1. It is clarified that if fixed/term deposit accounts are opened with operating instructions
‘Either or Survivor’, the signatures of both the depositors need not be obtained for
payment of the amount of the deposits on maturity. However, the signatures of both the
depositors may have to be obtained, in case the deposit is to be paid before maturity. If
the operating instruction is ‘Either or Survivor’ and one of the depositors expires before
the maturity, no pre-payment of the fixed/term deposit may be allowed without the
concurrence of the legal heirs of the deceased joint holder. This, however, would not
stand in the way of making payment to the survivor on maturity.
2. In case the mandate is ‘Former or Survivor’, the ‘Former’ alone can operate/withdraw
the matured amount of the fixed/term deposit, when both the depositors are alive.
However, the signature of both the depositors may have to be obtained, in case the
deposit is to be paid before maturity. If the former expires before the maturity of the
fixed/term deposit, the ‘Survivor’ can withdraw the deposit on maturity. Premature
withdrawal would however require the consent of both the parties, when both of them
are alive, and that of the surviving depositor and the legal heirs of the deceased in case
of death of one of the depositors. If the joint depositors prefer to allow premature
withdrawals of fixed/term deposits also in accordance with the mandate of ‘Either or
Survivor’ or ‘Former or Survivor’, as the case may be, it would be open to banks to do
so, provided they have taken a specific joint mandate from the depositors for the said
purpose. In other words, in case of term deposits with "Either or Survivor" or "Former or
Survivor" mandate, banks are permitted to allow premature withdrawal of the deposit by
the surviving joint depositor on the death of the other, only if, there is a joint mandate
from the joint depositors to this effect.
4. It has come to our notice that many of the banks have neither incorporated such a
clause in the account opening form nor have they taken adequate measures to make the
customers aware of the facility of such mandate, thereby putting the "surviving" deposit
account holder(s) to unnecessary inconvenience. Banks are, therefore, advised to
invariably incorporate the aforesaid clause in the account opening form and also inform
their existing as well as future term deposit holders about the availability of such an
5. The joint deposit holders may be permitted to give the mandate either at the time of
placing fixed deposit or anytime subsequently during the term / tenure of the deposit. If
such a mandate is obtained, banks can allow premature withdrawal of term / fixed
deposits by the surviving depositor without seeking the concurrence of the legal heirs of
the deceased joint deposit holder. It is also reiterated that such premature withdrawal
would not attract any penal charge.
6. When a fixed deposit account is opened in the joint names of two depositors on
‘Either or Survivor’ basis and the said joint depositors already have a savings bank
account in their names jointly on ‘Either or Survivor’ instructions, on maturity of the fixed
deposit, proceeds of the matured fixed deposit can be credited to the joint savings bank
account already opened in the bank. There is no need for opening a separate savings
bank account in the name of the first depositor for crediting the proceeds of the fixed
5.8.7 Renewal of Overdue deposits
All aspects concerning renewal of overdue deposits may be decided by individual banks
subject to their Board laying down a transparent policy in this regard and the customers
being notified of the terms and conditions of renewal including interest rates, at the time
of acceptance of deposit. The policy should be non-discretionary and non-discriminatory.
5.8.8 Addition or deletion of the name/s of joint account holders
A bank may, at the request of all the joint account holders, allow the addition or deletion
of name/s of joint account holder/s if the circumstances so warrant or allow an individual
depositor to add the name of another person as a joint account holder. However, in no
case should the amount or duration of the original deposit undergo a change in any
manner in case the deposit is a term deposit.
A bank may, at its discretion, and at the request of all the joint account holders of a
deposit receipt, allow the splitting up of the joint deposit, in the name of each of the joint
account holders only, provided that the period and the aggregate amount of the deposit
do not undergo any change.
Note: NRE deposits should be held jointly with non-residents only. NRO accounts may
be held by non-residents jointly with residents.
