Money & Banking
Moneylife Campaign - RBI asks banks to provide details of transactions to customers
Taking cognizance of several complaints from customers, letters and memorandums, the Reserve Bank of India (RBI) has once again asked banks to record details of transactions in the passbook or statement of accounts of customers. The RBI had issued similar instructions some 13 years ago, which banks have not been following.
 
In a notification issued on 22 June 2017, the central bank says, "It has come to our notice that many banks still do not provide adequate details of the transactions in the passbooks and/or statements of account to enable the account holders to cross-check them. In the interest of better customer service, it has been decided that banks shall at a minimum provide the relevant details in respect of entries in the accounts."
 
RBI expects banks to share transaction details like the name of the payee, mode of transaction and name of transferee bank. For bank charges, the lenders have to provide nature of charges, like fee, commission, fine or penalty and reasons for the charges. (See details of entries that banks have been asked to record and share with customers below this article) 
 
"Banks shall also incorporate information about ‘deposit insurance cover’ along with the limit of coverage, subject to change from time to time, upfront in the passbooks," RBI has said.
 
As part of its advocacy efforts, Moneylife Foundation has led the effort to fight for customer rights. Despite our efforts, we have seen very little evidence on the ground of concrete action by the regulator. 
 
Moneylife Foundation has been at the forefront of speaking up for bank customers. An online petition launched by us has garnered more than two lakh signatures. (Sign the Petition). The group, including well known NGOs, trade unions, finance editors and experts, had on 12 May 2017 presented a 1,100 page printout of over 100,000 signatures to an online petition at Change.org to M Veerappa Moily, Chairman of Parliamentary Standing Committee on Finance.
 
One of the key points of the petition is about capturing and sharing with customers the details of bank transactions, like name, branch and account number of sender and receiver. "...even a single digit mistake in the 10-digit account number causes a person to lose money with no practical remedy. This has a very simple solution, which is to capture the name, branch and account number of the sender and receiver. RBI must modify its systems to capture and share details of both sender and receiver and ensure effective grievance redress," the letter given to Mr Moily says. 
 
However, what is shocking is that though on 10 April 2004 banks were advised to avoid making inscrutable entries in passbooks or statement of accounts, 13 years later banks were still not following the advice. 
 
In 2004, the RBI-appointed Committee on Procedures and Performance Audit on Public Services, in its Report No. 3, had stated, "...banks invariably show the entries in depositors’ passbooks/statement of accounts as ‘By Clearing’ or ‘By Cheque’. Further, in the case of Electronic Clearing System (ECS) and RBI Electronic Funds Transfer (RBIEFTR) banks invariably do not provide any details, even though brief particulars of the remittance are provided to the receiving bank. In some cases computerised entries use sophisticated codes which just cannot be deciphered." 
 
"With a view to avoiding inconvenience to depositors, banks are advised to avoid such inscrutable entries in passbooks or statements of account and ensure that brief, intelligible particulars are invariably entered in passbooks or statements of account. Banks may also ensure that they adhere to the monthly periodicity prescribed by us while sending statement of accounts," the Committee had said. 
 
It would be interesting to see if banks follow RBI’s advice this time or continue to ignore it, as they have been doing these past 13 years.  
 
Here are the details of transactions banks will record and share with customers:
 

 

User

COMMENTS

Ramesh I

3 weeks ago

SBI is notorious for having 'network issues' whenever I visit the Branch for getting my passbook updated. A printout is permanently fixed on the counters by the Branch. Now that SBI has raised its MAB to Rs. 5000 in metros, why can't it provide a monthly e-statement to every customer ? It already has the email IDs and mobile numbers of every customer of Savings Bank A/c. Moreover, SBI Branches rarely respond to customers' query, as their Toll Free CC is mostly unhelpful, directing callers to the Branches whose contact numbers they refuse to share too. PSU Banks lag behind private Banks by miles when it comes to customer-orientation. Wish RBI would look into such issues as well.

Anand Vaidya

1 month ago

Nothing has improved. See this entry from IOB passbook and figure out what it means:

47068208-
NFS330842O081216X1747-
xxxx0000xxxxx (SB A.C No)

Ramesh Poapt

1 month ago

Great ML!

Suketu Shah

1 month ago

RBI's intent is not always sincere as per the track record.There is a photo of previous RBI governor sharing the dias with Videocon Dhoot one of the biggest defaulters of bad loans.Seems they were nicely chatting,notjhing else.

Gitesh Shah

1 month ago

This is something basic which banks should provide. Wonder why competition among banks not making one of them come forward with this? I would add, bank communication should be provided in the language of customer's choice. At least English, Hindi and the regional language where bank is located should be given as a choice.

