Bank Passbooks to have more transaction details after RBI directive; 11 things you need to know

Bank Passbooks to have more transaction details after RBI directive; 11 things you need to know

 

To enhance better customer service, the Reserve Bank of India (RBI) has asked commercial banks to provide adequate details of all the transactions in the passbooks of all its customers. With this, RBI makes it easy for account holders to keep a check of all their transactions in just a glance. The Apex Bank in its statement said, “It has come to our notice that many banks still do not provide adequate details of the transactions in the passbooks and/ or statements of account to enable the account holders to cross-check them”.

The RBI further stated that in the interest of better customer service, it has been decided that banks shall at a minimum provide the relevant details in respect of entries in the accounts. The RBI said that many banks still do not provide adequate details of the transactions in the passbooks and/ or statements of account to enable account holders cross-check them.

Here are 11 things you need to know under the new directive to Banks by RBI

1. Under the new directive, Banks have to give information about ‘deposit insurance cover’ along with the limit of coverage up front in the passbooks.
2. As per details on RBI’s website, it is applicable to all commercial banks including branches of foreign banks functioning in India are insured by the deposit insurance and credit guarantee corporation (DICGC).
3. In the event of a bank failure, DICGC protects bank deposits. Each depositor in a bank is insured up to a maximum of Rs. 1 lakh for both principal and interest amount held by him/her in the same capacity.
4. According to circular released by RBI on June 22, the transactions which banks should include in passbooks are as follows: Payment to third parties: i) Name of the payee (ii) Mode- Transfer, clearing, inter-branch, RTGS/ NEFT, cash, cheque (number) (iii) Name of the transferee bank, if the payment is made through clearing/ inter-branch transaction/ RTGS/ NEFT.
5. Payment to ‘self’: This should indicate “Self” as payee. The name of the ATM/ branch if the payment is made by ATM/ another branch
6. Reversal of wrong credits will need to have the date of the original credit entry reversed and reasons for reversal, in brief.
7. Cash deposit: It should be indicated that it is a “cash deposit”. It would require name of the depositor i.e. self or third party
8. Interest on deposits: (i) Mention if it is interest paid on the Savings Account/ Fixed Deposit (ii) Mention the respective Fixed Deposit Account/ Receipt Number if it is interest paid on Fixed Deposit(s).
9. Bank charges: i) Nature of the charges – fee/ commission/ fine/ penalty etc. (ii) Reasons for the charges, in brief – e.g. return of cheque (number), commission/ fee on draft issued/ remittance (draft number), cheque collection charge (number), issuance of cheque book, SMS alerts, ATM fees, additional cash withdrawals, etc.
10. Receipt from third parties: (i) Name of the remitter/ transferor (ii) Mode-Transfer, inter-branch, RTGS/ NEFT, cash, etc. (iii) Name of the transferor bank, if the payment is received through inter-branch transaction, RTGS/ NEFT
11. Maturity proceeds of fixed deposit/ recurring deposit: i) Name of the Fixed Deposit/ Recurring Deposit holder (ii) Fixed Deposit/ Recurring Deposit account/ receipt number (iii) Date of maturity

Happy Investing

Source:Yahoofinance.com