Consumer Education and Protection

RBI/2011-12/250 DBOD.BP.BC. No.@@NBSP@@49/21.01.001/2011-12 November 4, 2011 The Chairmen / Chief Executives of All Scheduled Commercial Banks (excluding RRBs) Dear Sir, Issue of Demand Drafts for Rs. 20,000/- and above As banks are aware, instruments with account payee crossing are required to be credited to the payee's account and not paid in cash over the counter. However, some unscrupulous elements use demand drafts without any crossing for transfer of money as an

RBI/2010 -11/272 DBOD. Leg. BC. 61/09.07.005/2010 -11 November 12, 2010 All Scheduled Commercial Banks / All India Financial Institutions (Excluding RRBs) Dear Sir, Guidelines on Fair Practices Code for Lenders – Disclosing all information relating to processing fees/charges Please refer to our Circular DBOD. No. Leg. BC. 86/09.07.005/2008-09 dated November 25, 2008 containing guidelines on the captioned subject wherein banks were advised to ensure that all informatio

RBI/2010-11/182 RPCD.CO.FID. BC.No. 2433 /12.01.012/2010-11 August@@NBSP@@ 26, 2010 The Chaiman & Managing Director/ Chief Executive Officer All Scheduled Commercial Banks Dear Sir, Opening@@NBSP@@ of No-Frills accounts by students for availing various Government Scholarships. It has been brought to our notice by the Secretary, Government of India, Ministry of Minority Affairs that banks are not opening ‘no-frills’ accounts in favour of students from minority comm

RBI/2009-10/387 RPCD.CO.RRB.BC.No.65/03.05.33/2009-10 April 8, 2010 The Chairman All Regional Rural Banks (RRBs) Dear Sir, Cheque Collection Policy (CCP) - Immediate credit of Local / Outstation Cheques Please refer to our circular RPCD.CO.RRB.BC.No. 87/03.05.33/2008-09 dated February 5, 2009 advising RRBs to frame their Cheque Collection Policies covering local and outstation cheque collection as per the time frame prescribed by the National Consumer Disputes Redress

RBI / 2009-10/ 218 RPCD.CO.RF. BC. No.42/07.38.01/ 2009-10 November 13, 2009 All State and Central Co-operative Banks Dear Sir, Safe Deposit Lockers Please refer to Paragraph 5 of our circular RPCD.CO.RF.BC.No.95/ 07.38.01/2006-07 dated May 18, 2007, wherein banks were advised to ensure that the identification code of the bank / branch is embossed on all the locker keys with a view to facilitate Authorities in identifying the ownership of the locker keys. 2. In view o

RBI/2009-10/213 @@NBSP@@ DBOD.No.Leg.BC.59 /09.07.005/2009-10 November 9, 2009 All Scheduled Commercial Banks (Excluding RRBs) Dear Sir, Dishonour of Cheques – Dealing with incidents of frequent dishonour Please refer to paragraph 15.4 of our Master Circular DBOD.No.Leg.BC.9/ 09.07.006/2009-10 dated July 1, 2009 on Customer Service wherein banks have been advised to take certain steps for dealing with incidents of frequent dishonour of cheques of Rs. 1 crore and above

RBI /2009-10/142DBOD.No.Leg.BC. 37 /09.07.005/2009-10 @@NBSP@@September 2, 2009 All Scheduled Commercial Banks(Excluding RRBs) Dear Sir, Display of information regarding Local Level Committees set up under the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 Please refer to paragraph 11 of our Master Circular DBOD.No.Leg.BC.9/ 09.07.006/ 2009-10 dated July 1, 2009 on Customer Service, wherein

RBI/2009-10/119 DBOD.No.Leg.BC.30 /09.07.005/2009-10 August 12, 2009 All Scheduled Commercial Banks (Excluding RRBs) Dear Sir, Payment of interest on accounts frozen by banks Please refer to paragraph 5.8.9 of our Master Circular DBOD.No.Leg.BC.9/ 09.07.006/ 2009-10 dated July 1, 2009 on Customer Service, wherein banks have been advised to follow the procedure laid down thereunder in respect of Term Deposit Accounts frozen by the enforcement authorities. 2. In terms o

