank must process it. Valid reasons are not mandatory, and oral requests alone are insufficient - written requests are required.

Exim Bank finances only imports and exports from India.

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956. It is engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of alike nature, leasing, hire-purchase, insurance etc.