RBI Notification on failed ATM transactions

The Reserve Bank of India has issued a notification on 27^th May, 2011 in which it has issued certain directions to the banks in respect of failed transactions at ATMs. As per the notification, the time limit for resolution of customer complaints is reduced from 12 working days to 7 working days from the date of receipt of customer complaint. If the banks failed to re-credit the customers accounts within 7 working days from the date of complaint, the Bank shall be liable to pay Rs. 100/- per day to the customer as compensation. The customer is entitled to the compensation only if claim is lodged with the issuing bank within 30 days of the transaction.

Earlier the number of free transactions in other ATMs includes only financial transactions. However now, RBI directed that free transactions at other ATM shall include all types of transaction i.e. both Financial as well as non-financial transactions.

These directions shall come into force w.e.f. July 01, 2011

Enhancement of limit for Mobile Banking Transactions

The Reserve Bank of India, by considering the increase in the volume of mobile banking transactions, enhanced the limit of mobile banking transactions without end-to-end encryption from Rs. 1000 to Rs. 5000 with effect from May 04, 2011.

Enhancement of Fees for PMQ in Corporate Governance

The Institute of Company Secretaries of India has increased the fees for PMQ course in Corporate Governance to Rs. 25,000/- with effect from 1^st day of January, 2010. Out of which Rs. 12,500/- is payable at the time of registration for the course and remaining Rs. 12,500/- is payable after the completion of Part – I of the course and before commencement of Part II

Disclosure of information relating to loan processing fees & charges - RBI Notification

The Reserve Bank of India issued a notification on November 12, 2010, where it has advised all scheduled commercial Banks and Financial Institutions to transparently disclose all the information about Fee/charges payable for processing/sanctioning the loan application, amount of fees refundable in case of rejection of loan application, pre-payment charges, conversion charges etc.  Such informations should also display in the websites of the Banks for all categories of loans.

The Banks should disclose “all in cost” including all charges involved in processing/sanction of loan application in a transparent manner to enable the customer to compare the fees/rates charged with other sources of finance.

Electronic Funds Transfer Infrastructure in India – Usage of RTGS and NEFT – RBI Notification

The Reserve Bank has doubled the threshold limit for electronic fund transfers using the Real Time Gross Settlement (RTGS) system to Rs 2 lakh with effect from November 15.

For electronic transactions valued between Rs 1-2 lakh, the RBI has created a new value band in its 'near real-time' National Electronic Fund Transfer (NEFT) system to cater to retail bank customers.

The RBI has revised the service charges for fund transfers through the NEFT mode. Fund transfers up to Rs 1 lakh will continue to attract a service charge of Rs 5.

For fund transfers valued between above Rs 1 lakh and Rs 2 lakh, the RBI has revised the customer charges downward to Rs 15 from Rs 25 earlier. The fee for fund transfers worth more than Rs 2 lakh remains unchanged at Rs 25.

Opening of Bank Accounts for Salaried employees - RBI Notification

The Reserve Bank of India has issued a notification on 26^th October, 2010 where it has given clarification on the documents to be received by the Banks while opening the accounts of the salaried employees. In order to curb the misuse and to fraught with risks, it has clarified that Banks should rely on certifications issued only from reputed corporates or entities and should be aware of the competent authority designated by the concerned employer for issuing such certificates. Further in addition to the Employer’s certificate, Banks should insist on at least any one of the valid documents as provided in the Prevention of Money Laundering Rules i.e. PAN copy, Passport copy, Voter ID etc. or Utility bills for KYC purposes for opening the accounts of the salaried employees.