Master Circular on Customer Service - UCBs - આરબીઆઈ - Reserve Bank of India
Master Circular on Customer Service - UCBs
RBI/ 2013-14/25 July 1, 2013 The Chief Executive Officers of Dear Sir/Madam Master Circular on Customer Service - UCBs Please refer to our Master Circular UBD.BPD.(PCB).MC No. 10/ 12.05.001/2011-12 dated July 2, 2012 on the captioned subject (available at RBI website www.rbi.org.in). The enclosed Master Circular consolidates and updates all the instructions / guidelines on the subject issued up to June 30, 2013 and mentioned in the Appendix. Yours faithfully, (A.K. Bera) Master Circular on Customer Service
The quality of customer service in Primary (Urban) Co-operative Banks (banks) has to be high as they are established primarily to fill the existing gaps in banking and credit needs in urban and semi urban areas. Meeting the legitimate aspirations of its customers will enable the bank to maintain its image, create confidence and attract funds comparatively at low cost in a competitive environment. Ensuring improvement in the customer service rendered by the banks has been the constant endeavour of Reserve Bank of India. The Reserve Bank had set up in 1990 a Committee headed by Shri M.N.Goiporia, the then Chairman of State Bank of India. The Committee had made various recommendations to ensure improvement in the customer service in the banks. The Committee on Procedures and Performance audit on Public Services (CPPAPS) had also made suggestions for improvement of customer service in banks. The Reserve Bank has issued instructions to banks on the suggestions accepted by the Bank. In addition, the Reserve Bank has also issued various guidelines on the subject in general and on specific aspects relating to immediate credit for the outstation instruments sent for collection, payment of interest for delay in collection of instrument, adherence of time schedule in matters such as payment to customers, issue of DDs/TTs, issue of cheque books, etc. The consolidated instructions are summarised below: 2.1 Business and working hours The employees are expected to be at their seats at the commencement of the business hours and attend to all the customers who are in the branch prior to the close of business hours. In practice, however, in many branches of banks, employees take their own time to open the counters and also do not attend to customers who are in the queue at the close of business hours. Some banks with a view to ensuring that the service to customers is made available exactly at the commencement of business hours fix the working hours of the staff 15 minutes before the start of business hours. This arrangement can be made by all the banks at their branches in metropolitan and urban centres. 2.2 Display of time norms Time norms for specified business transactions should be displayed prominently in the banking hall so that it attracts the customers' attention as well as that of the employees for adherence. 2.3 There are complaints that counters are closed at the end of business hours, without disposing of customers. Banks may issue instructions that all customers who enter the banking hall before the close of business hours may be attended to by the branches. 2.4 Extension of business hours for non-cash transactions: Staff at the counters may undertake the following transactions during the extended business hours (branches to indicate the timings) (a) non-voucher generating transactions:
(b) voucher generating transactions:
2.6 Uninterrupted Service Banks may devise appropriate procedures to ensure that no counter remains unattended during the business hours and uninterrupted service is rendered to the customers by making adequate relief arrangements as may be necessary. 2.7 Guidance to Customers All branches, except very small ones, should have "Enquiry" or "May I help you" counters. Such counters may exclusively attend to enquiries or may be combined with other functions depending upon the requirement. As far as possible, such counters should be near the entry point to the banking hall. 2.8 Provision of ramps at Automated Teller Machines (ATMs)/branches Banks are advised to take necessary steps to provide all existing ATMs/ future ATMs with ramps so that wheel chair users / persons with disabilities can easily access them. The height of the ATM should be such that it does not create an impediment in its use by a wheelchair user.Banks may also take appropriate steps including providing ramps at the entrance of the bank branches so that the person with disabilities/wheel chair users can enter the bank branches and conduct business without much difficulty. 3.1 Savings bank passbooks/ statement of accounts (a) Banks should ensure that full address / telephone number of the branch is invariably mentioned in the Pass Book / Statement of Accounts issued to account holders. (b) Banks should provide MICR code and IFSC Code of the branch in all passbook /statement of account to their account holders. (c) Banks should invariably offer passbook facility to all their savings bank account-holders (individuals). The cost of providing such passbooks should not be recovered from the customers. (d) Banks may devise controls to ensure that the passbooks are updated on an ongoing basis, and complete and correct particulars are written in a legible hand (e) Customers also need to be educated to submit the passbooks regularly for updating (f) Banks may take the following steps to provide customer satisfaction in these areas:
