Banking Codes and Standards Board of India
Banking Codes and Standards Board of India had introduced new rules for banks to increase transparency and customer services. Let’s look at these new rules
1. Interest rate information: In case if a customer has borrowed against a floating rate of interest, then he/she has to be informed about any change in rate through given means such as letter, email, SMS etc. The Interest rate change information should also be available on the banks’ website.
2. Return of loan document: Bank has to return property and other document within 15 days of closure of loan whether the demands has been made or not. If a bank fails to return document in stipulated time, customer should be adequately compensated in cash.
3. Information to joint account holders: Banks must inform the joint holders before classifying an account as dormant/ inoperative.
4. Insurance for securities: Bank can’t force customers to take the insurance (for the securities lodged) from a particular insurance company. Customer is free to select any insurance company.
5. Restriction on Pre-sanctioned loan: Bank can’t give pre-sanction loans to any customer based on telephonic confirmation. Bank has to get a written consent letter from customer.
6. Account closure time limit: In event of account closure request, bank has to close the account within 3 days from receipt of the request.
7. Handling complaints: Banks has to address customer complaints in 30 days, failing which they have to compensate the customer.
8. Recovery agent details on website: Banks must publish details of all recovery agents on website so a customer can check whether it is authorized agent or not.
All these rules are applicable to member banks of Banking Codes and Standards Board of India, so far 79 banks are members. Here is the list of members banks: http://www.bcsbi.org.in/Membership.html
Ketul H Shah is a Chartered Accountant and an MBA. He has specialized in banking, finance and insurance. He is passionate about consumer rights and actively offers professional advice on consumer-related matters.
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