Terms and Conditions for Funds Transfer through the Real ... - Hsbc

Terms and Conditions for Funds Transfer through the Real Time Gross Settlement(RTGS)I. Definitionsa. "Customer" means the Customer named herein above who has accepted theseTerms & Conditionsb. “Bank” means The Hongkong & and Shanghai Banking Corporation Limited,India ,a Company incorporated under the Companies Ordinance of the HongKong Special Administrative Region (HKSAR), having its Registered Office at 1Queens Road Central, Hong Kong and its India corporate office at 52/60Mahatma Gandhi Road, Fort, Mumbai 400 001 (hereinafter referred to as “HSBCIndia”)c. “Account” means any Account held by the Customer having liquid balance foreg. Savings/Current Account, Overdraft facility/Smart Money etcd. "RTGS" means Real Time Gross Settlement through the RBI RTGS system.e. "EFT" means electronic funds transfer facility through the RBI EFT system.f. "NEFT" Facility means the electronic funds transfer facility through the RBINEFT system.g. "RFT" means the collective reference to all methods of electronic fund transfersRTGS / NEFT / EFT Funds Transfer.h. "Security Procedure" means a procedure established by agreement betweenHSBC India and the Customer for the purpose of verifying that the payment orderor communication amending or canceling a REFT request transmittedelectronically or physically is that of the Customer and is duly authorized by theauthorized signatories of the Customer or for detecting error in the transmissionfor the content of the funds transfer request or communication. A SecurityProcedure may require the use of algorithms or other codes identifying words ornumbers, encryption, callback procedures or similar security devices as well asmanual signatures for physically initiated REFT requests.Words or expressions used in these Terms & Conditions, but not specifically defined herein shallhave the respective meanings assigned to them in the RBI EFT Regulations, 1996, read with themodifications thereof, or RBI NEFT Regulations, 2005, read with the modifications thereof, asmay be made from time to time in futureII. Scope of the Terms and Conditionsa. These Terms and Conditions govern funds transfer instructions issued over HSBC PersonalInternet Banking by the accountholder to HSBC India for execution through the Real Time GrossSettlement (RTGS) payment mechanism of the Reserve Bank of India (RBI).b. In addition to these Terms and Conditions, such RTGS Funds Transfer instructions issued overHSBC Personal Internet Banking shall also be subject to HSBC India's general Disclaimer andInternet Privacy Statement and all other terms and conditions applicable from time to time inconnection with HSBC Personal Internet Banking as well as with the relevant accounts,transactions, dealings, services, products, benefits or privileges. Such Statement and other terms

and conditions shall apply as if they were expressly extended to the use of the RTGS paymentmechanism. However, where there is any discrepancy, these Terms and Conditions shall prevailfor the purposes of the RTGS Funds Transfer instruction.c. In these Terms and Conditions, 'RFT' means the RTGS Funds Transfer.d. By using the RFT functionality on HSBC Personal Internet Banking, the accountholder shallbe deemed to have read and understood these Terms and Conditions and to have agreed to bebound by them.e. Nothing contained herein shall be construed as creating any contractual or other rights againstthe Reserve Bank or any participant of the RTGS System other than HSBC India.II. Rights and obligations of the Customera. The Customer shall be entitled, subject to the applicable terms and conditions, to issue a RFTinstruction for execution by HSBC India.b. The Customer agrees to pay all charges levied by HSBC India as per its rules from time totime, for provision of the RFT facility.c. The RFT instruction shall be issued by the Customer over HSBC Personal Internet Bankingwith complete particulars as required. The Customer shall be responsible for the accuracy of theparticulars given in the RFT instruction and shall be liable to compensate HSBC India for anyloss arising on account of any error therein.d. The Customer shall ensure availability of funds or available limits in his Account beforesubmitting the RFT request to HSBC India. In the event there are insufficient funds in theAccount, the RFT request will not be executed by HSBC India. However, if HSBC Indiaexecutes a RFT without sufficient funds being available in the Customer's Account, theCustomer shall be bound to pay to HSBC India the amount debited to his account for which aRFT was executed pursuant to his RFT request together with the charges applicable for overdraftfacilities including interest payable to HSBC India. The Customer should refer HSBC India’swebsite www.hsbc.co.in for applicable charges/interest.e. HSBC India shall have the right of set-off and lien over the Account, irrespective of any otherclaims or charges or security interest over the Account, to the extent of all outstanding dues toHSBC India, incurred howsoever. The Customer hereby authorizes HSBC India to debit andappropriate such sums from his/her Accounts with HSBC India as are required for the purpose ofrecovery of charges, expenses incurred by HSBC India or for mitigating any liability incurred byHSBC India for execution of any RFT instruction issued by him/her.f. The Customer agrees that the RFT instruction shall become irrevocable when it is executed byHSBC India.g. The Customer agrees that RFT instructions received by HSBC India after the daily cut offtime of HSBC India for receiving RFT instructions through HSBC Personal Internet Bankingand RFT instructions received on holidays as defined in the RBI RTGS holiday table will beprocessed on the next business day applicable for RFT transactions. In case a Customer wishes totransfer funds through RTGS/NEFT on a Sunday/Bank Holiday in India, he/she is requested toinitiate the same post 00.01 hrs IST with the 'transfer now' option prior to the 'cut off' time asapplicable for RTGS/NEFT.h. The Customer shall take all necessary precautions to prevent unauthorized and illegal use ofhis / her Account and shall be solely responsible for all RFT instructions and transactionsconducted from his / her Account.