g) As a rule, passbooks may be updated immediately on submission. If updating is not possible immediately due to a large number of entries, then paper tokens be issued for collection of passbooks on the next day. 3.1.1 Furnishing remitter details in pass book / pass sheet / account statement for credits received by customers through NEFT / NECS / ECS The procedural guidelines on NEFT/NECS/ECS and various circulars issued from time to time by the Reserve Bank of India clearly highlights the minimum information that should be provided to customers about the details of credit received through NEFT/NECS/ECS. Complaints about incomplete details about the remitter (or beneficiary) and/or the source of credit (or debit) in the passbooks/pass sheets/account statements, as also lack of uniformity across banks in providing even such minimal information are on the rise. Banks may enable their Core Banking Solutions (CBS) to capture complete information from the relevant fields in the messages/data files which can be displayed to customers when they access their accounts online or provide to them additionally when they approach the branch counters/help desks/call centres. 3.2 Term deposits (a) Banks have made considerable innovations in the area of term deposits. Various innovative schemes have been introduced to suit customer requirements. However, customer awareness of the different schemes and facilities thereunder is actually lacking. Banks should therefore ensure that various term deposit schemes are made known to the customers through proper publicity and advice. The customers need to also be informed specifically of the provision of monthly interest on term deposits at a discounted rate and the facility of safe custody of term deposit receipts. (b) Term deposit application forms may be so devised as to contain a direction for disposal of deposits on maturity. In those cases where the customer does not indicate the course of action by the bank on maturity of deposits, banks may as a rule send intimation of impending due date of the deposit well in advance. There is room for providing customer satisfaction by assisting customers in taking proper decisions for investment in various deposit schemes having regard to their particular needs and expectations. The banks should provide assistance/guidance to customers in the area of investment of funds in the various deposit schemes vis-à-vis the requirement of the customers. 3.4 Brochures/pamphlets for guidance of customers Banks may make available to the customers brochures/ pamphlets in regional language/Hindi /English giving details of various schemes available and terms and conditions thereof. Such brochures may also contain, among others, dos and don'ts for smooth handling of day-to-day banking transactions, e.g. updating of passbooks, preferably in the leaner weeks of the month, say, third/fourth week, advantages of maintaining joint accounts and nomination, keeping the term deposit receipts in safe custody with the banks with instructions for disposal on maturity etc. 3.5 Claims in respect of missing persons The settlement of claims in respect of missing persons would be governed by the provisions of Section 107 / 108 of the Indian Evidence Act, 1872. Section 107 deals with presumption of continuance and Section 108 deals with presumption of death. As per the provisions of Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of seven years from the date of his/her being reported missing. As such, the nominee / legal heirs have to raise an express presumption of death of the subscriber under Section 107/108 of the Indian Evidence Act before a competent court. If the court presumes that he/she is dead, then the claim in respect of a missing person can be settled on the basis of the same. 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 should provide more and more lockers, especially in residential areas, while keeping in view the commercial viability. The Committee on Procedures and Performance Audit on Public Services (CPPAPS) had made some recommendations for easy operation of lockers. Accordingly, banks may adhere to the following guidelines:- 4.1. Allotment and operation of Lockers 4.1.1 Linking of Allotment of Lockers to placement of Fixed Deposits Banks should not link the provisions of lockers facility with placement of fixed or any other deposit beyond what is specifically permitted. 4.1.2 Fixed Deposit as Security for Lockers Banks may obtain a Fixed Deposit which would cover 3 year's 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. 4.1.3 Wait List of Lockers 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. 4.1.4 Security aspects relating to Safe Deposit Lockers (a) Operations of Safe Deposit Vaults/Lockers Banks should exercise due care and necessary precaution for the protection of the lockers provided to the customer. (b) Customer due diligence for allotment of lockers
