Banking Format in India — Legal Templates
Banking documents are the foundation of every financial transaction in India — from opening a bank account and issuing a promissory note to obtaining a letter of credit, raising a bill of exchange, or executing a factoring agreement. These instruments are governed by the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, and the Negotiable Instruments Act, 1881. Download free Banking formats covering account opening, bills of exchange, promissory notes, letters of credit, and lien letters.
What is Banking Format?
A Banking Document is a written legal or commercial instrument used in the course of banking business — for opening accounts, evidencing credit, transferring funds, securing loans, or facilitating trade finance. In India, banking documents draw their legal force from multiple statutes.
The Banking Regulation Act, 1949 governs banking companies, licensing under Section 22, branch expansion under Section 23, and permissible business under Section 6. The Reserve Bank of India Act, 1934 establishes the central regulator. Customer onboarding through Account Opening Forms is governed by RBI's Master Direction on KYC, 2016 issued under Section 35A of the Banking Regulation Act, 1949 read with the Prevention of Money Laundering Act, 2002.
Negotiable instruments — promissory notes (Section 4), bills of exchange (Section 5), and cheques (Section 6) — are governed by the Negotiable Instruments Act, 1881. Endorsement, negotiation, holder-in-due-course rights, and dishonour are dealt with under Sections 14 to 35 and Sections 91 to 138 of the same Act.
Letters of credit (clean, documentary, and circular) are governed by the Indian Contract Act, 1872 read with the UCP 600 (Uniform Customs and Practice for Documentary Credits). Factoring agreements are governed by the Factoring Regulation Act, 2011 as amended in 2021. Letters of lien over fixed deposits or securities are governed by Section 171 of the Indian Contract Act, 1872.
All banking documents are admissible as documentary evidence under the Bharatiya Sakshya Adhiniyam, 2023.
When This Format Required?
Opening bank accounts — for individuals, companies, trusts, societies, clubs, and HUFs as per RBI KYC Master Direction, 2016 and Section 35A of the Banking Regulation Act, 1949.
Raising credit — issuing promissory notes, bills of exchange, or hypothecation deeds to secure short-term and working-capital finance from banks and NBFCs.
Trade finance — opening letters of credit (clean, documentary, circular) for domestic or international trade transactions.
Securitisation and factoring — assigning receivables under the Factoring Regulation Act, 2011 and registering the assignment with the Central Registry of Securitisation Asset Reconstruction.
Securing existing facilities — creating letters of lien over fixed deposits, NSCs, or other securities under Section 171 of the Indian Contract Act, 1872.
Banking licences and branch expansion — applications under Sections 22 and 23 of the Banking Regulation Act, 1949.
All Templates — Download Free
- Account Opening Form For Limited CompanyDownload
- Account Opening Form For Society Club Or Non Profit Making BodyDownload
- Account Opening Form For The TrustDownload
- Advice Of Non Acceptance Of BillDownload
- Another Reply To The Bank Intimating About The Financial Status Of A CompanyDownload
- Application Form For Licence To Commence Banking Business By A Company Incorporated In IndiaDownload
- Application Form For Licence To Commence Business By A Company Incorporated Outside IndiaDownload
- Application Form For Opening A New Place Of Businessby A Co Operative BankDownload
- Authority To A Bank To Pay Premiums For Life Insurance PolicyDownload
- Bill Of Exchange After DateDownload
Quick Overview
Step-by-Step Guide
- 1
Identify the Document Type and Governing Law
Determine whether the document is an account opening form (KYC norms), a negotiable instrument (NI Act, 1881), a letter of credit (Contract Act + UCP 600), a factoring agreement (Factoring Regulation Act, 2011), or a letter of lien (Section 171 ICA, 1872). Each carries its own statutory requirements.
- 2
Particulars of Parties and KYCRBI KYC Master Direction, 2016
For account opening, capture full name, address, PAN, Aadhaar (with consent under the Aadhaar Act, 2016), nature of entity (individual, partnership, company, trust, society, HUF), and authorised signatories. Comply with .
- 3
Drafting Negotiable Instrumentsunconditional undertakingorder
For a promissory note (Section 4 NI Act, 1881) or bill of exchange (Section 5), the instrument must contain an or , certain sum of money, a date, signature of the maker/drawer, and proper stamp duty under the Indian Stamp Act, 1899.
- 4
Drafting a Letter of Credit
Identify the applicant, beneficiary, issuing bank, amount, expiry date, drawing terms, required documents, and applicable UCP 600 clauses. Specify whether the LC is clean, documentary, irrevocable, or circular.
- 5
Operative Clauses for Loans, Liens, FactoringFactoring Regulation Act, 2011
Specify loan amount, interest, repayment, security, lien on fixed deposit (Section 171 ICA), assignment of receivables (Section 130 TPA), and remedies on default. For factoring, register the assignment with the Central Registry under the .
- 6
Stamp Duty, Signatures, and Statutory Filings
Affix proper stamp duty per the applicable State Stamp Act. Both parties sign before two witnesses where required. File RBI returns or Form-1 filings as prescribed under the Banking Regulation Act, 1949.
Types of Banking Format
Account Opening Forms
KYC-compliant forms for individuals, limited companies, trusts, societies, and clubs under the RBI Master Direction on KYC, 2016 read with Section 35A of the Banking Regulation Act, 1949.
Promissory Notes
Written, unconditional promises to pay a certain sum of money under Section 4 of the Negotiable Instruments Act, 1881 — demand, instalment, joint borrower, and corporate variants.
Bills of Exchange
Written orders directing one party to pay a fixed sum to another, under Section 5 of the Negotiable Instruments Act, 1881 — payable on demand, after date, after sight, foreign bills in sets.
Letters of Credit & Circular Notes
Clean, documentary, and circular letters of credit governed by the Indian Contract Act, 1872 read with the Uniform Customs and Practice for Documentary Credits (UCP 600).
Letters of Lien & Authority
Letters of lien over fixed deposits under Section 171 of the Indian Contract Act, 1872 and authorities to pay insurance premiums, dividends, or recurring obligations.
Factoring Agreements & Banking Licences
Factoring agreements for sale of receivables under the Factoring Regulation Act, 2011 (as amended in 2021) and licence applications under Section 22 of the Banking Regulation Act, 1949.
Disclaimer: This template is provided for general informational and drafting reference purposes only. It does not constitute legal advice. Stamp duty, registration, and procedural requirements may vary by state. Consult a qualified advocate before executing or filing any legal document. For more details, see our Disclaimer.