Frequently Asked Questions

Want to know more about Federal Bank services? Check out our list of Frequently Asked Questions for answers to your queries

ASBA means "Application Supported by Blocked Amount". ASBA is an application containing an authorization to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized.

 

SEBI has been specifying the investors who can apply through ASBA. In public issues w.e.f. January 1, 2010 all the investors other than Qualified Institutional Buyers (QIBs) can apply through ASBA. In rights issues, all shareholders of the company as on record date are permitted to use ASBA for making applications provided he/she/it: a. is holding shares in dematerialized form and has applied for entitlements or additional shares in the issue in dematerialised form; b. has not renounced its entitlements in full or in part; c. is not a renouncee; d. who is applying through blocking of funds in a bank account with the Self Certified Syndicate Bank. 

Applying through ASBA facility has the following advantages:

 

(i) The investor need not pay the application money by cheque rather the investor submits ASBA which accompanies an authorization to block the bank account to the extent of the application money.

 

(ii) The investor does not have to bother about refunds, as in ASBA only that much money to the extent required for allotment of securities, is taken from the bank account  when his application is selected for allotment after the basis of allotment is finalized.

 

(iii) The investor continues to earn interest on the application money as the same remains in the bank account, which is not the case in other modes of payment.

 

(iv) The application form is simpler.

 

(v) The investor deals with the known intermediary i.e. its his own bank.

No, it is not mandatory. An investor, who is eligible for ASBA, has the option of making application through ASBA or through the existing facility of applying with cheque.

Yes, you can make application through ASBA facility in all the issues i.e public and rights.

List of Self Certified Syndicate Banks (SCSBs) and their designed branches i.e. branches where ASBA application form can be submitted, is available on the websites of BSE (www.bseindia.com) and NSE (www.nseindia.com) and on the website of SEBI (www.sebi.gov.in). The list of SCSB would also be given in the ASBA application form.

SCSB is a bank which is recognized as a bank capable of providing ASBA services to its customers. Names of such banks would appear in the list available on the website of SEBI. [Also see answer to question (6)]

No, ASBA can be submitted to the SCSB with which the investor is holding the bank account.

Five (5) applications can be made from a bank account per issue.

No, you can either fill up the physical ASBA form available with SCSB and submit the same to the SCSB or apply electronically through the internet banking facility (if provided by your SCSB).

Investor is requested to check the form carefully. In case of public issue, the application form for ASBA will be different from the existing application form for public issues. The application forms will be available with designated branches of SCSB. In case of rights issue, there will not be a separate form for ASBA. The investor has to apply by selecting ASBA option in Part A of the Composite Application Form.

Yes, you can withdraw ASBA bids. During the bidding period you can approach the same bank to which you had submitted the ASBA and request for withdrawal through a duly signed letter citing your application number, TRS number, if any. After the bid closure period, you may send your withdrawal request to the Registrars, who will cancel your bid and instruct SCSB to unblock the application money in the bank account after the finalization of the basis of allotment

You have to approach the concerned SCSB for any complaints regarding your ASBA applications. SCSB is required to give reply within 15 days. In case, you are not satisfied, you may write to SEBI thereafter at the following address: Investor Grievance Cell, Office of Investor Assistance and Education, Securities and Exchange Board of India Plot No.C4-A,'G' Block, Bandra Kurla Complex, Bandra(East), Mumbai: 400051 Tel: +91-22-26449000 / 40459000 Fax: +91-22-26449016-20 / 40459016-20

No. the entire bank account will not be blocked. Only the amount to the extent of application money authorized in the ASBA will be blocked in the bank account. The balance money, if any, in the account can still be used for other purposes.

If the withdrawal is made during the bidding period, the SCSB deletes the bid and unblocks the application money in the bank account. If the withdrawal is made after the bid closure date, the SCSB will unblock the application money only after getting appropriate instruction from the Registrar, which is after the finalization of basis of allotment in the issue.

No. Investors need not necessarily have their DP account with the SCSB, where they are submitting the ASBA form.

No. An investor can apply either through ASBA or through existing system of payment through cheque. If an applicant applies through both ASBA as well as non ASBA, then both the applications having the same PAN will be treated as multiple applications and hence rejected.

In case there is an error in the data furnished in the application form submitted by investor, the investor shall be responsible. In case there is an error by SCSB in entering the data in the electronic bidding system of the stock exchanges, the SCSB shall be responsible.

Yes. The SCSB shall give a counterfoil as an acknowledgement at the time of submission of ASBA and also the order number, generated at the time of uploading the application details, if sought by the investors in case of need.

No. ASBA forms will be treated similar to the non-ASBA forms while finalizing the basis of allotment.

In case the issue fails/withdrawn the SCSB shall unblock the application money from the bank accounts upon receiving instructions from the Registrar.

In case of any complaints the investor shall approach the bank, where the application form was submitted or the Registrars to the issue.

  •  Individuals: Self-employed professionals, single proprietors, and partnership firms 
  • Businesses: Private limited corporations, public limited companies, and Limited Liability Partnerships (LLPs)

Common Documents:
●    Duly filled loan application form
●    Proof of Identity: Aadhaar Card / Voter’s ID Card / Passport / Driving License / PAN Card / Signature identification from present bankers of proprietor, partner of director (if a company)
●    Proof of residence: Aadhaar Card / Recent telephone bills, electricity bill, property tax receipt /Passport / voter’s ID Card of Proprietor, partner of Director (if a company)
●    Proof of business Address
●    Memorandum and Articles of Association of the Company / Partnership Deed of partnership firms, etc.
●    Assets and liabilities statement of promoters and guarantors along with latest income tax returns.


Additional documents based on activity undertaken
●    SSI / MSME registration / Udyog AADHAAR Memorandum, if applicable.
●    Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan.
●    Last three years balance sheets Firm, Company, etc.
●    Copies of lease deeds/ title deeds of all the properties being offered as primary and collateral securities
●    Certificate of incorporation from RoC in case of company (CIN No. and DIN no. of directors)
●    Bank Account details wherever applicable (with details of outstanding in case of existing loans / limits)
●    GSTN No., if applicable.
There are certain documents, licensees, etc. which are required based on the nature of the business entity such as manufacturing, trading, export-import, IT, service sector, etc.
 

Scheduled Commercial Banks are members of BCSBI (Banking Code of Conduct and Standards Board of India) and thereby they commit that:
We will provide you with a checklist of the documents to be submitted (compliant with legal and regulatory requirements) along with the loan application form to enable you to submit the application complete in all respects. If required, we will assist you in filling up your loan application form.
 

Scheduled Commercial Banks are members of BCSBI (Banking Code of Conduct and Standards Board of India) and thereby they commit that:
We shall invariably provide you with an acknowledgement of your loan application, whether submitted online or manually, indicating therein the time frame within which the application will be processed.

