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Customer Rights - Compensation Policy 2017-18

The details of the Policy are furnished hereunder:

  1. Unauthorized/erroneous debits to customer’s account will be reversed immediately whenever noticed. Any financial loss by way of loss of interest, charges on account of non-maintenance of prescribed minimum balances in the accounts, and interest charged on erroneous debits to your loan/overdraft accounts will be reversed/reimbursed after verification.

2. Where there is no involvement of third party in the transaction the erroneous debits to the accounts will be reversed within 7 days from the date of reporting. In case of involvement of third party, the bank shall complete the verification process within one month from the date of reporting.

  3. In case any amount has been debited to the account of a customer on account of fraudulent transactions the amount will be restored to the affected customer account without delay/demur, once the fraud is established.

 4. Financial losses like other bank charges etc will be reimbursed in case of failure to execute ECS transactions by the Bank.

5. Penal Interest Payable by Bank for delays in credits/returns of NEFT transactions

In the event of any delay or loss on account of error, negligence or fraud on the part of an employee of the destination bank in the completion of funds transfer pursuant to receipt of payment instruction by the destination bank leading to delayed payment to the beneficiary, the destination bank shall pay compensation at current RBI Repo Rate plus two percent for the period of delay for credit to the beneficiary’s a/c. In the event of delay in return of the funds transfer instruction for any reason whatsoever, the destination bank shall refund the amount together with interest at the current RBI Repo Rate plus two per cent till the date of refund.”

6.     Issue of ATM/Debit cards without written consent of customers.

 Where the Bank had issued an ATM/Debit card without written consent of the customer, which has been disputed by the customer without using the card, the said ATM/Debit card will be taken back by the Bank and got cancelled. The Bank would not only reverse the charges, if levied, immediately but also pay compensation to the customer @ `100/- if cancellation is done within 7 days of the representation and `500/- for cancellation done after 7 days.

 7.       ATM failure: Compensation to customers for settlement of disputed ATM transactions:  

Failure to re-credit the customer’s account within 7 working days of receipt of the compliant shall entail payment of compensation to the customer @ Rs.100/- per day by the issuing bank, provided the claim is lodged with the issuing bank within 30 days of the transactions and branch has failed to establish the proof of payment/disbursement by ATM.

 8.      If a cheque is paid by the Bank in spite of stop payment instructions duly recorded, the bank shall reverse the transaction and give value dated credit within two (2) working days of the intimation of such erroneous payment.

 9.     Payment of compensation in case of delay in collection of outstation Cheques:



Compensation payable



Delay beyond 10/14 days

SB rate of interest

If the credit is to a loan account interest will be paid at the rate applicable to the loan account


Delay beyond 45 days

Interest rate applicable on Term Deposits

If the credit is to a loan account interest will be paid at the rate applicable to the loan account


Delay beyond 90 days

2% above applicable Term Deposit interest

2% above the applicable rate to the loan account.


10. Payment of compensation in case of delay in clearance of local Cheques

  •  Compensation is payable to our customers, for the delay in clearance of Local Cheques also, as under.
  •  As a policy, bank would give credit to the customer account on the same day, clearing settlement takes place. Withdrawal of amounts so credited would be permitted, as per the cheque return schedule of the clearing house.
  • The Local cheques have to be presented in clearing promptly on the same day on which the cheque is received. If the cheque is received after cut-off time (prescribed for receipt of cheques for clearing) the cheque should be presented in clearing on the next working day without fail. In case there is delay in presentment of Local cheques to the clearing house, Bank to pay compensation to the customer at savings bank interest rate for the period corresponding to the delay.
  • Such interest shall be paid without any demand from customers in all types of accounts. There shall be no distinction between instruments drawn on the bank’s own branches or on other banks for the purpose of payment of interest for delayed collection.

11. The Account will be transferred from one Branch to another Branch of our Bank at customer’s request and it will be operationalised within 15 days of receiving customer’s request, subject to complying with the required KYC formalities at the new branch. If there is delay beyond 15 days, even after customer complied with all the requirements, the charges debited to his account, if any, for transferring the account will be reversed.

12.  Payment of compensation for delay in delivery of title deeds:

The bank will ensure to return all the securities/documents/title deeds to mortgaged property within 15 days from the date of receipt of written request from the customer or within 15 days of the repayment of all dues agreed to or contracted, whichever is later, in normal course except at the instances not in the hands of the Bank. If any right to set off is to be exercised for any other claim, the bank will give due notice with full particulars about the other claims and retain the securities/documents/title to mortgaged property till the relevant claim is settled/paid. The bank will compensate the customer @ Rs. 2,000/- for every block of 15 days subject to maximum of Rs.30,000/-, for any delay in return of securities/documents/title deeds to mortgaged property beyond 15 days of the repayment of all dues agreed to or contracted.

