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 much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...

Save Tax With Mutual Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300       Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year. Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes ·        Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years. ·        First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes un...

LIC's JEEVAN SHIKHAR

  LIC's Jeevan Shikhar is a participating, non-linked, saving cum protection single premium plan wherein the risk cover is ten times of Tabular Single Premium. The proposer will have an option to choose the Maturity Sum Assured. The premium payable shall depend on the chosen amount of Maturity Sum Assured and age at entry of the life assured. This plan also takes care of liquidity need through its loan facility. The plan will be open for sale for a maximum period of 120 days from the date of launch. 1.   BENEFITS   : a) Death Benefit: On death during first five policy years: Before the date of commencement of risk   :   Refund of Single Premium without interest. Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes. After the date of commencement of risk   : "Sum Assured on Death" equal to 10 times the tabular single premium shall be payable. On death after completion of five policy years but b...

Rajiv Gandhi Equity Savings Scheme (RGESS) set for launch this week

The finance ministry is set to notify the Rajiv Gandhi Equity Savings Scheme ( RGESS ) this week.   Though Finance Minister PChidambaram had approved on September 21, the scheme announced in this year's Budget, and had said that the revenue department will notify the scheme and the Securities and Exchange Board of India ( Sebi ) would issue relevant circulars within two weeks, it is yet to become operational.   A senior finance ministry official said the revenue department was expected to notify the scheme any day now to attract retail investors to the equity segment.   He added that Sebi was not required to issue any circular for the operationalisation of the scheme and that after the issuance of the revenue department's notification, investors would be able to avail of the benefits of the scheme.   The official accepted that implementation of the scheme had been delayed due to the deliberations on inclusion of mutual funds ( MF ) in it.   ...

IDFC Nifty ETF

IDFC Mutual Fund has launched IDFC Nifty ETF . The fund seeks to provide returns tha, before expenses closely correspond to the total return of the underlying index, subject to tracking errors. The minimum investment is `5,000 and the NFO closes on 30 September. ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. Reliance Tax Saver (ELSS) Fund 10. Birla Sun Life Tax Plan Invest in Best Performing 2016 Tax Saver Mutual Funds Online Invest Online Download Application Forms For further information contact Prajna Capital on 94...
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