⮚    The Banks are actively engaging themselves in the growth of Start Ups by developing dedicated loan products as well as Start Up specific Bank branches
⮚    Some examples of loan products for Start ups from various Banks:
●    “MSME UDAAN” from SBI
●    “Union Start Up Scheme” from UBI
Similarly, all Banks have products catering to the needs of the Start Ups; only thing required is a viable business plan, financial statement and legal documents, etc.

Stand Up India
The scheme facilitates bank loans between 10 lakh and 1 crore to atleast one women borrower per bank branch for setting up a greenfield enterprise.
 

Government has launched various scheme to promote MSME/Startup. Some of which are:
●    Pradhan Mantri Mudra Yojana
●    Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation
●    Stand Up India
●    SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE)
●    Social Innovation Programme for Products: Affordable and Relevant to Societal Health (SPARSH)

Bank may sanction collateral free loan to the tune of Rs.500 lakhs by availing credit guarantee for CGTSME under CGS-I

Through the web portal www.psbloansin59minutes.com, a borrower can get Digital Approval in just 59 minutes from anywhere at any time. Post Digital Approval, the time taken for loan disbursement depends on the information and documentation provided by the borrower on the portal and banks. The more accurate the data, the sooner the loan gets disbursed. Generally, post Digital Approval, the loan is expected to be sanction/disbursed in 7-8 working days.

  • Every bank has a customer grievance redressal mechanism and in case of undue delay or arbitrary rejection of the loan, the complaint can be filed with bank’s Grievance Officer.
  • If case of non-redressal, complaint can be escalated to Internal Ombudsman
  • Complaint can also be lodged with RBI Ombudsman.

Contact Centre is a single window where customers and prospective customers can call and get information about accounts, products and services of Our Bank round the clock.

The customer can call the number 1800 425 1199 from anywhere in India to get the information.

No. The calls to this numbers are free of charge from any land line or mobile in India.

Yes .Customer from abroad can access the Contact Centre on 0484 -2360994. Presently this number is not toll free.

There are two dialling modes in the phone, pulse and tone. While dialling to contact centre, the phone should be in the tone dialling mode. Else the customer has to press the à key before dialling to the number

 

When a customer makes a call to the toll free number 1800 425 1199, the call will be first
handled by the IVR (Interactive Voice Response) System and options will be presented
by the IVR to the customer. No manual intervention happens at this stage. The customer
can select language and then get services like
 
  •     account balance
  •     last five transactions,
  •     cheque status, deposit &
  •     loan account details etc. using the phone banking services.
 
This facility is available round the clock

Yes. It is available to all customers. However the customer should register for the phone banking services.

 

The customer need to call 1800 425 1199 and select the menu for register for telebanking by pressing 2. The call will be attended by the customer care executive.
 
Customer should have any one of the following set of information ready with him to
 
1. Account Number + Name and ATM card number
 
2. Account Number + Name and Communication address and last 3 transactions
 
3. Account Number + Name and Customer id and last 3 transactions
 
After the customer Identification is completed by the customer relationship executive, the customer will be able to set up his Tele-banking PIN (TPIN) by himself.

No. The customer need to register only once. Once registered, for any of the phone banking services, the customer need to have only the TPIN and customer ID. To speak to a customer care executive, the customer may require details as mentioned in answer to question 8

Similar to any other channel like ATM, FedNet etc, phone banking also has got a PIN called TPIN, which will be used to authenticate the customer. Tele-banking PIN is required to access Phone Banking services like balance inquiry, last 5 transactions etc. This PIN is of length 4 digits

Yes. During the call (when in IVR), the customer can choose to talk to the customer care executive by pressing "9"

A large number of customers call the branch to know account balances, cheque status etc. Branches can educate the customers about the phone banking facility and ask them to call 1800-425- 1199 when needed. This will reduce the work load at branches and these calls are free of charges to the caller. Also Phone Banking is a secured mode through which a customer can get the information of his account, while for a telephone call to the branch, it is difficult to identify the customer unless and other wise the voice is known to the officer.

 

  • Account Balance
  • Cheque status inquiry
  • Transaction details
  • Information regarding service charges, interest rates, Branch/ATM locations
  • Soft Token generartion for FedNet
  • Verification upon registation of ATM cards for online transactions
  • Trouble shooting of FedNet & Mobile banking related queries
  • Phone Banking Registration
  • General queries on Federal Bank product & services
  • Handling of customer complaints/suggestions
  • Unlocking of FedNet accounts
  • Accepting request for re-issue of FedNet passwords
  • ATM card status

Branches are not supposed to make any calls to the contact centre. However branches may advice the customers to make calls to the Contact Centre for the services mentioned in answer to question 14. Branches should not give an impression to the customers that Contact Centre will be able to solve issues, which the branch is unable to solve, like reversal of service charges, permitting concessions etc.

 

Through IVR following products are now ready to be launched
 
  • Fund transfer between own accounts
  • Fund transfer to third party accounts
  • Cheque Book Acknowledgement
  • Cheque Book Request

The different services offered through phone banking are Account Balance Inquiry, Mini Statement, Cheque Status Inquiry, Fund Transfer, Cheque Book request & Cheque Book Acknowledgement.

Through this channel you can transfer funds to your own linked account or to any other Federal bank account. This is possible upon successful registration of the payee. ( For registration customer has to approach respective branch)

No, as of now we are supporting fund transfer to your own linked account & other Federal Bank accounts

The daily limit fixed through this channel is Rs 10000/-. This is bifurcated as Rs 5000/- each for self & third party.

Federal bank's a/c opening happens centrally. Branch will send your request to HO-CPC. Normally it will take 3 to 4 days to open the a/c.

User Id is an Identification name which enables the Internet Banking system to recognize you as a FedNet customer and enable FedNet operation over the Internet. It will be unique in the sense that no two or more customers will have the same user Id. FedNet therefore requires you to suggest three alternative names as user Id in the application form, one of which will be selected based on the order of your preference, if it has not been already allotted to anybody else. Should all three be found already allotted, a fresh user Id will be set for you.

FedNet is presently designed to include Savings Bank, Current Account, Term Deposits and Overdraft/Cash Credit accounts. Other accounts will be added to the list shortly.

No. Non-Residents are not permitted to maintain resident accounts. Resident accounts maintained by persons before becoming Non-residents shall be converted to Non-Resident Ordinary account (NRO). Once it is converted to NRO accounts, such accounts can be linked to FedNet along with other accounts of the NRIs.

No. Normally accounts specifically requested in FedNet application or otherwise added later only will be available in FedNet. All eligible accounts can be included in FedNet if requested by the account holder. In other words, the account holder has to decide and inform the Bank whether to include or not all accounts in FedNet.

