Hdfc bank dd charges for current account
Accordingly, with a view to ensuring reasonableness and equity in the charges levied by banks for sending SMS alerts to customers, banks are advised to leverage the technology available with them and the telecom service providers to ensure that such charges are levied on all customers on actual usage basis. Banks should normally function for public transactions at least for 4 hours on week days and 2 hours on Saturdays in the larger interest of public and trading community.
Extension counters, Satellite Offices, one man offices or other special class of branches may remain open for such shorter hours as may be considered necessary. No particular banking hours have been prescribed by law and a bank may fix, after due notice to its customers, whatever business hours are convenient to it i. In order to safeguard banks' own interest, a bank closing any of its offices on a day other than a public holiday, will have to give due and sufficient notice to all the parties concerned who are or are likely to be affected by such closure.
What is sufficient or due notice is a question of fact, depending on the circumstances of each case. It is also necessary to avoid any infringement of any other relevant local laws such as Shops and Establishment Act, etc. Clearing House authority of the place should also be consulted in this regard. The banks' branches in rural areas can fix the business hours i. This may, however, be done subject to the guidelines given above. The banks should implement the recommendation taking into account the provisions of the local Shops and Establishments Act.
The branch managers and other supervising officials should, however, ensure that the members of the staff are available at their respective counters right from the commencement of banking hours and throughout the prescribed business hours so that there may not be any grounds for customers to make complaints.
Banks should ensure that no counter remains unattended during the business hours and uninterrupted service is rendered to the customers.
Further, the banks should allocate the work in such a way that no Teller counter is closed during the banking hours at their branches.
All the customers entering the banking hall before the close of business hours should be attended to. Banks should extend business hours for banking transactions other than cash, up till one hour before close of the working hours. The following non-cash transactions should be undertaken by banks during the extended hours, i.
Such non-cash transactions to be done during the extended business hours should be notified adequately for information of the customers. It is necessary that in such cases the transactions conducted during such extended hours of business are merged with the main accounts of the branch where it is decided to provide the aforesaid facilities.
The concerned banks should give to their constituents due notice about the functions to be undertaken during the extended banking hours through local newspapers, as also by displaying a notice on the notice board at the branch es concerned. Further, as and when the hours of business of any of the branches are extended, the concerned clearing house should be informed.
Time norms for specialised business transactions should be displayed predominantly in the banking hall. The display of information by banks in their branches is one of the modes of imparting financial education.
This display enables customers to take informed decision regarding products and services of the bank and be aware of their rights as also the obligations of the banks to provide certain essential services.
It also disseminates information on public grievance redressal mechanism and enhances the quality of customer service in banks and improves the level of customer satisfaction. Further, in order to promote transparency in the operations of banks, various instructions have been given by RBI to banks towards display of various key aspects such as service charges, interest rates, services offered, product information, time norms for various banking transactions and grievance redressal mechanism.
Keeping in view the need for maintaining a good ambience at the branches as also space constraints, an Internal Working Group in RBI revisited all the existing instructions relating to display boards by commercial banks so as to rationalize them. Based on the recommendations of the Working Group, the following instructions were issued to banks:.
At the same time, the Group felt that there may not be any need to place detailed information in the Notice Board and only the important aspects or 'indicators' to the information be placed. Accordingly, the existing mandatory instructions have been broadly grouped into four categories mentioned above and given in a Comprehensive Notice Board which has been formulated by the above Group.
The minimum size of the Board may be 2 feet by 2 feet as Board of such a size would facilitate comfortable viewing from a distance of 3 to 5 meters. Banks are advised to display the information in the Notice Boards of their Branches as per the format given for the Comprehensive Notice Board. While displaying the information in the notice board, banks may also adhere to the following principles:.
The notice board may be updated on a periodical basis and the board should indicate the date up to which the board was updated incorporated in the display board.
Though the pattern, colour and design of the board is left to the discretion of the banks, yet the display must be simple and readable. The language requirements i. The notice board shall specifically indicate wherever recent changes have been done. The notice board may also indicate a list of items on which detailed information is available in booklet form. In this connection, banks may also adhere to the following broad guidelines:.
While printing the booklets it may be ensured that the font size is minimum Arial 10 so that the customers are able to easily read the same. Banks should adhere to the broad guidelines relating to dating of material, legibility, etc.
Further, there are certain information relating to service charges and fee and grievance redressal that are to be posted compulsorily on the websites of the bank. Banks may also consider displaying all the information that has to be given in the booklet form in the touch screen by placing them in the information kiosks. Scroll Bars, Tag Boards are other options available.
The above broad guidelines may be adhered to while displaying information using these modes. Banks are free to decide on their promotional and product information displays. However, the mandatory displays may not be obstructed in anyway. As customer interest and financial education are sought to be achieved by the mandatory display requirements, they should also be given priority over the other display boards.
