On the subject of detection and impounding of counterfeit notes by banks operating in India, the Reserve Bank of India notes that, Complaints are being received from the public that while impounding a counterfeit note, the tenderer is not informed the reasons for deeming a note as counterfeit. It is therefore advised that the format […]
The Reserve Bank of India also governs the Banking Ombudsman Scheme which provides an “expeditious and inexpensive forum to bank customers for resolution of their complaints relating to banking services.” The objective of the Banking Ombudsman Scheme is to be a visible and reliable system of dispute resolution mechanism for bank customers. Though the Ombudsman […]
I’d written about this before, but felt it important to bring up again. According to the Reserve Bank of India’s Guidelines on Fair Practices Code for Lenders, Banks and Financial Institutions should convey in writing the main reason(s) which, in the opinion of the Bank or Financial Institution have led to rejection of the loan […]
Source: RBI Notification. Banks have been advised that unsolicited credit cards should not be issued and that in case an unsolicited card is issued and activated without the consent of the recipient and the latter is billed for the same, the card issuing bank shall not only reverse the charges forthwith, but also pay a […]
The following is a true account of a close friend’s experience after losing a credit card: How the credit card was lost? My purse was stolen on 20th January 2008 at an IKEA store in Elizabeth, NJ. I lost my Driver’s License, an HSBC credit card, and all my Debit Cards. I contacted the police, […]
In view of the rise in the number of litigations against banks in the recent past for engaging recovery agents, it is felt that the adverse publicity might result in serious reputation risk not only for the bank concerned but also for the banking sector as a whole. An urgent need has, therefore, arisen to […]
In a recent notification, the Reserve Bank of India (RBI) has noted that It is understood that some banks are furnishing a copy of the loan agreement only on request made by the borrowers. In this connection, we advise that not furnishing a copy of the loan agreement or enclosures quoted in the loan agreement […]
From a recent RBI circular: Rounding off cheques to the nearest rupee Banks are advised that all transactions, including payment of interest on deposits/charging of interest on advances, should be rounded off to the nearest rupee; i.e., fractions of 50 paise and above shall be rounded off to the next higher rupee and fraction of […]
Public Service Announcement From a recent RBI circular: Guidelines on Fair Practices Code for Lenders Earlier, Banks/FIs were advised that loan application forms in respect of priority sector advances up to Rs. 2.00 lakhs should be comprehensive and should include information about the fees/charges, if any, payable for processing, the amount of such fees refundable […]