In this article you get to know about AOD full from, AOD category, AOD validity, AOD meaning and other details related to AOD. AOD full form in banking refers to Acknowledgment of debt. In simple words AOD means its written document between debtor and creditor in terms of debtors agrees to liable to the creditor for a sum of money. Creditor is Bank or Financial Institution and Debtor is a person who took a loan from Bank or Financial Institution.



- AOD is a written agreement signed by debtor

- AOD should be dated

- AOD must mention the name of debtor and creditor

-AOD must contain the debt amount in figures as well as in words

-AOD must contains Interest rate

-AOD must contains due date of payment

-AOD should contain payment terms

-AOD can be signed by the debtor (borrower), co-obliging or by surety of the loan.

AOD LAW OF LIMITATION : As per the law of limitation act 1963, a debt becomes time barred after three years from the date of loan documents. The Bank or Financial Institution has to file a suit to recover your money before expiry of that three-year period. The bank is extending the period by asking you to sign the acknowledgement of Debt ( AOD) , in which case it gets a further period of three years. In this way it’s mutually beneficial for Creditor and Debtor. You do not face any legal issues and bank gets time.

AOD VALIDITY: Acknowledgement of debit is valid for 3 (Three) year from the date of aod. After three years it becomes time barred, to enforce it again creditor need to take sign from the debtor on AOD. Acknowledgement of Debt is nothing but the acknowledgement of liability. As per article published in The Economic Times AOD is merely given to save limitation, it is not required to be stamped unless it is supplied as evidence of debt.  The article link is Acknowledge of Debt and Securities is not an agreement.