5.8.9 Payment of interest on accounts frozen by banks
Banks are at times required to freeze the accounts of customers based on the orders of
the enforcement authorities. The issue of payment of interest on such frozen accounts
was examined in consultation with Indian Banks’ Association and banks are advised to
follow the procedure detailed below in the case of Term Deposit Accounts frozen by the
(i) A request letter may be obtained from the customer on maturity. While obtaining the
request letter from the depositor for renewal, banks should also advise him to indicate
the term for which the deposit is to be renewed. In case the depositor does not exercise
his option of choosing the term for renewal, banks may renew the same for a term equal
to the original term.
(ii) No new receipt is required to be issued. However, suitable note may be made
regarding renewal in the deposit ledger.
(iii) Renewal of deposit may be advised by registered letter / speed post / courier service
to the concerned Government department under advice to the depositor. In the advice to
the depositor, the rate of interest at which the deposit is renewed should also be
(iv) If overdue period does not exceed 14 days on the date of receipt of the request
letter, renewal may be done from the date of maturity. If it exceeds 14 days, banks may
pay interest for the overdue period as per the policy adopted by them, and keep it in a
separate interest free sub-account which should be released when the original fixed
deposit is released.
Further, with regard to the savings bank accounts frozen by the Enforcement authorities,
banks may continue to credit the interest to the account on a regular basis.
5.8.10 Acknowledgement by banks at the time of submission of Form 15-G / 15-H
Banks are not required to deduct TDS from depositors who submit declaration in Form
15-G/15-H under Income Tax Rules, 1962. However, it has been brought to our notice
that despite submission of Form 15-G/15-H by customers, banks are deducting tax at
source, at times, causing inconvenience to customers resulting in a number of
complaints. Such instances arise because either the forms are misplaced or a track is
not kept of forms received in the branches.
The matter has been examined by us in consultation with Indian Banks’ Association
(IBA). With a view to protect interest of the depositors and for rendering better customer
service, banks are advised to give an acknowledgment at the time of receipt of Form 15-
G/15-H. This will help in building a system of accountability and customers will not be put
to inconvenience due to any omission on part of the banks.
5.8.11 Timely Issue of TDS Certificate to Customers
Some banks are not providing TDS Certificate in Form 16A to their customers in time,
causing inconvenience to customers in filing income-tax returns.
With a view to protect the interests of the depositor and for rendering better customer
service, banks are advised to provide TDS Certificate in Form 16A, to their customers in
respect of whom they (banks) have deducted tax at source. Banks are advised to put in
place systems that will enable them to provide Form 16A to the customers well within the
time-frame prescribed under the Income Tax Rules.
5.9 Acceptance of cash over the counter
Some banks have introduced certain products whereby the customers are not allowed to
deposit cash over the counters and also have incorporated a clause in the terms and
conditions that cash deposits, if any, are required to be done through ATMs.
Banking, by definition, means acceptance of deposits of money from the public for the
purpose of lending and investment. As such, banks cannot design any product which is
not in tune with the basic tenets of banking. Further, incorporating such clauses in the
terms and conditions which restrict deposit of cash over the counters also amounts to an
Banks are, therefore, advised to ensure that their branches invariably accept cash over
the counters from all their customers who desire to deposit cash at the counters. Further,
they are also advised to refrain from incorporating clauses in the terms and conditions
which restrict deposit of cash over the counters.
5.10 Opening accounts in the name of minors with Mothers as guardians
Considerable difficulty was experienced by women customers in opening bank accounts
in the names of minors, with mothers as their guardians. Presumably, the banks were
reluctant to accept the mother as a guardian of a minor, while father is alive in view of
section 6 of the Hindu Minority and Guardianship Act, 1956, which stipulates that the
father alone should be deemed to be the guardian in such case. To overcome this legal
difficulty and to enable the banks to open freely such accounts in the name of minors
under the guardianship of their mothers, it was suggested in some quarters that the
above provisions should be suitably amended. While it is true that an amendment of the
above Act may overcome the difficulty in the case of Hindus, it would not solve the
problem for other communities as minors belonging to Muslim, Christian, Parsi
communities would still be left out unless the laws governing these communities are also
The legal and practical aspects of the above problem were, therefore, examined in
consultation with the Government of India and it was advised that if the idea underlining
the demand for allowing mothers to be treated as guardians relates only to the opening
of fixed and savings bank accounts, there would seem to be no difficulty in meeting the
requirements as, notwithstanding the legal provisions, such accounts could be opened
by banks provided they take adequate safeguards in allowing operations in the accounts
by ensuring that the minors' accounts opened with mothers as guardians are not allowed
to be overdrawn and that they always remain in credit. In this way, the minors' capacity
to enter into contract would not be a subject matter of dispute. If this precaution is taken,
the banks' interests would be adequately protected.
