Banking · Ancillary Banking Services
Which of the following evaluations correctly reflects the operational, legal, and regulatory status of banking ancillary services in India, including Safe Deposit Lockers (RBI Master Directions), Bank Guarantees (Indian Contract Act 1872), National Automated Clearing House (NACH) replacing ECS, Credit Cards, Bancassurance, Cash Management Services (CMS), and Prepaid Cards?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All services operate under valid legal frameworks, with NACH largely replacing ECS and banks being legally permitted to issue regulated prepaid cards.✓
- 2NACH has completely failed to replace ECS, making electronic bulk clearing regulations obsolete.
- 3Banks are entirely banned from issuing prepaid travel or gift cards under current anti-money laundering laws.
- 4Bank Guarantees are always conditional and revocable, meaning banks can refuse payment at will without regulatory repercussions.
Correct answer
All services operate under valid legal frameworks, with NACH largely replacing ECS and banks being legally permitted to issue regulated prepaid cards.
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