Information relating to Government sponsored schemes as applicable location-wise may be displayed according to their applicability. A format has been devised by Reserve Bank for display of information relating to interest rates and service charges which would enable the customer to obtain the desired information at a quick glance.
The format is given in Annex III. Banks are advised to display the information as per the format given in Annex III on their web-sites. Banks are however free to modify the format to suit their requirements, without impairing the basic structure or curtailing the scope of disclosures. Banks may also ensure that only latest updated information in the above format is placed on their web-sites and the same is easily accessible from the Home Page of their web-sites.
In order to enhance transparency in pricing of credit, based on the recommendations of Working Group on Pricing of Credit, banks are advised to adhere to the following additional instructions with effect from April 1, Banks should display on their website the interest rate range of contracted loans for the past quarter for different categories of advances granted to individual borrowers along with mean interest rates for such loans.
The total fees and charges applicable on various types of loans to individual borrower should be disclosed at the time of processing of loan as well as displayed on the website of banks for transparency and comparability and to facilitate informed decision making by customers. The same may also be included as a summary box to be displayed in the credit agreement. Disclosure of information on products and services on websites is found to be an effective channel for reaching out to customers and the public at large.
Such disclosures increase transparency in operations and also help to create awareness among customers about the products and services offered by banks. Some of the details, which could be at the minimum , be made available for public viewing through websites of banks are listed below: Service Charges for various types of services — Should cover typical common services including courier charges — What services are available without any charges.
Details of branches along with addresses and telephone numbers with search engine for queries relating to branch location. Banks should clearly delineate the procedure for disposal of loan proposals, with appropriate timelines, and institute a suitable monitoring mechanism for reviewing applications pending beyond the specified period.
There should not, however, be any compromise on due diligence requirements. Banks may also make suitable disclosures on the timelines for conveying credit decisions through their websites, notice-boards, product literature, etc. The person who would be actually drawing the money from the bank should be asked to furnish his signature to the bank.
The Supreme Court has held in AIR — Supreme Court, that there must be physical contact between the person who is to sign and the signature can be by means of a mark. This mark can be placed by the person in any manner. It could be the toe impression, as suggested.
Indian Banks' Association has framed operational guidelines for implementation of its member banks on providing banking facilities to persons with disabilities. Care may also be taken to make arrangements in such a way that the height of the ATMs does not create an impediment in their use by wheelchair users. However, in cases where it is impracticable to provide such ramp facilities, whether permanently fixed to earth or otherwise, this requirement may be dispensed with, for reasons recorded and displayed in branches or ATMs concerned.
Banks are advised to report the progress made in this regard periodically to their respective Customer Service Committee of the Board and ensure compliance. In the Case No.
In the above Order, the Honorable Court has instructed that banks should offer all the banking facilities including cheque book facility, ATM facility and locker facility to the visually challenged and also assist them in withdrawal of cash.
Banks should therefore ensure that all the banking facilities such as cheque book facility including third party cheques, ATM facility, Net banking facility, locker facility, retail loans, credit cards etc. Banks may also advise their branches to render all possible assistance to the visually challenged for availing the various banking facilities.
In addition to the above, magnifying glasses should also be provided in all bank branches for the use of persons with low vision, wherever they require for carrying out banking transactions with ease. The branches should display at a prominent place notice about the availability of magnifying glasses and other facilities available for persons with disabilities. The Mental Health Act, provides a law relating to the treatment and care of mentally ill persons and to make better provision with respect to their property and affairs.
Sections 53 and 54 of this Act provide for the appointment of guardians for mentally ill persons and in certain cases, managers in respect of their property. The prescribed appointing authorities are the district courts and collectors of districts under the Mental Health Act, This Act empowers a Local Level Committee to appoint a guardian, to a person with disabilities, who shall have the care of the person and property of the disabled person.
In case of doubt, care may be taken to obtain proper legal advice. In a case which came up before the High Court of Delhi, the Honorable Court had directed that all banks should ensure that their branches display in a conspicuous place i essential details about the facilities under the enactment Mental Disabilities Act ; ii the fact that the parties can approach the Local Level Committees, for the purpose of issuance of the certificate and that the certificate issued under the Mental Disabilities Act is acceptable; and iii the details of the Local Level Committees in that area.
Banks are advised to strictly comply with the above orders of the Court. In the current scenario, where the integrity of the financial system in general and the banking channels in particular is of paramount importance, breach of these guidelines is a matter of serious regulatory concern in view of the wide ranging ramifications.