RBI/2008-09/430 RPCD.CO.RF.BC.No.96/07.38.01/2008-09 April 13, 2009 All State / Central Co-operative Banks (StCBs/DCCBs) @@NBSP@@ Dear Sir, @@NBSP@@ Co-operative Banks (Nomination) Rules, 1985 - Acknowledgement of Nomination and indicating the Name of the Nominee in Pass Books / Fixed Deposit Receipts @@NBSP@@ As you may be aware, in terms of Rule 2(9), 3(8) and 4(9) of the Co-operative Banks (Nomination) Rules, 1985, banks are required to acknowledge in writing to th

RBI / 2008-09/ 406 DBOD.No.Leg.BC.114 /09.07.005/2008-09 March 9, 2009 All Scheduled Commercial Banks (Excluding RRBs) @@NBSP@@ Dear Sir, @@NBSP@@ Banking Companies (Nomination) Rules, 1985 – Acknowledgement of Nomination and indicating the Name of the Nominee in Pass Books / Fixed Deposit Receipts @@NBSP@@ It has been brought to our notice that some banks do not have the system of acknowledging the receipt of the duly completed form of nomination, cancellation and /o

RBI/2008-09/350UBD (PCB). Cir. No. 33/16.26.00/2008-09January 14, 2009The Chief Executive Officers of allAD I and AD II UCBsDear Sir /MadamUSD Denominated Cheques–Improvements in collection process - UCBs Given the number of instances of customer complaints on delay in collection of USD denominated cheques, Reserve Bank conducted a sample study of collection practices followed by banks to explore feasibility of reducing the time lag for collection of such cheques. 2.

RBI/2008-09/328RPCD.CO.RF.BC.No.78/07.38.01/2008-09December 19, 2008All State Co-operative Banks (StCBs) andCentral Co-operative Banks (DCCBs)Dear Sir,Disclosing all information relating to processing fees / chargesPlease refer to paragraph 4 of our circular RPCD.CO.RF.BC.No.93/ 07.38.01/2006-07 dated May 16, 2007 regarding complaints about excessive interest charged by banks, wherein State and Central Co-operative Banks were advised to lay down appropriate internal p

RBI / 2008-09/320 RPCD.CO.RRB.BC.No.75 /03.05.28-B/2008-09 December 10, 2008 All Regional Rural Banks Dear Sir, Guidelines on Fair Practices Code for Lenders- Disclosing all information relating to processing fees / charges Please refer to our circular RPCD.BOS./81/13.33.01/2005-06 dated May 16, 2006 on the captioned subject in respect of which all commercial banks including RRBs were advised to display charges related to certain services in their offices/branches. 2.

RBI / 2008-09 / 296 DBOD.No.Leg.BC. 86 /09.07.005/2008-09 November 25, 2008 All Scheduled Commercial Banks / All India Financial Institutions (Excluding RRBs) Dear Sir, Guidelines on Fair Practices Code for Lenders- Disclosing all information relating to processing fees / charges Please refer to our Circular DBOD.No.Leg.BC.65 /09.07.005/2006-07 dated March 6, 2007 wherein banks / FIs were advised that loan application forms in respect of all categories of loans irresp

RBI.No.2008-09/247 DBOD.No.Dir.BC. 66/13.03.00/2008-2009 October 24, 2008 All Scheduled Commercial Banks (excluding RRBs) 7% Savings Bonds 2002, 6.5% Savings Bonds 2003 (Non-taxable) & 8% Savings (Taxable) Bonds 2003 - Collateral facility As you are aware, in terms of relevant Government of India Notifications, Savings Bonds issued under the captioned schemes, are presently not eligible as collateral for loans from banks, financial institutions and non banking fin

RBI/2008-09/137 DBOD.No. Leg. BC. 33 /09.07.005/2008-09 August 22, 2008 All Scheduled Commercial Banks (excluding RRBs) Dear Sir, Display of information by banks –@@NBSP@@ Comprehensive Notice Board The display of information by banks in their branches is one of the modes of imparting financial education. This display enables customers to make informed decision regarding products and services of the bank and be aware of their rights as also the obligations of the bank

