Very carefully the fraud has been built into the processes of the bank that violates several RBI guidelines and No one at IDFC First bank cares. Let's go through it step by step.
1 - Requesting a foreclosure letter
- You get a foreclosure letter after 10 working days of your request. They will delay it to a point such that your next EMI date arrives and will ask you to re-submit a request and cancel the first one with an excuse that your EMI date arrived in between. However, the delay is from thier end. This process itself could take months of struggle.
In my case I gota froeclosure letter only after I escalated the matter to Banking Ombudsman.
2 - Payment updation
- The foreclosure letter is valid for 10 days. In my case I made a RTGS transfer of full amount the same day I got the letter. Per their process you have to provide all payment details Transaction ID date amount etc..., I did, on email and on phone to customer care.
The amount was sent to the correct bank account number, they confirmed. It was updated in thier internal system called "Encollect" but it was not updated in statement of account. I raised multiple tickects, even after 15 days they kept saying its not updated in statement.
RBI guidelines say the payment has to be updated within 1 hour or returned to bank of origin. IDFC refuses to update even after 15 days.
Escalated the matter to highest point of escalation in IDFC and they also kept asking for more time.
You see, per their process, they don't take a loan closure request unless payment is updated on statement of account. After which they ask for another 10 working days for closing the loan. After that another 10 working days for issuing NOC.
Till the time you don't get NOC they will keep deducting EMIs.
By adding delays at all steps of an already long and broken process
they are able to deduct 2-3 extra EMIs.
Refund has a time line of 60 days. Adding delays you would get it in about 180 days.
Conclusion - It takes about 6 months to close the loan and get your refund. Multiple RBI guidelines are violated.
How does it benefit them ? - They are able to show more profit and funds in their balance sheets and for a longer time. Though the methods used are against RBI directives and terrible harassment for customers, it is how it is.
My status - I am currently struggling to get my loan closed,
have logged a formal complaint with BO but they are also very very slow in providing a resolution.
My suggestion - If you are also trying to close a loan with them - Do file a complaint with BO and claim damages upto 1 lakh rupees. Maybe someday they will stop violating RBI guidelines.
Looking at how they don't care about RBI violations, I have a feeling that RBI knows it and they have chosen to let IDFC violate the guidelines.
What it means to you? - At least after reading this you'd know the possibe corruption the system.
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