5. Remittances (including cheques sent for collection) within India:

The compensation on account of delays in collection of instruments would be as indicated in the bank’s collection policy which is reproduced below for information:

“Payment of Interest for delayed Collection of Outstation Cheques:

As part of the compensation policy of the bank, the bank will pay interest to its customer on the amount of collection instruments in case there is delay in giving credit beyond the time period mentioned above. Such interest shall be paid without any demand from customers in all types of accounts. There shall be no distinction between instruments drawn on the bank’s own branches or on other banks for the purpose of payment of interest on delayed collection.

Interest for delayed collection shall be paid at the following rates :

a) Savings Bank rate for the period of delay beyond 7/10/14 days as the case may be in collection of outstation cheques.

b) Where the delay is beyond 14 days interest will be paid at the rate applicable to for term deposit for the respective period.


c) In case of extraordinary delay, i.e. delays exceeding 90 days interest will be paid at the rate of 2% above the corresponding Term Deposit rate.

d) In the event the proceeds of cheque under collection was to be credited to an overdraft / cash credit / loan account of the customer, interest will be paid at the rate applicable to the overdraft / cash credit / loan account. For extraordinary delays, interest will be paid at the rate of 2% above the rate applicable to the overdraft / cash credit / loan account.

It may be noted that interest payment as given above would be applicable only for instruments sent for collection within India.

The bank’s compensation policy for financial loss suffered by the customers due to loss of instrument after it has been handed over to the bank for collection by the customer would also be as indicated in our collection policy. The same is extracted below for information :

“Cheques / Instruments lost in transit / in clearing process or at paying bank’s branch:

In the event a cheque or an instrument accepted for collection is lost in transit or in the clearing process or at the paying bank’s branch, the bank shall immediately on coming to know of the loss, bring the same to the notice of the accountholder so that the accountholder can inform the drawer to record stop payment and also take care those cheques, if any, issued by him / her are not dishonoured due to non-credit of the amount of the lost cheques / instruments. The bank would provide all assistance to the customer to obtain a duplicate instrument from the drawer of the cheque.

In line with the compensation policy of the bank the bank will compensate the accountholder in respect of instruments lost in transit in the following way :

a) In case intimation regarding loss of instrument is conveyed to the customer beyond the time limit stipulated for collection ( 7/10/14/30 days as the case may be) Interest will be paid for the period exceeding the stipulated collection period at the rates specified above.

b) In addition, bank will pay interest on the amount of the cheque for a further period of 15 days at Savings Bank rate to provide for likely further delay in obtaining duplicate cheque / instrument and collection thereof.

c) The bank would also compensate the customer for any reasonable charges he / she incurs in getting duplicate cheque / instrument upon production of receipt, in the event the instrument is to be obtained from a bank / institution who would charge a fee for issue of duplicate instrument

6. Reversal of ATM failure transaction

As per direction of Reserve Bank of India, as conveyed under RBI/2009-10/100 DPSS No 101/02.10.02/2009-2010 dated 17th July 2009

1. It is mandatory for the Banks to reimburse the customers the amount wrongfully debited on account of failed ATM transaction within a period of maximum 12 working days from the date of receipt of complaint.
2. For any failure to give credit to the customers’ account within 12 working days, the Bank shall pay compensation of Rs.100 per day to the aggrieved customer. This compensation shall be automatically credited to the customers’ account without any claim from the customer on the same day when the Bank affords credit for the failed ATM transaction.

7. Violation of the Code by banks agent

In the event of receipt of any complaint from the customer that the bank’s representative / DSA has engaged in any improper conduct or acted in violation of the Code of Bank’s Commitment to Customers which the bank has adopted voluntarily, bank shall take appropriate steps to investigate and to handle the complaint and to compensate the customer for financial losses, if any, as provided under para.1 above.

8. Force Majeure

The bank shall not be liable to compensate customers for delayed credit if some unforeseen event (including but not limited to civil commotion, sabotage, accident, fires, natural disasters or other “Acts of God”, war, damage to the bank’s facilities or of its correspondent bank(s), absence of the usual means of communication or all types of transportation, etc.) beyond the control of the bank prevents it from performing its obligations within the specified service delivery parameters. Also, no compensation shall be paid for delayed credit if advance notice is provided to the customers and in case the bank is not able to provide the services and notice period shall be determined by the bank on case to case basis while every endeavor shall be made to provide all the services in normal course.