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Some Rules to know from Reserve Bank of India

In this workalcholic culture, there is only time for work and we often fail to know atleast some fundamental rules or procedures in our day to day functioning, which an ordinary citizen in this country should possess. This post and related posts will throw some light on some rules, procedures we come across in our public life

Let us see some Rules in banks which have been laid down by Reserve Bank of India (RBI).

Do you know banks should also accept cheques at counters duly giving an acknowledgement of receipt?

Cheques can also be deposited at the collection counters at the bank and the customer can obtain the acknowledgment for receipt of the cheque, RBI has given instructions through its letters (DBOD.No.Leg.BC.74/09.07.005/2003-04 dated April 10, 2004), DBOD.No.Leg.BC. 49 /09.07.005/2006-07 dated December 18, 2006 that the option of depositing the cheque at the cheque drop box or at the collection counters rests with the customer. The bank should provide both the facilities and the customer has to take an informed decision. It is the hanks responsibility to see that the customer is aware of both the options. For this purpose RBI has instructed the banks to display the following words at the cheque drop box in English, Hindi and regional language of the state 'Customers can also tender the cheques at the counter and obtain acknowledgment on the pay-in-slips'

Do you know that you can have your saving accounts passbooks instead of the quarterly statement?

RBI has instructed to bank vide its letters DBOD.No.Leg.BC.74/ 09.07.005/2004-05 dated April 10, 2004, DBOD.No.Leg.BC.74/ 09.07.005/2004-05 dated April 10, 2004, DBOD.No.Leg.BC.32 /09.07.005/2006-07 dated October 4, 2006. that banks should invariably give passbooks for saving account holders due to inherent defects in the quarterly statement system. The statement has a lot of disadvantages like it should be filed, the closing balance and opening balance should be tallied, the transaction slips to be maintained, can be lost in postal transit etc. In case a statement is sent RBI has stated that statement should be sent monthly and charges for providing the pass book, statement should not be borne by the customer.

You can get a duplicate demand draft?

You can get a duplicate demand draft within a fortnight. In this regard RBI has issued the following guidelines (DBOD.No.BC.147/09.07.007/99-2000 dated March 9, 2000), DBOD.No.Leg.BC.42 /09.07.005/2006-07 dated November 10, 2006

In case the bank does not provide the same within a fortnight the bank has to paid interest as in FD to compensate the customer for the delay. Only the purchaser/ beneficiary are eligible to apply for demand draft. Duplicate demand draft will not be issued to third party.

Do you know that banks cannot refuse cheques having fraction of rupee.

Instructions have been issued by RBI to banks that in all transactions where fraction of rupee is involved, they must be rounded off to the nearest rupee. In case it is more than 50 paise should be rounded off to next higher rupee, while less than 50 paise should be ignored. As per RBI guidelines DBOD Dir. BC. 6/13.03.00/2006-07dated July 1, 2006, Ref: DBOD. Dir. BC. 70/13.01.01/ 2006-07 dated March 30, 2007 no bank can refuse to accept a cheque having fraction of rupee. Action has to be taken against the erring staff and the staff must be trained to accept the same. Any bank violating the aforesaid instructions would be liable to be penalised under the provisions of the Banking Regulation Act, 1949

Do you know that a bank should not refuse to open an account solely on the ground that the person opening the account refused to provide a nomination.

RBI has instructed that banks should insist on a customer opening a deposit account, to provide a nomination for the account. The reference letters are Circular DBOD. No. BC.95/09.07.005/2004-05 dated June 9, 2005, Ref: DBOD.No.Leg BC. 75 /09.07.005/2006-07 dated April 5, 2007 The advantages of having a nomination should be explained in detail to the customer. In spite of all this if the customer does not want to give nomination, the bank shall obtain the same in writing from the customer stating that the customer is not willing to give a nomination. If a customer does not also produce a letter, the same should be recorded in the application form and processed further. On no account shall the bank reject the deposit account on the basis that the customer does not provide nomination.

All the above information and other useful information are available in the following RBI link :

http://www.rbi.org.in/commonman/English/Scripts/CustomerServiceGuidelines.aspx#roun5