BENGALURU: Banks reporting fraud or cheating cases has turn into a fairly regular affair, but rankings of account holders and borrowers also really feel cheated via the bank on a regular basis as proceedings with the banking ombudsman shows.
From usurious interests to deliberate delay in accepting bills (which leads to penalties), and from non-adherence to truthful practices to refusal to near accounts, greater than four lakh folks have lodged proceedings in opposition to the banks within the duration between April 1, 2010 to March 31, 2017, at an average of 11 every hour. Sources stated that any other 1 lakh plus proceedings can have been won within the 12 months finishing March 31, 2018, but authentic figures are but to be made public.
According to bankers, just about 35% to 38% of proceedings related to the banks’ failure to satisfy commitments and non-observance of truthful practices, while any other 20% relate to ATM, debit and credit card problems. At the ground of the proceedings—most commonly dealing with Public Sector Banks (PSBs)—are proceedings in the case of pensions, which form about eight% of the pleas.
The selection of proceedings in opposition to banks had been rising in double digits in the last few years, with 2016-17 seeing a 27% enlargement to 1.3 lakh proceedings, as per the Reserve Bank of India.
“While the selection of proceedings are expanding significantly, there appears to be little that buyers get out of this process. According to data we gathered, handiest 0.2% of the proceedings pass in favour of the shoppers,” Tobby Simon of Synergia Foundation, a multi-disciplinary think-tank, stated.
Experts identified that one reason why for this may well be that the entire ombudsmen dealing with buyer proceedings are from the banking fraternity, who may well be biased. However, there is not any impartial proof to confirm such claims.
Of these proceedings, greater than 2.eight lakh are in opposition to Public Sector Banks (PSBs), while the remainder are in opposition to private banks. And, even supposing there is not data for the amount involved in these proceedings, mavens say that they may be able to run into tens of crores.
In some cases, the figure even goes into lakhs of rupees. For instance, the Banking Ombudsman in Chennai not too long ago disposed a case, the place an account holder with a personal bank had borrowed Rs 19.95 lakh in 2007, and had repaid Rs 35.63 lakh via the tip of December 2017, which incorporated Rs 15.68 lakh as pastime. However, the bank since then claims that he nonetheless owes the bank any other Rs 11.48 lakh.
Experts also point out that lack of knowledge amongst consumers, and the lengthy procedures involved in dealing with banks continuously result in folks now not taking up the issue. “If there are 10 proceedings with the ombudsman in any area, you can assume that there are no less than any other 30 that experience now not reached the authority,” one in every of them stated.
From usurious interests to deliberate delay in accepting bills (which leads to penalties), and from non-adherence to truthful practices to refusal to near accounts, greater than four lakh folks have lodged proceedings in opposition to the banks within the duration between April 1, 2010 to March 31, 2017, at an average of 11 every hour. Sources stated that any other 1 lakh plus proceedings can have been won within the 12 months finishing March 31, 2018, but authentic figures are but to be made public.
According to bankers, just about 35% to 38% of proceedings related to the banks’ failure to satisfy commitments and non-observance of truthful practices, while any other 20% relate to ATM, debit and credit card problems. At the ground of the proceedings—most commonly dealing with Public Sector Banks (PSBs)—are proceedings in the case of pensions, which form about eight% of the pleas.
The selection of proceedings in opposition to banks had been rising in double digits in the last few years, with 2016-17 seeing a 27% enlargement to 1.3 lakh proceedings, as per the Reserve Bank of India.
“While the selection of proceedings are expanding significantly, there appears to be little that buyers get out of this process. According to data we gathered, handiest 0.2% of the proceedings pass in favour of the shoppers,” Tobby Simon of Synergia Foundation, a multi-disciplinary think-tank, stated.
Experts identified that one reason why for this may well be that the entire ombudsmen dealing with buyer proceedings are from the banking fraternity, who may well be biased. However, there is not any impartial proof to confirm such claims.
Of these proceedings, greater than 2.eight lakh are in opposition to Public Sector Banks (PSBs), while the remainder are in opposition to private banks. And, even supposing there is not data for the amount involved in these proceedings, mavens say that they may be able to run into tens of crores.
In some cases, the figure even goes into lakhs of rupees. For instance, the Banking Ombudsman in Chennai not too long ago disposed a case, the place an account holder with a personal bank had borrowed Rs 19.95 lakh in 2007, and had repaid Rs 35.63 lakh via the tip of December 2017, which incorporated Rs 15.68 lakh as pastime. However, the bank since then claims that he nonetheless owes the bank any other Rs 11.48 lakh.
Experts also point out that lack of knowledge amongst consumers, and the lengthy procedures involved in dealing with banks continuously result in folks now not taking up the issue. “If there are 10 proceedings with the ombudsman in any area, you can assume that there are no less than any other 30 that experience now not reached the authority,” one in every of them stated.
Every hour, 11 people complain against their bank
![Every hour, 11 people complain against their bank]()
Reviewed by Kailash
on
June 13, 2018
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