MRTPC notice to ICICI Bank, Citibank and HSBC: Fin Min

New Delhi, Aug 31 (UNI) Monopolies and Restrictive Trade Practices Commission (MRTPC) has issued notices of inquiry to ICICI Bank, Citibank and HSBC for alleged violation of RBI guidelines in their credit card business, the government informed the Lok Sabha today.

Violations include soliciting and promoting credit card sales through Direct Sales Agents (DSAs) without disclosing that they are independent contractors and DSAs indulging in alleged unfair trade practices and promising more than what the bank can offer while providing credit card services to general public.

The information was provided by Minister of State for Finance Pawan Kumar Bansal in a written reply.

The other violations include soliciting applications for credit cards without making prospects aware of the most important terms and conditions (MITC) in their language and inviting applications for credit card services without making MITC part and parcel of the application form.

Among other violations are usage of smaller font size of alphabet in the application forms, levying penal charges without ensuring that statement of accounts have been received in time and accepting cheques towards repayment without issuing acknowledgement.

After the complicity of the bank is established, RBI takes appropriate regulatory action in the matter including advising the bank to improve its system and procedures and imposition of penalty on the bank to avoid recurrence of such instances.

UNI