i. The Customer shall be bound by the RFT instruction executed by HSBC India if it executes thesame in good faith and in compliance with these terms and conditions. Provided that theCustomer shall not be bound by any RFT transaction executed by HSBC India if the RFTinstruction was acted upon on account of a fraudulent act of any employee of HSBC India, asdetermined by a court of competent jurisdiction.j. The Customer agrees that in the event of any delay on HSBC India's part in the completion ofthe RFT or any loss on account of error in the execution of the RFT transaction pursuant to avalidly issued RFT instruction, HSBC India's liability shall be limited to the extent of payment ofinterest at the Bank Rate, as specified by RBI, for any period of delay in the case of delayed RFTand refund of the amount together with interest at the Bank Rate up to the date of refund in theevent of loss on account of error, negligence or fraud on the part of any employee of HSBCIndia, as determined by a court of competent jurisdiction.k. The Customer agrees that HSBC India may, at its sole discretion reject an RFT instruction ornot act upon it, if it believes or has reason to believe that the RFT instruction has been issued byunauthorized person/s or in a fraudulent manner.l. The Customer agrees that no special circumstances shall be attached to any RFT instructionand under no circumstances shall the Customer be entitled to claim any compensation in excessof that which is provided in clause (j) above, for any breach of terms and conditions orotherwise.m. The accountholder agrees to indemnify HSBC India and keep it indemnified from time totime and at all times hereafter from any loss, claim, damage, cost, charge and expenseshowsoever caused or arising out of or in connection with the services offered by HSBC India interms of this agreement, save and except that caused through HSBC India's own error,negligence or misconduct.n. The accountholder agrees that he/she shall not be entitled to make any claim against anyparticipant of the RBI RTGS system except HSBC India.III. Rights and Obligation of HSBC Indiaa HSBC India shall execute the RFT instruction issued by the Customer through HSBC PersonalInternet Banking , unless:i. The funds available in the Account specified in the RFT instruction for debit of funds, are notadequate or properly applicable to comply with the RFT instruction and the Customer has notmade any other arrangement to meet the payment obligation,ii. The RFT instruction is incomplete or it is not issued in the agreed form,iii. The RFT instruction is attached with notice of any special circumstances,iv. HSBC India has reason to believe that the RFT instruction is issued to carry out an unlawfultransaction,v. The RFT instruction cannot be executed under the RBI RTGS system.b. No RFT instruction issued by the Customer shall be binding on HSBC India until it hasaccepted it.c. HSBC India shall, upon execution of the RFT instruction, be entitled to debit the Customer'sAccount as specified in the RFT instruction, for the amount of the funds transferred together withcharges payable thereon, whether or not such account has sufficient balance. If HSBC Inidaexecutes a RFT without sufficient funds being available in the Customer's Account, theCustomer shall be bound to pay to HSBC India the amount debited to his Account for which aRFT was executed by HSBC India pursuant to his RFT request together with the charges

applicable for overdraft facilities including interest payable to HSBC India. The Customershould refer to HSBC India’s website www.hsbc.co.in for applicable charges/interest.IV. Force MajeureNeither party (i.e. HSBC India or Customer) will be liable for any delay in performing or failureto perform any obligations hereunder due to any cause beyond its reasonable control, providedthat where performance by one party is dependent upon performance by the other party and suchperformance is delayed or fails, in such circumstances the other party shall not be obliged toperform (or shall be given such extended time to perform as is necessary in the circumstances)such obligations.For the purpose of this document 'Force Majeure' shall be deemed to be any cause affecting theperformance of this Agreement arising from or attributable to acts, events, omissions oraccidents beyond the reasonable control of the Participant to perform and without limiting thegenerality thereof shall include the following:a. strikes, lock-outs or other industrial action;b. civil commotion, riot, invasion, war threat or preparation for war;c. outbreak of war, rebellion, revolution, hostilities, riot, civil disturbance, acts of terrorism;d. epidemic, quarantine restrictions, outbreak of debilitating disease and any travel restrictions orbans (including bans on non-essential travel) issued by the World Health Organisation or anygovernmental authority;e. fire, explosion, storm, flood, earthquake, subsidence, epidemic or other natural physicaldisaster;f. impossibility of the use of railways, shipping, aircraft, motor transport or other means ofpublic or private transport;g. political interference with the normal operations of any Participant; andh. any change in or introduction of any Laws and Legal Requirements.