Ahmedabad resident Dipak Sheth took over four years to get a refund of an amount of Rs8,050 that was wrongly debited from his account by the private sector bank in lieu of non-payment of arbitrary charges
A consumer forum has directed HDFC Bank to refund the money that was illegally debited from Dipak Sheth’s savings account, along with interest at the rate of 9 per cent from the day it was collected (on 3rd June 2008), in addition to Rs1,500 as compensation for mental agony and Rs1,500 toward cost of litigation.
In 2005, Mr Sheth was issued a credit card from an Ahmedabad branch of HDFC Bank. He used the card to pay a shopping bill of Rs3,786. This shopping trip would cost him more dearly, both financially and mentally, in the next few years. The last date for payment of the bill was 27th January, 2006. So on 24th January, he deposited a cheque for the full amount. The amount was somehow credited to HDFC Bank only on 31st January. For this, Mr Sheth was charged a late payment fee of Rs275, Rs110 as an outstation collection fee and Rs89 as a finance charge. Mr Sheth paid the first charge, but protested all three; only the delayed payment fee was refunded. But not only was the request for the refund of the remaining Rs199 (Rs110 plus Rs89) ignored, the bank later illegally collected Rs8,043 from Mr Sheth’s savings bank account for non-payment.
Despite repeated attempts to get back the money, Mr Sheth was unsuccessful. Helpless, Mr Sheth approached Consumer Education and Research Society, which moved the Consumer Disputes Redressal Forum, Ahmedabad (Additional) on 8th September 2009. The matter was finally settled on 22nd October, 2012, when the consumer forum ruled in favour of Mr Sheth. Given that Mr Sheth did paid his bill on time, the fact that he had to struggle to get his money back, and that too from a leading private sector bank, is ludicrous.
SEBI has increased the minimum capital deposit required to be maintained by a stock broker to up to Rs50 lakh from a maximum of Rs10 lakh
Mumbai, Dec 19 (PTI) Market regulator Securities and Exchange Board of India (SEBI) has increased the minimum capital deposit required to be maintained by a stock broker to up to Rs50 lakh, from a maximum of Rs10 lakh earlier, to safeguard against any risks posed by them to the overall market, reports PTI.
The base minimum capital (BMC) is the deposit maintained by the member of a stock exchange against which no exposure for trades is allowed and these deposits were last hiked by SEBI nearly 16 years ago in 1996.
These are meant for meeting contingencies in any segment of the exchange and are commensurate with the risks that the broker may bring to the system.
Announcing the increase and other changes in the BMC requirements, which would be implemented by 31 March 2013, SEBI said the market structure has undergone significant structural changes over the years.
"The various technological changes and the increased speeds of trading have brought to fore the greater quantum of risks arising during the course of execution of transactions. Hence based on deliberations at various forums, it has been decided to review and enhance the BMC requirement," it said.
As per the revised BMC framework, it would be enhanced for members holding registration as 'stock-broker' in cash segment, while BMC would also be introduced for members holding registration as 'trading member' in any derivative segment.
SEBI has proposed a higher BMC requirement for those using high-frequency algorithmic trading facilities, while the deposits would be comparatively lower for the trading members indulging in only proprietary trading.
The new BMC deposit requirements, as per the profile of the members, range from Rs10 lakh to Rs50 lakh for members of stock exchanges having nation-wide trading terminals, while the same for members of other stock exchanges would be 40% of the same.
Way back in 1996, SEBI had asked the stock exchanges to double the base minimum capital requirement for their members from Rs5 lakh to Rs10 lakh in the case of BSE and Calcutta Stock Exchange, from Rs3.5 lakh to Rs7 lakh in the case of Delhi and Ahmedabad Stock Exchange and from Rs2 lakh to Rs4 lakh in the case of other stock exchanges.
Later in 2005, SEBI had made certain changes in the BMC framework, but the deposit amounts remained same at that time.
The regulator said stock brokers or trading members should maintain a minimum capital of Rs10 lakh in case of trading of securities are done through their own money rather than customer's without using Algo trade.
Algo refers to orders on bourses that are generated using high-frequency and automated execution logic.
SEBI said BMC limit should be Rs15 lakh in case of a stock broker trades on behalf of client (without proprietary trading and without Algo) and it should be Rs25 lakh in case of proprietary trading as well as trading on behalf of client without Algo.
Besides, SEBI has fixed the BMC limit to Rs50 lakh for all trading members and brokers who participates in the trades through Algo.
The regulator said a minimum 50% of the deposit should be in the form of cash and cash equivalents.
Tata Tele's unit MMP will act as a business correspondent for ICICI Bank for this service, which will allow customers to transfer money for a nominal fee without opening an account
New Delhi: Telecom operator Tata Teleservices (TTL) through its subsidiary MMP Mobi Wallet Payment Systems has tied up with ICICI Bank for money transfer service, reports PTI.
Under this service, people can deposit money in ICICI Bank account through MMP retail stores.
"Customers can walk into a retail store of MMP to deposit cash along with an advice giving details of the account of the payee. This money will then be transferred to the bank account of the payee using currently available electronic fund transfer mechanisms such as NEFT, IMPS etc," a joint statement from TTL and ICICI Bank said.
MMP will act as a business correspondent for ICICI Bank for this service, which will allow customers to transfer money for a nominal fee without opening an account.
"This partnership between ICICI Bank and MMP to offer money remittance services is an important step in that direction. We see lots of synergies between the two brands and are confident that we would be the market changers in mobile remittance and payments services," TTL Managing Director N Srinath said.
The money transfer service will be launched in Mumbai and Delhi to begin with and then in other parts of the country, the statement said.
"The money transfer service will be launched in Mumbai and Delhi to begin with and then in other parts of the country," ICICI Bank Executive Director Rajiv Sabharwal said.