Recovery from bank-

[jps50]

A nationalized bank in a small town had debited Rs.1165/- towards minimum balance charges from a small customer, without pre-intimation of such condition or even sending advice of debit. The account holder contacted bank manager with his brother who was income tax practitioner. Bank Manager was very rude and challenged the customer that you may approach any body, but amount will not be refunded. Similar was the case of other 4 account holders.

I was approached for help. I prepared one RTI application and a detailed complaint addressed to Nodal Officer of the bank [to be routed through bank manager]. Since bank manager is ACPIO, I advised the account holder to lodge RTI application with Rs.10/- and complaint with the same bank manager.

On 06-04-2010, account holder and his brother visited bank and handed over above papers to bank manger and requested for acknowledgement on photocopies. Bank manager read RTI application and complaint and was literally shocked and perturbed. He very politely offered to refund these charges immediately with a request not to press for RTI application and complaint. He also refunded these charges to other four account holders by calling them on phone to bank for collecting refund cheques.

RTI DOES WORK without RTI even !!!.

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[rajub]

Sponsorer

Apart from the success of the RTI application this episode raises very serious concerns :

1] Do Bank officers have discretionary powers on imposition of "minimum balance penalties"?

2] In which other matters the officers have discretionary powers?

3] Are there any guidelines for officers on exercise of their discretionary powers?

4] Most importantly if the penalties were imposed correctly does refund of penalties amount to misuse of RTI rather than success of RTI (I personally feel imposing minimum balance penalty, especially in this fully computerised banking system, is totally unjustified, arbitrary and malicious)

[ambrish.p]

Dear JPS Sir

Kindly post the copy of complaint & RTI application for the benefit of members.

regards

[jps50]

Various levels of Managers from branch to HO have discretionary powers which can be used with due justifications, including waiver of service charges. There is nearly 15-20 page circularof discretionary powers [inclusive of sanction of loans, expenses, death claims, waiver of loan amount etc etc]

As regards misuse, I state that in this case, branch/bank has not given 1 month notice to customers for change in service charges or levy of new charges as is mandated by RBI. Additionally branch did not send debit advice when such a charge was levied for the first time, so that account holder could have closed the account. In this case bank and branch had violated RBI directives on service charges. Hence seeking refund through RTI/complaint was more than justified and banks cannot take advantage of lack of knowledge of semi-literate account holders.

I shall be posting RTI application and complaint by erasing personal information of customer.

[jps50]

I am attaching RTI application and complaint.