RBI silent on banks' customer-unfriendly practices: Bank union
Chennai, April 30: The Reserve Bank of India (RBI) as the regulator of the banking sector has not taken the banks to task for their customer-unfriendly practices and remained silent, states a Memorandum signed by All India Bank Employees' Association along with NGOs.
"The RBI as the banking regulator has been proactive in improving the customer service rendered by banks. However, the RBI has not taken banks to task on the many customer-unfriendly practices that are increasing with impunity," said the Memorandum addressed to RBI Governor Urjit Patel.
According to the Memorandum, over the years, the RBI has remained silent on several anti-depositor actions of banks.
"The Banking Ombudsman's rulings also tend to side with banks, making no attempt to observe the pattern of complaints which would amply bring out rampant mis-selling of insurance and wealth management products," it said.
"We feel that with the increased use of digital payments post the demonetisation drive, it is necessary to have in place a mechanism or system to protect customers from unauthorised banking transactions," the Memorandum said.
The Memorandum said no practical portability option exists in banking primarily due to standing instructions for both incomes (pensions, annuities, dividends, interest) and expenses (utilities and others) and the difficulties associated with changing those standing instructions.
Portability of loan exists on paper, but has to be made easier and seamless to execute without imposing fiscal and non-fiscal burden on the consumer.
The Memorandum also pointed out the customer agreements drafted by the banks which are not customer-friendly and their interests, frequent increase in bank charges.
"A Master circular/notification by the Reserve Bank giving teeth to the Charter of Customer Rights with clear provisions fixing timelines for redressal and escalation, penalty for negligent service and interest/compensation to customers for losses caused due to mis-selling is urgently needed," the Memorandum noted.
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Speaker UT Khader attends local cricket tournament during Bhatkal visit
Bhatkal: Speaker of the Karnataka Legislative Assembly U. T. Khader visited Bhatkal in Uttara Kannada district on Saturday and attended a local cricket match being played as part of a tournament organised by the Cosmos Sports Centre of Bhatkal.
After attending a programme at Anjuman Hami-E-Muslimeen, Khader proceeded to the Bhatkal Taluka Stadium, where the tournament is underway. He was accompanied by office-bearers of the Cosmos Sports Centre and several local community leaders.
Those present during the visit included President of Majlis-e-Islah Wa Tanzeem and former JD(S) leader Inayathullah Shabandri, Vice President of Tanzeem Atiqur Rahman Muniri, General Secretary Abdul Raqeeb MJ, President of Cosmos Sports Centre Ismail Anjum, Managing Director of Mohtisham Complexes S. M. Arshad, former president of the Bhatkal Muslim Youth Federation Imtiyaz Udyawar, among others.
Addressing players and organisers, Khader extended his best wishes to the participating teams and urged the players to uphold the spirit of sportsmanship. He said such tournaments help promote unity and brotherhood among the youth.
The cricket tournament began on November 21 and will conclude with the final match on December 21. It is being organised as part of the golden jubilee celebrations of the Cosmos Sports Centre.
Cosmos Sports Centre is one of the member clubs of the Bhatkal Muslim Youth Federation and is known for its active role in promoting sports in the town. Apart from sporting activities, the centre is also involved in various social and community initiatives, including efforts to promote education among students.