4.1.5 Access to the safe deposit lockers / return of safe custody articles to Survivor(s) / Nominee(s) / Legal heir(s) Instructions were laid down vide circular UBD. BPD. Cir. No.4/13.01.00/2005-06 dated July 14, 2005 for handing over the proceeds of deposit accounts. A similar procedure should be adopted for return of contents of lockers / safe custody articles to Survivor / Nominee / Legal Heirs. 4.1.6 Access to the safe deposit lockers / return of safe custody articles (with survivor/nominee clause) If the sole locker hirer nominates a person, banks should give to such nominee access of the locker and liberty to remove the contents of the locker in the event of the death of the sole locker hirer. 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. However, banks should take the following precautions before handing over the contents:
4.1.7 Access to the safe deposit lockers / return of safe custody articles (without survivor/nominee clause) There is an imperative need to avoid inconvenience and undue hardship to legal heir(s) of the locker hirer(s). In case where the deceased locker hirer had not made any nomination or where the joint hirers had not given any mandate that the access may be given to one or more of the survivors by a clear survivorship clause, banks are advised to adopt a customer-friendly procedure drawn up in consultation with their legal advisers for giving access to legal heir(s) / legal representative of the deceased locker hirer. Similar procedure should be followed for the articles under safe custody of the bank. 4.1.8 Banks are advised to be guided also by the provisions of Sections 45 ZC to 45 ZF of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies (AACS)) and the Co-operative Banks (Nomination) Rules, 1985 and the relevant provisions of Indian Contract Act and Indian Succession Act. 4.1.9 Banks should prepare an inventory before returning articles left in safe custody / before permitting removal of the contents of a safe deposit locker in terms of Notification UBD.BR.767/B.1-84/85 dated March 29, 1985.The inventory shall be in the appropriate Forms set out as enclosed to the Notification or as near thereto as circumstances require. A copy of the Notification is shown as Annex II. 4.2 Customer Guidance and Publicity 4.2.1 Benefits of nomination / survivorship clause Banks should give wide publicity and provide guidance to locker-hirers / depositors of safe custody articles on the benefits of the nomination facility and the survivorship clause. 4.3 IT enabled Financial Inclusion Banks are urged to scale up IT initiatives for financial inclusion speedily while ensuring that solutions are highly secure, amenable to audit, and follow widely accepted open standards to ensure eventual inter-operability among the different systems. 5. Banking facilities to the visually challenged
Banks may ensure that dishonored instrument is returned / dispatched to the customer promptly without delay on the same day but in any case within 24 hours. 7. Reimbursement of interest by paying bank Delay beyond two days on the part of paying bank in despatching the proceeds to the collecting bank may be treated as delay attributable to that bank and interest paid on delayed credit by the collecting bank may be reimbursed by the paying bank. Responsibility for payment of interest to the depositor of the cheque, however, should continue to remain that of the collecting bank. Each employee may wear on his person, identity badge with photograph and name prominently displayed on it. Besides giving an official touch, it will create a better rapport with the customers. Periodic change of duties and job rotation among employees is necessary. Elementary checking functions such as authentication of pass books/ issuance of receipts for cheques deposited for credit to the customers' accounts etc., would not only make useful contribution towards customer service but also would give a boost to the morale and self image of the employees. It is essential to align the training programmes to the needs in various areas with an eye on customer service. The employees should be trained to develop the right kind of attitude towards customer service, and empathy towards customer needs and expectations. Training programmes may be so devised as to bring about positive attitudinal changes compatible to customer orientation. Training to new recruits should be a precursor to other follow - up training programmes. All new recruits, i.e. clerks/officers should be necessarily exposed to induction programme immediately after recruitment. A co-ordinated approach amongst banks is required in this regard. The system of reward/recognition should be such that it puts an indifferent employee to a considerable disadvantage - psychologically and even financially. Only if the reward scheme is objectively enunciated, employees will be motivated to perform better. Indifferent and casual approach to work (customer service) should not go unnoticed, giving such employees wrong signals. Banks should evolve a fair system whereby employees are gauged or rated in the area of customer service and good work is rewarded. Systems and procedures are necessary to assist banks in functioning in an effective and efficient manner and to ensure safety of customer's money. Banks may keep their systems and procedures in trim, by a continuous process of introduction