DCB’s Compensation Policy
The objective of this policy is to establish
a system whereby the bank compensates the customer
for any direct financial loss he/she might incur
due to deficiency in service on the part of the
bank or any act of omission or commission directly
attributable to the bank. This Compensation policy
of the bank is therefore, designed to cover areas
relating to unauthorized debiting of account,
payment of interest to customers for delayed collection
of cheques/instruments, payment of cheques after
acknowledgement of stop payment instructions,
remittances within India, foreign exchange services,
etc. The policy is based on principles of transparency
and fairness in the treatment of customers.
The policy covers only compensation for direct
reasonable financial losses, which can be measured,
which customers might incur due to deficiency
in the services offered by the bank. The policy
explicitly excludes any indirect or consequential
financial, reputational or other losses like lost
business opportunities, etc. The provisions of
this policy are without prejudice to any right(s)
the bank will have in defending its position before
any forum duly constituted to adjudicate banker-customer
disputes or any court of law.
1. Unauthorised / Erroneous
Debit:
If the bank has raised an unauthorized/erroneous
direct debit to an account, the entry will be
reversed on being informed of the erroneous debit,
after verifying the position. In the event the
unauthorized/erroneous debit has resulted in a
direct financial loss for the customer by way
of penalty for non-maintenance of minimum balance
requirements or reduction in the minimum balance
applicable for payment of interest on savings
bank deposit or payment of additional interest
to the bank in a loan account, the bank will compensate
the customer for such loss.
In case verification of the entry reported to
be erroneous by the customer does not involve
a third party, the bank shall arrange to complete
the process of verification within a maximum period
of 7 working days from the date of reporting of
erroneous debit. In case, the verification involves
a third party, the bank shall complete the verification
process within a maximum period of one month from
the date of reporting of erroneous transaction
by the customer.
Debits in the account in respect of failed transactions
attempted / carried out at ATMs of other Banks
/ networks with whom the Bank has entered into
an arrangement will be reversed as per the terms
of said arrangement which normally provides for
refunds / reversals within a maximum period of
45 days. For delay of more than 7 days beyond
this period, the Bank will compensate for direct
financial loss suffered by the customer by way
of penalty for non-maintenance of minimum balance
requirements or reduction in the minimum balance
applicable for payment of interest on savings
bank deposit or payment of additional interest
to the bank in a loan account.
2. Reversal of Erroneous
Debits arising on Fraudulent or Other Transactions
- In case of any fraud, if the bank
is convinced that an irregularity / fraud has
been committed by its staff towards any customer,
branch should at once acknowledge its liability
and pay the just claim.
- In cases where the bank is at fault,
they may compensate the customer without demur.
- In cases where neither the bank
not the customer is at fault, but the fault
lies elsewhere in the system, bank would compensate
the customers for any direct financial loss
described in para 1 above, subject to a maximum
amount of Rs.2500/-.
3. ECS direct debits/other
debits to accounts
The bank will undertake to carry out standing
instructions for direct debit/ ECS debit of customers.
In the event the bank fails to meet such commitments
customer will be compensated to the extent of
any direct reasonable financial loss on account
of penalties and interest payable on delayed payments
the customer would incur on account of delay /
failure on the part of the bank in carrying out
the instruction(s).
The bank would debit the customer’s account
with any applicable service charge as per the
schedule of charges notified by the bank as modified
from time to time. In the event the bank levies
any charge not keeping in with the arrangement,
the bank will reverse the charges within 3 working
days when pointed out by the customer subject
to scrutiny of agreed terms and conditions.
4. Payment of Cheques after
Stop Payment Instructions:
In case a cheque has been paid after the bank
duly acknowledges stop payment instruction, the
bank shall reverse the transaction and give value-dated
credit to protect the interest of the customer.
Any consequential financial loss or any other
loss of whatsoever nature will not be compensated.
Such debits will be reversed within 3 working
days of the customer intimating the transaction
to the bank.
5. Foreign Exchange Services:
The Bank would not compensate the customer for
delays in collection of cheques designated in
foreign currencies sent to foreign countries,
as the bank would not be able to ensure timely
credit from overseas banks. It is the bank’s
experience that time for collection of instruments
drawn on banks in foreign countries differ from
country to country and even within a country,
from place to place. The time norms for return
of instruments cleared provisionally also vary
from country to country. However, the bank will
compensate the customer for undue delays in affording
credit after the proceeds are realized and the
Nostro Account of the bank with its correspondent
is credited. Such compensation will be given for
delays beyond 10 days from the date of credit
to Nostro Account and after taking into account
normal cooling period of 21 days. The compensation
in such cases will be worked out as follows:
a) Interest for the delay in crediting proceeds
as indicated in the cheque collection policy of
the bank.
b) Compensation for any possible loss on account
of adverse movement in foreign exchange rate during
the delayed period.
The Bank will compensate the customer
for delay in Foreign Remittances as under:
- For delay in crediting the proceeds
of inward remittance for amount upto Rs.10.00
lacs - interest at 2% above the Savings Bank
rate on the delayed period, if the delay is
beyond 10 working days from the date of credit
of the Bank’s Nostro account and after
taking into account the normal cooling period
of 21 days
- For delay in sending the remittance
advice to the beneficiary beyond 3 working days,
for amount exceeding Rs.10.00 lacs – interest
at 2% above the Savings Bank rate on the delayed
period
- For any possible loss on account
of adverse movement in foreign exchange rate
during the period of delay
6. Collection of Cheques
and Remittances in India
The compensation on account of delays in collection
of instruments would be as indicated in the bank’s
cheque collection policy.
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 cheque collection policy.
The Bank will compensate the customers for delay
directly attributable to the Bank in affording
credits of inward remittances like EFT, NEFT,
RTGS, ECS or by any other means, received on behalf
of the customers. The compensation would be restricted
to direct reasonable financial loss in terms of
interest or penalties levied due to reduction
in the minimum balance applicable for payment
of interest on savings bank deposit or payment
of additional interest to the bank in a loan account
or penalties charged for non-maintenance of minimum
balance due to such delays on the part of the
Bank.
7. Violation of the Code
by banks agent
In the event of receipt of any complaint from
the customer that the bank’s representative
/ courier or Direct Selling Agent (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
direct reasonable financial losses, if any, in
terms of interest or penalties levied due to reduction
in the minimum balance applicable for payment
of interest on savings bank deposit or payment
of additional interest to the bank in a loan account
or penalties charged for non-maintenance of minimum
balance.
8. Transaction of “at
par instruments” of Co-operative Banks by
Commercial Banks *
The bank will not honour cheques drawn on current
accounts maintained by other banks with it unless
arrangements are made for funding cheques issued.
Issuing bank should be responsible to compensate
the cheque holder for non-payment/delayed payment
of cheques in the absence of adequate funding
arrangement.
9. Force Majeure
The Bank shall not be liable to compensate Customers
for any delayed credit/debit, if some unforeseen
event like (including but not limited to), lockout,
strike, or other labour disturbances, civil commotion,
acts of terrorism, sabotage, accidents, fires,
natural disasters or other “Acts of God”,
war, damage to the Bank’s facilities or,
at any of the banks involved in the process or,
at its Correspondent Banks or partner agencies
due to any reason whatsoever, absence of the usual
means of communication etc., beyond the control
of the Bank, prevents it from performing its obligations
within the service delivery parameters specified
herein.
Date: March 11, 2008
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