The Hindu Business Line : `Complaints about private, foreign banks on the rise'

COMPLAINTS and grievances of customers of private sector banks and foreign banks are on the rise. Nearly half the complaints received during this fiscal by the Banking Ombudsman's office in Tamil Nadu pertain to this sector.

Complaints from customers are mainly on grounds of lack of transparency on the part of these banks. The most commonly heard complaints are unauthorised debits, levying of service charges, penal interest and foreclosure charges by banks. More recently there have been a couple of complaints about ATM transactions — of unauthorised debits/withdrawals.

The Banking Ombudsman, Mr S. Krishnamurthy, (whose jurisdiction also includes Pondicherry and Andaman & Nicobar Islands), urged bankers to be careful with documentation.

Mr Krishnamurthy, a former banker, (who has worked with the RBI as well as with public and private banks) asked bankers to take time to educate the customer at the time of opening the account. "Customers sign the papers in a hurry at the time of opening an account, without reading up all the instructions" he said.

Citing a case of how this could lead to problems, he said customers sometimes complained about the minimum balance in the savings bank account being increased without any notice to them. But they forget that banks prescribe rules for savings bank customers (often given in the passbook), which state that it was sufficient if the bank gave this information on its notice board and personal notice was not necessary.

Conceding that awareness levels of his institution left room for improvement, Mr Krishnamurthy said that he was visiting small towns and cities to meet customers and explain the salient features to them. The Ombudsman scheme was introduced by the RBI to provide an expeditious and inexpensive grievance redressal mechanism for bank customers.

He said that the banks had been responsive when his office intervened, and that more than 90 per cent of the cases had been settled through conciliation and mediation between banks and aggrieved customers.

More Stories on : Investor Grievances | Private Banks | Foreign Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rural wealth yet to be tapped, says Jaswant

Financial services expo begins

Rupee unchanged; bonds move up

RTGS trial run with 4 banks

enStage e-payment solution for banks

Cabinet clears insurance plan for Anganwadi staff

National Insurance, e-Seva in pact for retailing `covers'

Karnataka Bank chief plea

New Holland Tractors, Oriental Bank evolve new finance schemes

Andhra Bank plans forex workshop

`IFCI merger with PNB may miss deadline'

`Complaints about private, foreign banks on the rise'

AIABOF meet tomorrow