Banking · Modes of Charging Securities

Statement 1: In a computerized banking environment, the creation of a Lien on a Fixed Deposit Receipt is done through a system-based 'flagging' mechanism where the amount is marked as 'Lien' in the Core Banking Solution, preventing the customer from withdrawing the funds while the loan remains outstanding. Statement 2: This system-based Lien is fundamentally different from a Common Law Lien because the bank acts as both the bailee of the funds and the creditor of the loan, and the right to adjust the deposit against the loan is often exercised through the Right of Set-Off rather than a sale of the asset. Statement 3: If a bank marks a Lien on a third party's Fixed Deposit as security for a borrower's loan, the bank must obtain a letter of renunciation or a specific consent letter from the third party, as the general banker's lien does not automatically extend to properties not belonging to the debtor. Statement 4: According to the Reserve Bank of India guidelines, any Lien marked on a Basic Savings Bank Deposit Account for the purpose of a micro-loan must not exceed 50 percent of the average quarterly balance of that account to protect the customer's minimum subsistence. Which of the following is true regarding these statements?