 

  1. FedNet is Internet Banking and all the account details can be accessed and transactions can be done through FedNet. 
  2. FedNet allows you to view the transactions on screen at your leisure.
  3. FedNet lets you save, copy and print statements of account. 
  4. Transfer to third party accounts is possible in FedNet.

 

By enabling your account through FedNet you gain a lot of additional advantages and convenience at no additional costs. Some of them are: 
  1. When you bank through FedNet you are doing so in the convenience of your home or office, anywhere in the world. You do not have to go to a branch or an ATM. 
  2. FedNet provides you facility for utility payments, which is not available in ATMs. 
  3. Again, transfer to third party accounts is possible in FedNet.
  4. With FedNet you can get statements up to 6 months. You can also sort and view/print/save them according to your preferences. 
  5. FedNet allows you to order Cheque Book/Demand Draft/Deposit Opening & Renewal/Revoke Stop Payment requests. Drafts can even be mailed directly by us at your request to third parties. 
  6. FedNet enables you to do online shopping and payment over the Internet. You can also order gift items over the Internet. 
  7. FedNet enables you to view all your accounts across branches at different geographical locations on a single screen and transact on them. 
  8. Archives of your transactions are available online enabling to monitor activity on your account.

 

NEFT means National Electronic Fund Transfer. It is a nationwide fund transfer system for transferring funds from any branch of a bank to any other bank's branch.

NEFT uses a centralized accounting system, i.e. the instruction to transfer funds is executed at a single point at Mumbai debiting the account of the bank which sends the money and crediting the bank which receives it. 

Depending on the time of settlement, the beneficiary will get the credit on the same day or on the next day of the transaction.

NEFT is an operation where settlement takes place at a particular point of time in a batch. i.e., all transactions that are initiated after the settlement time should wait for the next batch settlement time for processing. Whereas in an RTGS, the settlement takes place in the real time business hours.

IFSC means Indian Financial System Code. It is a 11digit alpha numeric code with the first 4 characters representing the bank code and the fifth being the control character and the rest of the 6 characters are reserved for the branch code.

NEFT being a fund transfer process, can be processed only with two accounts. So, definitely both parties should have a bank account.

Amount, debit account number, beneficiary details, beneficiary account number, name of the beneficiary bank and IFSC code of the beneficiary branch.

No. Funds can be transferred only to the NEFT enabled branches of Banks.

A list of all the branches of a bank of a particular city that are NEFT enabled will be displayed when you select Get Branch in the 'Make a Payment' screen. And if you want to get the complete details of all the NEFT enabled branches of all the banks in the country, click on  www.rbi.org.in/scripts/neft.aspx

Only for a scheduled payment mode, you have the facility to stop the payment.

Yes, you can track your payments using the screens, Pending Payments and Payments made.

Once we receive your application, we will process it and our computer will generate the temporary password for you. You will receive the user id and temporary password by courier/post in a secured PIN mailer. You have to change your password at the first visit itself for accessing FedNet.

With our stringent security system, no one in the bank or outside except you will know the password.

You must immediately change your password. When you change your password, please remember to avoid re-using any previous passwords. 

Please contact FedNet Division immediately for assistance. Your current password will be deactivated and a new password will be issued to you.

Yes. You can get all your accounts at any branch of the bank in one FedNet account.

Since there is no restriction on the number of times you can change your password, it is up to you to decide when to change the password. We suggest that you must change your password as frequently as possible or whenever you feel that the password has been compromised. However, if you do not change your passwords at least once in 180 days, in the interest of maintaining security, the system will prompt you to change your passwords at the expiry of 180th day. In this case you will be permitted access to your account only after changing the password.

This is made mandatory for security reasons. Moreover this gives you an option to select a password of your own choice that you will be comfortable with.

Upon receipt of your acknowledgement of having received User id and password and once we are satisfied that the password has been safely delivered to you, we will activate your account for which communication will be sent to you through e-mail. After getting the communication, you can access FedNet.

The User ID and temporary password generated by computer is sent in a high security PIN mailer directly addressed to you. We are crosschecking your signature on the acknowledgement with the specimen signature available with us.

No. For security reasons we do not recommend third party authorization.

Yes - on your specific written request. The branch will keep it safe for you and you can collect your password at your convenience during office hours.

If the customer is already maintaining an account with us, he can register for FedNet as online or offline.

 

For online FedNet registration, please visit the website and click on the Online FedNet registration link provided in the home page.

 

For offline registration, you need to submit an application form for FedNet at your branch. The application form can be obtained from branch or can be downloaded from our website. Duly filled application shall be submitted at branch where the customer is having account.

 

If the customer is not maintaining an account with us, then he needs to take the print out of the Account Opening Form which is available in our website. Submit the duly filled form to the branch where he would like to open the account.

All Federal Bank account holders can access their account through FedNet.

We have designed the FedNet Banking service in such a way that it takes your requests and acts on them immediately. All transactions are done automatically by the system.

No. Currently, we offer FedNet free with all accounts. However, all minimum balance/deposit amount requirements of the relevant accounts will need to be honoured.

Yes, all the accounts irrespective of the branch can be linked under a single user Id thus enabling customers to view all these accounts and do transactions on them over the Internet

No problem at all. The customer can have them all enabled under one user Id and view and do transactions in the account through a single screen.

 

The FedNet system does one of the following, depending upon the transaction you have requested:
Displays the information requested
Accepts your instruction and displays an appropriate message to the effect or gives you a transaction reference number which you may use to refer to your transaction in all future communication regarding the same
Displays an appropriate message on why it cannot complete your transaction or asks you to try again.

Loan accounts can also be FedNet enabled thus enabling to view these accounts along with other deposit accounts.

Yes.Companies/Partnership Firms/Trusts etc can avail FedNet facility. However, access to account/s will be permitted only to one authorised signatory.

 

Hardware: You need to have a Pentium PC with 32 MB RAM, 2.1 GB Hard Disk Space with 500MB free space.
Software: You need to have a browser: Internet Explorer Version 5.5 and Netscape Navigator Version 4.7

While it is not mandatory, FedNet screens are best when viewed with 1024 x 768 pixels screen resolution.

Yes. He can use any browser, which support 128-bit encryption. FedNet is best viewed in Internet Explorer 5.0 and above.

No.Internet Explorer 5.0 and above is needed to access accounts through FedNet. If he use any other browser, it should support 128 bit encryption.

There are no charges for availing FedNet facility.

On receipt of the FedNet application, FedNet Division will send a PIN -mailer containing user Id and passwords. Accounts will be enabled as soon as the tear off acknowledgement slip is received back duly signed. This is required as a security feature to ensure that the passwords have not been intercepted in transit and that only the customer has received the passwords.