Banks are advised to instruct their branches to allow minors' accounts (fixed and savings
only) with mothers as guardians to be opened, whenever such requests are received by
them, subject to the safeguards mentioned above.
The facility of allowing opening of minor’s accounts with mothers as guardians may be
extended to Recurring Deposit Accounts also subject to precautions mentioned above.
5.10.1 Opening of Bank Accounts in the Names of Minors
With a view to promote the objective of financial inclusion and also to bring uniformity
among banks in opening and operating minors’ accounts, banks are advised as under:
a. A savings /fixed / recurring bank deposit account can be opened by a minor of any
age through his/her natural or legally appointed guardian.
b. Minors above the age of 10 years may be allowed to open and operate savings bank
accounts independently, if they so desire. Banks may, however, keeping in view their risk
management systems, fix limits in terms of age and amount up to which minors may be
allowed to operate the deposit accounts independently. They can also decide, in their
own discretion, as to what minimum documents are required for opening of accounts by
c. On attaining majority, the erstwhile minor should confirm the balance in his/her
account and if the account is operated by the natural guardian / legal guardian, fresh
operating instructions and specimen signature of erstwhile minor should be obtained and
kept on record for all operational purposes.
2. Banks are free to offer additional banking facilities like internet banking, ATM/ debit
card, cheque book facility etc., subject to the safeguards that minor accounts are not
allowed to be overdrawn and that these always remain in credit.
5.11 Opening of Current Accounts – Need for discipline
(i) Keeping in view the importance of credit discipline for reduction in NPA level of banks,
banks should, at the time of opening current accounts, insist on a declaration to the
effect that the account holder is not enjoying any credit facility with any other bank.
Banks should scrupulously ensure that their branches do not open current accounts of
entities which enjoy credit facilities (fund based or non-fund based) from the banking
system without specifically obtaining a No-Objection Certificate from the lending bank(s).
Banks should note that non-adherence to the above discipline could be perceived to be
abetting the siphoning of funds and such violations which are either reported to RBI or
noticed during our inspection would make the concerned banks liable for penalty under
Banking Regulation Act, 1949.
(ii) Banks may open current accounts of prospective customers in case no response is
received from the existing bankers after a minimum waiting period of a fortnight. If a
response is received within a fortnight, banks should assess the situation with reference
to information provided on the prospective customer by the bank concerned and are not
required to solicit a formal no objection, consistent with true freedom to the customer of
banks as well as needed due diligence on the customer by the bank.
(iii) In case of a prospective customer who is a corporate or large borrower enjoying
credit facilities from more than one bank, the banks should exercise due diligence and
inform the consortium leader, if under consortium, and the concerned banks, if under
multiple banking arrangement.
5.12 Reconciliation of transactions at ATMs failure - Time limit
Reserve Bank has been receiving a number of complaints from bank customers,
regarding debit of accounts even though the ATMs have not disbursed cash for various
reasons. More importantly, banks take considerable time in reimbursing the amounts
involved in such failed transactions to card holders. In many cases, the time taken is as
much as 50 days. The delay of the magnitude indicated above is not justified, as it
results in customers being out of funds for a long time for no fault of theirs. Moreover,
this delay can discourage customers from using ATMs.