of new procedures that may be required and by doing away with unwanted ones. Various facets of service to the customers need review and introduction of more avenues has to be identified. Banks may subject themselves to an audit approach towards their customer service points at grass root levels and also at policy prescription and macro levels in the matter of extension of customer service. A Complaint cum Suggestion Box may be kept in the bank premises at a prominent place. Every bank branch may also maintain a Complaint Book with adequate number of perforated copies in each set, so designed as to instantly provide the complainant with an acknowledged copy of the complaint. A format of complaint book with adequate number of perforated copies prepared by the Indian Banks Association is given at Annex I. Banks should take appropriate steps to introduce the same for ensuring uniformity at all offices of the banks. The internal inspectors/auditors including audit firms engaged for the purpose during the course of their inspection/audit of branches should examine the various customer service aspects including the efficacy of the complaints handling and grievance redressal machinery; and based on their observations, record the improvements and deficiencies in various areas. Placement of employees in customer contact slots should be on a selective basis. By imaginative and innovative approaches, enough number of employees can be brought-up by training. Cases of deliberate recalcitrance and disregard of customer service spirit should be taken note of and kept in concerned employees’ service records apart from taking other action against such employees. 18. Periodical visits by senior officials Senior officials while visiting the branches should also give priority to the customer service aspects. It will be great advantage if senior official counter checks the actual ‘branch atmosphere’ by having in hand a report on customer service submitted by the branch. Banks may bestow attention to providing adequate space, proper furniture, drinking water facilities, clean environment, (which include keeping the walls free of posters) etc., in their premises to enable conduct of banking transactions smoothly and more comfortably. Customer education both in regard to rights and responsibilities in dealing with banks should be viewed as a fundamental issue in any attempt to improve customer service. Customer should be made aware not only of the various schemes and services offered by banks, but also about the formalities, procedures, legal requirements and limitations in the matter of providing services by the banks, through a proper mix of advertisements, literature, interface, seminars, etc. Banks should involve their employees in all customer education programmes. In view of the incidents involving terrorists/dacoits, banks should review and improve upon the existing security system in branches so as to instill confidence amongst the employees and the public. Regular drill/ training to the security staff should be ensured. 22. Fair Practices Code - Display of Bank/ Service Charges 22.1 Banks have the freedom to prescribe service charges with the approval of their Boards. However, while fixing service charges, for various types of services like charges for cheque collection, etc., they should ensure that they are reasonable and are not out of line with the average cost of providing these services. Banks should also take care to ensure that customers with low volume of activities are not penalized. 22.2 Display of information – Comprehensive Notice Board Banks should put up in a notice board important aspects or indicators on ‘customer service information’, ‘service charges’, ‘grievance redressal’ and ‘others’. The notice board should be updated on a periodical basis. Banks should display information relating to interest rates and service charges in their premises as well as post it on their websites, to enable the customer to obtain the desired information at a glance. An indicative format is enclosed at Annexure IV. 22.3 Further, all banks, including scheduled banks, should also display at their offices/ branches the service charges relating to the following services in the local languages: A. Services rendered free of charge B. Others
22.4 Banks should also ensure that the charges levied for offering various electronic products and for outstation cheque collection servicedo not exceed the framework of charges prescribed by the Reserve Bank of India, (for transactions originated and payable in India), which is summed up as under:- A. Electronic products –
Banks may prescribe charges not higher than cheque return charges for ECS debit returns. B. Outstation cheque collection
C. Service Charges for Cheque Collection under Speed Clearing (by Collecting Banks from customers
Banks are free to fix charges for collection of instruments for credit to other type of accounts. While fixing service charges not mandated herein, banks may note the following:
Note: The above provisions are not applicable to cash handling charges levied by banks for handling large value cash transactions. D. With a view to streamline the procedure of levying of charges for cheque returns to be followed by banks, the banks are advised to adhere to the following instructions: i. Cheque return charges shall be levied 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 IV. ii. Cheques that need to be re-presented without any recourse to the payee, shall be made in the immediate next presentation clearing not later than 24 hours (excluding holidays) with due notification to the customers of such re-presentation through SMS alert, email etc. 22.5 Customer charges for use of ATMs for cash withdrawal and balance enquiry Banks have been deploying ATMs to increase their reach to increase the usage of ATMs as a delivery channel. Banks have also entered into bilateral or multilateral arrangements with other banks to have inter-bank ATM networks. While ATMs facilitate a variety of banking transactions for customers, their main utility has been for cash withdrawal and balance enquiry. The number of ATMs and Point of Sale (POS) terminals in the country and the use of debit cards at POS terminals at different merchant establishments has been steadily increasing. As a further step towards enhancing the customer convenience in using the plastic money, it has been decided to permit cash withdrawals at POS terminals. To start with, this facility will be available to all debit cards issued in India, up to ` 1,000 per day. The conditions subject to which this facility is being extended are given in the Annex V. The charges levied on the customers vary from bank to bank and also vary according to the ATM network that is used for the transaction. Consequently, a customer is not aware before hand of the charges that will be levied for a particular ATM transaction, while using an ATM of another bank. This generally discourages the customer from using the ATMs of other banks. It is, therefore, essential to ensure greater transparency. In view of this, it has been decided that the following schedule of service charges would be implemented by all banks:
The service charges for the following types of cash withdrawal transactions may be determined by the banks themselves:
22.6 Banks shall reimburse to the customers the amount wrongfully debited, if any, due to ATMs failure to dispense cash within a maximum period of 12 days from the date of receipt of customer complaints. 22.7 Electronic Payment Products (RTGS, NEFT, NECS and ECS variants) – Processing inward transactions based solely on account number information In the CBS environment, customers of a bank can be uniquely identified by their account number across branches. In terms of the extant Procedural Guidelines for RTGS/NEFT/NECS/ECS Credit, banks are generally expected to match the name and account number information of the beneficiary before affording credit to the account. In the Indian context, however, given the many different ways in which beneficiary names can be written, it becomes extremely challenging for the banks to perfectly match the name field contained in the electronic transfer instructions with the name on record in the books of the destination bank. This leads to manual intervention hindering the straight-through-processing (STP) environment causing delay in credit or due return of uncredited instructions. The manual intervention also provides scope for error and fraudulent intent. Being essentially credit-push in nature, responsibility for accurate input and successful credit lies with the remitting customers and the originating banks. The role of destination banks is limited to affording credit to beneficiary’s account based on details furnished by the remitter/originating bank. Instructions for processing such inward transactions based solely on account number information are given in Annexure VI. 23. Collection of account payee cheques – Prohibition on crediting proceeds to third party account Banks should not collect ‘account payee’ cheques for any person other than the payee constituent. Where the drawer/ payee instructs the bank to credit the proceeds of collection to any account other than that of the payee, the instruction being contrary to the intended inherent character of the ‘account payee’ cheque, banks should ask the drawer/ payee to have the cheque or the account payee mandate thereon withdrawn by the drawer. This instruction will also apply with respect to the cheque drawn by a bank payable to another bank. However, with a view to mitigating difficulties faced by members of co-operative credit societies in collection of account payee cheques, collecting banks may consider collecting account payee cheques drawn for an amount not exceeding ` 50,000 to the account of their customers who are co-operative credit societies if the payees of such cheques are the constituents of such co-operative credit societies. While collecting the cheques as aforesaid, banks should obtain a clear undertaking in writing from 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, 1881, including Section 131 thereof. The collecting bank shall subject the society to the usual KYC norms and enter into an agreement with the society that the KYC documents in respect of the society’s customers are preserved in the society's records and are available to the bank for scrutiny. The collecting banks should, however, be aware that in the event of a claim by the true owner of the cheque, the rights of the true owner of the cheque are not in any manner affected by these instructions and banks will have to establish that they acted in good faith and without negligence while collecting the cheque in question. 24. Facilities at Extension Counters Banks are allowed to undertake following limited transactions at the Extension Counters:
25. Provision of Note Counting Machines on counters Banks should install dual display note counting machines at the payment counters of their branches for the use of their customers towards building confidence in the minds of the public to accept note packets secured with paper bands. 26. Immediate Credit of Outstation Cheques 26.1 Non-scheduled banks should afford immediate credit for all outstation cheques up to the value of ` 5,000 tendered by individual account holders, provided they are satisfied about proper conduct of the accounts. These arrangements should be scrupulously followed. The banks may recover usual collection charges in respect of outstation cheques. The banks should not wait for customers’ requests for the facility but should, as a matter of normal course, provide this service. However, in respect of local cheques, the banks may extend the facility of affording immediate credit up to ` 5,000 to customers who wish to avail of the facility and are prepared to bear charges for the same. 26.2 In case the cheques are returned unpaid, the bank can recover normal rate of interest at the Minimum Lending Rate for the period it is out of funds. For this purpose, banks may consider introducing pay-in-slips superimposing a notice to the effect that in the event of dishonour of the cheque, customer will be subject to payment of normal rate of interest for the period till the bank was out of funds. 27. Time frame for collection of cheques 27.1 In compliance with the orders of National Consumer Dispute Redressal Commission (NCDRC), all banks have to conform to the timeframe prescribed by it, namely:
Scheduled banks are required to formulate a comprehensive and transparent policy covering issues relating to (i) immediate credit of local / outstation cheques (ii) Timeframe for collection of local / outstation cheques and (iii) interest payment for delayed collection. 27.2 Implementation and Accountability In order to ensure that the above time schedule is scrupulously followed by the branches, there needs to be a clear-cut staff accountability for the delay. For this purpose, special register may be introduced to record the delayed collections for necessary action. 27.3 Further, it should be ensured that where delays occur, the account holders are paid penal interest without their making requests therefore. Necessary instructions may be issued to the branches with a view to ensuring strict compliance of these instructions for automatic credit of interest in respect of delayed collection of outstation cheques so as to avoid any room for representations/ complaints from public. 27.4 Senior Officials while visiting branches should make it a point to check implementation of the above instructions. 28. Additional Measures for Quicker Collection of Outstation Instruments Banks should initiate the following additional measures to reduce the time taken for realization of cheques: 28.1 Cheques drawn on MICR centres should invariably be presented through National Clearing Cell. 28.2 Extensive use of modern telecommunication technology should be made for networking service branches in important centres and between service branches and other branches within a particular centre. 28.3 The concept of Quick/Fast collection service for collection of outstation instruments should be streamlined. 28.4 Separate registers should be maintained for local cheques and outstation cheques to enable the branch managers to exercise better supervision and remedial measures should be initiated to speed up the collection of outstation instruments. 28.5 With a view to closely monitoring the implementation of these instructions, internal inspection teams may be advised to verify these aspects during Inspection of the branches, as this is a singular feature having a direct bearing on rendering improved customer service. 28.6 It is also necessary to make customers aware of the above facilities. The banks may, therefore, make arrangements to display information about the facilities available at the branches, for customers’ knowledge. 29.1 Issue of Cheque Books Banks should ensure that their cheque books are printed with due care and the perforation in the cheque leaves as also binding of cheque books are up to the mark so as to avoid any inconvenience to the customers. All CBS enabled banks are advised to issue only “payable at par”/”multi city”/ CTS 2010 standard cheques to all eligible customers for which no extra charges should be levied. 29.2 Cheque Drop Facility and the Facility for Acknowledgement of cheques While the cheque drop facility may be made available to the customers, the facility for acknowledgement of cheques at the regular collection counters should not be denied to them. No branch should refuse to give an acknowledgement on cheques being tendered by customers at their counters. Further, customers should be made aware of both options available to them i.e., dropping cheques in the drop box or tendering them at the counters so that they can take an informed decision in this regard. 