There are two parts in the PIN mailer. One part contains the User Id and two sets of passwords- the first password to access the account and the other password for transaction as a second level of security that will be required when any transactions are done on the account through FedNet. The second part is the PIN acknowledgement portion which should be sent back by the account holder duly signed to the address printed overleaf.

Though it is not compulsory to give e-mail address in the FedNet application, it is very much desirable, as all future correspondence/intimation will be addressed to the FedNet subscribers to their e-mail address only. Moreover it is very fast and economical too. The customer will also receive certain e-mail notifications as a security feature and as such it is highly desirable to have the email address.

Currently transfer of funds through FedNet from SB accounts is free of charge for beneficiaries maintaining accounts with Federal Bank branches irrespective of whether the transfer is to own account or third party account and whether it is to an account at the same branch or a different branch. However purchase of demand draft and such other transactions, which are normally chargeable, are subject to such normal charges if not exempted specifically. In the case of Current Accounts/OD/CC, transfer of funds will be charged.

There is no stipulated separate minimum balance for maintaining FedNet accounts.

FedNet will deny access to the accounts through Internet unless the account is accessed at least once in 90 days. This is an in-built security measure to take care of unattended accounts in Internet. However, the FedNet account can be re enabled on taking up the matter with Relationship Manager at FedNet Division.

RTGS means Real Time Gross Settlement.This funds transfer system works by transferring money from one bank to another on a 'real time' and on 'gross' basis. Being the fastest mode of money transfer facility through the banking channel at present, all transactions done via RTGS are settled at once when they are processed

Usually,the beneficiary bank branches will receive the funds in real time at once the funds are transferred from the remitting bank. The normal time schedule given by RBI to the beneficiary bank is within two hours once the fund transfer message is received. However, the beneficiary will get the amount only when the beneficiary bank credits the amount to his/her account

RTGS being a fund transfer process, can be processed only with two accounts. So, definitely both parties should have a bank account

 

  • Amount to be remitted
  • Account number which is to be debited 
  • Name of the beneficiary bank 
  • Name of the beneficiary 
  • Account number of the beneficiary 

Yes.If it is unable to credit the remittance to the account of the beneficiary for any reason, the beneficiary's bank will return the money to the remitting bank within 2 hours. Once this amount is received back by the remitting bank, the amount will be credited to remitting customer's account by the remitting bank branch.

No. It is applicable only within the country.

In FedNet, the customer need not remember the IFSC Code. We have provided an easy facility to the customer. The IFSC will be automatically populated once the customer selects the remitting bank branch while adding a payee.

No. Funds can be transferred only to the RTGS enabled branches of Banks.

A list of all the branches of a bank of a particular city that are RTGS enabled will be displayed when you select Get Branch in the 'Make a Payment' screen. And if you want to get the complete details of all the RTGS enabled branches of all the banks in the country, click on www.rbi.org.in/Scripts/Bs_viewRTGS.aspx.

Yes. You can make an NEFT or an RTGS transaction to an NRE account provided the debit account is an NRE account.

Yes, you can track your payments using the screens, Pending Payments and Payments made.

Yes. It is very easy to use. When you shop at an online store or try to pay your utility bill, enter your debit card no and the online store will connect with Federal Bank to check whether your card is secured with VbV. Bank will initiate a VbV pop-up window on your computer screen that includes your personal message. Please enter the VbV password and submit to complete your transaction.

KYC means "Know Your Customer". It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks' services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.

To open a bank account, one needs to submit a ‘proof of identity and proof of address' together with a recent photograph.

The Government of India has notified six documents as ‘Officially Valid Documents (OVDs) for the purpose of producing proof of identity. These six documents are Passport, Driving Licence, Voters' Identity Card, PAN Card, Aadhaar Card issued by UIDAI and NREGA Card. You need to submit any one of these documents as proof of identity. If these documents also contain your address details, then it would be accepted as ‘proof of address'. If the document submitted by you for proof of identity does not contain address details, then you will have to submit another officially valid document which contains address details.

Yes. You can still open a bank account known as ‘Small Account' by submitting your recent photograph and putting your signature or thumb impression in the presence of the bank official.

Yes. The ‘Small Accounts' have certain limitations such as:

·         balance in such accounts at any point of time should not exceed Rs.50,000

·         total credits in one year should not exceed Rs.1,00,000

·         total withdrawal and transfers should not exceed Rs.10,000 in a month.

·         Foreign remittances cannot be credited to such accounts.

Such accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months, if the holder of such an account provides evidence to the bank of having applied for any of the officially valid documents within twelve months of the opening of such account. 

A normal account can be opened for a low risk category customer by submitting a copy of any one of the following documents as ID proof:

(i) Identity card with person's photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions;

or

(ii) Letter issued by a gazetted officer, with a duly attested photograph of the person.

Yes, banks are required to classify the customers into ‘low', ‘medium' and ‘high' categories depending on their AML risk assessment.

If you do not provide the required documents for KYC, the bank may not be able to open your account.

Yes, Aadhaar card is now accepted as a proof of both, identity and address.

e-KYC refers to electronic KYC. e-KYC is possible only for those who have Aadhaar numbers. While using e-KYC service, you have to authorise the Unique Identification Authority of India (UIDAI), by explicit consent, to release your identity/address through biometric authentication to the bank branches/business correspondent (BC). The UIDAI then transfers your data comprising name, age, gender, and photograph of the individual, electronically to the bank/BC. Information thus provided through e-KYC process is permitted to be treated as an ‘Officially Valid Document' under PML Rules and is a valid process for KYC verification.

Yes. You can open a bank account in Chennai even if your permanent address is in New Delhi and you do not have a proof of address for your Chennai. In that case, you can submit an officially valid document (proof of address document) of your New Delhi address together with a declaration about your Chennai address, for communication purposes.

Yes, it is possible to transfer an account from one branch to another branch of the same bank. There is no need for KYC exercise again to transfer a bank account from one branch to another branch of the same bank. However, if there is a change of address, then you would have to submit a declaration about the current address. If the address in the ‘officially valid documents'/ ‘proof of address' is neither permanent nor current address, a new proof of address would be required within six months. In case of opening an account in another bank, however, you would have to undergo KYC exercise afresh.

No, if you have opened an account with a bank, which is KYC compliant, then for opening another account with the same bank, furnishing of documents is not necessary.

PAN number needs to be quoted for transactions, such as, account opening, transactions above Rs.50,000 (whether in cash or non-cash), etc. A full list of transaction where PAN number needs to be quoted can be accessed from website of Income Tax Department 

Yes. Full KYC exercise is necessary for Credit/Debit/Smart/for purchaser of Gift Cards and also in respect of add-on/ supplementary cards.

Yes. KYC exercise needs to be done for all those who want to make domestic remittances of Rs. 50,000 and above and all foreign remittances.

Demand Draft/Payment Order/Travellers Cheques for Rs.50,000/- and above can be issued only by way of debiting the customer's account or against cheques.

