Compensation Policy

Providing better and timely service to the customers is a prerequisite for banks to remain stay in the competitive market. Despite best efforts, sometimes, omissions and commissions may creep in which may lead to inconvenience to the customers. In order to protect the interest of the customers, banks formulated compensation policy based on the principles of transparency and fairness in the treatment of customers. The expected action and compensation payable to the customers, in the event of deficiency of service, are as under:

Category Compensation payable
Unauthorized / Erroneous debits Bank should reverse the amount immediately and compensate the customer to the extent of financial loss incurred such as interest or service charges. In case the unauthorized debit is on account of third party, customer should be compensated up to Rs.50000/- or actual debit amount whichever is less.
ECS Debits – Execution failure Bank should compensate the customer to the extent of financial loss incurred along with service charges, if any.
Stop payment – Payment of cheques Where the cheque is paid despite stop payment instructions, bank should reverse cheque amount along with charges, if any, with value date within 2 days of the intimation.
Unsolicited Credit Cards – Levy of charges Bank should reverse the charges immediately and also pay a penalty without demur amounting to twice the value of the charges reversed.
Collection of foreign cheques / currencies – Undue delay Delay up to 14 days SB Interest + 0.25% simple interest
Delay 15 to 45 days SB Interest + 0.50% simple interest
Beyond 45 days SB Interest + 0.75% simple interest
Payment of interest on delayed collection Outstation Cheques Local Cheques
Delay < 14 days SB Interest SB Interest
Delay > 45 days Applicable TD Rate
Delay > 90 days TD Rate + 2%
However, in case of loan/ODCC credits, the interest payable is applicable interest rate on loan/ODCC plus 2%
Cheques/instruments lost in transit / in clearing or paying bank branches Bank should provide the required assistance to obtain duplicate instrument from the drawer of the instrument. The compensation policy that is applicable to ‘Collection of outstation cheques’ is equally applicable to this category of customers.
RTGS/NEFT/ECS Applicable Repo Rate plus 2% to be paid for delayed period.
Delay in settlement of wrong ATM Debits In case where the compliant is not resolved within 12 working days from the date of complaint made by the cardholder, bank should pay Rs.100/- per day.
Violation of the code by BanksRs. Agent Appropriate steps to investigate the complaint and to compensate the customer for financial loss, if any.
Delay in payment of Relief / Savings Bonds SB Rate
Delay in credit of pension payments 8% p.a.

The above initiatives will definitely paves the way for better service and the instances of referring the customer grievances to Ombudsman or any other forum will come down to a greater extent.