29.3 Term Deposit Maturity Intimation in Advance Banks are required to include in the term deposit application form, a direction for payment of deposits on maturity. 29.4 In addition to the above, banks should also ensure to send, as a rule, intimation for maturity dates of term deposits well in advance to their depositors in order to extend better customer service. 29.5 Periodical Review and Monitoring 29.5.1 With a view to constantly upgrading the quality of customer satisfaction and also identifying more avenues for customer service, banks need to undertake periodical evaluation of the position in regard to the extent of actual implementation at the grass root level of the various recommendations of the Goiporia Committee, the CPPAPS and instructions issued by the Reserve Bank. 29.5.2 Banks also need to evolve an appropriate monitoring system in respect of 15 core recommendations of the Goiporia Committee. The banks are free to include more items for such monitoring and evaluation by their Board of Directors. 29.5.3 Banks should introduce a system of periodical evaluation on customer service on half yearly basis, as at the end of June and December, with a view to ensuring their implementation at all offices of the bank as also upgrading the quality of services to achieve higher satisfaction among the bank's customers. 29.6 Issue of Duplicate Demand Draft 29.6.1 Issue of Duplicate Demand Draft without receipt of Non-Payment Advice The duplicate draft amounting to ` 5,000 or less, may be issued on the basis of adequate indemnity and without obtaining Non-Payment Advice (NPA) from the drawee branch. 29.7 Fixation of time-frame for issue of duplicate demand draft 29.7.1 Banks should ensure that a duplicate demand draft is issued within a fortnight from the receipt of such requests. For delay in issuing duplicate demand draft beyond the above stipulated period, they should pay interest at rate applicable for fixed deposit of corresponding maturity in order to compensate the customer for such delay. These 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 third party endorsements. 29.7.2 Senior Officials, while visiting branches, should make it a point to check implementation of the above instructions. 29.8 Nomination facilities 29.8.1 Banks may get the account opening forms amended to incorporate a space to mention the name and address of the nominee and statutorily prescribed nomination forms may be obtained and preserved with the account opening forms. Availability of nomination facility needs to be widely publicised by printing compatible messages on cheque books/pass books and any other literature reaching the customers. Nomination should be a rule (rather than an exception) and banks should endeavor to cover all accounts, existing as well as new, under nomination, exception being the ones where the customer himself would prefer not to nominate; this fact may be recorded rather than left to the conjecture of non-compliance 29.8.2 Nomination facilities are available not only for deposit accounts but also for safe custody articles and safe deposit lockers. As nomination facility for deposit accounts is more known to the customers, compared to the one available for safe custody articles and safe deposit lockers, publicising availability of the facility for these two services also may be effectively done. 29.8.3 Statutory provisions for Nomination Facility The Banking Regulation Act, 1949 (AACS) has been amended by incorporating among others, new sections 45 ZA to 45 ZF, which provide, inter alia, for the following matters:
29.8.4 Nomination Rules Since such nomination has to be made in the prescribed manner, the Central Government has framed Co-operative Banks (Nomination) Rules, 1985 in consultation with the Reserve Bank. These Rules, together with the provisions of new Sections 45 ZA to 45 ZF, of Banking Regulation Act, 1949 (AACS) regarding nomination facilities have been brought into force with effect from March 29, 1985. The Co-operative Banks (Nomination) Rules, 1985, provide for:
For various Forms (DA1, DA2, and DA3 for Bank Deposits, Forms SC1, SC2 and SC3 for articles in safe custody and Forms SL1, SL1A, SL2, SL3 and SL3A for Safety Lockers) prescribed under the Co-operative Banks (Nomination) Rules, 1985 only Thumb-impression(s) shall be attested by two witnesses. The signatures of the account holders need not be attested by witnesses. 29.8.5 Nomination of articles in safe custody In the matter of returning articles left in safe custody by the deceased depositor to the nominee or allowing the nominee/s to have access to the locker and permitting him/them to remove the contents of the locker, the Reserve Bank, in pursuance of Sections 45 ZC(3) and 45 ZE(4) of Banking Regulation Act, 1949 (AACS), has specified the formats for the purpose. 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, co-operative banks may devise their own claim formats of follow the procedure, if any, suggested for the purpose either by their own Federation/Association or by the Indian Banks Association. 