Yes, all customers who do not have accounts with the banks (known as walk-in customers) have to produce proof of identity and address while purchasing third party products from banks if the transaction is for Rs.50,000 and above. KYC exercise may not be necessary for bank's own customers for purchasing third party products. However, instructions to make payment by debit to customers' accounts or against cheques for remittance of funds/issue of travellers' cheques, sale of gold/silver/platinum and the requirement of quoting PAN number for transactions of Rs.50,000 and above would be applicable to purchase of third party products from banks by bank's customers as also to walk-in customers.

Banks are required to periodically update KYC records. This is a part of the ongoing due diligence on bank accounts. The periodicity of such updation would vary from account to account or categories of accounts depending on the bank's perception of risk (2/8/10 years). Periodical updation of records also helps prevent frauds in customer accounts.

Different periodicities have been prescribed for updation of KYC records depending on the risk perception of the bank. KYC is required to be done at least every two years for high risk customers, at least every eight years for medium risk customers and ten years for low risk customers. This exercise would involve all formalities normally taken at the time of opening the account.
 
If there is no change in status with respect to the identity (change in name, etc.) and/or address, such customers who are categorised as ‘low risk' by the banks may now submit a self-certification to that effect at the time of periodic updation.
 
In case of change of address of such ‘low risk' customers, they could merely forward a certified copy of the document (proof of address) by mail/post, etc. Physical presence of such low risk customer is not required at the time of periodic updation.
 
Customers who are minors have to submit fresh photograph on becoming major.
 

Partial freezing is imposed in the following ways:

 

  • While imposing ‘partial freezing', banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing'.
  • After that a reminder for further period of three months would be issued.
  • Thereafter, banks may impose ‘partial freezing' by allowing all credits and disallowing all debits with the freedom to close the accounts.
  • If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing' banks may disallow all debits and credits from/to the accounts, rendering them inoperative.
  • Thus, one year after the account is due for updation, if you do not provide the necessary documents/information, your account would become fully inoperative i.e, neither credits nor debits would be allowed in the account.

Meanwhile, the account holders can revive accounts by submitting the KYC documents.

You can register your LIC policies online by logging into FedNet and clicking on the LIC Premia button from the PayBills menu.You need not submit any documents for registration.

All customers of Federal Bank who have a valid FedNet Registration, and at least one currently operative LIC Policy with Quarterly, Half Yearly or Yearly Premium payment can register for LIC Premium Payments through FedNet. However, policies with modes of payments such as single premium, ordinary monthly (Mly) and salary savings scheme (SSS) are not accomodated under this facility.

 

LIC needs the following information to process any request for registration :
  1. Policy Number-  This is a 9 digit numeric code (without alphabets or spaces) which is printed on your LIC policy. This will be printed on the payment notice sent to you by LIC also.
  2. Premium Amount–Premium amount should be exactly given in the registration form, including paise.
  3. Email ID of the customer

 

You can add any number of policies to your account. However, a policy registered with one account cannot be registered again with another account.
To add a policy to your account, please choose Register New Policy option after logging in to the LIC Premium Payments site.

 

Your registration request will be forwarded to LIC within 24 hours time.
LIC may take up to one month to process the request and send the status to the bank, based on the LIC branch linked to your LIC Policy.When the policy registration status is received at the bank, the information will be posted to the site within 24 hours.

The policy registration status can be viewed online at any time. Information received from LIC will be updated within 24 hours. In addition LIC may send e-mail regarding the status of the registration.

When LIC sends the details of premium payment due, like installment amount, number of installments, interest, payment due date, gross amount etc, the details will be made available to the user through the FedNet LIC option within 24 hours. This normally happens a few days prior to the actual due date for the payment of premia. But you will get 30 days grace period FROM THE DUE DATE to make the payment without any late fees.The user can login and view the details, and also effect payment from the site at the time of registration.

 

LIC premium link is currently available under "Pay Bills" menu option
User may make payment by logging into LIC sitewww.licindia.com
You can select the one or more installments due for payments, and execute payment for the total amount through FedNet.

LIC will be credited normally within 24 hours of debiting your account.

LIC will send premium receipts in electronic form to the registered mail ids of customers. Physical Receipts will also be sent.

Yes. Your FedNet account will be credited with the amount of the attempted payment. But this may take some time as the details are to be returned by LIC , if it is due to an issue with the Policy.

All care is advised to the customer to ensure payment within the stipulated time.The bank will not be liable for any loss or eventualities if the payment is not done in time.

No. The Facility of LIC Premium Payments through FedNet is offered free to the bank's customers.

 

  1. LIC premium link is currently available under "Pay Bills" menu option
  2. User may make payment by logging into LIC sit www.licindia.com also
You can select the one or more installments due for payments, and execute payment for the total amount through FedNet.

Individuals qualified for NRI/PIO status can open NRE CA account.

Copy of valid passport, Copy of Visa and Recent passport size photograph (as per existing KYC norms)

Average Quarterly Balance [AQB]: INR 5000. Zero Balance for 1st Year (Opening quarter + 3 more quarters.) AQB reckoned from 5th quarter onwards. Non-maintenance of AQB: INR 300 will be levied per quarter as service charge after 1st year.

AT PAR cheque book with anywhere daily cash withdrawal limit of INR 1,00,000 and International VISA Debit GOLD card with withdrawal limit of INR 75,000. Balance held in current account is fully repatriable and as per the present guide lines there is no income tax applicable to funds held in NRE Current accounts.

Yes. Transfer of funds between Current Accounts is allowed for bonafide personal purposes such as personal expenses, education of children, and gifts.

It is an internet based facility for online trading in shares offered to the clients of Federal Bank through a 3-in-1 account which integrates your banking, demat and trading accounts. While the banking and demat accounts shall be with Federal bank, the trading is done through M/S Geojit Financial Services Ltd (Geojit). You can trade on NSE and BSE

 

 
Convenience: The integrated 3-in-1 accounts helps you to effortlessly manage your portfolio. No need to write cheques or track the settlement cycles. No more running after your broker for pay out cheques. No more worries about forgetting to submit delivery instructions to your DP.
Power: You are in total control of your portfolio. The live stock exchange quotes available to you give you immense power to transact.
Speed: Your decisions can be based on the latest quotes and your orders reach the stock exchange almost instantaneously, thereby assuring you the best price in every transaction.
Comfort: You can place an order from anywhere in the world, any time of your choice.
Confidence: Your money / shares lie with your Bank till the trade is confirmed. Transfer of funds/ shares to the broker takes place only after the day's trading is over.