     In case of loss of Title Deeds, compensation by way of:

  • Furnishing Bank’s certificate or notarized affidavit indicating loss of title deeds in the custody of the Bank.
  • Paper publication regarding loss of title deeds at the Bank’s cost.
  • Bearing / reimbursing the expenditure for obtaining certified copies of such title deeds.

If the lost of title deeds on account of negligence of the Bank’s staff member, the expenditure incurred for getting the duplicates and compensation for delay in providing the duplicate sets should be borne by the concerned officer.

All the instances of compensation to be reported to the next higher authority. If the title deeds have been filed / deposited by Bank in the Court/DRT/Forum and lost in the custody of Court/DRT/Forum or there is a delay in returning such title deeds by Court/DRT/Forum, the Bank shall not be held responsible for such delay.

13.Payment of compensation for Cheque or instrument lost while in Bank’s custody:

In the event of a cheque or an instrument accepted for collection is lost in Bank’s custody or in transit or lost by the Service Provider i.e., Business Facilitator/Business Correspondent (BFs/BCs) under Alternate Channel Scheme of Rural Business group, bank shall, immediately on coming to know of the loss of instrument, notify the customer and shall, simultaneously, advise the Drawee bank particulars of lost Cheques for exercising caution against payment and provide assistance to the customer to obtain a duplicate instrument from the drawer/maker of the instrument.

The bank will compensate the account holder in respect of instruments lost in transit in the following way:

  1. In case intimation regarding loss of instrument is conveyed to the customer beyond the time limit stipulated for collection (10/14 days as the case may be) interest will be paid for the period exceeding the stipulated collection period at the rates specified in item 2 above.
  2. Bank will pay interest on the amount of the cheque for a further maximum period of 30 days at SB rate to provide for possible further delay in obtaining duplicate cheque/instrument and collection thereof.
  3. The Bank will bear the actual charges of recording Stop Payment instructions levied by Drawee bank.
  4. The bank would also compensate the customer for any reasonable charges he/she incurs in getting duplicate cheque/instrument upon production of receipt, in the event the instrument is to be obtained from a bank/institution who would charge a fee for issuing duplicate instrument, subject to a maximum of Rs.500/- .

13. Compensation for delay in Issuance of Duplicate IOI (Inter Office Instrument):

Duplicate IOI will be issued within a fortnight from the receipt of such request from the purchaser thereof. For delay beyond the above stipulated period, interest at the rate applicable for fixed deposit of Corresponding period will be paid as compensation to the customer for such delay.

14. Payment of “at par” Cheques issued by other Banks:

  • Bank will not pay any compensation to the cheque holder, for dishonor of “at par” cheques issued by other banks, including Co-Operative Banks in the absence of adequate funds in the account on which cheques are issued even though the amount of the cheque may have been paid to the Bank which had issued the “at par” cheque.
  • RBI instructions stipulate that banks 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 of cheques in the absence of adequate funding arrangement.

15. Customers’ Responsbility

  • Bank will not be responsible for the loss to the customers due to customer’s carelessness in keeping the Cheque book, passbook, cards, PIN or other security information and not following Do’s and Dont’s issued by Bank, until the bank has been notified by the customer.
  • Bank will not be responsible for the loss to the customer, if the customer acts fraudulently and / or acts without reasonable care which has resulted into loss to him/her. Bank will also not be responsible for the losses arising out of misuse, of lost PIN, compromise of passwords/secure or confidential information, suffered by the customer until the time the Bank has been notified and has taken steps to prevent misuse.


16. Disclaimer Clause:

Notwithstanding anything contained here above, the Bank shall not pay any compensation in the following cases:

a)    Any deficiency in regard to loans and advances activities of the Bank.

b)    Dishonour of at par payment agreement with other banks, due to non-funding and security compliance.

c)     Delays on account of non-functioning of business due to factors beyond the control of the bank, the period covered by such events shall be omitted for calculation of delay etc.

d)    Where the issues are sub-judice and pending before Courts, Ombudsman, Arbitrator, Governments and matter put on hold due to stay.


17. FORCE MAJEURE: The Bank shall not be liable to compensate customers, if some unforeseen event beyond the control of the bank prevents it from performing its obligations within the specified service delivery parameters.

18. Amendments / Modifications of the Policy:

The Bank reserves the right to amend / modify this policy, as and when deemed fit and proper, at its sole discretion. Bank shall also endeavor to review the policy at annual intervals.