29.8.6 Registration of nomination in banks’ books In terms of Rules 2(10), 3(9) and 4(10) a co-operative bank is required to register in its books the nomination, cancellation and/or variation of the nomination. The co-operative banks should accordingly take action to register nominations or changes therein, if any, made by their depositor(s)/hirer(s) of lockers. Government of India has issued the notification bringing into force the provisions relating to nomination facilities, from March 29, 1985. Co-operative banks should therefore, ensure that the nomination facilities are made available to their customers. 29.8.7 Incorporation of legend ‘Nominations Registered’ in pass book, deposit receipt etc. Banks should incorporate the legend ‘Nominations Registered’ on every pass book or deposit receipt so as to enable the relatives to know the availment of the nomination facility by the deceased depositor. 30. Monitoring system of implementation of various instructions on customer service The banks need to evolve an appropriate monitoring system for evaluating the position in regard to the extent of actual implementation at the grass root level of the various recommendations of the Goiporia Committee, the CPPAPS and instructions issued by the Reserve Bank of India. 31. Customer Service – Redressal of Grievances
32. Rounding off cheques to the nearest rupee Banks are advised to ensure that cheques / drafts issued by clients containing fractions of a Rupee are not rejected or dishonoured by them. Banks may also review the practice being followed by them in this regard and take necessary steps, including through issue of internal circulars, etc., to ensure that the concerned staff are well versed with these instructions so that the general public does not suffer. Banks may also ensure that appropriate action is taken against members of their staff who are found to have refused to accept cheques / drafts containing fractions of a Rupee. 33. Legal Guardianship Certificate issued under the National Trust Act, 1999 empowering the disabled persons with autism, cerebral palsy, mental , retardation and multiple disabilities. The National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities (the Trust) had stated that a question has been raised as to whether the banks and the banking sector can accept the guardianship certificates in regard to persons with disabilities issued by the 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. The above Act was specifically passed by the Parliament in order to provide for appointment of legal guardians for persons with disability that is covered under the said Act. The above Act provides for appointment of legal guardians for persons with disability by the Local Level Committees set up under the Act. The Trust has opined that a legal guardian so appointed can open and operate the bank account as long as he remains the legal guardian. It may also be noted that the provisions of Mental Health Act, 1987 also allows appointment of Guardian by District Courts. Banks are, therefore, advised to rely upon the Guardianship Certificate issued either by the District Court under Mental Health Act or by the Local Level Committees under the above Act for the purposes of opening / operating bank accounts. Banks may also ensure that their branches give proper guidance so that the parents / relatives of the disabled persons do not face any difficulty in this regard. Annex IV Illustrative but not Exhaustive List of Objections where Customers are not at Fault
Annexure V Conditions for Cash Withdrawal at Point of Sale (POS) 1. This facility is available only against debit cards issued in India 2. The maximum amount that can be withdrawn at POS terminals is fixed at ` 1, 000 per day 3. This facility may be made available at any merchant establishment designated by the bank after a process of due diligence. 4. The facility is available irrespective of whether the card holder makes a purchase or not. 5. In case the facility is being availed with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawal. 6. Banks offering this facility shall put in place a proper customer redressal mechanism. Complaints in this regard will fall under the Banking Ombudsman Scheme. 7. Banks offering the facility shall on approval by their respective Boards obtain one time permission of Reserve Bank of India, Urban Banks Department, Regional Office concerned under Section 23 of the Banking Regulation Act, 1949 (AACS) enclosing a copy of the Board note / approval. Annexure VI Electronic Payment Products (RTGS, NEFT, NECS and ECS variants) –
2. These modifications are equally applicable to ECS Debit transactions to be used by destination banks for debiting their customer accounts based on details furnished by the user institutions / sponsor banks. 3. Banks are hereby advised to put in place appropriate systems and procedures to ensure compliance with the above prescriptions. The guidelines are issued under the powers vested with Reserve Bank of India under Section 10(2) of the Payment & Settlement Systems Act, 2007 and would come into effect from January 1, 2011. The instructions would be reviewed and suitable changes will be effected, if necessary, based on operational experience and general feedback. Master Circular on Customer Service
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