- RBI has made uniformity in the penal interest
- to be paid by the banks
- at the current RBI LAF Repo Rate plus 2%
- in case of delay in crediting the beneficiary customer’s account or
- in returning the un-credited amount to the remitter.
- by circular No. DPSS (CO) EPPD No. 477 / 04.03.01 / 2010-11 dated September 1, 2010.
Please note that in case of NEFT above circular also explain that:
- During the NEFT operating hours
- originating banks should endeavor
- to put through the requests for NEFT transactions received by them,
- either online or across the counters,
- preferably in the next available batch but, in any case, not exceeding 2 hours from the time of receipt of the requests.
But RBI has noticed that this instruction is not being adhered to by the banks. In cases of delayed credits, banks resort to value-dating of the credit in the customer’s account to avoid payment of penalty which is not in accordance with the instruction issued by RBI in this regard.
Therefore, RBI has issued further circular DPSS (CO) EPPD No.1204/04.03.01 / 2011-12 dated January 05, 2012 in exercise of the powers conferred by section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and stated that Banks:
A) strictly adhere to the instructions of paying penal interest.
B) Pay penal interest suo-moto without waiting for a claim from the customers.
C) Immediately report to RBI
- the status of their adherence with the extant instructions; and
-the mechanism put in place with approval of their Board for payment of such penalty.
D) Submit to their Board in next Meeting
- Data regarding the amount of penalty paid (with an explanatory note); and
- the proposed action to be taken to minimize such incidents.
Remind that: A copy of the Board note along the Resolution of the Board on this issue may be furnished to RBI immediately after the meeting of the Board.
Customer Facilitation Centers (CFCs)
If you read the NEFT Procedural Guidelines then come to know that for handle customer queries / complaints regarding NEFT transactions, banks are required to establish dedicated Customer Facilitation Centers (CFCs) and the contacts details of CFCs are available on websites of banks as well as the website of RBI.
Download the CustomerFacilitation Centres – NEFT and RTGS
However, it is observed that in many instances the CFC contact details given are non-functional/out-dated and/or there is no response from these numbers or mail-ids, thereby defeating the very purpose of setting up such centres.
Therefore, banks are advised:
A) to keep the contact details of their CFCs updated at all times and advise changes, if any, immediately to the National Clearing Cell, Nariman Point, RBI for updating the central directory placed on RBI website.
B) to ensure that calls made / e-mails sent to CFCs are promptly attended to and sufficient resources are dedicated for the same.
C) A compliance to this effect should also be submitted to the Board of the bank in its next meeting.
Remind that: A copy of the same should be sent to the RBI immediately after the Board meeting.
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