Working Group will ensure reasonableness of bank charges:Thorat

New Delhi, May 29 (UNI) Taking into account the innumerous complaints pouring in from customers regarding banks leviying high charges, the Reserve Bank of India (RBI) has constituted a Working Group to ensure reasonableness of bank charges and to incorporate this in the Fair Practices Code.

This was stated by RBI Deputy Governor Usha Thorat at the 'Financial Planning Congress 2006' organised by Financial Planning Standards Board (FPSB) India.

The working group comprising nominees from Indian Banks Association (IBA) and representatives of customers, will be closely monitored by the Banking Codes and Standard Board of India (BCSBI).

''Keeping in view the large number of complaints being received, the Banking Ombudsman Scheme has been revamped this year, and since the revised scheme came the number of complaints recieved at various offices has more than doubled to 13,483 during the last quarter,'' she said.

''The Working Group monitored by the newly formed BCSBI, will ensure reasonableness of bank charges,'' she added.

Ms Thorat also added that RBI has issued some instructions to the banks on a number of recomendations of the Committee on Procedures and Performance Audit on Public Services in order to safeguard the interests of the customers.

Some of the instructions include: The banks are required to inform customers upfront about the requirement of minimum balances and the charges if such balances are not maintained. They are also required to inform customers one month in advance any charges in such minimum balances and charges.

They have been asked to provide a choice of 'a no frill account', where the required minimum balance is nil or very small but having restrictions on number of withdrawals, to facilitate the common man's access to bank accounts.

In case of collection of cheques, banks are required to formulate and disclose their policy for affording immediate credit, time frame for collection and interest payment for delayed collection, taking care to ensure that the interests of the small depositors are fully protected.

Banks are required to provide both the drop box facility and the facility for acknowledgment of cheques at the regular collection counters and the bank cannot refuse to give an acknowledgment if the customer tends the cheques at the counter.

Depositors cannot be forced to sign a declaration that dispatch of cheque book by courier at the depositors risk as it constitutes an unfair practice. Banks should also ensure that cheque books are delivered over the counters on requests to the depositors or his authorised representative.

MORE UNI MP CS VC1706