Circular No RBI/2004/197
CO.DT.No.13.01.299/H.6707/2003-04
May
14, 2004
Vaishaka 24, 1926 (S)
The
Chairman & Managing Director
State Bank of India and Associate banks
17
Nationalised banks
The Managing Director
ICICI/IDBI/HDFC/UTI Bank Ltd.
Stock
Holding Corporation of India Ltd.
Dear
Sir,
6.5% Savings (Non-Taxable) Bonds, 2003
& 8% Savings (Taxable) Bonds 2003 issue and servicing - Penalties for infringement
of Customer’s Rights
Please
refer to our Circular RBI / 2004 / 186 dated April 30, 2004 in terms of which
we have forwarded the revised set of application forms in respect of the captioned
bonds, incorporating the rights and duties of the individual investors.
2. It needs hardly to be emphasised that
Reserve Bank of India attaches great importance to ensuring complete satisfaction
to the holders of these bonds and as agents of Reserve Bank, it is incumbent on
the part of Agency banks to extend best quality customer service to the investors
by reorienting / reenergising its resources to the optimum level.
3.
While we are confident that the agency banks will be able to gear up their machinery
to meet the needs and fulfil the rights of the customers, any violation of such
rights by the agency banks will be viewed seriously by the Bank. Accordingly,
it has been decided that breach of any of the customer right as already enumerated
in the Bond application form, referred to above, will be visited with penalties
to be imposed by the Reserve Bank. In case of repeated infringement of any of
the customer’s rights e.g. thrice or more in a quarter, as indicated in the information
sheet attached to the Bond Application Form by the same designated branch, Reserve
Bank will issue a Cautionary Advice to the Agency bank providing an opportunity
to review the functioning of the branch concerned and take necessary remedial
action. In case such complaints are received in respect of 10 or more branches
of the same bank in a calendar year, the Agency bank itself will be de-authorized
from conducting the business of Savings Bonds after issuing due notice to the
management of that Agency bank.
4.
These instructions are applicable, mutatis mutandis, in respect of Relief Bonds
and shall come into force with immediate effect. You may suitably advise all the
designated branches handling Relief / Savings Bonds in the matter.
5.
Please acknowledge receipt.
Yours
faithfully,
(B.B.Sangma)
General
Manager