Based on a review of the developments and with a view to further improve the efficiency
of operations, it has been decided as under:-
a. The time limit for resolution of customer complaints by the issuing banks shall stand
reduced from 12 working days to 7 working days from the date of receipt of customer
complaint. Accordingly, failure to recredit the customer’s account within 7 working days
of receipt of the complaint shall entail payment of compensation to the customer @
100/- per day by the issuing bank. This compensation shall be credited to the customer’s
account automatically without any claim from the customer, on the same day when the
bank affords the credit for the failed ATM transaction.
b. Any customer is entitled to receive such compensation for delay, only if a claim is
lodged with the issuing bank within 30 days of the date of the transaction.
c. The number of free transactions permitted per month at other bank ATMs to Savings
Bank account holders shall be inclusive of all types of transactions, financial or non-
d. All disputes regarding ATM failed transactions shall be settled by the issuing bank and
the acquiring bank through the ATM System Provider only. No bilateral settlement
arrangement outside the dispute resolution mechanism available with the system
provider is permissible. This measure is intended to bring down the instances of disputes
in payment of compensation between the issuing and acquiring banks. Non-adherence
to the provisions contained in para 5.12 (a) to (d) shall attract penalty as prescribed
under the Payment and Settlement Systems Act 2007 (Act 51 of 2007).
5.13 Lodging of ATM related Complaints
The following information should be displayed prominently at the ATM locations:-
(i) ATM ID may be displayed clearly in the premises to make use of it while making a
complaint / suggestion
(ii) Information that complaints should be lodged at the branches where customers
maintain accounts to which ATM card is linked
(iii) Telephone numbers of help desk / contact persons of the ATM owning bank to lodge
complaint / seek assistance
(iv) Uniform Template (as given in Annexure V) for lodging of complaints relating to ATM
To improve the customer service through enhancement of efficiency in ATM operations,
banks are advised to initiate following action:
(i) Message regarding non-availability of cash in ATMs should be displayed before the
transaction is initiated by customer
(ii) Make available forms for lodging the complaints with name and phone number of the
officials with whom they have to be lodged
(iii) Make available sufficient toll-free phone numbers for lodging complaints / reporting
and blocking lost cards and also attend the requests on priority
(iv) Mobile numbers / e-mail IDs of the customers may be registered to send alerts
In case of complaints pertaining to a failed ATM transaction at other bank ATMs, the
customer should lodge a complaint with the card issuing bank even if the transaction
was carried out at another bank’s ATM.
5.14 Transactions at ATM-Procedural Amendment - Pin Validation for Every
The process flow followed for ATM transactions varies from bank to bank. The type of
card readers installed by each ATM vendor also contributes to the variation in the
process flow. Security concerns arise in the case of certain type of card readers which
facilitate multiple transactions without the need for pin validation for every successive
transaction. The possibility of frauds / misuse of cards is very high in a scenario where
the card is inserted in such reader slots, the card holder fails to collect the card after the
transaction is completed and the card is misused. This risk can be eliminated to a great
extent if, for every transaction, the process flow demands pin validation
bank may ensure that the process flow is modified to provide for the pin validation for
every transaction, including balance enquiry facilitated through ATM. Further, as an
additional safety measure, banks are advised that the time-out of sessions should be
enabled for all screens / stages of ATM transaction keeping in view the time required for
such functions in normal course.
Non-adherence to the above provisions shall attract penalty as prescribed under the
Payment and Settlement Systems Act 2007 (Act 51 of 2007).
5.15 Security Issues and Risk mitigation measures- Online alerts to the cardholder
for usage of credit/debit cards
Banks were mandated to send online alerts to the cardholders for all Card Not Present
(CNP) transactions for the value of ` 5000/- and above. In view of the incidents of
unauthorized / fraudulent withdrawals at ATMs that came to the notice of RBI, banks
were advised to put in place, latest by June 30, 2011, a system of online alerts for all
types of transactions irrespective of the amount, involving usage of cards at various
channels. This measure is expected to encourage further usage of cards at various
delivery channels. Banks should provide easier methods (like SMS) for the customer to
block his card and get a confirmation to that effect after blocking the card.