 

To start with, the following products are available to you
  • Cash Trading : When your intention is to take delivery of the shares /funds you resort to Cash Trading. The shares/funds will normally be credited to your demat/Bank account on the day settlement takes place in the stock exchange.
  • Margin Trading: Intra Day trades. You can trade upto a specified multiple of the funds allocated.The transactions will have to be squared off,before an appointed time, on the same day.
  • Buy Today Sell Tomorrow (BTST ):What you bought today can be sold tomorrow, even before they are credited to your demat account, on T+2
  • Call&Trade:Just in case you are in a place where you can not access a computer,you can call a toll free number and place an order with a customer service executive of Geojit.
  • IPO:You can invest in Initial Public Offers online. No need to go through cumbersome paperwork.
  • Mutual Funds:Investing in Mutual Funds has never been easier. And a variety of funds to choose from. Without any paper work at all.

 

You need to first block (allocate) funds in your bank account before you start buying. Whatever amount is blocked by you in your account will be your buying power on that day. When the amount blocked is exhausted, you can increase the buying power by blocking further amounts in your account. Now you can proceed to place the buy order. Your order is immediately sent to the stock exchange. While selling, the system will check the balance in your demat account and if sufficient balance is available, will proceed to send the order for sale of shares to the exchange.
Funds/shares will be transferred from your bank/demat account only at the end of the trading day. Credit of funds/securities will be done after receipt of the same from the Stock Exchange.

The system will display the details of your order before sending the order to the exchange. You can check the details once more. Only after your confirmation will the order be executed. You can view the status of the order online. You can also modify/cancel the order before it is executed.

This facility is offered through all branches of Federal Bank; however DP application can be routed through 164 designated branches only (take me there)

 

 

Savings Bank Account
  • Passport size photograph of applicant(s)
  • Proof of Address (original, with a photocopy of any one of the following) - Ration Card/Passport/Voter's ID Card/Driving Licence
  • Proof of Identity (original, with a photocopy) - PAN Card/Driving Licence/Passport/Voter's ID (originals will be returned to you after verification)
Demat Account
  • Passport size photograph of self and nominee
  • Proof of Address - ( copy of any one of the following) ( original, with a photocopy of any one of the following)
 
Bank Passbook/Ration Card/Passport/Voter'sID Card/Driving Licence
  • Proof of Identity - (copy of)
 
PAN Card (mandatory)
  • Cancelled cheque leaf (proof of MICR number and bank account details.)
 
Trading Account.
  • Passport size photograph
  • Proof of Identity – Copy of PAN Card/passport/Voter's ID Card/Driving Licence
  • Proof of Address ( copy of any one of the following)
 
Passport/Voter's ID Card/Driving Licence/Bank Passbook/Rent Agreement/ Ration Card/Insurance Policy/
 
Flat Maintenance Bill/Telephone Bill/Electricity Bill (not more than 2 months old)

Not necessary. You can link your existing savings account to Online Trading. However, you need to have a savings bank account and demat account with Federal Bank and a trading account with Geojit.

Yes; However, Trading account shall be opened in the name of the first holder of the demat account. He should be having the authority to operate the Bank account also.

 

You can access the account and start trading by logging on to www.federalbank.co.in
What are the charges I will have to pay for availing the online trading facility ?
The brokerage payable to Geojit is as follows
Cash Trading (delivery based) : 0.30%
Margin Trading(Day Trading) : 0.04%
Call and Trade : 0.50%
Minimum Rs. 20/- subject to a maximum of 2.50% per scrip, minimum order value Rs. 1000/-
For any further queries, clarifications, please mail to fsd@federalbank.co.in or dpsa@federalbank.co.in

Presently, Fed-e-Trade is available to those clients whose bank/demat accounts are in Resident status.

We will send you a welcome kit in the address furnished in the AOF which will contain your account number. The Kit will contain your Chq book also.

Yes. Federal Bank gives that facility also. Tell your urgency to our branch officials. They will give you a pre opened kit containing account number, Non personalized ATM card, cheque book etc immediately. You can start remitting funds in the account on the same. For withdrawals, you have to wait for a few days.

Any of the Documents like Voters' card, PAN card, driving license coming with your photo is a valid ID proof

To name a few - BSNL Telephone bill, Voters' card, driving license, other bank's account statement, ration card

 

  • Visit nearest federal Bank Branch
  • Fill up Account-opening form (AOF) and handover the same to the Bank's official
  • Attachments required - (1) Your Passport size photo (2) Photo-ID proof (3) Address proof

RBI has allowed NRIs to invest in shares/ convertible debentures of listed Indian companies in recognized stock exchanges under Portfolio Investment Scheme ( PIS) through Authorised Dealer Category I banks.

Investments can be made on repatriation or non-repatriation basis.  For investments under repatriation basis, a separate NRE SB PIS account is opened by remittance from overseas/NRE/FCNR account.  If the investments are on non repatriation basis, a separate NRO SB PIS account is to be opened by remittance from overseas/NRE/FCNR/NRO account/Local sources.

A separate NRE SB PIS for repatriable investments and NRO SB PIS for non repatriable investments have to be opened exclusively for the PIS transactions. No cheque books are issued in the account. Separate request for withdrawal/transfer/closure of the account is to be given.

 

NRIs have to open NRE SB PIS for repatriable and NRO SB PIS for non repatriable investments.

 

A Trading Account with a recognized broker has to be opened. DP account with the bank or broker shall be opened.  Separate DP accounts have to be opened for repatriable and non repatriable investments.

Documents required for opening NRE/NRO SB PIS with Bank

·         Photo signed across

·         Copy of Passport, VISA and PAN Card

·         Proof of Address abroad (Any of these- Driving Licence, Utility Bill, Residence Permit issued by Govt., Credit Card Bills, Rent Receipt, Bank Statement)

·         Self attested Copies of documents should be attested by Indian Embassy.Notary Public or submit originals to bank staff who will attest the same. .

Documents required for opening DP

·         Photo signed across

·         Self attested copy of Local address proof

·         Self attested copy of Passport, VISA and PAN Card

·         Self attested Proof of Address abroad (Any of these- Driving Licence, Utility Bill, Residence Permit issued by Govt., Credit Card Bills, Rent Receipt, and Bank Statement)

·         Cancelled cheque leaf of NRE/NRO account

·         FEMA declaration

·         (DP can be with Bank/Broker)

Documents required for opening Trading Accounts with Broker

·         Photo signed across

·         Self attested copy of Address proof

·         Self attested copy of Passport, VISA and PAN Card

·         Bank statement showing applicants name

·         Client Master List from DP

No. NRIs have to take delivery of the shares and give delivery of the shares. No short selling is allowed.

Yes. NRIs can execute futures/options etc. which are traded in the Stock Exchanges on non repatriation basis (through NRO SB PIS A/c.) only subject to SEBI approved limits.

