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

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 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...

GOLD ETFs

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   GOLD ETFs       Gold funds and ETFs have also lost the tax advantage they enjoyed over physical gold after the Budget changed the rules for long-term capital gains from non-equity funds.   Last year, gold exchange traded funds ( ETFs ) had gained a great deal from the depreciation in the rupee and the UPA government's move to impose additional levy on gold imports, making it an attractive option for investors. The landed price of the yellow metal had surged, pushing up the net asset value ( NAV ) of gold ETFs. However, the recent budget proposal by Finance Minister Arun Jaitley has thrown a spanner in the works for gold fund investors. The revised tax structure for all non-equity funds, includi...

IIFL NCDs

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India) IIFL NCDs IIF's six-year unsecured NCD 2012 Risk-wary investors should stay away from this issue, and even, risk-taking ones should think twice It is a public issue of unsecured redeemable non-convertible debentures ( NCDs ) by India Infoline Finance ( IIF ), an unlisted company, which is a 98.9 per cent subsidiary of India Infoline, a listed company. The issue seeks to raise Rs 250 crore with an option to retain over-subscription up to Rs 250 crore taking the total potential issue amount to Rs 500 crore. It will be open for public subscription from September 5 to September 18 with a minimum application size of Rs 5,000 in the form of five NCDs of face value Rs 1,000, TENURE & RATES: IIF will redeem the NCDs at the end of six years, and investors wanting out before six years will be able to sell the...

HDFC Mid-Cap Opportunities Fund

Performance - Regular Plan - Growth Option NAV as on 30 th June, 2017 51.741   Period Scheme Returns (%) Benchmark Returns (%) # Additional Benchmark Returns (%) ## Value of Investment of ( ) 10,000         Scheme ( ) Benchmark ( )# Additional Benchmark ( )##   Last 1 Year 28.63 28.32 14.88 12,863 12,832 11,488   Last 3 Years 20.95 16.89 7.74 17,703 15,977 12,509   Last 5 Years 26.26 19.23 12.50 32,129 24,116 18,036   Since Inception 17.82 11.74 8.36 51,741 30,426 22,353 ^Past performance may or may not be sustained in the future . Returns greater than 1 year period are compounded annualized (CAGR). Load is not taken into consideraiton for computation of performance. #Nifty Free Float Midcap 100 Index ##NIFTY 50 Index. Inception Date: June 25, 2007. The Scheme is managed by Mr. Chirag Setalvad since inception. Different plans viz. Regular Plan and Di...
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