Any violation of these instructions will be viewed seriously. Measures seeking to bring down the incidence of frauds perpetrated through bank drafts should be built into the draft form itself. Necessary changes in system and procedures to speed up issue and payment of drafts should be taken. All superscriptions about validity of the demand draft should be provided at the top of the draft form. A draft should be uniformly valid for a period of three months and procedure for revalidation after three months should be simplified.
Banks should ensure that drafts of small amounts are issued by their branches against cash to all customers irrespective of the fact whether they are having accounts with the banks or not. Bank's counter staff should not refuse to accept small denomination notes from the customers or non customers for issuance of the drafts. The banks should ensure that drafts drawn on their branches are paid immediately. Payment of draft should not be refused for the only reason that relative advice has not been received.
Banks should issue duplicate Demand Draft to the customer within a fortnight from the receipt of such request. Further, for the delay beyond this stipulated period, banks were advised to pay interest at the rate applicable for fixed deposit of corresponding maturity in order to compensate the customer for such delay. The period of fortnight prescribed would be applicable only in cases where the request for duplicate demand draft is made by the purchaser or the beneficiary and would not be applicable in the case of third party endorsements.
It is clarified that the above instructions would be applicable only in cases where the request for duplicate demand draft is made by the purchaser or the beneficiary and would not be applicable in the case of draft endorsed to third parties.
In case of remittance through electronic funds transfer, originating banks should provide the option to the customer to choose between RTGS system and NEFT system at the time of initiation of the funds transfer.
The option should be made available to all the customers who may originate remittance either at the branch or through internet or any other means. The funds are to be transferred necessarily through the option chosen by the customer. While it is expected that such confirmation messages are sent as soon as the beneficiary account is credited, it should not exceed beyond end-of —the-day under any circumstance.
The contact details of CFCs are available on websites of banks as well as the website of RBI for easy availability to the customers.
To facilitate electronic modes of remittance and enhancing customer service at branches for NEFT transactions, the participating banks are advised that staff should provide customers with necessary assistance in filling out the details as required in the NEFT application form, including ensuring that beneficiary account details etc.
With a view to minimizing instances of customer complaints, all participant banks both direct as well as sub-members , are advised to ensure adherence to extant instructions as under:.
Positive confirmation of credit to beneficiary account is invariably sent for all inward transactions received by the bank. In case of delayed credits or delayed returns, the penal interest as applicable is paid suo-moto to the customer. Even in the case of back-dating or value-dating such delayed transactions, banks should pay the penal interest for the delayed period.
However, banks may place per transaction limits based on their own risk perception with the approval of its Board. Both the drop box facility and the facility for acknowledgement of the cheques at regular collection counters should be available to the customers and no branch should refuse to give an acknowledgement if the customer tenders the cheques at the counters.
Banks should ensure that customers are not compelled to drop the cheques in the drop-box. Further, in the context of customer awareness in this regard, banks should invariably display on the cheque drop-box itself that "Customers can also tender the cheques at the counter and obtain acknowledgment on the pay-in-slips".
The above message is required to be displayed in English, Hindi and the concerned regional language of the State. Due to the technological progress in payment and settlement systems and the qualitative changes in operational systems and processes that have been undertaken by a number of banks, it is observed that prescription of a single set of rules may not be appropriate.
Hence, efficiencies in collection of proceeds and providing funds to customers in time are best achieved through a spirit of competition among the banks rather than through issuance of guidelines by RBI.
Banks have been advised to reframe their Cheque Collection Policies to include compensation payable for the delay in the collection of local cheques as well.
In case, no rate is specified in the CCP for delay in realisation of local cheques, compensation at savings bank interest rate should be paid for the corresponding period of delay. With a view to encouraging faster migration to CTS standard cheques, banks are advised that non CTS standard instruments will be cleared at less frequent intervals in the CTS clearing centres.
Banks may educate and notify their customers of the likely delay in realisation of non-CTS standard instruments in view of the arrangement for clearing of such instruments at less frequent intervals.
They may also put in place appropriate arrangement for handling customer complaints, if any, arising out of this new arrangement. The policy should be placed before the Board of the Bank along with Reserve Bank's earlier instructions as indicated in paragraph 3.
Banks are advised to comply with the final order on 'timeframe for collection of outstation cheques' passed by the National Consumer Disputes Redressal Commission in case no. Further, banks are advised as under:. Ideally, in respect of local clearing, banks shall permit usage of the shadow credit afforded to the customer accounts immediately after closure of relative return clearing and in any case withdrawal shall be allowed on the same day or maximum within an hour of commencement of business on the next working day, subject to usual safeguards.
If there is any delay in collection beyond this period, interest at the rate specified in the CCP of the bank, shall be paid. In case the rate is not specified in the CCP, the applicable rate shall be the interest rate on Fixed Deposits for the corresponding maturity.
The timeframe for collection specified by the Commission shall be treated as outer limit and credit shall be afforded if the process gets completed earlier.
