Bank Of Baroda — non compliance with rbi guidelines on minimum balance charges

Address:	Vadodara, Gujarat, 390007
Website:	www.bankofbaroda.co.in

TO,
Bank of Baroda
Baroda Bhavan, R C Dutt Road, Alkapuri, Baroda - 390007

Ph :[protected],[protected]lines)

Fax :[protected], 2361824, 2361806

We would like to update you on our below issue with Bank of Baroda, Fatashil Ambari Branch where they have failed to carry our due Adherence to Procedural Guidelines and Circulars of RBI in levying Minimum Balance Charges as they are not able to provide any proof, data or records in regards to the same.

I request concerned authorities to conduct an Full Audit whether the said Bank of Baroda followed all the RBI Rules and Guidelines while conducting all the day to day activities and make appropriate actions if the bank branch is found guilty of non compliance of any RBI Guidelines.

Moreover in my case the said bank is unable to show me any proof, data, records which have been followed while charging Minimum Balance Charges in my account. Please conduct Full Audit for the Minimum Balance Charges levied and all other charges levied to all the customers of the said branch whether the said branch is following all the RBI Rules, Guidelines and all other necessary compliances while performing all the day to day operations.

The below were my queries with the said Bank Branch which they failed to provide.

1. (i) In the event of a default in maintenance of minimum balance/average minimum balance as agreed to between the bank and customer, the bank should notify the customer clearly by SMS/ email/ letter etc. that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable.

Query: - Provide us necessary proofs of notification given to me clearly by SMS/EMAIL/Letter.

2. (ii) In case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date of notice of shortfall, penal charges may be recovered under intimation to the account holder.

Query: - Provide us proofs of intimation of information regarding charges levied due to Minimum balance not maintained by SMS/Email/Letter etc.

3. (vi) It should be ensured that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.

Query: - My Overall balance in your savings account is Negative Rs. 476.23/- which should not happen because as per RBI the balance in my account can not be negative in any case.

Moreover I want REVERSAL of all the charges levied in my account and all others customer in which RBI Guidelines have not been followed.

The Branch Manager and all other Top Bank Officials who are found negligent in rendering satisfactory banking services should be SUSPENDED FOREVER. Our above case raises a questions mark: Are there no analytical system to check compliances with various RBI Guidelines and Rules for each and every transactions at the banks end so that corrective necessary actions can be taken for the aggrieved customers before much delay ? What Bank officials are doing all day long ?

Please take urgent necessary corrective steps on the same on high priority basis.


With Regards,
Mr. Asha Kanta Sharma (Ashok)
Senior Accounts Executive
Best IT World (India) Private Limited
1st Floor, L L Tower, Tarun Nagar,
Main Road, Guwahati - 781005, Assam.
Mobile No. +[protected] / +[protected]
E-Mail:- [protected]@yahoo.co.in / [protected]@gmail.com

Head Office:
Best IT World (India) Private Limited
87, Mistry Industrial Complex,
M.I.D.C. Cross Road 'A', Andheri East,
Mumbai - 400093, Maharashtra.
Website: www.iball.co.in

On Sunday, 21 January 2018 12:50 PM, Asha Kanta Sharma wrote:

Dear Sir,

As per RBI Notification No. RBI/2014-15/308
DBR.Dir.BC.No.47/13.03.00/2014-15 Dated:- November 20, 2014

The below is the copy of the notifications for your reference and further actions on this.