5.16 Security Issues and Risk mitigation measures related to Card Not Present
Banks have been mandated to necessarily put in place additional factor of
authentication/validation based on information not visible on the cards for all on-line
Card not Present (CNP) transactions in a phased manner, starting with online
transactions followed by Interactive Voice Response (IVR), Mail Order Telephone
Order(MOTO) and Standing Instructions (SI). In the case of MOTO and SI transactions,
it has been stated that in case of customer complaint regarding issues, if any, arising out
of transactions effected without the additional factor of authentication after the stipulated
date, the issuer bank has to reimburse the loss to the customer further without demur.
5.17 Securing Electronic Payment Transactions
The electronic modes of payment like RTGS, NEFT and IMPS have emerged as channel
agnostic modes of funds transfer. These have picked up to a large extent through the
internet banking channel and hence it is imperative that such delivery channels are also
safe and secure. Some of the additional measures that need to be introduced by the
banks could be as follows :
(i) Customer induced options may be provided for fixing a cap on the value / mode of
transactions / beneficiaries. In the event of customer wanting to exceed the cap, an
additional authorization may be insisted upon.
(ii) Limit on the number of beneficiaries that may be added in a day per account could be
(iii) A system of alert may be introduced when a beneficiary is added.
(iv) Banks may put in place mechanism for velocity check on the number of transactions
effected per day / per beneficiary and any suspicious operations should be subjected to
alert within the bank and to the customer.
(v) Introduction of additional factor of authentication (preferably dynamic in nature) for
such payment transactions should be considered.
(vi) The banks may consider implementation of digital signature for large value payments
for all customers, to start with for RTGS transactions.
(vii) Capturing of Internet Protocol (IP) address as an additional validation check should
6. Levy of Service Charges
6.1 Fixing service charges by banks
The practice of IBA fixing the benchmark service charges on behalf of member banks
has been done away with and the decision to prescribe service charges has been left to
individual banks. While fixing service charges for various types of services like charges
for cheque collection, etc., banks should ensure that the charges are reasonable and are
not out of line with the average cost of providing these services. Banks should also take
care to ensure that customers with low volume of activities are not penalised.
Banks should make arrangements for working out charges with prior approval of their
Boards of Directors as recommended above and operationalise them in their branches
as early as possible.
6.2 Ensuring Reasonableness of Bank Charges
In order to ensure fair practices in banking services, Reserve Bank of India had
constituted a Working Group to formulate a scheme for ensuring reasonableness of
bank charges and to incorporate the same in the Fair Practices Code, the compliance of
which would be monitored by the Banking Codes and Standards Board of India (BCSBI).
Based on the recommendations of the Group, action required to be taken by banks is
indicated under the column 'action points for banks' in the Annex I to this circular.
6.3 Home Loans-Levy of fore-closure charges/pre-payment penalty
6.3.1 The Committee on Customer Service in Banks (Chairman: M. Damodaran) had
observed that foreclosure charges levied by banks on prepayment of home loans are
resented upon by home loan borrowers across the board especially since banks were
found to be hesitant in passing on the benefits of lower interest rates to the existing
borrowers in a falling interest rate scenario. As such, foreclosure charges are seen as a
restrictive practice deterring the borrowers from switching over to cheaper available
6.3.2 The removal of foreclosure charges/prepayment penalty on home loans will lead to
reduction in the discrimination between existing and new borrowers and competition
among banks will result in finer pricing of the floating rate home loans. Though many
banks have in the recent past voluntarily abolished pre-payment penalties on floating
rate home loans, there is a need to ensure uniformity across the banking system. It has,
therefore, been decided that banks will not be permitted to charge foreclosure
charges/pre-payment penalties on home loans on floating interest rate basis, with
6.3.3 As per extant guidelines a fixed rate loan is one where the rate is fixed for entire
duration of the loan. Hence, the Dual Rate/Special Rate home loans sanctioned by
banks cannot be treated as fixed rate loans. In case of Dual Rate/ Special Rate home
loans, the provisions of paragraph 6.3.1 above will be applicable from the date the rate
of interest on the loan becomes floating.
