Banks should be upfront about all their charges
Most consumers are unaware that banks levy a lower charge on cheques returned due to non-financial reasons than for reasons like insufficient funds.
By Rucha Biju Chitrodia, TNN |
Several times, people scribble in a wrong date or an unrecognisable signature on their cheques, which then get duly returned. Most consumers, however, remain unaware that banks levy a lower charge on cheques returned due to non-financial reasons such as those mentioned above, than for reasons like insufficient funds. Besides , the depositor of a faulty cheque must pay a much lower charge than the issuer.
A vigilant Mumbai resident , who had recently issued a wrongly dated cheque to her gym manager, stumbled upon the differential charging policy . When the gym manager went to deposit the cheque at his bank���s local branch, he was asked to pay about Rs 393 in cheque return charges. The manager promptly called up the consumer and asked her to shell out the amount, considering the cheque was issued by her.
���I got on to this bank���s website to verify the figure as it appeared too high,������ says the Mumbai consumer , ���and I was shocked to learn that for a local cheque deposit, return charges are just Rs 100 for financial reasons . For non-financial reasons , they are much lower���Rs 50.������ The bank charges Rs 350 if the customer himself issues a cheque, and again, for financial reasons . The amount the bank quoted to the gym manager was higher than even that.
She decided to herself approach the branch with the grouse. The officials looked confused about the issue, asked her to lodge a formal complaint and promptly withdrew the entire charge. ���My point is,������ says the consumer , ���If I hadn���t looked up the website, the bank would have got away with it.������ What disturbs the Mumbai resident further is that the bank must have similarly overcharged others.
A senior Mumbai banker who does not wish to be identified says, ���How many people have access to the internet ? A website is one of the channels for communication and not the only one.������ Deeming wrong charging a serious grievance, senior bankers advise consumers to first report it to the higher officials at the bank and then to RBI. RBI spokesperson Alpana Killawala adds, ���Our customer service department looks at all such systemic issues.������
An ombudsman official says banks are supposed to put up the charges on a comprehensive notice board at the branch itself. The Mumbai bank official says banks levy cheque return charges to cover their processing costs. ���But the charges should be reasonable . Their reasonableness is related to the cost of undertaking a task.
Suppose 1,000 cheques get returned every month from each branch, it puts a strain on the bank���s system. However with automation, the cost should reduce.������ Banks should be upfront about all their charges, the official adds.
A vigilant Mumbai resident , who had recently issued a wrongly dated cheque to her gym manager, stumbled upon the differential charging policy . When the gym manager went to deposit the cheque at his bank���s local branch, he was asked to pay about Rs 393 in cheque return charges. The manager promptly called up the consumer and asked her to shell out the amount, considering the cheque was issued by her.
���I got on to this bank���s website to verify the figure as it appeared too high,������ says the Mumbai consumer , ���and I was shocked to learn that for a local cheque deposit, return charges are just Rs 100 for financial reasons . For non-financial reasons , they are much lower���Rs 50.������ The bank charges Rs 350 if the customer himself issues a cheque, and again, for financial reasons . The amount the bank quoted to the gym manager was higher than even that.
She decided to herself approach the branch with the grouse. The officials looked confused about the issue, asked her to lodge a formal complaint and promptly withdrew the entire charge. ���My point is,������ says the consumer , ���If I hadn���t looked up the website, the bank would have got away with it.������ What disturbs the Mumbai resident further is that the bank must have similarly overcharged others.
A senior Mumbai banker who does not wish to be identified says, ���How many people have access to the internet ? A website is one of the channels for communication and not the only one.������ Deeming wrong charging a serious grievance, senior bankers advise consumers to first report it to the higher officials at the bank and then to RBI. RBI spokesperson Alpana Killawala adds, ���Our customer service department looks at all such systemic issues.������
An ombudsman official says banks are supposed to put up the charges on a comprehensive notice board at the branch itself. The Mumbai bank official says banks levy cheque return charges to cover their processing costs. ���But the charges should be reasonable . Their reasonableness is related to the cost of undertaking a task.
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Suppose 1,000 cheques get returned every month from each branch, it puts a strain on the bank���s system. However with automation, the cost should reduce.������ Banks should be upfront about all their charges, the official adds.
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