What is nodal bank?

Others 15886 views 4 replies

jaypreet

Partner

90 Points Joined April 2011

Remittances to the Seller would be in compliance with directions issued by Reserve Bank of India for opening and operation of accounts and settlement of payments for electronic payment transactions involving intermediaries vide its notification RBI/2009-10/231 DPSS.CO.PD.No.1102 / 02.14.08/ 2009-10 dated November 24, 2009 (“RBI Intermediary Guidelines”). XXXXXXX has appointed Deutsche Bank AG, a banking company incorporated in Frankfurt under the laws of Federal Republic of Germany and having its registered Head Office at Frankfurt operating in India and having an office interalia at Kodak House, 222, Dr DN Road, Fort, Mumbai – 400001 as the nodal bank. XXXXXX may at its sole discretion add, replace or remove any nodal bank (“Nodal Bank”).

-What do we mean by nodal bank here?

-How is it different from other banks?

-Can any indian bank be a Nodal bank?

-What is the prodedure have an account in this Nodal bank?

-As a partnership firm can we open an escrow account like this in any Indian bank?

Thanks and regards

Jayy

Replies (4)

Kolluru Krishna Murty

Partner

315 Points Joined December 2011

Nodal bank is nominated by RBI for coordinating a particular type of transaction.

Definitely there must some other Indian bank as nodal bank.

Having an account with Nodal bank is not different from having an account with other banks.In normal way you can open an account with the nodal bank.

Escrow a/c can be opened with any Scheduled bank like any current a/c producing the necessary documents required for opening the account and signing an agreement between opener,benificiary and the bank.

kkm

Chaitanya S

21 Points Joined October 2013

Can you provide the list of nodal banks in india?

Megha Vijay

13 Points Joined August 2018

A nodal account or nodal bank account is a special internal bank account that is mandated by RBI. It is for businesses that are intermediaries, connecting customers to sellers. For example, a crowdfunding platform like Milaap acts as an intermediary. It helps organisations eg Hospital or charity home to get donations from donors online. In this process Milaap the intermediary needs to manage a nodal account to hold the money so received which has to be later shared with the beneficiary.

Read more here: https://www.cashfree.com/nodal-account-marketplace-settlements