COMPENSATION POLICY (BANKING SERVICES)
Introduction It has been the endeavour of the Bank to offer services to its customers with best possible utilisation of its technology infrastructure. Withdrawal of RBI’s instructions to banks on time frame for collection of outstation cheques, payment of interest on delayed collection of outstation chequesinstruments etc., with effect from !st "ovember, #$$% had given further scope for increasing efficiency for better performance. Objectie &he ob'ective of the policy, namely ()BI*I Bank +td. *ompensation olicy -Banking )ervices/ -hereinafter called the olicy, is to establish a system whereby the Bank compensates the customer due to deficiency in service on the part of the Bank or any act of omission or commission, directly attributable to the Bank. Sco!e &he olicy is based based on principles principles of transparenc transparency y and fairness fairness in the treatmen treatmentt of customers. It is designed to cover deficiency in service in areas relating to account operations, collections and remittances, fraud etc., as specified in this olicy. 0rant of compensation under this olicy is without pre'udice to the Bank’s rights in defen defendin ding g its posit positio ion n befor before e any any *ourt *ourt of +aw, +aw, &ribu &ribuna nall or any any other other forum forum duly duly constituted to ad'udicate banker1customer disputes and does not constitute admission of liability or any other issue, of any nature whatsoever for the purposes of 2d'udicatory proceedings. Reco"nition o# de#icienc$ %nd co&!en'%tion %)
n%utori'ed n%utori'ed * Erroneou' +ebit •
If the Bank has raised an unauthori3ed erroneous erroneous debit to an account, the entry shall be reversed immediately on being detectedinformed, detectedinformed, after due verification. If such a debit has resulted in reduction in the minimum balance applicable for payment of interest on savings bank deposit or payment of additional interest to the Bank in a loan account or levying of penalty for not maintaining the stipulated minimum balance in the account, Bank shall compensate the customer to that
e4tent. •
In case of return of a cheque or not carrying out of direct debit instructions due to insufficiency of balance on account of the unauthori3ed erroneous debit, Bank will compensate the customer with an amount equivalent to interest calculated on the unauthorisederroneously debited amount at applicable )avings Bank rate, minimum Rs.#$1, besides refunding the cheque return charges.
•
In case verification of the entry reported to be unauthorisederroneous by the customer does not involve a third party, the Bank shall arrange to complete the process of verification within a ma4imum period of 5 working days from the date of reporting of erroneous debit.
If it involves a third party, the Bank shall
complete the verification process within one month from the date of reporting of unauthorisederroneous transaction by the customer.
b
6*) direct debitsother debits to accounts •
&he Bank undertakes to carry out, within the prescribed time, direct debit 6*) -6lectronic *learing )ervice debit instructions of customers. In the event of non1 compliancedelayed compliance of instructions by the Bank to meet such commitments, the customer will be compensated equivalent to interest calculated on the amount to be debited, for the delayed period, at applicable )avings Bank rate minimum Rs. #$1, sub'ect to a ma4imum of Rs. !,$$$1.
•
In the event the Bank levies any charge in violation of the arrangement or inadvertently, the Bank will reverse the charges, sub'ect to scrutiny of agreed terms and conditions, and compensate the customer by a sum equal to the charges reversed.
c)
I''ue o# ATM C%rd' •
Where the Bank had issued and activated an 2&7 card without written consent of the customer which has been disputed by the customer without using the card, the Bank would not only reverse the charges, if levied, immediately but also pay compensation to the customer minimum Rs 8$1 and ma4imum Rs. !$$1.
d)
P%$&ent o# Ce,ue' %#ter Ac-no./ed"e&ent o# Sto! P%$&ent In'truction' •
In case a cheque has been paid after stop payment instruction is acknowledged by the Bank, the Bank shall reverse the debit with value dated credit within two
working days of the customer intimating the transaction to the Bank and also compensate the customer with Rs.!$$1. e)
Co//ection o# ce,ue dr%.n on #orei"n countrie' •
2s time for collection of instruments drawn on banks in different countries vary and even within a country from place to place, delay in collection of cheques payable at foreign centres will be construed if the customers account is not credited within !$ working days, e4cluding )aturdays, from the date of clear credit to the Bank’s "ostro account i.e. after taking into account the prescribed cooling period for that currency, with the correspondent.
•
&he compensation on account of delays in collection of instruments in foreign currency would be as detailed below9
i
2t 8: p.a. if the period of delay is beyond prescribed collection period and upto %8 days where proceeds of the instruments are to be credited to the deposit accounts.
ii
In case of abnormal delay i.e. delays e4ceeding %8 days, interest will be paid at !: above the specified rate -i.e. 8: p.a..
iii
In the event of the proceeds of cheque under collection being required to be credited to an overdraft loan account of the customer, interest will be paid at interest rate applicable to the loan account or )BI*I +R, whichever is lower.
iv
;or abnormal delays i.e beyond %8 days, interest will be paid at the rate of !: above the applicable interest rate to the loan account or +R, whichever is lower.
