10 Quick Must Know Facts About Banking Transactions

With advent of technology in banking industry, most individuals are going paperless and online and our visit to banks have been reduced tremendously. However, one should be aware of basic important things which they may come across in day to day life. Here are some quick facts which one should be aware of:

1. The signatures of both/ all the depositors need not be obtained when repaying Fixed /term deposits opened with operating instructions 'either or survivor' or 'former or survivor', However, the signatures of both/ all depositors will be required in case the deposit is to be paid before maturity.

2. A savings or current account would be treated as inoperative / dormant if there are no transactions in the account for a period over two years.

3. KYC done by one branch of a bank should be valid for transfer of the account within the same bank as long as full KYC has been done for the concerned account. The customer should be allowed to transfer his account from one branch to another without restrictions. However, fresh address proof may be obtained upon transfer of the account by the transferee branch (branch to which the account has been transferred).

4. Validity period of cheques / drafts / banker's cheques has been reduced from six months to three months from the date of the instrument.

5. Time-limit for resolution of customer complaints, in respect of failed ATM transactions, by the ATM Card-issuing banks is 7 working days from the date of receipt of customer complaint. Accordingly, failure to re-credit the customer's account within 7 working days of receipt of the complaint shall entail payment of compensation to the customer @ Rs. 100/- per day by the ATM Card-issuing bank. A customer is entitled to receive such compensation for delay only if a claim is lodged with the issuing branch.

6. The number of free transactions permitted per month at ATMs other than those of the ATM Card-issuing bank (currently 5), to Savings Bank account-holders is inclusive of all types of transactions, financial or non-financial.

7. No branch should refuse to give an acknowledgement if the customer tenders cheques at the counters.

8. Cheques returned unpaid should be accompanied by a signed / initialed objection slip on which a definite and valid reason for refusing payment must be stated. Banks are required to indicate the date of return in the cheque return memo.

9. Banks are not permitted to levy foreclosure charges / pre-payment penalties on floating rate home loans.

10. Banks are mandated to send online alerts to the card-holders for all card related transactions, irrespective of the amount.

Source: BCSBI
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