Deepak Narain

1 month ago

It is a good development. I hope the Banks will comply and the RBI will monitor compliance.

GLN Prasad

1 month ago

Even without this directives, any citizen can seek such information both as consumer and as citizen under RTI Act. There is nothing remarkable in the circular. It is just to reiterate the earlier directive.

K V RAO

1 month ago

Government banks have notified working hours but never follow them. Lunch time is always exceeded. exceeded. Will RBI take note of this and does surprise checks?

K V RAO

1 month ago

SBH NOW SBI in BANGALORE shows working times but has an extended lunch times. This is the case with all the banks. Who will stop this?

PRAKASH D N

1 month ago

It only shows the lackadaisical attitude of RBI towards Customer Care. If RBI has will, Banks can be made to act within 15 days. Whether there is any will?

anil kumar srivastava

1 month ago

Banks even having state patronage are akin to more commercialisation as it was pre- nationalisation in year 1969, the persisting attitude of Banks has forced them Prime minister Amy. INDIRA GANDHI to nationalise Bank for Social upliftment in the spirit of the Constitution of India; but by demonetization, PM has vacuumed the house hold currency chest of common men and overstuffed currency chest of banks litterly choking cash flow and prompting Banks to get profit targets by over charging services than earning out of overstuffed currency chests by soft loaning for overall growth of economy of the Nation.No this move will ultimately ruin the Indian economy in coming years as as purchasing power of common will reduce resulting slump in Market leading to closure of industries and reduction in trade with negative impact on employment with prompting youth resorting to unrest tearing socio- economic structure of India turning great cause of debacle of BJP citadel of power like Congress has faced in long term.It is time to awake and streamline Banks to save Indian economy.

Ismail Bandookwala

1 month ago

Let's hope the banks follow the RBI instructions now. The RBI should also declare the penalties for non compliance.

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We prudes feel assailed, but we'll win in the end (The Funny Side)
These days people are willing to stand up for every subset of sexual identities -- except for one group.
 
What about prudes? Our rights are trampled on every day.
 
Several times a week, something shocking comes on TV and my children shout "Not suitable for Dad!" and I have to race out of the room before kissing, pillow talk or worse appears on screen.
 
I was at a school drama once at which two performers on stage fell on each other passionately, causing everyone below the age of 12 in the audience, plus this columnist, to make a disgusted "Eewwwwww" sound. Children have taste. They know that some things are great in public, others aren't.
 
Prudish adults exist too. This writer took his family to a poetry slam once which opened with a poem so pornographically detailed that half the adults in the audience boo-ed out loud -- although I have to admit the teens present grinned and took notes.
 
Prudes get a bad rap because we only make the news when one of us says something stupid. In Japan recently, a professor named Shigeaki Iijima explained why women could never be allowed to join the country's army: "In actual combat, if they are under attack from artillery shells or bombs, there is a chance their clothes could be blown off."
 
Clearly Mr Shigeaki does not understand the physics of bombs. But in his defence, weapons which seem to do nothing except damage female clothing pop up regularly in video games and anime cartoons, not to mention every action film ever made.
 
One of my colleagues claimed that someone had once actually developed a bomb that blew off clothes, leaving humans naked, but Google revealed he was remembering a 1980 Maxwell Smart comedy movie called The Nude Bomb.
 
Life as a prude is hard enough in Asia, but it would be intolerable in pro-pornography places such as Japan, North America or Europe, my colleague said.
 
Earlier this month the Canadian government praised pornography as it "allowed young people to learn about the different spectrum of sexual expression". This colleague, who is a Japanophile, said this implied that lucky Canadian children will be able to learn about things such as "tentacle sex" (do NOT write and tell me what that is).
 
Will prudishness die out completely? "No," said one of my science correspondents. "Porn-loving societies see an increase in erectile dysfunction, a loss of interest in sex, and negative birthrates. In contrast, prudish communities grow."
 
He showed me evidence. "Sex is going out of fashion" was the headline of a US report summarising an academic study in August last year. A huge survey by The Lancet said that people in the UK were having steadily less sex, and Swedish researchers found the same in their country.
 
He also had figures indicating that people in conservative, prudish, family-minded regions (Africa, South Asia) have a positive birth rate. This is somewhat ironic, since prudes are assumed to hate sex. In fact, we don't dislike it. We just would rather it was more hygienic, less visible and completely silent.
 
In fact, we don't even like talking about it, so I'll shut up here. Frankly, the whole subject makes me go ewwwwww.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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