Consumer Issues
Airtel asked to pay Rs15,000 for 'abrupt' disconnection of call services

Airtel disconnected incoming and outgoing calls on the number of its subscriber for 24 days and was asked to pay Rs10,000 towards compensation for mental and physical harassment and Rs5,000 as cost of litigation

New Delhi: Telecom operator Airtel has been directed by a consumer forum to pay Rs15,000 to a subscriber as compensation for 'harassing' him by abruptly disconnecting call services on his number for 24 days, reports PTI.


Airtel had disconnected incoming and outgoing calls on the number of its subscriber, Delhi resident JC Shivran, on the ground that he had not re-verified his contact details.


"The action taken by the opposite party (Airtel) of disconnection of the call facilities on the complainant's (Shivran) mobile phone appears to be unjustified... The action of abrupt disconnection of incoming and outgoing facilities does not appear to be proper and reasonable.


"Undoubtedly, the complainant has suffered from mental and physical harassment for which he is entitled to be reasonably compensated. We, therefore, direct the opposite party to pay Rs10,000 to him towards compensation for his mental and physical harassment along with Rs5,000 as cost of litigation," the South West District Consumer Disputes Redressal Forum said.


RBI asks urban co-op banks to modify forms for fixed deposits

Banks will have to incorporate a clause in the FD form to give option of premature withdrawal by survivor in case of death of the other joint account holder

Mumbai: The Reserve Bank of India has asked the urban co-operative banks to modify fixed deposit (FD) account opening form to allow pre-mature withdrawal in the event of death of one of the joint account holders without any penalty, reports PTI.
Under the modified norms, it would be easier for the surviving joint account holders of FD with 'either or survivor' or 'former or survivor' mandate to go in for pre-mature withdrawal of fixed deposit in the event of death of the other.
As per the notification of the Reserve Bank of India (RBI), banks will have to incorporate a clause in the FD form to give option of premature withdrawal by survivor in case of death of the other joint account holder.
RBI had earlier asked UCBs to incorporate such a clause in the account opening form, however, it said, "UCBs which have neither incorporated such a clause in the account opening form nor taken adequate measures to make the customers aware of the facility of such mandate, cause unnecessary inconvenience to the 'surviving' deposit account holders(s).
"UCBs are, therefore, advised to invariably incorporate the aforesaid clause in the account opening form and also inform their existing as well as future term deposit holders about the availability of such an option." 
The joint deposit holders may be permitted to give the mandate either at the time of placing fixed deposit or anytime subsequently during the term/tenure of the deposit.
"If such a mandate is obtained, banks can allow pre-mature withdrawal of term/fixed deposits by the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder," RBI said.
It further clarified that "such premature withdrawal would not attract any penal charge".


Union Bank cuts vehicle loan rates to 10.95%

Union Bank cut interest rates by 1.5% to 2.5% to 10.95% for vehicle loans of up to seven year tenure

Mumbai: Union Bank of India said it has slashed interest rates on vehicle loans in the range of 1.55-2.55% and brought them to a flat 10.95% on zero to seven-year tenor with immediate effect, reports PTI.


The public sector lender's move follows a similar decision by other state-run banks such as the State Bank of India (SBI) and Indian Overseas Bank (IOB), among others.


Earlier, the rates offered by the Union Bank were 12.5% for 0-3 years and 13.5% for 3-5 years, a release from the state-owned bank said.


The bank has also extended its 'The Independence to Republic Day Festive Offer' on vehicle loans by waiving processing fees during this period.


"The reduction in interest rates and the festival offer will boost the bank's retail portfolio," Chairman and Managing Director of Union Bank D Sarkar said.


Earlier, Union Bank had reduced home loan rates to 10.5% besides waiving 0.5% processing fee on loan amount.


SBI recently reduced home loan rates to 10.25% from 10.5% for loans up to Rs30 lakh and 10.4% for loans between Rs30 lakh and Rs75 lakh.


Similarly, the country's largest lender has reduced car loan rates to 10.75% from 11.25% earlier.


While IOB has reduced home loan rate to 10.5% along with 0.5% reduction in auto loan rates, the Central Bank of India has announced cut in interest on home loans by 25-50 basis point for the amount in Rs30-35 lakh range with effective from 1st September.


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