Small businesses lax in complaining against banks
Updated: Jul 25, 2013 10:16:03am
From Gunja
New Delhi, Jul 25 (KNN) When it comes to taking up complaints against banks, individual enterprises and partnership firms are seen to be lax, even as they have a range of problems concerning banking transactions.
The initiative in this regard is seized mostly by individuals and not even by the industry associations, as per the analysis by KNN of the complaints made to the Banking Ombudsman between 2009-10 and 2011-12.
In 2011-12, while individuals made a huge number of complaints of 66,279, sole businesses and proprietors put together did not make 3, 000 complaints.
Put together, the Ombudsman received 72,889 complaints during 2011-12.
“The most common elements of consumer finance protection frameworks include disclosure and transparency, financial education, Banking Ombudsman Scheme etc. The scheme is about fair treatment to customers, especially those who are vulnerable….Bank customers can access it only if they know about it,” according the Deputy Governor of the Reserve Bank of India (RBI), KC Chakrabarty.
Complaints generally relate to include deposit accounts, remittances, card related (automated teller machine (ATM), debit, credit), loans and advances, levy of charges without prior notice, pension payments, failure to meet commitments, non-observance of fair practices code, recovery agents, notes and coins and others.
Card related complaints are 21 per cent of the total complaints received and they constituted the single largest ground of complaints.
Further, out of total 14, 492 complaints relating to cards, 9,348 complaints were those pertaining to ATM or debit cards.
High number of complaints related to ATM operations is a cause of concern. Though the spread of branches and ATM network is one of the reasons for this rise.
There is also an increase in number of complaints pertaining to deposit accounts. Issues related to Know Your Customer (KYC) norms is one of the major components of these complaints. Further, the banks are not properly and fully disclosing the different risks associated with their liability products.
Complaints relating to loans and advances, 8 per cent mainly pertained to issues related to home loans, educational loans and Micro, Small and medium Enterprises (MSME) loans.
Broadly the complaints are on account of issue of unsolicited cards, unsolicited insurance policies and recovery of premium, charging of annual fee in spite of being offered as 'free' card, authorization of loans over phone, wrong billing, settlement offers conveyed telephonically, non-settlement of insurance claims after the demise of the card holder, excessive charges, wrong debits to account, non-dispensation of money from ATM, skimming of cards etc. (KNN)
Feedback: newsdesk@knnindia.co.in
New Delhi, Jul 25 (KNN) When it comes to taking up complaints against banks, individual enterprises and partnership firms are seen to be lax, even as they have a range of problems concerning banking transactions.
The initiative in this regard is seized mostly by individuals and not even by the industry associations, as per the analysis by KNN of the complaints made to the Banking Ombudsman between 2009-10 and 2011-12.
In 2011-12, while individuals made a huge number of complaints of 66,279, sole businesses and proprietors put together did not make 3, 000 complaints.
Put together, the Ombudsman received 72,889 complaints during 2011-12.
“The most common elements of consumer finance protection frameworks include disclosure and transparency, financial education, Banking Ombudsman Scheme etc. The scheme is about fair treatment to customers, especially those who are vulnerable….Bank customers can access it only if they know about it,” according the Deputy Governor of the Reserve Bank of India (RBI), KC Chakrabarty.
Complaints generally relate to include deposit accounts, remittances, card related (automated teller machine (ATM), debit, credit), loans and advances, levy of charges without prior notice, pension payments, failure to meet commitments, non-observance of fair practices code, recovery agents, notes and coins and others.
Card related complaints are 21 per cent of the total complaints received and they constituted the single largest ground of complaints.
Further, out of total 14, 492 complaints relating to cards, 9,348 complaints were those pertaining to ATM or debit cards.
High number of complaints related to ATM operations is a cause of concern. Though the spread of branches and ATM network is one of the reasons for this rise.
There is also an increase in number of complaints pertaining to deposit accounts. Issues related to Know Your Customer (KYC) norms is one of the major components of these complaints. Further, the banks are not properly and fully disclosing the different risks associated with their liability products.
Complaints relating to loans and advances, 8 per cent mainly pertained to issues related to home loans, educational loans and Micro, Small and medium Enterprises (MSME) loans.
Broadly the complaints are on account of issue of unsolicited cards, unsolicited insurance policies and recovery of premium, charging of annual fee in spite of being offered as 'free' card, authorization of loans over phone, wrong billing, settlement offers conveyed telephonically, non-settlement of insurance claims after the demise of the card holder, excessive charges, wrong debits to account, non-dispensation of money from ATM, skimming of cards etc. (KNN)
Feedback: newsdesk@knnindia.co.in
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