RBI seeks action from IndusInd Bank to set right grievances caused due to software glitch

The central bank demands comprehensive action by the lender to set right all cases of wrongful debit of charges caused by a software anomaly

Reserve Bank of India's customer services department has taken a serious note of the difficulties being caused by a software glitch in IndusInd Bank. While asking the bank to attend to a customer complaint in this regard, it has also demanded that the bank look into all similar cases even if the customers have not complained to the bank or the RBI as yet. It has also advised the bank to confirm whether the problem in the software has been set right in totality as the issue does not just involve one customer's account.

Moneylife had earlier reported (see here:  http://www.moneylife.in/article/8/6285.html how a software glitch in the system of IndusInd Bank was causing problems for its account holders, wherein the accounts were being debited with charges for low account balance for no fault of the holder.

The complainant, Amita Mittal, had brought to Moneylife's attention the difficulty she had to face every month due to an irritating anomaly in the bank's software.

The bank has a facility wherein the excess funds in the account (above Rs10,000) are transferred to a fixed deposit. However, the bug in IndusInd Bank's software does not allow funds to be drawn from the fixed deposit wherever any cheque is debited from the account. Instead, the software allows the account to be charged directly. Due to this the balance in the account becomes lesser than Rs10,000 and the software levies unnecessary charges to the customer. This has been happening for the past one year and more, with the software levying penalties every time the account balance goes below the minimum, when actually the account holds substantial funds.

The bank, in its reply to the complainant, has stated that its Flexi Term Deposit Product offers the facility for sweeping funds from current/savings accounts beyond the threshold limit selected by the customer into term deposits with selected tenor. The product also has thefeature of sweeping the funds from the deposits for meeting current account requirement when a particular debit results in a negative balance. This ensures that the customer can avail the benefit of flexibility up to the amount of Flexi Deposits for his requirements.

The bank goes on to explain that while both the above features are offered, this product currently does not offer the facility for restoring minimum balance in the account from thefixed deposit. Hence, the balance in the customer's account was not restored and minimum balance charges were applied to the account. However, the bank has reversed the non-maintenance charges levied to the account.

However, Kaza Sudhakar, the chief general manager of the RBI customer services department has made it clear to the bank that the issue does not involve reversal of just one customer's account charges and that it needs to put in place a comprehensive solution to redress similar grievances of all affected customers.
 

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COMMENTS

Rajesh Kumar Gautam

6 years ago

Hi,

My Salf is Rajesh Gautam, Indore .My cell no is 98261-42042 & address : 202,Sanjeevani Apartment,19,Y.N.Road, Indore-452003,email address is [email protected].

Having saving account in IndusInd Bank,Indore since 1998.

I sent a letter regarding low balance changes deduction from my saving account more than 6 months without informing me. Even, I am having 25K FD in your Bank.

I am requesting yuu please suggest me how an what type action I can take aginst them.

Thanks in Advance
Rajesh Kumar Gautam
[email protected]

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