Accordingly, banks were directed that they should not collect account payee cheques for any person other than the payee constituent.
This instruction would also apply with respect to the cheque drawn by a bank payable to another bank. Under such arrangements, there should be clear undertaking to the effect that the proceeds of the account payee cheque will be credited to the payee's account only, upon realization.
While collecting the cheques as aforesaid, banks should have a clear representation in writing given by the co-operative credit societies concerned that, upon realization, the proceeds of the cheques will be credited only to the account of the member of the co-operative credit society who is the payee named in the cheque. This shall, however, be subject to the fulfillment of the requirements of the provisions of Negotiable Instruments Act, , including Section thereof.
Bills for collection including bills discounted required to be collected through another bank at the realising centre should be forwarded directly by the forwarding office to the realising office. The delayed period should be reckoned after making allowance for normal transit period based upon a time frame of 2 days each for i Despatch of bills; ii Presentation of bills of drawees iii Remittance of proceeds to the lodger's bank iv Crediting the proceeds to drawer's account.
To the extent the delay is attributing to the drawee's bank, the lodger's bank may recover interest for such delay from that bank. The banks may suitably revise the format of their payment advices to incorporate the above information.
Banks have been advised to levy cheque return charges only in cases where the customer is at fault and is responsible for such returns. The illustrative, but not exhaustive, list of returns, where the customers are not at fault are indicated in the Annex VI. In cases where the cheques need to be re-presented without any recourse to the payee, such re-presentation should be made in the immediate next presentation clearing not later than 24 hours excluding holidays with due notification to the customers of such representation through SMS alert, email etc.
However, it is considered necessary to streamline the procedure to be followed by all banks in this behalf. It is therefore suggested that in addition to the existing instruction in respect of dishonoured instruments for want of funds, banks may follow the additional instructions laid down in paragraph Also, the bank may consider closing current account at its discretion.
However, in respect of advances accounts such as cash credit account, overdraft account, the need for continuance or otherwise of these credit facilities and the cheque facility relating to these accounts should be reviewed by appropriate authority higher than the sanctioning authority. Similar cautionary advice may be issued if a bank intends to close the account. Further, it is also felt that though it may not be necessary to extend all the steps laid down in our earlier circular to smaller cheques, banks should have their own approach to deal with recalcitrant customers.
The policy should also deal with matters relating to frequent dishonour of ECS mandates. Banks should also lay down requisite internal guidelines for their officers and staff and advise them to adhere to such guidelines and ensure strict compliance thereof to achieve aforesaid object of effective communication and delivery of dishonoured cheque to the payee.
Further, at every office of the bank a notice requesting the customers to meet the branch manager may be displayed regarding grievances, if the grievances remain unredressed. Complaint book with perforated copies in each set may be introduced, so designed as to instantly provide an acknowledgement to the customers and anintimation to the Controlling Office.
IBA has, for the sake of uniformity, prepared a format of the complaint book with adequate number of perforated copies, which are so designed that the complainant could be given an acknowledged copy instantly. A copy of the complaint is required to be forwarded to the concerned Controlling Office of the bank along with the remark of the Branch Manager within a time frame. Bank should introduce the complaint book as per the above format for uniformity.
These registers should be maintained irrespective of the fact whether a complaint is received or not in the past. Banks having computerized operations may adopt the afore-said format and generate copies electronically. Further, a complaint form, along with the name of the Nodal Officer for complaint redressal, may be provided in the homepage itself to facilitate complaint submission by customers.
The complaint form should also indicate that the first point for redressal of complaints is the bank itself and that complainants may approach the Banking Ombudsman only if the complaint is not resolved at the bank level within a month. Similar information may be displayed in the boards put up in all the bank branches to indicate the name and address of the Banking Ombudsman. In addition, the name, address and telephone numbers of the Controlling Authority of the bank to whom complaints can be addressed may also be given prominently.
CPPAPS had further recommended that the Statement of complaints and its analysis should also be disclosed by banks along with their financial results. Further, a suggestion has been received that unimplemented awards of the Banking Ombudsman should also be disclosed along with financial results.
The complaints should be analyzed i to identify customer service areas in which the complaints are frequently received; ii to identify frequent sources of complaint; iii to identify systemic deficiencies; and iv for initiating appropriate action to make the grievance redressal mechanism more effective. Further, banks are also advised to disclose the following brief details along with their financial results:. Further, banks are also advised to place the detailed statement of complaints and its analysis on their web-site for information of the general public at the end of each financial year.
Banks should include all complaints pertaining to ATM cards issued by them in their disclosures. Further, as stated above in Paragraph However, where the complaints are redressed within the next working day, banks need not include the same in the statement of complaints. This is expected to serve as an incentive to the banks and their branches to redress the complaints within the next working day.
