Code Of Ethics:

Member Banks of the Indian Banks' Association (the Association) agree to observe and abide by the following Ground Rules:

1) PRIZES AND GIFTS :
Member Banks shall not give prizes, gifts, donations, etc., or any direct or indirect benefits in the purchase price or in respect of any other transactions relating to securities, bonds, etc., as consideration or with a view to getting or retaining a deposit and or advance account. Promotional schemes duly approved by the Boards of respective banks may, however, be launched within the regulatory framework of the Reserve Bank of India. However, it may be customary to distribute gifts (cost of such gift article should not exceed Rs.250/- per piece) at the time of Diwali or New Year to the valued customers. Bank's policy in this regard be approved by the Board.

2) ASSOCIATION WITH CHIT FUNDS/SPECULATIVE VENTURES :
Member Banks shall not associate themselves with chit fund companies, which conduct lottery, gift schemes, etc., or any other speculative ventures. Member Banks shall also not encourage or lend their names to promote speculative ventures of any nature. However, it would be in order for banks to open current accounts, fixed deposits, etc. of such companies in the banks' normal course of business.

3) DEPOSIT RECEIPTS :
When Member Banks issue deposit receipts against cheques/drafts/pay-orders drawn on local banks, the banks may pay interest on such deposits from the date on which the relative instrument gets credited/adjusted in the bank's account at the clearing house (RBI, SBI, etc.).

4) SAVINGS BANK ACCOUNT :
Member Banks shall not open savings bank accounts in the name of the institutions which have been listed out in the Annexure to this Code and also as amended from time to time.

5) INTRODUCTION OF ACCOUNTS :
All deposit accounts, whether savings, current or term deposits, shall be properly introduced.

6) PRINTING OF CUSTOMER'S LOGO, ETC., ON CHEQUE LEAVES :
Member Banks shall not print or allow the customers to print any logo, advertisement, etc., on the cheque leaves. However, this prohibition need not be extended to dividend/ interest warrants or refund orders in view of their limited circulation.

7) COLLECTION OF TERM DEPOSIT RECEIPT ON MATURITY :
The Term Deposit Receipt (TDR) received for collection from another bank shall not be renewed by the TDR issuing bank and delivered to the customer directly. The TDR issuing bank shall either pay to the collecting bank or else, the instrument shall be returned, if the issuing bank has any valid reasons not to pay.

8) RENEWAL OF OVERDUE DOMESTIC TERM DEPOSIT :>
Renewal of overdue domestic term deposit (from maturity date of overdue deposit) shall be for a period extending upto at least 15 days beyond the actual date of renewal. If the renewed overdue domestic deposit is tendered for premature foreclosure/encashment before completion of minimum 15 days from the actual date of the renewal, no interest be paid for the overdue period even if the total overdue period from the date of maturity of the old deposit receipt exceeds 15 days.

9) PAYMENT OF INTEREST ON TERM DEPOSIT MATURING ON HOLIDAYS :
If the noted due date of a term deposit falls on a holiday, Sunday, non-business working day, interest be paid for such intervening day(s), at the originally contracted rate, till the succeeding working day.

10) MATURITY VALUE CERTIFICATE (MVC) :
Member Banks shall not issue Maturity Value Certificates (MVCs) under any circumstances to any person who approach bank branches with offer to procure substantial rupee deposits.

11) NEGATIVE PUBLICITY :
Member Banks shall not make publicity of adverse/weak position of other banks, in order to wean away the customers of the affected banks.

12) INTEREST PAYMENT :

(a) The statements with regard to the rate of interest, method of interest calculation, etc. in any publicity literature, advertisement and other forms of publicity on deposit scheme/s of banks shall be precise and intelligible.

(b) Member Banks may follow the Master Charts relating to payment of interest on deposits prepared by the Association from time to time for fixing maturity values; for payment of monthly income, annuities, etc.

13) GENERAL CONVENTIONS FOR DOMESTIC DEPOSITS :

(a) Member Banks may not accept any deposits for a period longer than 10 years. However, banks may accept deposits for periods exceeding 10 years in terms of orders of competent courts or in the case of minors where interests of minors are involved, provided banks are convinced that it is necessary to do so. Individual banks may decide in this matter based on asset liability management policies being followed.

(b) Interest on deposits for fixed term may be paid, credited, transferred or reinvested with frequency not less than the quarterly rests. However, payment of monthly interest may be allowed, if required, by discounting the quarterly interest accrued (refer to the Association's Master Charts).

(c) Interest on deposits where the terminal period (month/ quarter/half year etc., as the case may be) is incomplete shall be paid on maturity.

(d) On deposits repayable in less than three months or where the terminal quarter is incomplete, interest would be paid for the actual number of days on the basis of 365 days in a year.

(e) Where the interest is paid at discounted value on monthly basis during the currency of the deposits: If the terminal quarter or half years consists of one month (e.g. deposit is for 37 months), interest therefore (i.e. for 37th month) shall be paid at actuals (i.e. one third of quarterly or one-sixth of half-yearly interest).

(f) Where the terminal incomplete quarter or half year consists of

(i) one month and over, but less than two months

(ii) two months, and

(iii) two months and over but less than three months, interest shall be paid as under:

(i) for one month and over but less than two months (e.g. deposit for 37 months and 15 days); or

(ii) two months (e.g. deposit of 38 months) - At discounted value for the first month (i.e. 37th month) and at actuals for the terminal incomplete month (i.e. 15 days) or second month (i.e. 38th month), as the case may be;

(iii) for two months and over but less than three months (e.g. deposit for 62 months and 15 days) – At discounted value for first and second months (i.e. 61st and 62nd month) and at actuals for the terminal incomplete month (i.e. 15 days).

14) TERMS OF ACCEPTANCE OF DEPOSITS :

(a) Member Banks shall not issue an incomplete term deposit receipt which does not clearly mention the amount actually deposited,

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