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Rajesh Goyal 




It has been observed that bank customers are put to inconvenience by the banks by violating RBI norms on number of occasions.   Customers on number of occasions find it extremely difficult to find out the exact guidelines.   Moreover, sometimes even bankers are confused about their duties and RBI guidelines on some of the parameters.  On this page we are trying to consolidate some RBI guidelines so that these can be useful for bankers as well as customers.


Our readers can send us links for more topics so as to include the same for the benefits of staff and customers.




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Topic RBI Guidelines Reference / Link
Form 15-G / 15H Acknowledgement Banks are not required to deduct TDS from depositors who submit declaration in Form 15-G/15-H under Income Tax Rules, 1962.  However, it has been brought to our notice that despite submission of Form 15-G/15-H by customers, banks are deducting tax at source, at times, causing inconvenience to customers resulting in a number of complaints.  With a view to protect interest of the depositors and for rendering better customer service, banks are advised to give an acknowledgment at the time of receipt of Form 15-G/15-H. This will help in building a system of accountability and customers will not be put to inconvenience due to any omission on part of the banks. Acknowledgement by banks at the time of submission of Form 15-G / 15-H
Clean Note Policy RBI has noticed that certain branches of banks still follow old practices like stapling, writing number of note pieces in loose packets on watermark window of notes etc. Further, it has also been observed that certain bank branches do not sort notes into re-issuables and non-issuables, and issue soiled notes to public. Such practices are against the “Clean Note Policy” of Reserve Bank of India.  Banks must follow the following guidelines


a) banks should do away with stapling of any note packet and instead secure note packets with paper bands,

b) banks should sort notes into re-issuables and non-issuables, and issue only clean notes to public; and,

c) banks should forthwith stop writing of any kind on watermark window of bank notes.


Clean Note Policy
Direct Benefit Transfer (DBT) Scheme - Opening of Accounts of eligible individuals

With a view to facilitating DBT for the delivery of social welfare benefits by direct credit to the bank accounts of beneficiaries, banks are advised to:


  • (a) open accounts for all eligible individuals in camp mode with the support of local government authorities,
  • (b) seed the existing accounts or the new accounts opened with Aadhaar numbers and
  • (c) put in place an effective mechanism to monitor and review the progress in the implementation of DBT.


Direct Benefit Transfer (DBT) Scheme - Implementation
Delay in re-presentation of technical return cheques and levy of charges for such returns

Banks have been advised to adhere to the following instructions with immediate effect:

  1. (a) Cheque return charges shall be levied only in cases where the customer is at fault and is responsible for such returns.
  2. (b) 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.


A list of technical reasons is given by RBI in its circular which can be seen by clicking on the link given in next column


Delay in re-presentation of technical return cheques and levy of charges for such returns
Cheque Drop Box Facility and the facility for acknowledgement of cheques

Reserve Bank of India / Banking Ombudsmen have been receiving complaints that many bank branches are not accepting cheques at the counters and are compelling the customers to drop the cheques in the Cheque Drop Box.


It is, therefore, advised that customers should not be compelled to drop the cheques in the drop box and while the cheque drop box facility may be made available to the customers, the facility for acknowledgement of the cheques at the regular collection counters should also be available to the customers. No branch should refuse to give an acknowledgement if the customer tenders the cheque at the counters.


Wherever the cheque drop box facility has been introduced, it is necessary that customer is made aware of both the options available to him, i.e. dropping cheques in the drop box or tendering them at the counters so that he can take an informed decision in this regard. 


Banks are, therefore, advised to invariably display on the Cheque Drop-Box itself that   'Customers can also tender the cheques at the counter and obtain acknowledgement on the pay-in-slips'


Cheque Drop Box Facility and the facility for acknowledgement of cheques
Nomination Rules - clarification

1. Witness in nomination forms

As you are aware, the Banking Companies (Nomination) Rules, 1985 have been framed in exercise of powers conferred by Section 52 read with Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949. The nomination forms (DA1, DA2 and DA3) have also been prescribed in the Nomination Rules. These forms, inter alia, prescribe that the thumb impression of the accountholder is required to be attested by two witnesses. It has come to our notice that some banks also insist on attestation of signature by witnesses.

We have examined the issue in consultation with Indian Banks' Association and clarify that signatures of the accountholders in forms DA1, DA2 and DA3 need not be attested by witnesses.

2. Nomination in case of joint Deposit Accounts

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.


The Banking Companies (Nomination) Rules, 1985 - Clarifications
Public Provident Fund Scheme, 1968 (PPF, 1968) and 
Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Revision of interest rates



The Government of India has now vide their Office Memorandum (OM) No. 6-1/2011-NS.II (Pt.) dated March 25, 2013, advised the rate of interest on various small savings schemes for the financial year 2013-14. Accordingly, the rates of interest on PPF, 1968 and SCSS, 2004 for the financial year 2013-14, effective from April 01, 2013, on the basis of the interest compounding/payment built-in in the schemes, will be as under:


Rate of Interest w.e.f. 01.04.2016

5 year SCSS, 2004

8.6% p.a

PPF, 1968

8.1% p.a






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