This would enable the Nodal Officer to deal with any reference received from the Banking Ombudsman regarding the complaint more effectively. As such, in the final letter sent to the customer regarding redressal of the complaint, banks should indicate that the complainant can also approach the concerned Banking Ombudsman.
The details of the concerned Banking Ombudsman should also be included in the letter. Banks should give wide publicity to the grievance redressal machinery through advertisements and also by placing them on their web sites.
With a view to making the Grievance Redressal Mechanism more effective, in addition to the instructions mentioned above, banks are further advised as under:. Ensure that the Principal Nodal Officer appointed under the Banking Ombudsman Scheme is of a sufficiently senior level, not below the rank of a General Manager. Grievance Redressal Mechanism GRM should be made simpler even if it is linked to call centre of customer care unit without customers facing hassles of proving identity, account details, etc.
Adequate and wider publicity are also required to be given by the respective financial services provider. Road, Mumbai email. Banks should critically examine on an on-going basis as to how Grievances Redressal Machinery is working and whether the same has been found to be effective in achieving improvement in customer service in different areas. Banks should identify areas in which the number of complaints is large or on the increase and consider constituting special squads to look into complaints on the spot in branches against which there are frequent complaints.
The banks may arrange to include one or two sessions on customer service, public relations etc. In cases where the contention of the complainant has not been accepted, a complete reply should be given to him to the extent possible. With a view to further boosting the quality of customer service and ensuring that there is undivided attention to resolution of customer complaints in banks, all public sector banks, and some private sector and foreign banks Annex X have been advised to appoint an internal ombudsman designated as Chief Customer Service Officer CCSO.
These banks have been selected on the basis of their asset size, business mix, etc. Banks have been advised to adhere to the guidelines and procedures for opening and operating deposit accounts to safeguard against unscrupulous persons opening accounts mainly to use them as conduit for fraudulently encashing payment instruments. Besides in cases of the above kind, banks also do not restore funds promptly to customers even in bona-fide cases but defer action till completion of either departmental action or police interrogation.
The following guidelines supersede all the guidelines issued earlier in this regard. The Committee on Procedures and Performance Audit of Public Services CPPAPS observed that linking the lockers facility with placement of fixed or any other deposit beyond what is specifically permitted is a restrictive practice and should be prohibited forthwith. RBI concurs with the Committee's observations and banks are advised to refrain from such restrictive practices.
Banks may face situations where the locker-hirer neither operates the locker nor pays rent. To ensure prompt payment of locker rent, banks may at the time of allotment, obtain a Fixed Deposit which would cover 3 years rent and the charges for breaking open the locker in case of an eventuality. However, banks should not insist on such Fixed Deposit from the existing locker-hirers. Branches should maintain a wait list for the purpose of allotment of lockers and ensure transparency in allotment of lockers.
All applications received for allotment of locker should be acknowledged and given a wait list number. Banks should give a copy of the agreement regarding operation of the locker to the locker-hirer at the time of allotment of the locker.
Banks should exercise due care and necessary precaution for the protection of the lockers provided to the customer.
The security procedures should be well-documented and the concerned staff should be properly trained in the procedure. The internal auditors should ensure that the procedures are strictly adhered to. In a recent incident, explosives and weapons were found in a locker in a bank branch. This emphasizes that banks should be aware of the risks involved in renting safe deposit lockers. In this connection, banks should take following measures:.
If the customer is classified in a higher risk category, customer due diligence as per KYC norms applicable to such higher risk category should be carried out.
This exercise should be carried out even if the locker hirer is paying the rent regularly. In case the locker-hirer has some genuine reasons as in the case of NRIs or persons who are out of town due to a transferable job etc. In case the locker-hirer does not respond nor operate the locker, banks should consider opening the lockers after giving due notice to him. In this context, banks should incorporate a clause in the locker agreement that in case the locker remains unoperated for more than one year, the bank would have the right to cancel the allotment of the locker and open the locker, even if the rent is paid regularly.
To enable a banking company to make payment to the nominee of a deceased depositor, the amount standing to the credit of the depositor. To enable a banking company to return the articles left by a deceased person in its safe custody to his nominee, after making an inventory of the articles in the manner directed by the Reserve Bank.
To enable a banking company to release the contents of a safety locker to the nominee of the hirer of such locker, in the event of the death of the hirer, after making an inventory of the contents of the safety locker in the manner directed by the Reserve Bank. Since such nomination has to be made in the prescribed manner, the Central Government framed, in consultation with the Reserve Bank of India, the Banking Companies Nomination Rules, These Rules, together with the provision of new Sections 45ZA to 45ZF of the Banking Regulation Act, regarding nomination facilities were brought into force with effect from Nomination Forms for deposit accounts, articles kept in safe custody and contents of safety lockers.
