Chapter 5 – Service Standards for Retail Banking Code for Banking Services

Banking Codes and Standards Board of India

Banking Codes and Standards Board of India has prescribed various compliance requirements for the promises made by banks for offering services to retail banking customers and these promises have been codified into a document. Most of these commitments are applicable to individual customers availing retail banking services.

This is a voluntary Code It sets minimum standards of banking practices for banks to follow when they are dealing with individual customers. It provides protection to customers and explains how banks are expected to deal with customers for dayto-day operations.

The Code does not replace or supersede regulatory or supervisory instructions of the Reserve Bank of India. Provisions of the Code may set higher standards than what is indicated in the regulatory instructions and such higher standards will prevail as the Code represents best practices voluntarily agreed to by banks. In the Code, ‘you’ denotes the customer and ‘we’, the bank the customer deals with.

Objectives of the Code

Promote good and fair banking practices by setting minimum standards in dealing with you increase transparency so that you can have a better understanding of what you can reasonably expect of the services _ encourage market forces, through competition, to achieve higher operating standards promote a fair and cordial relationship between you and your bank foster confidence in the banking system.

Application of the Code

This Code applies to all the products and services listed below, whether they are provided by branches or subsidiaries, agents acting on our behalf, across the counter, over the phone, by post, through interactive electronic devices, on the internet or by any other method. Current accounts, savings accounts, term deposits, recurring deposits, PPF accounts and all other deposit accounts Payment services such as pension, payment orders, remittances-by way of Demand Drafts, wire transfers and all electronic transactions e.g. RIGS, EFT, NEFT Banking services related to Government transactions Demat accounts, equity, Government bonds Indian currency notes exchange facility Collection of cheques, safe custody services, safe deposit locker facility Loans, overdrafts and guarantees Foreign exchange services including money changing Third party insurance and investment products sold through our branches. Card products including credit cards, debits cards, ATM cards, smart cards and services (including credit cards offered by our subsidiaries/companies promoted by us).

‘Do Not Call’ Service

Bank will automatically register customer’s name under ‘Do Not Call’ Service. Bank will not inform/extend to customer through telephone calls/SMS/e-mails any new product /service unless customer consents in writing to avail of this information/ service from bank.

Interest Rates

Bank shall inform to customer (1) interest rates on deposit and loan accounts (ii) in case of loans at fixed rate of interest, details of interest reset clause, if any, in the loan agreement and the effective date thereof ; (iii) in case of loans at floating rate of interest, the reference rate to which floating rate will be linked and the premium or discount applied to the reference rate. (iv) whether the loan agreement will contain a minimum rate of interest clause.

Changes in interest rates

Changes in interest rates and changes in the reference rate to which the floating rate of interest is linked to be informed through any one or more of the following means (i) Notice at the branches (ii) Annexure to the statement of account (iii) Letters (iv) e-mail (v) SMS (vi) Website (vii) Newspaper Changes in Fees & Charges: If bank increases any of charges or introduce a new charge, it will be notified one month prior to the revised charges being levied / becoming effective.

Changes to Terms and Conditions

(i) Normally, changes will be made with prospective effect giving notice of one month. (ii)If any change is made without notice, bank will notify the change within 30 days. If such change is to customer’s disadvantage, customer may within 60 days and without notice, close accounts witch it without having to pay any extra charges or interest. Bank will immediately update on its website, any changes in the terms and conditions.

Privacy and Confidentiality

If bank is asked to give a banker’s reference about customer, bank will need customer’s written permission before giving it. Bank will not use customer’s personal information for marketing purposes by anyone including by bank unless customer specifically authorizes to do so.

Credit Reference Agencies

Information about credit availed from the bank is reported by bank to the CRA on a monthly basis. (ii) If customer’s loan account has been in default, and thereafter regularised, bank will take steps to update this information with the CRA in the next monthly report. (iii) When customer apply for credit facility from the bank, bank will on request, and on payment of prescribed fee, furnish customer a copy of the credit information obtained by the bank from the CRA.

Collection of Dues

(i) Bank will post details of the recovery agency firms I companies engaged by Bank on their website and will also make available on request details of the recovery agency firms/companies at their branches. (ii) The Bank’s staff or any person authorized to represent bank in collection of dues or/and security repossession will identify himself/herself and display the authority letter issued by the Bank. (iii) Customer would be contacted ordinarily at the place of customer’s choice and in the absence of any specified place at the place of customer’s residence and if unavailable at customer’s residence, at the place of business/occupation. (iv) Normally Bank’s representatives will contact customer between 0700 and 1900 hrs, unless the special circumstances of customer’s business or occupation require otherwise.

Complaints, Grievances and Feedback

Acknowledgement of a customer’s complaint within a week. (ii) Final response or reason why Bank needs _more time to respond within 30 days of receipt of customer’s complaint.

