NCC takes exception to unfair trade practices by banks

New Delhi, Oct 12 (UNI) The National Consumer Commmission has taken exception to the unfair trade practices being indulged in by the banking industry, causing a loss of about Rs 620 crore daily to the account holders.

The NCC has directed the Union Finance Ministry and the RBI to file their reply within 15 days to allegations made in a complaint filed by two Delhi-based lawyers.

A Bench comprising Justices M B Shah and Mrs R Rao warned the banking industry that if it was proved that RBI reports substantiated that such practices were being adopted by the banks then the Finance Ministry and individual banks would have to be taken to task and strict action would be initiated against them.

A 650-page complaint filed by Atul Nanda and Rameeza Hakeem alleges that in a year about 13000 lakh cheques are transacted. By delaying the clearance of cheques deposited each day, the bank earns about Rs 620 crore of the consumer money. On an average a bank enjoys a five days float time in every transaction. This amounts to around Rs 3500 crore of consumer money.

The Commission also said in its order dated October 10, 2006 that the protection of the Indian consumer was primary, foremost and most important. There are about 90 banks apart from RBI involved in the scandal which also includes the nationalised banks as well as some foreign banks.

According to RBI guidelines, a cheque of less than Rs 15000 must be credited immediately into the account of the depositor which is normally not done by the banks and the account holder who is entitled for the interest for the floating period does not get anything.

UNI AKS/SC PDM RP DB2004