Are you looking to know about AOD full form? If yes then you came to right blog.

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 used where debtor could not able to repay his/her debt. By singing on AOD debtor can avoid any kind of legal actions against him/her for certain period.


  1. AOD is a written agreement signed by debtor.
  2. AOD should be dated.
  3. AOD must mention the name of debtor and creditor.
  4. AOD must contain the debt amount in figures as well as in words.
  5. AOD must contains Interest rate.
  6. AOD must contains due date of payment.
  7. AOD should contain payment terms.
  8. AOD can be signed by the debtor (borrower), co-obligant or by surety of the loan.


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.


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.


Dear reader in this article you get to know about AOD full form, AOD meaning, AOD law of limitations, Acknowledgement of Debt in Banking. Generally, AOD include loan amount, loan interest rate, loan repayment schedule and other terms and conditions etc. Acknowledgment debt is very useful to avoid the legal actions. If you have any query regarding this article kindly comment below.  


Why banks are asking to sign an acknowledgement of debt when I am not able to repay the loan instalments?

It is because as per limitation act 1963 states that a debt become time barred after 36 months or 3 years from the date of loan document. To enforce the document bank ask you to sign on AOD.

What is revival letter in banking?

Revival letter nothing but one kind of AOD. A revival letter is taken from the borrower or guarantor to enforce the document.

What is letter of continuity?

It’s a document signed by the borrower before disbursement of loan amount is known as letter of continuity. Its one kind of acknowledgement given by the borrower that balance amount will continue until completely paid off.

What is AOS?

AOS means Acknowledgement of Security.

How long does an Acknowledgement of debt last?

It is valid for three years from the date of AOD.

AOD In Banking Terms:

AOD in Banking Terms refers to borrower merely confirm the dues on a particular day which are charged by the banks.

Also Read

LOD Full Form in Banking

PCA Full Form in Banking

PSLC Full Form in Banking

DPN Full Form in Bankin

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