All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir/Madam
Levy of penal charges on non-maintenance of minimum balances in savings bank accounts
Please refer to our circular DBOD.Dir.BC.53/13.10.00/2002-03 dated December 26, 2002 on ‘Minimum Balance in Savings Bank Accounts’ advising banks to inform customers, in a transparent manner, regarding the requirement of minimum balance in savings bank account and levy of penal charges for non-maintenance of the same at the time of opening the account.
2. In this connection, a reference is invited to paragraph 30 of Part B of First Bi-monthly Monetary Policy Statement, 2014-15 announced on April 1, 2014, regarding ‘Developmental and Regulatory Policies’ proposing certain measures towards consumer protection. One of the proposals contained therein was that banks should not take undue advantage of customer difficulty or inattention. Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to Basic Savings Bank Deposit Accounts and restore the services when the balances improve to the minimum required level. A reference is also invited to the recommendations of Damodaran Committee on customer service in banks which, inter-alia, recommended that ‘banks should inform the customer immediately on the balance in the account breaching minimum balance and the applicable penal charges for not maintaining the balance by SMS/Email/letter. Further, the penal charges levied should be in proportion to the shortfall observed’.
3. The policy announcement has been reviewed after extensive consultation with banks. Consequent to these deliberations and after taking into consideration the recommendation of Damodaran Committee, it has been decided that while levying charges for non-maintenance of minimum balance in savings bank account, banks shall adhere to the additional guidelines given in Annex. The guidelines come into effect from April 1, 2015.
4. These guidelines should be brought to the notice of all customers apart from being disclosed on the bank’s website.
5. In the meantime, all banks are advised to take immediate steps to update customer information so as to facilitate sending alerts through electronic modes (SMSs/emails etc) for effective implementation of the guidelines.
Yours faithfully
(Lily Vadera)
Chief General Manager
Annex
Levy of charges for non-maintenance of minimum balance in savings bank account shall be subject to the following additional guidelines:
(i) In the event of a default in maintenance of minimum balance/average minimum balance as agreed to between the bank and customer, the bank should notify the customer clearly by SMS/ email/ letter etc. that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable.
(ii) In case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date of notice of shortfall, penal charges may be recovered under intimation to the account holder.
(iii) The policy on penal charges to be so levied may be decided with the approval of Board of the bank.
(iv) The penal charges should be directly proportionate to the extent of shortfall observed. In other words, the charges should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening of account. A suitable slab structure for recovery of charges may be finalized.
(v) It should be ensured that such penal charges are reasonable and not out of line with the average cost of providing the services.
(vi) It should be ensured that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.

You can see in the above notification that there are some guidelines to be followed by banks before levying Minimum Balance Charges. Please see my queries on respective guidelines by RBI.
1. (i) In the event of a default in maintenance of minimum balance/average minimum balance as agreed to between the bank and customer, the bank should notify the customer clearly by SMS/ email/ letter etc. that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable.

Query: - Provide us necessary proofs of notification given to me clearly by SMS/EMAIL/Letter.

2. (ii) In case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date of notice of shortfall, penal charges may be recovered under intimation to the account holder.

Query: - Provide us proofs of intimation of information regarding charges levied due to Minimum balance not maintained by SMS/Email/Letter etc.

3. (vi) It should be ensured that the balance in the savings account does not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.

Query: - My Overall balance in your savings account is Negative Rs. 476.23/- which should not happen because as per RBI the balance in my account can not be negative in any case.

I think various RBI Guidelines are not being followed by your branch and are being taken not seriously.

So, in regards to my above query provide necessary proofs of compliances by your Bank Of Baroda of Fatashil Branch.
With Regards,
Mr. Asha Kanta Sharma (Ashok)
Senior Accounts Executive
Best IT World (India) Private Limited
1st Floor, L L Tower, Tarun Nagar,
Main Road, Guwahati - 781005, Assam.
Mobile No. +[protected] / +[protected]
E-Mail:- [protected]@yahoo.co.in / [protected]@gmail.com

Head Office:
Best IT World (India) Private Limited
87, Mistry Industrial Complex,
M.I.D.C. Cross Road 'A', Andheri East,
Mumbai - 400093, Maharashtra.
Website: www.iball.co.in

On Tuesday, 16 January 2018 6:48 PM, FATASI wrote:

Dear Sir,
This is to inform you that after going through the details of your account statement bearing account number [protected], we found out that Bank has levied non-maintenance charges on the following dates which is already reflected in the statement:
24/12/2012 Minimum Balance Charge Rs. 112/-
18/03/2013 Minimum Balance Charge Rs. 12/-
21/08/2013 Minimum Balance Charge Rs. 112/-
26/08/2013 Minimum Balance Charge Rs. 100/-
18/11/2013 Minimum Balance Charge Rs. 15/-
16/12/2013 Minimum Balance Charge Rs. 10/-

After further monitoring of your account statement we found out that account balance is kept below Rs. 1000/- on the following months which you can match with the details mentioned below with your account statement due to which bank has marked lien of Rs. 1, 643.75/- as non-maintenance charge.

