Reconciliation of transactions at ATMs failure :
– Banks are required to resolve complaints within 7 working days from the date of receipt of the complaint.
– Failure to re-credit the amount with the timeframe should entail payment of compensation to the customer @100/- per day by the issuing bank.
– For compensation, suitable application is to be made within 30 days of date of the transaction.
– All disputes regarding ATM failed transactions should be settled by the issuing bank and the acquiring bank through the ATM System Provider only. No bilateral settlement arrangement outside the dispute resolution mechanism available with the system provider is permissible.
– Non-adherence to the provision attract penalty under the Payment and Settlement System Act 2007.
– Banks are required to display prominently at the ATM locations that complaints should be lodged at the branches where customers maintain accounts to which the ATM is linked along with telephone numbers of help desk/contact persons of ATM owning bank, etc.
– Each bank should ensure that the process flow is modified to provide for the pin validation for every transaction including balance enquiry facilitated through ATM. Failure to this attract penalty.
– Banks are required to have in place a system of online alerts for all types of transactions irrespective of the amount involving usage of cards at various channels.
Levy of Service Charges
Banks should ensure that the service charges fixed are reasonable and they are not out of line with the cost of providing such services. Customers with low volume of transactions are not penalized.
Foreclosure charges/prepayment penalty – Home Loans
Banks are not permitted to levy/charge prepayment charges/penalties on Home Loans on floating interest rates, with immediate effect
Remittance
– Remittance (DD/MT/TT, etc.) of Rs. 50000/- and above should be by debit to customer’s account or against cheques only. DDs of Rs. 20,000/- and above are to be issued with “Account Payee” crossing only.
– A DD is uniformly valid for a period of three months and procedure for revalidation after three months should be simplified.
– Duplicate Draft in lieu of lost for amount up to and including Rs. 5000/- can be issued against suitable indemnity without waiting drawing advice within a fortnight from the date of receipt of the request. Delay beyond the period, penal provision to be invoked.
– Banks may ensure that both drop box facility and the facility for acknowledgement of cheques are made available at collection centres (branches) and no branch should refuse to give acknowledge of cheques if tendered at the counters. Banks should display on the drop box itself that “Customers can also tender the cheques at the counter and obtain acknowledgement on the pay-in-slips”.
– Banks may place per transaction limits based on their risk perception in respect of Mobile transactions with the approval of their respective Boards.
– Banks need not make payment of cheques/drafts/pay orders/ banker’s cheques bearing that date or any subsequent date, if they are presented beyond the period of three months from the date of such instrument (w.e.f. 01.04.12)
– For loss of cheque in transit or in clearing process or at the paying bank’s branch, the banks are required to reimburse the account holder related expenses for obtaining duplicate instruments and also interest for reasonable delays occurred in obtaining the same. The onus rests with the collecting banker and not the account holder.