October 4, 2006
All Scheduled Commercial Banks
Customer Service – Non-issuance of Passbooks
to Savings Bank Accountholders (Individuals)
We have been receiving representations from
customers including senior citizens' associations that many banks have discontinued
issuing pass books to Savings Bank Account holders (Individuals). It has also
been pointed out that this decision of discontinuing the pass book system has
been taken by the banks unilaterally causing much inconvenience to the
account holders. It has also come to our notice that these banks are issuing
Statement of Account to Savings Bank account holders at quarterly intervals
instead of at monthly intervals as stipulated in our circular DBOD.No.Leg.BC.74/
09.07.005/2004-05 dated April 10, 2004.
2. In this connection, it may be mentioned that
a passbook is a ready reckoner of transactions and is handy and compact and
as such, is far more convenient to the small customer than a statement of account.
Use of statements has some inherent difficulties viz. (a) these need to be filed
regularly (b) the opening balance needs to be tallied with closing balance of
last statement (c) loss of statements in postal transit is not uncommon and
obtaining duplicates thereof involves expense and inconvenience (d) ATM slips
during the interregnum between two statements does not provide a satisfactory
solution as full record of transactions is not available and (e) there are a
large number of small customers who do not have access to computers / internet
etc. As such, non-issuance of pass-books to such small customers would indirectly
lead to their financial exclusion.
3. Banks are therefore advised to invariably
offer pass book facility to all its savings bank account holders (individuals)
and in case the bank offers the facility of sending statement of account and
the customer chooses to get statement of account, the banks must issue monthly
statement of accounts in terms of our circular DBOD.No.Leg.BC.74/ 09.07.005/2004-05
dated April 10, 2004. The cost of providing such Pass Book or Statements should
not be charged to the customer.
4. Please acknowledge receipt.
Chief General Manager-in-Charge