6.4 Levy of Foreclosure Charges / Pre-payment Penalty on Floating Rate Term
Banks will not be permitted to charge foreclosure charges / pre-payment penalties on all
floating rate term loans sanctioned to individual borrowers.
6.5 RTGS charges for customers
Consequent to the levy of service charges for members under RTGS, banks cannot
charge their customers for outward RTGS remittances beyond the amounts stipulated
RTGS Transaction Maximum customer charges
Inward Transactions Free
` 2 lakh to ` 5 lakh ` 25 + applicable time varying tariff subject to a maximum of ` 30
Above ` 5 lakh ` 50 + applicable time varying tariff subject to a maximum of ` 55
6.6 Uniformity in Intersol Charges
With the introduction of Core Banking Solution (CBS), it is expected that customers of
banks would be treated uniformly at any sales or service delivery point. It is, however,
observed that some banks are discriminating against their own customers on the basis
of one branch being designated as the 'home' or 'base' branch where charges are not
levied for products / services and other branches of the same bank being referred to as
'non-home' branches where charges are levied for the same products / services. The
charges generally referred to as 'Intersol' charges, are also not uniform across home /
non-home branches. This practice followed by some banks is contrary to the spirit of the
Reserve Bank's guidelines on reasonableness of bank charges. As 'Intersol' charges are
charges levied by the bank to cover the cost of extending services to customers by using
the CBS / Internet / Intranet platform, the cost should be branch / customer agnostic in-
principle. It is clarified that cash handling charges may not be included under intersol
charges. Banks are advised to follow a uniform, fair and transparent pricing policy and
not discriminate between their customers at home branch and non-home branches.
Accordingly, if a particular service is provided free at home branch, the same should be
available free at non home branches also. There should be no discrimination as regards
intersol charges between similar transactions done by customers at home branch and
those done at non-home branches.
6.7 Charges for Sending SMS Alerts
Banks are required to put in place a system of online alerts for all types of transactions
irrespective of the amounts involving usage of cards at various channels.
Accordingly, with a view to ensuring reasonableness and equity in the charges levied by
banks for sending SMS alerts to customers, banks are advised to leverage the
technology available with them and the telecom service providers to ensure that such
charges are levied on all customers on actual usage basis.
7. Service at the counters
7.1 Banking hours / working days of bank branches
Banks should normally function for public transactions at least for 4 hours on week days
and 2 hours on Saturdays in the larger interest of public and trading community.
Extension counters, Satellite Offices, one man offices or other special class of branches
may remain open for such shorter hours as may be considered necessary.
7.2 Changes in banking hours
No particular banking hours have been prescribed by law and a bank may fix, after due
notice to its customers, whatever business hours are convenient to it i.e., to work in
double shifts, to observe weekly holiday on a day other than Sunday or to function on
Sundays in addition to the normal working days, subject to observing normal working
hours for public transactions referred to in paragraph above.
In order to safeguard banks' own interest, a bank closing any of its offices on a day other
than a public holiday, will have to give due and sufficient notice to all the parties
concerned who are or are likely to be affected by such closure. Thus, in all the above
cases, it is necessary for a bank to give sufficient notice to the public/its customers of its
intention. What is sufficient or due notice is a question of fact, depending on the
circumstances of each case. It is also necessary to avoid any infringement of any other
relevant local laws such as Shops and Establishment Act, etc.
Further, the provisions, if any, in regard to the banks' obligations, to the staff under the
Industrial Awards / Settlements, should be complied with. Clearing House authority of
the place should also be consulted in this regard.
The banks' branches in rural areas can fix the business hours (i.e. number of hours, as
well as timings) and the weekly holidays to suit local requirements. This may, however,
be done subject to the guidelines given above.
7.3 Commencement / Extension of working hours
Commencement of employees’ working hours 15 minutes before commencement of
business hours could be made operative by banks at branches in metropolitan and
urban centres. The banks should implement the recommendation taking into account the
provisions of the local Shops and Establishments Act.
