The Hindu Business Line : Passbook facility must for SB account-holders: RBI

Responding to complaints, the Reserve Bank of India on Friday mandated banks to offer savings bank account holders the option of the passbook facility. The cost of the facility will have to be borne by the bank, said the RBI.

Currently, some private sector banks do not offer the service and instead post or courier quarterly statements of the savings banks accounts. Additionally, customers have to pay the bank a fee to get their statements.

"It's a big relief that I don't have to shell out Rs 28 to secure the statement of my own savings bank account. The mini-statement that I get from the ATM shows only the last 10 transactions," said a customer of a leading private sector bank.

Monthly statement

In a circular issued to banks, the RBI said if the customer chooses to get the statement of account, the banks must issue monthly and not quarterly statements. Otherwise, "banks are advised to invariably offer pass book facility to all its savings bank account holders (individuals)," said the circular.

"The 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 statements to account holders at quarterly intervals instead of at monthly intervals as stipulated," said the circular.

RBI says such statements could be lost in postal transit. Besides, it would indirectly lead to the financial exclusion of small customers who cannot monitor their accounts as they do not have any access to the computer or the Internet.