RBI/2008-09/126UBD.PCB. Cir . No.6/12.05.000 /2008-09 August 12 , 2008 The Chief Executive Officer of All Primary (Urban) Co-op. Banks Dear Sir/Madam RBI cautions Public against Fictitious offers of Remitting cheap funds from abroad As you may be aware, fictitious lottery and money circulation schemes aimed at defrauding members of the public have come to light from time to time. It is clarified that remittances in any form towards participation in lottery schemes is

RBI/2008-09/91 RPCD.CO.RF.No.BC@@NBSP@@ 1/07.06.00/2008-09 July 9, 2008 18 Ashadha, Saka 1930 To All State and Central Co-operative Banks Dear Sir, Banking facilities to the visually challenged It has been brought to our notice that visually challenged persons are facing problems in availing banking facilities. It may be noted that banking facilities including cheque book facility / operation of ATM / locker, etc. cannot be denied to the visually challenged as they ar

RBI/2007-2008/364UBD. CO. BPD. (PCB). No51/09.39.000/2007-08 June 12, 2008 The Chief Executive Officers, All Primary (Urban) Co-operative Banks Dear Sir/ Madam, Banking facilities to the visually challenged - UCBs It has been brought to the notice of the Reserve Bank that visually challenged persons are facing problems in availing banking facilities. It may be noted that banking facilities including cheque book facility / operation of ATM/ locker etc. cannot be denied

RBI / 2007-08 / 358 DBOD.No.Leg BC. 91 /09.07.005/2007-08 June 4, 2008 To All Scheduled Commercial Banks (excluding RRBs) Dear Sir, Banking facilities to the visually challenged It has been brought to our notice that visually challenged persons are facing problems in availing banking facilities. It may be noted that banking facilities including cheque book facility / operation of ATM / locker etc. cannot be denied to the visually challenged as they are legally compete

RBI/2007-08/319 RPCD.CO.RF.BC.No.70/07.38.01/2007-08 May14, 2008 All State and District Central Co-operative Banks Dear Sir, Settlement of claims in respect of missing persons A query has been raised regarding the system which should be followed by banks in case a claim is received from a nominee / legal heirs for settlement of claim in respect of missing persons. 2. The settlement of claims in respect of missing persons would be governed by the provisions of Section

RBI/2007-08/308 DBOD.No.Leg. BC.80 /09.07.005/2007-08 May 2, 2008 All Scheduled Commercial Banks (Excluding RRBs) Dear Sir, Settlement of claims in respect of missing persons A query has been raised regarding the system which should be followed by banks in case a claim is received from a nominee / legal heirs for settlement of claim in respect of missing persons. 2. The settlement of claims in respect of missing persons would be governed by the provisions of Section 1

RBI/2007-2008/296DBOD.No.Leg.BC.75 /09.07.005/2007-08April 24, 2008All Scheduled Commercial Banks(Excluding RRBs)Dear Sir, Mid-Term Review of the Annual Policy for the year 2007- 08 –Recovery Agents engaged by banks Please refer to the paragraph 172 and 173 of the mid-term review of the Annual Policy for the year 2007-08, a copy of which is enclosed. In view of the rise in the number of disputes and litigations against banks for engaging recovery agents in the recent

RBI/2007-2008/ 189DBOD.No.Leg.BC. 51 /09.07.005/2007-08November 19, 2007All Scheduled Commercial Banks(Excluding RRBs)Dear Sir,Legal Guardianship Certificate issued under the National TrustAct, 1999 empowering the disabled persons with autism,cerebral palsy, mental retardation and multiple disabilitiesWe have been advised by the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities (the Trust) that a questi

RBI/2007-2008/128 DBOD.No.Leg.BC.30 /09.07.005/2007-08 September 3, 2007 All Scheduled Commercial Banks (Excluding RRBs) Dear Sir, Branch Level Customer Service Committees In terms of recommendation no. 172 of the Working Group on Customer Service in Banks (Talwar Committee), banks were advised to establish customer service committees at branch level. Further, in terms of recommendation no. 3.68 of the Committee on Customer Service in Banks (Goiporia Committee), banks

RBI/2007-08/119 DBOD.No.Leg.BC. 28 /09.07.005/2007-08August 22, 2007All Scheduled Commercial Banks / All India Financial Institutions(Excluding RRBs)Dear Sir,Guidelines on Fair Practices Code for Lenders - Furnishing copy of loan agreementPlease refer to our Circular DBOD. Leg. No.BC. 104 /09.07.007/2002-03 dated May 5, 2003 wherein guidelines were issued to banks / FIs for framing the Fair Practices Code for Lenders.2. In terms of Para 2 (ii) (c) of the above Circula