The branch managers and other supervising officials should, however, ensure that the
members of the staff are available at their respective counters right from the
commencement of banking hours and throughout the prescribed business hours so that
there may not be any grounds for customers to make complaints. Banks should ensure
that no counter remains unattended during the business hours and uninterrupted service
is rendered to the customers. Further, the banks should allocate the work in such a way
that no Teller counter is closed during the banking hours at their branches.
All the customers entering the banking hall before the close of business hours should be
7.4 Extended business hours for non-cash banking transactions
Banks should extend business hours for banking transactions other than cash, up till one
hour before close of the working hours.
The following non-cash transactions should be undertaken by banks during the extended
hours, i.e., up to one hour before the close of working hours:
(a) Non-voucher generating transactions :
(i) Issue of pass books/statement of accounts;
(ii) Issue of cheque books ;
(iii) Delivery of term deposit receipts/drafts;
(iv) Acceptance of share application forms;
(v) Acceptance of clearing cheques;
(vi) Acceptance of bills for collection.
(b) Voucher generating transactions:
(i) Issue of term deposit receipts;
(ii) Acceptance of cheques for locker rent due;
(iii) Issue of travellers cheques;
(iv) Issue of gift cheques;
(v) Acceptance of individual cheques for transfer credit.
Such non-cash transactions to be done during the extended business hours should be
notified adequately for information of the customers. Banks can have evening counters
at the premises of existing branches in urban/metropolitan centres for providing facilities
to the public beyond the normal hours of business so as to bring about improvement in
customer service. It is necessary that in such cases the transactions conducted during
such extended hours of business are merged with the main accounts of the branch
where it is decided to provide the aforesaid facilities.
The concerned banks should give to their constituents due notice about the functions to
be undertaken during the extended banking hours through local newspapers, as also by
displaying a notice on the notice board at the branch(es) concerned. Further, as and
when the hours of business of any of the branches are extended, the concerned clearing
house should be informed.
8. Guidance to customers and Disclosure of Information
8.1 Assistance/guidance to customers
All branches, except very small branches should have “Enquiry” or “May I Help You”
counters either exclusively or combined with other duties, located near the entry point of
the banking hall.
8.2 Display of time norms
Time norms for specialised business transactions should be displayed predominantly in
the banking hall.
8.3 Display of information by banks – Comprehensive Notice Board
The display of information by banks in their branches is one of the modes of imparting
financial education. This display enables customers to take informed decision regarding
products and services of the bank and be aware of their rights as also the obligations of
the banks to provide certain essential services. It also disseminates information on
public grievance redressal mechanism and enhances the quality of customer service in
banks and improves the level of customer satisfaction.
Further, in order to promote transparency in the operations of banks, various instructions
have been given by RBI to banks towards display of various key aspects such as service
charges, interest rates, services offered, product information, time norms for various
banking transactions and grievance redressal mechanism. However, during the course
of inspection/visits to bank branches by RBI, it was observed that many banks were not
displaying the required information due to space constraints, lack of standardization of
the instructions, etc.
Keeping in view the need for maintaining a good ambience at the branches as also
space constraints, an Internal Working Group in RBI revisited all the existing instructions
relating to display boards by commercial banks so as to rationalize them. Based on the
recommendations of the Working Group, the following instructions were issued to banks:
8.3.1 Notice Boards
The Group felt that rationalization of the existing instructions could be best achieved if
the instructions were clubbed on certain categories such as ‘customer service
information', 'service charges', 'grievance redressal' and 'others'. At the same time, the
Group felt that there may not be any need to place detailed information in the Notice
Board and only the important aspects or 'indicators' to the information be placed.
Accordingly, the existing mandatory instructions have been broadly grouped into four
categories mentioned above and given in a Comprehensive Notice Board which has
been formulated by the above Group. The format of the Comprehensive Notice Board
is given in the Annex - II. The minimum size of the Board may be 2 feet by 2 feet as
Board of such a size would facilitate comfortable viewing from a distance of 3 to 5
meters. Banks are advised to display the information in the Notice Boards of their
Branches as per the format given for the Comprehensive Notice Board.
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