In order to ensure that the amount of deposits, articles left in safe custody and contents of lockers are returned to the genuine nominee, as also to verify the proof of death, banks may devise their own claim formats or follow the procedure, if any, suggested by the Indian Banks' Association for the purpose.
Banks may extend the nomination facility also in respect of deposits held in the name of a sole proprietary concern. Banks should give wide publicity and provide guidance to deposit account holders on the benefits of nomination facility and the survivorship clause. Despite the best efforts in this regard, banks might still be opening single deposit accounts without nomination. In a case which came up before the Allahabad High Court, the Honourable Court has observed that "it will be most appropriate that the Reserve Bank of India issues guidelines to the effect that no Savings Account or Fixed Deposit in single name be accepted unless name of the nominee is given by the depositors.
It will go a long way to serve the purpose of the innocent widows and children, who are dragged on long drawn proceedings in the Court for claiming the amount, which lawfully belongs to them". Keeping in view the above, banks should generally insist that the person opening a deposit account makes a nomination.
In case the person opening an account declines to fill in nomination, the bank should explain the advantages of nomination facility. If the person opening the account still does not want to nominate, the bank should ask him to give a specific letter to the effect that he does not want to make a nomination. In case the person opening the account declines to give such a letter, the bank should record the fact on the account opening form and proceed with opening of the account if otherwise found eligible.
Under no circumstances, a bank should refuse to open an account solely on the ground that the person opening the account refused to nominate. Further, in some banks, although there is a system of acknowledgement of nomination as provided in the Savings Bank account opening form, such acknowledgements are actually not given to the customers. Such acknowledgement should be given to all the customers irrespective of whether the same is demanded by the customers.
When a bank account holder has availed himself of nomination facility, the same may be indicated on the passbook so that, in case of death of the account holder, his relatives can know from the pass book that the nomination facility has been availed of by the deceased depositor and take suitable action. Banks may, therefore, introduce the practice of recording on the face of the passbook the position regarding availment of nomination facility with the legend "Nomination Registered".
This may be done in the case of term deposit receipts also. Nomination facility is available for Savings Bank Account opened for credit of pension. Banking Companies Nomination Rules, are distinct from the Arrears of Pension Nomination Rules, and nomination exercised by the pensioner under the latter rules for receipt of arrears of pension will not be valid for the purpose of deposit accounts held by the pensioners with banks for which a separate nomination is necessary in terms of the Banking Companies Nomination Rules, in case a pensioner desires to avail of nomination facility.
As such, a nominee cannot be an Association, Trust, Society or any other Organisation or any office-bearer thereof in his official capacity. In view thereof any nomination other than in favour of an individual will not be valid. This is also applicable to deposits having operating instructions "either or survivor". Signatures of the account holders need not be attested by witnesses. It is understood that sometimes the customers opening joint accounts with or without "Either or Survivor" mandate, are dissuaded from exercising the nomination facility.
It is clarified that nomination facility is available for joint deposit accounts also. Banks are, therefore, advised to ensure that their branches offer nomination facility to all deposit accounts including joint accounts opened by the customers.
However, the responsibility of the banks in such cases is to ensure that when the contents of a locker were sought to be removed on behalf of the minor nominee, the articles were handed over to a person who, in law, was competent to receive the articles on behalf of the minor. In such a case, after such removal preceded by an inventory, the nominee and surviving hirer s may still keep the entire contents with the same bank, if they so desire, by entering into a fresh contract of hiring a locker.
The banks should endeavour to drive home to their constituents the benefit of nomination facilities and ensure that the message reaches all the constituents by taking all necessary measures for popularising the nomination facility among their constituents.
Illustratively, it should be highlighted in the publicity material that in the event of the death of one of the joint account holders, the right to the deposit proceeds does not automatically devolve on the surviving joint deposit account holder, unless there is a survivorship clause. The methodology which the banks may like to adopt for this purpose may vary.
However, one of the banks has devised a small slip indicating the availability of nomination facility and the slip is inserted in the cheque books and pass books and in current account statements. A specimen format of the slip is given below: For details, please enquire at the Branch".
Settlement of claims in respect of deceased depositors — Simplification of procedure. In case where the deceased depositor had not made any nomination or for the accounts other than those styled as "either or survivor" such as single or jointly operated accounts , banks are required to adopt a simplified procedure for repayment to legal heir s of the depositor keeping in view the imperative need to avoid inconvenience and undue hardship to the common person.
In this context, banks may, keeping in view their risk management systems, fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity. In the case of term deposits, banks are required to incorporate a clause in the account opening form itself to the effect that in the event of the death of the depositor, premature termination of term deposits would be allowed.