)uch interest shall be payable with a minimum of Rs. #$1.
"o separate compensation is payable by the Bank on account of movement in the values of the respective currency. #)
Co//ection o# ce,ue' !%$%b/e in Indi% •
&he compensation on account of delays in collection of instruments drawn and payable in India for individual account holders will be as per <*heque *ollection olicy’ and in respect of other account holders it would be paid as detailed below9
i
2t 8: p.a. if the period of delay is beyond prescribed collection period and upto %8 days where proceeds of the instruments are to be credited to the deposit accounts.
ii
In case of abnormal delay i.e. delays e4ceeding %8 days, interest will be paid at !: above the specified rate -i.e. 8: p.a..
iii
In the event of the proceeds of cheque under collection being required to be credited to an overdraft loan account of the customer, interest will be paid at the applicable interest rate or +R, whichever is lower.
iv
;or abnormal delays, interest will be paid at the rate of !: above at the applicable interest rate or +R, whichever is lower.
)uch interest shall be payable with a minimum of Rs. #$1. *ompensation as detailed above shall be paid without any formal demand from customers and there shall be no distinction between instruments drawn on the Bank’s own branches or on other banks which are payable in India.
")
Ce,ue' * In'tru&ent' /o't .i/e in B%n-0' cu'tod$ •
In the event a cheque or an instrument accepted for collection is lost in Bank’s custody or in transit, Bank shall, immediately on coming to know of the loss of instrument, notify the customer and shall, simultaneously, advise the drawee bank particulars of lost cheques for e4ercising caution against payment and provide assistance to the customer to obtain a duplicate instrument from the drawer maker of the instrument.
•
&he Bank will compensate the account holder in respect of instruments lost while in its custody as detailed below9
i
In case intimation regarding loss of instrument is conveyed to the customer beyond the time limit stipulated for collection, as per the *heque *ollection olicy of the Bank, interest will be paid for the period beyond the stipulated collection period at the rates specified in para -f above for cheques payable in India and at rates specified at para -e above in regard to cheques payable abroad.
ii
Bank will pay interest on the amount of the cheque for a further period of !8 days at )avings Bank rate to provide for possible further delay in obtaining duplicate cheque instrument and collection thereof.
iii
&he Bank will bear the actual charges of recording )top ayment instructions levied by drawee bank.
iv
&he Bank would also reimburse the customer with actual charges levied by the drawerbank in issuing duplicate chequeinstrument, sub'ect to a ma4imum of Rs. #8$1.
Co&!en'%tion #or de/%$ in oter 'erice' In respect of the following services provided to the customers, if the delay in providing services is beyond twice the time norms, specified hereunder, compensation would be payable as indicated hereinafter9 Sr1 No1 !. #. 5. %.
Serice' =elay in issue of cheque book by Branch =elay in providing banking services after receipt of request completed formalities, across the counter. =elay in transfer of accounts =elay in effecting remittances or crediting customers account after receipt of funds
Ti&e Nor&' Beyond 5 working days Beyond 5 working days Beyond !% working days Beyond # working days
&he compensation paid by the Bank will be Rs.!$$1 per instance, if the delay is upto twice the specified time norm given above and Rs. #8$1 per instance for delays beyond twice the time norm. P%$&ent o# 2%t !%r3 ce,ue' i''ued b$ oter B%n-' Bank will not pay any compensation, to the cheque holder, for dishonour of (at par/ cheques issued by other banks, including co1operative banks, in the absence of adequate funds in the account on which cheques are issued even though the amount of the cheque may have been paid to the bank which had issued the (at par/ cheques.
4orce M%jeure &he Bank shall not be liable to compensate customers under this olicy if some unforeseen event including but not limited to civil commotion, sabotage, lockout, strike or other labour disturbances, accident, fire, natural disasters or other (2cts of 0od/, war, damage to the Bank’s or its correspondent bank-s systems, communication channels etc. beyond the control of the Bank, prevents it from performing its obligations within the specified service delivery parameters
51
Redre''%/ o# Erroneou' +ebit' %ri'in" on 4r%udu/ent or Oter Tr%n'%ction'
i
In case of any fraud, if the Bank is convinced that an irregularityfraud has been committed by our staff towards any constituent, Bank will at once acknowledge its liability and pay the 'ust claim after investigating the matter.
ii
In cases where the bank is at fault, the Bank will compensate the customer without any demur
iii
In cases, where neither the branch nor the customer is at fault but the fault lies elsewhere in the system, Bank will compensate the customer upto a ma4imum limit of Rs.8$$1.
iv
>owever, in all the cases stated in point nos. -i to -iii above, the Branches are to put up the proposal for restoration of the fraudulent amount compensation amount to the Working *ommittee of the Board for approval.