Investments on repatriation /non repatriation shall be upto 5 % of the paid up capital of the company for a single NRI. Aggregate Investments by all NRIs can not exceed 10 % of the paid up capital of the company. The aggregate Investments can be upto 24 % if the general body of the Indian company passes a special resolution to that effect. This limit is monitored by RBI on a daily basis and advises Banks if the limit is reached so that further investments shall not be allowed.

As per section 6(5) of FEMA, NRI can continue to hold the securities which he/she had purchased as a resident Indian, even after he/she has become a non resident Indian, on a non-repatriable basis

Yes. NRI has to inform the change of status to the designated authorised dealer branch, through which the investor had made the investments in Portfolio Investment Scheme and the DP with whom he/she has opened the demat account. Subsequently, a new demat account in the resident status will have to be opened, securities should be transferred from the NRI demat account to resident account and then close the NRI demat account.

NRI/NRO can purchase shares under IPO if the issuing company is issuing shares to NRI on the basis of specific or general permission from GoI/RBI. Therefore, individual NRI need not obtain any permission.

No. The shares/convertible debentures purchased in Primary Market under IPO need not be routed through the Designated Bank Branch since this does not come under PIS.

Federal Bank has tied up with reputed broking firms M/s.Geojit BNP Paribas Financial Services Ltd and Doha Brokerage & Financial Services Ltd (DBFS) for offering PIS to NRIs. Geojit and DBFS have presence in GCC countries through its branches/Associate Companies. NRIs can place orders with broking firms which will be executed by them. Payments for Puchase and receipts for sales will be undertaken by Federal Bank. The DP account will be operated by bank /broking firm under Power of Attorney issued by NRI. As such, NRIs need to place orders only which will be executed by the broking firm and all other procedures are undertaken by the Bank.

Currently there is no long term capital gain for sale of shares through stock exchanges, if the holding period is more than one year. If sold within one year of purchase, short term capital gains will be deducted from the sale proceeds. TDS certificate will be issued by the bank to the NRI for the tax deducted.

 

Where the ‘currency of the money transfer' is the ‘remitter's country's currency' (Example: USD remittance from USA):
The remitter will request his bank (in his country) to transfer money to the beneficiary's account (in India) with Federal Bank (Beneficiary's Bank).
In this connection, the remitter will use an application form. In the application form, he will specify the ‘Federal Bank's correspondent bank' (intermediary bank) through whom the money should be routed. For specifying the ‘intermediary bank', the remitter will choose the bank from the list of banks, with which Federal Bank maintain accounts in the given foreign currency.
The ‘remitter's bank' will pay the funds to the ‘Federal Bank's correspondent bank', using an electronic network. While paying so, the ‘remitter's bank' will state that the ultimate payment should be made to the ‘beneficiary's account' with Federal Bank. 
‘Federal Bank's correspondent bank', which has received the funds, will give credit in the foreign currency account of Federal Bank (Nostro Account) .
Federal Bank will sight this credit in ‘the daily Nostro account statement', and will give credit in the ultimate beneficiary's account. In most of the cases, Federal Bank will pay to the beneficiary in Indian Rupees, after conversion of foreign currency funds in to Indian Rupee funds. In such cases, Federal Bank will apply the exchange rate ruling at the time of payment.
Note:
The remitter should not state the currency as Indian Rupees in the application form. He should state the currency of his country.
Here, ‘funds transferring bank' will be the ‘remitter's bank'
Where the money transfer is made from a third country (Example: USD remittance from UAE):
The remitter will request his bank (in his country) to transfer money to the beneficiary's account (in India) with Federal Bank (Beneficiary's Bank).
In this connection, the remitter will use an application form. In the application form, he will specify the ‘Federal Bank's correspondent bank' (intermediary bank) through whom the money should be routed. For specifying the ‘intermediary bank', the remitter will choose the bank from the list of banks, with which Federal Bank maintain accounts in the given foreign currency.
The ‘remitter's bank' will request ‘its own correspondent bank' to pay the funds (in foreign currency) to the ‘Federal Bank's correspondent bank'. While requesting so, the ‘remitter's bank' will state that the ultimate payment should be made to the account of the beneficiary with Federal Bank.
The ‘remitter's bank's correspondent bank' will pay the funds to ‘Federal Bank's correspondent bank', using an electronic network, stating the ‘details of ultimate payment' to the beneficiary.
   ‘Federal Bank's correspondent bank', which has received the funds, will give credit in the foreign currency account of Federal Bank (Nostro Account).
Federal Bank will sight this credit in ‘the daily Nostro account statement', and will give credit in the ultimate beneficiary's account. In most of the cases, Federal Bank will pay to the beneficiary in Indian Rupees, after conversion of foreign currency funds in to Indian Rupee funds. In such cases, Federal Bank will apply the exchange rate ruling at the time of payment.
Note:
The remitter should not state the currency as Indian Rupees in the application form. He should state the foreign currency of his choice.
Here, ‘funds transferring bank' will be the ‘remitter's bank's correspondent bank'
‘Remitter's bank's correspondent bank' and ‘Federal Bank's correspondent bank' will be in one and the same country.

 

 

It is important that the remitter submits the ‘international money transfer application' for making a remittance from a foreign country to India. He should not submit the ‘domestic money transfer application'. This is because certain details (e.g Federal Bank's correspondent), which are required for processing an international money transfer, will not be available in the ‘domestic money transfer application'.
 
In some cases, where the remitter happens to submit the domestic money transfer application, by mistake, still the money might somehow reach the beneficiary, but it might not come through Federal Bank's correspondent. In most of the cases, the payment will come in the form of a Rupee draft drawn on Mumbai to IBD, Federal Bank, Ernakulam. In such cases, there will be time delays and losses to the beneficiary. Therefore, it is important that the remitter uses the ‘international money transfer application'.

While filling out the remittance application, the remitter should provide the following details:
» Name and other details of the Remitter
» Currency of remittance (Do not fill up this field as Indian Rupees)
» Amount
» Intermediary Bank (correspondent bank with which Federal Bank holds the foreign currency account)
» SWIFT Code of the Intermediary Bank
» Routing Code (This is to indicate how the funds may be routed by ‘funds transferring bank' to our correspondent bank.
For certain currencies, routing numbers are not required. ‘IBAN of Federal Bank's Euro account with the
Intermediary Bank' will serve the purpose of Routing number in case of Euro and Swiss Franc)
» Beneficiary Bank (This will be Federal Bank)
» SWIFT Code of the Beneficiary Bank (This is FDRLINBBIBD, irrespective of the Federal Bank's branch)
» Name and other details of the Beneficiary
» Beneficiary account details (Account Type, 14-digit Account number, Federal Bank's branch with which the account is maintained) (If it is for opening a new Fixed Deposit or Cash Certificate account under NRE or FCNR Scheme, specify the same indicating the period of the deposit)
» Purpose (Purpose should not be mentioned in a general sense. It should be mentioned specifically. For instance, if it is a personal remittance, do not mention the purpose as personal. Mention the purpose specifically as Family Maintenance or Gift or Savings or the like, as the case may be. If it is a commercial remittance, do not mention the purpose as business or commercial or financial. Mention the purpose specifically as ‘Advance Remittance towards import', ‘Foreign Direct Investment', ‘Lending' etc, with brief details of the commercial transaction)
 
 
Note:
» The remitter should provide the details of ‘Intermediary Bank', ‘Intermediary Bank's SWIFT Code', ‘Federal Bank's A/c Number', ‘Routing Number' and ‘Federal Bank's SWIFT Code', in the ‘International Money Transfer Application', as mentioned above. These details are tabulated Currency-wise and correspondent-wise in the Menu " Wire Transfer (SWIFT)"
 
» The remitter may pick up the details provided in the appropriate table in the Menu "Wire Transfer (SWIFT)" and use the details for filling out the international money transfer application form.