The conditions subject to which such premature withdrawal would be permitted may also be specified in the account opening form. Such premature withdrawal would not attract any penal charge. In this regard, banks could consider adopting either of the following two approaches:.
Detailed guidelines in this regard are, however, as follows:. In case the locker was hired jointly with the instructions to operate it under joint signatures, and the locker hirer s nominates person s , in the event of death of any of the locker hirers, the bank should give access of the locker and the liberty to remove the contents jointly to the survivor s and the nominee s. In case the locker was hired jointly with survivorship clause and the hirers instructed that the access of the locker should be given over to "either or survivor", "anyone or survivor" or "former or survivor" or according to any other survivorship clause, banks should follow the mandate in the event of the death of one or more of the locker-hirers.
Similar procedure should be followed for return of articles placed in the safe custody of the bank. Banks should note that the facility of nomination is not available in case of deposit of safe custody articles by more than one person.
There is an imperative need to avoid inconvenience and undue hardship to legal heir s of the locker hirer s. Similar procedure should be followed for the articles under safe custody of the bank. The inventory shall be in the appropriate Forms set out as enclosed to the above Notification or as near thereto as circumstances require. As per the direction of Reserve Bank, the Indian Banks' Association IBA has formulated a Model Operational Procedure MOP for settlement of claims of the deceased constituents , under various circumstances, consistent with the instructions contained in this circular, for adoption by the banks.
The banks should, therefore, undertake a comprehensive review of their extant systems and procedures relating to settlement of claims of their deceased constituents i. Section deals with presumption of continuance and Section deals with presumption of death. Banks are advised to formulate a policy which would enable them to settle the claims of a missing person after considering the legal opinion and taking into account the facts and circumstances of each case.
Further, keeping in view the imperative need to avoid inconvenience and undue hardship to the common person, banks are advised that keeping in view their risk management systems, they may fix a threshold limit, up to which claims in respect of missing persons could be settled without insisting on production of any documentation other than i FIR and the non-traceable report issued by police authorities and ii letter of indemnity. Banks are further advised that the provisions detailed in Para Release of other assets of the deceased borrowers to their legal heirs.
Banks had represented that the principle of not obtaining succession certificates etc. Banks are advised not to insist upon legal representation for release of other assets of deceased customers irrespective of the amount involved. Further several complaints were received in respect of difficulties faced by the customers on account of their accounts having been classified as inoperative.
Moreover, there is a feeling that banks are undeservedly enjoying the unclaimed deposits, while paying no interest on it. Keeping these factors in view, the instructions issued by RBI have been reviewed and banks are advised to follow the instructions detailed below while dealing with inoperative accounts:.
The banks may approach the customers and inform them in writing that there has been no operation in their accounts and ascertain the reasons for the same. In case the non- operation in the account is due to shifting of the customers from the locality, they may be asked to provide the details of the new bank accounts to which the balance in the existing account could be transferred.
In case of Non Resident accounts, the bank may also contact the account holders through e-mail and obtain their confirmation of the details of the account. However, in case the account holder still does not operate the same during the extended period, banks should classify the same as inoperative account after the expiry of the extended period.
However, the service charges levied by the bank or interest credited by the bank should not be considered. However, the customer should not be inconvenienced in any way, just because his account has been rendered inoperative.
The classification is there only to bring to the attention of dealing staff, the increased risk in the account. The transaction may be monitored at a higher level both from the point of view of preventing fraud and making a Suspicious Transactions Report.
However, the entire process should remain un-noticeable by the customer. Due diligence would mean ensuring genuineness of the transaction, verification of the signature and identity etc. However, it has to be ensured that the customer is not inconvenienced as a result of extra care taken by the bank. If a Fixed Deposit Receipt matures and proceeds are unpaid, the amount left unclaimed with the bank will attract savings bank rate of interest.
In case such accounts are not in the name of individuals, the names of individuals authorized to operate the accounts should also be indicated. Banks are required to have adequate operational safeguards to ensure that the claimants are genuine.
With a view to further strengthen the regulatory framework for inoperative accounts and unclaimed deposits, banks are advised to put in place a Board approved policy on classification of unclaimed deposits; grievance redressal mechanism for quick resolution of complaints; record keeping; and periodic review of such accounts. In order to reduce the risk of fraud etc. However, it has to be ensured that the customer is not inconvenienced in any manner.
Resultantly, in cases where scholarship amounts exceed the credit limit, banks do not allow the credit and return the amount to the disbursement account of the Government.
Further, in some cases banks are reported to have closed zero balance accounts unilaterally without intimating student beneficiaries concerned. Instances of banks refusing to open zero balance account for students have also been brought to our notice. The scope of the secrecy law in India has generally followed the common law principles based on implied contract. The bankers' obligation to maintain secrecy arises out of the contractual relationship between the banker and customer, and as such no information should be divulged to third parties except under circumstances which are well defined.
