How banks make you poorer!!

BANKS today offer a slew of services to the customer, which only seem to increase by the day. However, remember this: there’s no such thing as a free lunch. Let’s take stock of what you pay to avail of services for a typical savings bank account.

1. Non-maintenance of minimum balance
You must maintain a stipulated minimum balance in your account (Rs 1,000 for a nationalised bank, Rs 5000 for a private bank).

If you fail to maintain this average quarterly minimum balance, you attract a bank charge of Rs 750-1,500 respectively. You could also face fines for cash transactions at branches and ATMs.

2. Cheque book charges
Most nationalised banks provide chequebooks free as per your requirement. Many private ones, on the other hand, charge you Rs 50-200 per chequebook, if you use up more than 2-3 per quarter.

3. Account closure charges
Some banks charge Rs 50-200 if the account is closed before six months elapse.

Must read: Salary account: Naive outside, knotty inside

4. Charges for certificates
Unlike most nationalised banks, private banks charge Rs 50-Rs 250 for documents such as balance certificate, interest certificate, address confirmation, signature attestation, photo attestation.

5. Cheque return charges
Nationalised banks fine you Rs 50-Rs 200 in case of cheque return (due to insufficient funds, signature mismatch etc) but private ones charge you Rs 100-Rs 500.

6. Cash transaction at other branches
In case of a cash transaction at a branch other than where your account is opened, 1-3 transactions are free per quarter. Beyond that, be prepared to be charged at the rate of Rs 5 per for every Rs 1000 transacted.

7. ATM charges
If you use the ATM of another back for balance enquiry or cash, you could be charged anything from Rs 10-100 per transaction.

8. Account statement
RBI directs that all banks must send free quarterly statements to their customers. Should you require more statements (in case of loss etc), you may have to pay Rs 50-500 per statement.

9. ATM or Debit Card fees
Most banks offer ATM cards free of cost but some do charge their customers for debit cards. For example, ICICI Bank provides a combo ATM/ Debit card, for which it charges Rs 99 per annum.

Over and above these, there are several other charges, such as outstation clearing charge (Rs 50- 500), pay order/ demand draft charge (based on amount), standing instruction charges, home cash delivery charges, old records retrieval charges, activation of dormant account charge etc.

Note: Visit the bank’s web site or any of the branches, for a copy of these expenses. It is mandatory for every bank to give it to you.

Author: Ketul H Shah
Source: Wealth, MoneyControl

When your bank messes up…

GONE are the days when you had to wait in queue to finish your bank work.

These days you have smarter options. You can transfer money, online, check your savings account balance on your cellphone and track the status of your cheque at your local ATM.

Yet banks still mess up. An extra charge, here. A cheque which takes forever to clear. We show you how to address these issues.

Step 1: If you have a complaint, visit the bank’s web site and file it here. Mention your e-mail id, correctly and wait for the bank to revert.

Step 2: If you do not receive a response from your bank or are not satisfied with the response, then file a complaint with the banking ombudsman (BO), a body supported by the Reserve Bank Of India (RBI).

The BO provides speedy solutions to grievances faced by customers from various banks.

What can you complain about?

You can complain if your bank does the following things:

• Does not clear cheques, drafts and bills. Or clears them late
• Refuses to accept without sufficient cause, small denomination notes (like Re 1, Rs 2 etc) or coins. Or if it charges a commission for this
• Delays the payment of deposits into your account
• Refuses to or delays issuing your drafts, pay orders or bankers’ cheques
• Does not stick to the prescribed working hours
• Fails to honour guarantees or letter of credit commitments
• The bank agents fail to provide or delay providing a banking facility (other than loans and advances) that has been promised in writing
• Does not follow the RBI directives that are applicable to rate of interest on deposits in any savings, current or other account maintained with the bank
• Refuses to open deposit accounts without a valid reason for refusal
• Levies any charges without informing you
• Does not stick to RBI guidelines with regards to ATM/debit card operations or credit card operations
• Delays payment of your pension money
• Does not accept or delays accepting amounts, that you pay as taxes
• Does not service you when it comes to investments in Government securities
• Forces you to close your deposit accounts without proper reason or notice
• Refuses or delays to close any accounts
• Does not adhere to the fair practices code as adopted by the bank
• Violates any other directive issues by the RBI in relation to banking or other services

How to file a complaint

• You can file a complaint by on a plain paper and submit it to the ombudsman’s office in your city. Click here for list of offices.
• You can also file it online: access the form.
• There is also a prescribed form for filing a complaint, which is available at all bank branches. However, it’s not necessary to use this format.

Can the ombudsman reject your complaint?

Yes, it can in the following cases.

1. Your complaint seems frivolous, dishonest or is filed without sufficient cause.

2. If you have not done your homework before filing your complaint, or do not have relevant proofs, the ombudsman will not entertain you. So, make sure you have a record of all your communication with the bank

3. There is no loss or damage or inconvenience caused to the complainant.

4. If the office of an ombudsman falls outside the purview of your case, he can reject your complaint. In this case, you must make sure you go to the correct office.

5. If your complaint sounds too complicated to the banking ombudsman, he may ask for elaborate documentation.

List of documents

Submit these along with your complaint:

1. Name and address of the complainant.
2. Name and address of the branch or office of the bank against which the complaint is filed.
3. All facts that support your complaint and if possible, quantify the amount of loss you suffered.
4. If the ombudsman has asked you to comply with some conditions, attach proof of such compliance.

The damages: There’s no cost involved!

Author: Harsh Roongta, Ceo, ApnaLoan.com
Source: Wealth, MoneyControl