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G. Naga Sridhar

Hyderabad, Oct. 9 ICICI Bank has submitted to Reserve Bank of India (RBI) a list of banks with which it is facing technical difficulties in accepting loan repayments through the Electronic Clearing System (ECS).

“The officials from RBI’s central office had called us after a report appeared in Business Line on problems being faced by some of our customers in ECS loan repayments. In a meeting held last week, we explained the difficulties being faced by us with some banks in this regard,” Mr S. Damohdaran, Global Head (Operations), ICICI Bank, told Business Line over phone from Mumbai.

ICICI Bank is facing problem with three public sector banks the names of which were submitted to the central bank.

“RBI said it would look into the matter and talk to the banks involved,” he said.

On an average, ICICI Bank faces technical difficulties in 3,000 to 7,000 transactions which lead to ‘defaults’ even if the account is sufficiently funded for the monthly repayment. During the first few months of opening a new loan account, the bank faces some ‘challenges’, he added.

“This is happening because of various factors including migration to core banking system by some of the banks involved which might result in change of account numbers and other particulars. Besides, there seems to be a problem in registering the ECS mandate with one or two banks,” Mr Damohdaran said.

ICICI is ready to offer its technical expertise to those banks which are migrating to the core banking system, he added.

More Stories on : E-Commerce & E-Business | RBI & Other Central Banks | ICICI Bank Ltd | Credit Market

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