Skip to main content

Banking service codes mandated by RBI

 

Bank customers can get themselves heard and their grievances settled if they know the banking service codes mandated by RBI


   BANKING surely has come a long way. You don't have to visit the musty branches and brave serpentine queues anymore. The ATM can take care of most of your needs. If at all you need to visit a branch, smiling faces with pleasant manners would welcome you warmly.


   However, the facade drops the moment you have a serious issue — like an erroneous transaction or wrong entry — with the bank. No technology, no courtesy can save you from the Kafkaesque nightmare. Suddenly, the bureaucratic maze would make sure that you run from one counter to the other or follow up the matter with countless phone calls to find a solution.


   That need not be the case. A little bit of awareness about the service level of banks mandated by the Reserve Bank of India can help you take the bank to task. If there is a violation of the code of commitment (available on the websites of the banks and the Banking Codes and Standards Board of India) by the bank, you can take up the matter with the bank's nodal officer. Here are a few common problems faced by bank customers and how you can find a solution to it.

Failure To Regularise Loan Accounts    

In most cases, banks settle a loan through a compromise if there is a default in repayment for a considerable period. However, if a loan is repaid under a compromise settlement, with a part of the amount being waived off, many banks report it as 'writtenoff' instead of loan account 'closed' while submitting data to credit information companies like CIBIL. They do it despite their code of commitment to customers clearly stating that if the account of a borrower is regularised after having been in default, the information would be passed on to the credit information company in the subsequent monthly report. This is a serious issue as it has the potential to adversely affect the person's credit rating for future loan applications. There have been flooded with such complaints. We advise the aggrieved borrowers to write to the bank's nodal officer for correcting the situation. If the issue remains unresolved at this level for a period of 30 days, they can consider approaching the Banking Ombudsman.

Erroneous Atm Transaction    

ATMs aren't god, even they can commit mistakes. One of the common grouse against these magnificent machines which almost always give you the right amount is about failed transactions. Often customers find that failed withdrawals are often debited from their account. In accordance with the directive from the Reserve Bank of India, banks are required to reverse any erroneous debit made to an individual's account due to failed ATM transaction within 12 days of receiving a complaint from the account holder. If the bank fails to reverse the entry, it will have to offer compensation of Rs 100 per day to the customer. The amount is to be credited to the individual's account on the date of re-credit, even if he/she has not made a claim for the compensation.

Delay In Crediting    

The code of commitment also lays out the penal interest payable by the bank if there is a delay in executing transactions on payment platforms such as RTGS, NEFT, ECS and so on. The central bank has also recently prescribed penalties to be shelled out by banks for any delay in credits pertaining to payments made through the electronic platforms. In the case of NECS or ECS-Credit, the bank is expected to pay a penal interest at the prevailing RBI LAF Repo Rate plus two per cent, starting from the due date of credit till the date of actual credit. The same rate also applies to NEFT transactions. On delays in return of the funds transfer instruction, the destination bank has to refund the amount along with the interest till the date of refund.


   Besides this, every bank has a cheque collection policy in place. One significant provision is the penalty payable by the bank in the event of a delay in collecting outstation cheques. Account holders would do well to go through their bank's policy in this regard.

Uncouth Recovery Agents    

Banks have found an easy way to tackle serial defaulters. Antisocial elements who would act as recovery agents for banks make life hell for people with untimely visits and abusive phone calls. The sad part is that even genuine customer can be target of these characters. Following widespread complaints from borrowers, the RBI had taken measures to regulate the conduct of recovery agents. The code of commitment states the bank will not initiate the recovery proceedings without informing the borrower in writing. In addition, the agents are supposed to contact the customer at a place of his or her choice and are duty bound to interact in a 'civil manner'. Also, the recovery agent can make calls or visits only between 7 am and 7 pm. If the recovery agent does not adhere to these norms or fails to maintain the decorum, you can bring it to the bank's notice.


   Finally, arm yourself with a careful reading of the BCSBI code of commitment to customers as it will help you understand your rights as a customer and ensure that you get a fair deal from your bank.

 

Popular posts from this blog

How to Decide your asset allocation with Mutual Funds?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) How to Decide your asset allocation ? The funds that base their equity allocation on market valuation have given stable returns in the past. Pick these if you are a buy-and-forget investor. Small investors are often victims of greed and fear. When markets are rising, greed makes the small investor increase his exposure to stocks. And when stocks crash to low levels, fear makes him redeem his investments. But there are a few funds that avoid this risk by continuously changing the asset mix of their portfolios. Their allocation to equity is not based on the fund manager's outlook for the market, but on its valuations. Our top pick is the Franklin Templeton Dynamic PE Ratio Fund, a fund of funds that divides its corpus between two schemes from the same fund house-the...

Mirae Asset Healthcare Fund

Best SIP Funds to Invest Online   Mirae Asset Global Investments (India) has launched Mirae Asset Healthcare Fund. The NFO of the fund will be open from June 11, 2018 to June 25, 2018. Mirae Asset Healthcare Fund is an open-ended equity scheme investing in healthcare and allied sectors. The scheme will invest in Indian equities and equity related securities of companies that are likely to benefit either directly or indirectly from healthcare and allied sectors. The investment strategy of this scheme aims to maintain a concentrated portfolio of 30-40 stocks. Healthcare is a broad secular theme that includes pharma, hospitals, diagnostics, insurance and other allied sectors. The fund will have the flexibility to invest across markets capitalization and style in selecting investment opportunities within this theme. Neelesh Surana and Vrijesh Kasera will manage this fund. In a press release, Swarup Mohanty, CEO, Mirae Asset Global Inves...

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...

Reliance Regular Savings Fund - Debt Option

Reliance Regular Savings Fund - Invest Online     The scheme aims to generate optimal returns consistent with moderate levels of risk. It will invest atleast 65 per cent of its assets in debt instruments with maturity of more than 1 year and the rest in money market instruments (including cash or call money and reverse repo) and debentures with maturity of less than 1 year. The exposure in government securities will generally not exceed 50 percent of the assets. The fund uses a mix of relatively low portfolio duration with active investments in higher-yielding corporate bonds. It does not take aggressive duration calls but tries to improve returns by cherry-picking corporate bonds. This is reflected in the fund's returns matching the category and benchmark for five years - at 8.4 per cent - but lagging behind the category during a raging bull market in bonds in the last one year. The fund has been a consistent but not chart-topping performer in the income category. Despite its ...

Gifts to relatives will not attract tax

Tax Saving Mutual Funds Online Current open Infra Bond Application form Gifts are always special to the recipient and it would be extra-special if there is no tax payable on these. The taxman believes so, too. In the provision introduced in Section 56 of the Income Tax Act, if any sum of money is received gratis by an individual or Hindu Undivided Family (HUF) during any year, it shall not be taxable if from a relative. The law has already defined the term 'relative' and HUF. However a case that came up before the Income Tax Tribunal shows that some clarifications were still needed. Background The law also exempts gifts during special occasions like marriage of an individual or under a will or by way of inheritance and even in contemplation of death of the payer. Money received as grants or loans from educational institutions/universities, charitable trusts or similar institutions is also exempt. The term relative has been defined in the law to include spo...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now