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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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.
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
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.
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
(a) Cheque return charges shall be levied only in cases where
the customer is at fault and is responsible for such returns.
(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
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
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
Drop-Box itself that
'Customers can also tender the cheques at the
counter and obtain acknowledgement on the pay-in-slips'
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.
Public Provident Fund Scheme, 1968 (PPF, 1968) and
Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Revision of interest
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
Rate of Interest w.e.f. 01.04.2016
5 year SCSS, 2004
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