January 2014 Rs. 3/-
February 2014 Rs. 3/-
March 2014 Rs. 103/-
April 2014 Rs. 103/-
May 2014 Rs. 104
June 2014 Rs. 104
July 2014 Rs. 104
August 2014 Rs. 104
September 2014 Rs. 104
October 2014 Rs. 104
November 2014 Rs. 116/-
December 2014 Rs. 126/-
January 2015 Rs. 315/-
February 2015 Rs. 315/-
March 2015 Rs. 315/-
April 2015 Rs. 315/-
May 2015 Rs. 320/-
June 2015 Rs. 345/-
July 2015 Rs. 346/-
August 2015 Rs. 346/-
September 2015 Rs. 346/-
October 2015 Rs. 346/-
November 2015 Rs. 453/-
December 2015 Rs. 503
January 2016 Rs. 503/-
February 2016 Rs. 503/-
March 2016 Rs. 503/-
April 2016 Rs. 511/-
May 2016 Rs. 511/-
June 2016 Rs. 511/-
July 2016 Rs. 516/-
August 2016 Rs. 516 + Rs. 500/ (deposited on 08/08/16)- = Rs. 1, 016/-


Regards,

Yours faithfully,

Senior Branch Manager
Bank of Baroda
Fatasil Branch
Guwahati 781025

From: CMCS.HO
Sent: 16 January 2018 09:33
To: RAJBHASHA.NORTHEAST ; FATASI
Cc: RM.NORTHEAST
Subject: Grievance pending in CPGRAMS Portal as on 16.01.2018
Importance: High

logo


REMINDER

प्रिय महोदय/Dear Sir,

उपरोक्त विषय के संदर्भ में, हम दिनांक 16.01.2018 को सीपीग्राम्स में आपके क्षेत्र के ग्राहकों की लंबित शिकायतों/अनुरोध की निम्नलिखित सूची उपलब्ध करवा रहे हैं.
With reference to above, we furnish here below the list of pending grievance/request of customers in CPGRAMS of your Region as on 16.01.2018

Sr.No.
Registration No
Name of complainant
Received Date at our Office
Zone Name
Region Name
Branch Name
Details
1
DEABD/E/2018/00831
Asha Kanta Sharma
15/01/2018
KOLKATA ZONE
NORTH EAST
FATASI
Request to lift lien of Rs. 1643.75

हम आपसे अनुरोध करते हैं कि कृपया इन शिकायतों/अनुरोध को अटेंड कर प्रति उत्तर पोर्टल पर अपलोड करवाने की की व्यवस्था करें.
We, request you to kindly arrange to attend these grievances/request and upload the reply in the portal.

कृपया आवश्यक कार्यवाही करें.
Please do the needful.


सादर/With regards,

(मुख्य प्रबंधक/Chief Manager)
(ग्राहक सेवाएं / Customer Services)
(प्रधान कार्यालय, बड़ौदा / Head Office, Baroda)
[protected]
ग्राहक सेवा विभाग, प्रधान कार्यालय, बड़ौदा Customer Service Department, HO, Baroda
पहली मंजिल, सूरज प्लाज़ा-1, सयाजीगंज, बड़ौदा -390 005
1st Floor, Suraj Plaza –I, Sayajigunj, Baroda-390 005
फोन Phone: DGM:[protected]Dir) विभाग Deptt:[protected];
ई मेल Email: cmcs.[protected]@bankofbaroda.com ;

BOBFIFA

Disclaimer: ********************************************************************************...⇄ This email (including any attachments) is intended for the sole use of the intended recipient/s and may contain material that is CONFIDENTIAL AND PRIVATE COMPANY INFORMATION. Any review or reliance by others or copying or distribution or forwarding of any or all of the contents in this message is STRICTLY PROHIBITED. If you are not the intended recipient, please contact the sender by email and delete all copies; your cooperation in this regard is appreciated. ********************************************************************************...⇄