The following exceptions to the said rule are normally accepted:. At the time of opening of accounts of the customers, banks collect certain information. While complying with the above requirements, banks also collect a lot of additional personal information.
In this connection, the Committee on Procedures and Performances Audit on Public Services CPPAPS observed that the information collected from the customer was being used for cross selling of services of various products by banks, their subsidiaries and affiliates. Sometimes, such information was also provided to other agencies. As banks are aware, the information provided by the customer for KYC compliance while opening an account is confidential and divulging any details thereof for cross selling or any other purpose would be in breach of customer confidentiality obligations.
Banks should treat the information collected from the customer for the purpose of opening of account as confidential and not divulge any details thereof for cross selling or any other purposes. Banks may, therefore, ensure that information sought from the customer is relevant to the perceived risk, is not intrusive, and is in conformity with the guidelines issued in this regard.
Wherever banks desire to collect any information about the customer for a purpose other than KYC requirements, it should not form part of the account opening form. Such information may be collected separately, purely on a voluntary basis, after explaining the objectives to the customer and taking his express approval for the specific uses to which such information could be put. Banks should therefore, instruct all the branches to strictly ensure compliance with their obligations to the customer in this regard.
It should be ensured that along with the balance of the account, the relative account opening form, specimen signatures, standing instructions, etc. However, the transferee office should also be separately supplied with a copy of the account transfer letter. Banks should ensure that depositors dissatisfied with customer service have the facility to switch banks and thwarting depositors from such switches would invite serious adverse action.
There is a need for greater co-ordination between the income-tax department and the banking system. In such cases in addition to the normal criminal action, such staff member should also be proceeded against departmentally. Declaration of Holiday under the Negotiable Instruments Act, In terms of Section 25 of the Negotiable Instruments Act, , the expression "public holiday" includes Sunday and any other day declared by the Central Government by notification in the Official Gazette to be a public holiday.
While delegating the power to declare public holidays within concerned States under Section 25 of the Negotiable Instruments Act, , the Central Government has stipulated that the delegation is subject to the condition that the Central Government may itself exercise the said function, should it deem fit to do so.
This implies that when Central Government itself has notified a day as "public holiday" under Section 25 of the Negotiable Instruments Act, , there is no need for banks to wait for the State Government notification. In predominantly residential areas banks may keep their branches open for business on Sundays by suitably adjusting the holidays. Standing instructions should be freely accepted on all current and savings bank accounts. Clean overdrafts for small amounts may be permitted at the discretion of branch manager to customers whose dealings have been satisfactory.
Banks may work out schemes in this regard. Issue prices of cash certificates should also be rounded off in the same manner. Name, address, telephone numbers and email address should be given.
Do not drop the Challans in the Drop Boxes. In supersession of instructions contained in circular DBOD. Whether a 'Basic Savings Bank Deposit Account' holder can have any other saving account in that bank? Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings account in that bank.
The 'Basic Savings Bank Deposit Account' should be considered as a normal banking service available to all customers, through branches. Whether there are any restrictions like age, income, amount, etc criteria for opening BSBDA by banks for individuals? Banks are advised not to impose restrictions like age and income criteria of the individual for opening BSBDA. The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month.
Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document. Small Accounts can only be opened at CBS linked branches of banks or at such branches where it is possible to manually monitor the fulfilments of the conditions. However, the decision to allow services beyond the minimum prescribed has been left to the discretion of the banks who can either offer additional services free of charge or evolve requirements including pricing structure for additional value-added services on a reasonable and transparent basis to be applied in a non-discriminatory manner with prior intimation to the customers.
Banks are required to put in place a reasonable pricing structure for value added services or prescribe minimum balance requirements which should be displayed prominently and also informed to the customers at the time of account opening.
However, in case the banks decide to charge for the additional withdrawal, the pricing structure may be put in place by banks on a reasonable, non-discriminatory and transparent manner by banks.
Banks need not force ATM debit cards on such customers. What about customers who are illiterate or old who may not be in a position to safe keep and use the ATM debit card and PIN associated with it? If, however, customer opts to have an ATM debit card, banks should provide the same to BSBDA holders through safe delivery channels by adopting the same procedure which they have been adopting for delivery of ATM debit card and PIN to their other customers.
If a customer opens a BSBDA but does not close his existing Savings Bank Account within 30 days, are banks then free to close such savings bank accounts?
In certain accounts like MGNREGA where disbursements are made weekly and if a month has five weeks, it may result in more than four withdrawals. In such cases can banks permit five withdrawals? Use of Debit card at petrol pumps will attract a surcharge of 2. This facility requires separate registration. On registering for Internet Banking Service, the Customer will be provided with third party pre-designated and non designated limits.
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