RBI/2006-2007/400 RPCD.CO.RF.BC No. 95/07.38.01/2006-07 May 18, 2007All State and Central Co-operative Banks Dear Sir,Extension of Safe Deposit Locker / Safe Custody Article Facility and Access to Safe Deposit Lockers / Return of Safe Custody Articles by banks. The Committee on Procedures and Performance Audit on Public Services (CPPAPS) had made some recommendations for easy operation of lockers. We have reviewed all the guidelines issued by us on various issues rela

Draft Circular on Safe Deposit LockersRBI/2006-2007/325 DBOD.No.Leg.BC.78 /09.07.005/2006-07April 17, 2007ToAll Scheduled Commercial Banks (excluding RRBs)Dear Sir,Extension of Safe Deposit Locker / Safe CustodyArticle Facility and Access to Safe Deposit Lockers /Return of Safe Custody Articles by banks. The Committee on Procedures and Performance Audit on Public Services (CPPAPS) had made some recommendations for easy operation of lockers. We have reviewed all the gu

RBI/2006-2007/318 RPCD.CO.RF. BC.No. 70 /07.38.01/2006-07April 12, 2007The Chairmen/CEOs All State and District Central Co-operative BanksDear Sir,Nomination Facility in Single Deposit Accounts Please refer to Paragraph 9 of the circular RPCD.CO.RF.BC.No.12/07.38.01/ 2005-06 dated July 12, 2005 on the above subject wherein banks were advised to give wide publicity and provide guidance to deposit account holders on the benefits of nomination facility and the survivorsh

RBI/2006-2007/315 RPCD.CO.RF.BC.No.67 /07.02.01/2006-07 April 9, 2007 All State and Central Co-operative Banks Dear Sir Rounding off Transactions to the nearest rupee Please refer to our circular RPCD.No.RF.BC.68/D.1-90-91 dated January 1, 1991, in terms of which banks were 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. fraction of 50 paise and above shall be r

RBI/2006-2007/310DBOD.No.Leg BC. 75 /09.07.005/2006-07April 5, 2007All Scheduled Commercial Banks (excluding RRBs)Dear Sir,Nomination Facility in Single Deposit Accounts Please refer to Para 9 of our Circular DBOD. No. BC.95/09.07.005/2004-05 dated June 9, 2005 on the above subject wherein banks were advised to give wide publicity and provide guidance to deposit account holders on the benefits of nomination facility and the survivorship clause. We feel that despite th

RBI/2006-2007/280 DBOD.No.Leg.BC.65 /09.07.005/2006-07March 6, 2007All Scheduled Commercial Banks / All India Financial Institutions(Excluding RRBs) Dear Sir,Guidelines on Fair Practices Code for LendersPlease refer to our Circular DBOD. Leg. No.BC. 104 /09.07.007/2002-03 dated May 5, 2003 wherein guidelines were issued to banks / FIs for framing the Fair Practices Code for Lenders.2. In terms of Para 2 (i) (a) of the above Circular, banks / FIs were advised that

RBI/2006-2007/262DBOD.No.BL.BC. 59 /22.01.010 /2006-2007February 21, 2007Phalguna 2, 1928 (S)All Scheduled Commercial Banks(excluding RRBs)Dear SirSection 23 of Banking Regulation Act, 1949 – Doorstep BankingPlease refer to our circular DBOD.No.BL.BC.86/22.01.001/2004-2005 dated April 30, 2005 on the above subject, in terms of which banks were advised to formulate a scheme with the approval of their Boards, for providing services at the premises of a customer and subm

RBI/2006-2007/245 DBOD.No.Dir.BC. 56 /13.03.00/2006-2007 February 2, 2007All Scheduled Commercial Banks (excluding RRBs) Dear Sir, Report of the Working Group to formulate a scheme for ensuring reasonableness of bank charges As banks may be aware, as announced in the Annual Policy Statement for the year 2006-2007, in order to ensure fair practices in banking services, Reserve Bank of India had constituted a Working Group to formulate a scheme for ensuring reasonablene