 

Certain banks in Europe (e.g. Allied Irish Bank, Dublin, Ireland) do not require the remitter to fill out the details of intermediary bank in the application. This means these banks do not give an option to the remitter to mention as to how the money is to be routed. In such cases, routing is decided by the payment systems of these banks. The payment system in such banks is configured in such a way that money transfer to India is routed through a specific intermediary bank of their choice (not of remitter's choice).
 
For instance, if the intermediary bank configured in their payment system is ABN Amro Bank, Mumbai, the foreign currency amount will first come to ABN Amro Bank, Mumbai. ABN Amro  Bank, Mumbai will convert the foreign currency amount to Indian Rupees at their exchange rate and send the rupee funds to Federal Bank for ultimate credit to the beneficiary. In such circumstance, the remitter's bank may require the IFSC of Federal Bank's branch with which the Beneficiary maintains his account.

In the context of International Money Transfers, the foreign bank with which Federal Bank maintains a foreign currency account is called correspondent bank/ intermediary bank. For instance, Federal Bank maintains a Euro account with Deutsche Bank, Frankfurt. Here, Deutsche Bank, Frankfurt is the correspondent bank of Federal Bank for Euro remittances.

 

» In case of money transfers, not involving a third country (e.g. Euro remittances from Germany), the ‘remitter's bank' will transfer funds to ‘Federal Bank's account with its correspondent bank'. Here ‘remitter's bank' is the ‘funds transferring bank'.
 
» In case of money transfers, involving a third country (e.g. USD remittances from Germany), ‘remitter's bank's correspondent bank' will transfer funds to ‘Federal Bank's account with its correspondent bank'. Here ‘‘remitter's bank's correspondent bank' is the ‘funds transferring bank'. ‘Remitter's bank's correspondent bank' and ‘Federal Bank's correspondent bank' will be in one and the same country.

The Clearing House Inter-bank Payments System (CHIPS) is an electronic system for settling payments between CHIPS participant banks and account holders of those banks. Payment messages in and around New York are routed through CHIPS. In all likelihood, money transfers originating outside the USA (originating from Dubai, for instance) will be routed through CHIPS because, typically, the banks outside the USA must be maintaining their USD account with a bank in New York.
 
Each CHIPS participant bank is identified with its 4-digit CHIPS participant routing number. ‘Federal Bank's Correspondent bank' will be a CHIPS participant, which is identified with its 4-digit CHIPS number. So, for the ‘funds transferring bank' to make payment to ‘Federal Bank's Correspondent bank' through CHIPS, the CHIPS participant routing number should be provided. For instance, for transferring funds to the USD account of Federal Bank with Standard Chartered Bank, the CHIPS participant routing number of Standard Chartered Bank (CHIPS 0256), should be provided.
 
A ‘funds transferring bank' in New York routes a payment message through CHIPS, normally. However, it may route a payment message through Fed Wire (another electronic payment system in USA) also, for instance, after the closing time of CHIPS. So it is desirable for the remitter to provide both CHIPS Participant Number and Fed Wire ABA number in his remittance application.

 

Payment messages across the USA (including New York) can be routed through Fed Wire, an electronic system for settling payments through Federal Reserve Bank. For transferring funds through Fed Wire system, for a remittances originating from a location in the USA, other than New York, the remitter should provide the 9-digit Fed Wire ABA number of the ‘Federal Bank's correspondent Bank'. For instance, for transferring funds from Detroit (USA) through Fed Wire to the USD account of Federal Bank with Bank of America, NY, Bank of America (NY)'s Fed Wire number, which is ABA 026009593, should be provided.
 
If the remitter's bank is in New York , it will normally route the payment through CHIPS (another electronic payment system in New York). However, it may route a payment through Fed Wire also, for instance, after the closing time of CHIPS. So it is desirable for the remitter to provide both CHIPS Participant Number and Fed Wire ABA number in his remittance application.

 

International Bank Account Number  (IBAN) is a standardized account number. The account-maintaining bank assigns IBAN to its account holder in European Union. IBAN consists of maximum 34 alphanumeric characters. It is a continuous number starting with country code, without separators like spaces and comma. For example, IBAN of Federal Bank for its Euro account with Deutche Bank AG Zentrale, Frankfurt Main is DE18500700100953479300. This IBAN contains the country code (DE), routing number (50070010) and the account number (953479300). ‘IBAN of Federal Bank' for its Euro account with other 6 banks will be different.
 
IBAN is mandatory only for money transfers within European Union. However certain banks in EU insist for IBAN for international money transfers also. Therefore it is desirable for the remitter to provide ‘IBAN of Federal Bank's Euro account' with the specific correspondent bank to which payment in EUR is to be made.

 

Routing code used in the money transfer message, serves as the identifier for the intermediary bank (Federal Bank's correspondent bank abroad).
 
In case of remittance to India in USD, routing can take place either through CHIPS network or Fed Wire network, which will be decided by the ‘funds transferring bank' according to certain circumstances. So, it is desirable for the remitter to mention both the CHIPS Participant number and Fed Wire ABA number of the specific correspondent of Federal Bank. For instance, where a remitter wants to transfer funds to our USD account with Standard Chartered Bank, New York, he has to give both CHIPS Participant number (0256) and Fed Wire ABA number (026002561 ) of Standard Chartered Bank, New York.
 
In case of remittance to India in EUR, it is desirable for the remitter to provide the IBAN of ‘Federal Bank's account with the correspondent'concerned. For instance, where a remitter wants to transfer funds to our EUR account with Deutsche Bank AG Zentrale, Frankfurt Main, he may give the IBAN as DE18500700100953479300.
 
For remittances from certain countries (Japan, UK etc), the Sorting Code Number (SCN) is to be provided as the routing code. For remittances from certain other countries (Singapore, Hong Kong, Saudi Arabia, UAE etc), the routing code need not be given.