Products and Services:

Bank will acknowledge the receipt of customer’s nomination details and record the fact of nomination on the passbook/Account Statement/FDRs. At customer’s request, Bank will also indicate the name of the nominee thereon.

Changing customer’s account:

(a) If customer is not happy about choice of current I savings account, within 14 days of making first payment into the account, the Bank will help the customer switch to another account or Bank will give customer’s money back with any interest it may have earned. Bank will ignore any notice period and any extra charges. (b) If customer decides to close his current/savings account, Bank will close account within three working days of receiving customer’s instructions. (c) If customer wants to transfer his account to another branch of the bank, his account at the new branch will be operationalised within two weeks of receiving customer’s requeSt, subject to customer complying with the required KYC formalities at the new branch.

Savincs/Current Accounts

The minimum balance to be maintained in the Savings Bank account will be displayed in the branches. (ii) Bank will inform of any change in minimum balance to be maintained 30 days in advance.

Dormant/ Inoperative Accounts

Customer will also be informed three months before customer’s account is classified as dormant /inoperative (b) Bank will not charge customer for activation of the inoperative account.

Closing Customer’s Account

Under normal circumstances, Bank will not close customer’s account without giving customer at least 30 days’ notice.

Cash Transactions

Bank will exchange soiled/mutilated notes and/ or small coins at its branches as per RBI Directives.

ATM

Bank will reimburse amounts wrongly debited in failed ATM transactions within a maximum period of 7 working days from the date of receipt of customer’s complaint.

Branch Closure/ Shifting

If Bank plan to close branch or if Bank moves its branch, Bank will give (i) notice of three months if there is no other branch of any bank functioning at customer’s centre (ii) notice of two months, if there is a branch of any other bank functioning at customer’s centre.

Seftlement Of Claims in respect of Deceased Account Holders

Bank will settle the claims in respect of deceased depositors and release payments to survivor(s) I nominee(s) within a period not exceeding 15 days from the date of receipt of the claim subject to the production of proof of death of the depositor and suitable identification of the claim(s).

Loan Products

Bank will invariably provide customer with an acknowledgement of customer’s loan application. Bank shall make every endeavour to indicate on customer’s application the period within which customer can expect to receive a decision on customer’s request for loan. (ii) Bank will give customer the Most Important Terms and Conditions (MITC) governing the loan / credit facility customer have availed. (iii) Bank will provide customer the sanction letter detailing particulars of amount sanctioned, terms and conditions, customer’s responsibilities as well as the bank’s, etc. (v) Bank will compensate customer for any delay in return of securities / documents I title deeds to mortgaged property beyond 15 days of the repayment of all dues agreed to or contracted. (vi) Bank will supply authenticated copies of all the loan documents executed by customer at Bank’s cost along with a copy each of all enclosures quoted in the loan document. (vii) Bank will give written receipt for all documents to title taken as security/ collateral for any loan as well as for dated/undated cheques received from customer. (viii) Bank will return to customer all the securities / documents/title deeds to mortgaged property within 15 days of the repayment of all dues agreed to or contracted. If any right to set off is to be exercised for any other claim, Bank will give due notice with full particulars about the other claims and retain the securities/documents/title to mortgaged property till the relevant claim is settled/paid. (ix) Bank will compensate customer for any delay in return of securities / documents / title deeds to mortgaged property beyond 15 days of the repayment of all dues agreed to or contracted. (x) Bank will process request for transfer of borrowal account, either from the borrower or from a bank/financial institution, in the normal course and convey its concurrence or otherwise within 21 days of receipt of request. (xi) Bank will not offer any unsolicited pre-approved credit facility in any form, including enhancement of credit card limit and top up of personal loan limits. (xii) In case, Bank offers/approves a credit facility over the telephone, Bank will credit customer’s account with the amount sanctioned only after receiving customer’s acceptance in writing. (xiii) In case of securities lodged with the Bank for loans availed by customer, Bank will not insist on customer’s obtaining insurance cover from any particular provider.

Credit Card

(i) Bank will provide ‘Online Alerts’ to customer for all ‘card not present’ transactions of the value of Rs.5000/- and above. (ii) If customer do not recognize a transaction, which appears on customer’s card statement, Bank will give customer more details if customer ask for the same. In cases, where Bank do not accept customer’s contention, Bank will give evidence that customer had authorized the transaction, in question. (iii) In case Bank activates the card without customer’s consent I bill customer for the card for which customer has not given consent, Bank will not only reverse the charges forthwith but will also pay a penalty amounting to twice the value of the charges reversed. (iv) Bank will extend a loan/credit facility/enhance credit limit on customer’s card only with customer’s consent in writing