Tuesday, July 26, 2016

Penalties for bank branches -customer service to members of public

Sr. No.
Nature of Irregularity
Shortages in soiled note remittances and currency chest balances
For notes in denomination upto Rs.50
Rs.50/- per piece in addition to the loss

For notes in denomination of Rs.100 & above
Equal to the value of the denomination per  piece  in  addition  to  the  loss.

Shortages of 100 pieces and above per  remittance  shall  be  debited immediately. Penalty may be levied on reaching a limit of 100 pieces in a cumulative manner.

Counterfeit  notes  detected  in  soiled note remittances and currency chest balances.
Shall  be levied  in  terms  of  the  instructions issued  by  DCM
Mutilated notes detected in soiled note remittances and currency chest balances
Rs  50/- per piece irrespective of the denomination
Mutilated notes of 100 pieces and above  per  remittance  shall  be debited immediately. The penalty may be levied on reaching a limit of 100 pieces in a cumulative manner.
Non-compliance with operational guidelines by currency chests
a)         Non-functioning of CCTV
b)            Branch  cash/documents  kept  in strong room
c)         Non-utilization of NSMs for sorting of notes
Penalty of Rs 5000 for each irregularity, which will be enhanced to Rs.10,000 in case of repetition.

Penalty will be levied immediately.
Violation of terms of agreement with RBI  or deficiency in service in providing exchange facilities:
a)       Non-issue of coins over the counter despite having stock.
b)       Refusal  by  any  bank  branch  to exchange soiled notes / refusal by any currency  chest  to  adjudicate mutilated notes tendered public
c)       Non conduct of surprise verification of chest balances, at least at bimonthly intervals, and by the officials from the Controlling Office once in six months
d)       Denial of services to linked branches of other banks
e)       Non acceptance of lower denomination notes tendered by public and linked bank branches
f)        Detection of mutilated /counterfeit notes in re-issuable packets prepared by the currency chest branches.
Rs   10,000   for   any   violation   of agreement or deficiency of service.

Rs 5 lakh in case there are more than 5 instances of violations of in service by the branch.

The levy of such penalty will be placed in public domain.

Penalty will be levied immediately.

Operational Guidelines on levy of penalties

Competent Authority –
Officer-in-Charge of the Issue Department of the Regional Office.

Appellate Authority -
i.                Appeal may be made by the Controlling Office to the Regional Director, within one month from the date of debit.

ii.              Appeals for waiver of penalty made on grounds such as staff being new/untrained, lack of awareness of staff, corrective action having been taken/will be taken, etc. will not be considered.
Based on RBI Master Circular dated 20/07/2016. For further clarifications please refer www.rbi.org.in ………….Poppy