Phadke Complaint to RBI

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Sharad S. Phadke 339, Narayan Peth, Near Modi Ganapati, Pune 411 030 Email: [email protected] Cell: 09881129521 ________________________________________________________________

Date: June 20th, 2014 by speed post To, The Governor, Reserve Bank of India Central Office Building, 18th Floor, Shahid Bhagat Singh Road, Mumbai-400 001 Respected Sir,

Subject: COMPLAINT AGAINST CORPORATION BANK FOR NON-PAYMENT OF COMPENSATION FOR DELAY IN REFUND OF ATM FAILED TRANSACTION AMOUNT, AS MANDATED BY RBI

I am filing this complaint cum Social Audit for RBI two directives wide circular No RBI/2009-2010/100/DPSS No.101/02.10.02/2009-2010 dated 17-07-2009 and RBI/2010/11/547/DPSS.PD.No.2632/02.10.002 / 2010-2011 dated 27-05-2011.

2. I now enclose my analysis of information received from Corporation Bank, [Social Audit] which is provided on CD under RTI. I have scrutinized each transaction and by reckoning 14 day time [12 working days + maximum 2 days for holidays] or 8 days [7 working days + 1 day holiday] for refunding the failed amount from date of receipt of complaint by bank. These details pertain to transactions which have failed at ATMs of all other banks which speak of quality of their ATMs and its functioning of staff. Scrutiny reveals that total whopping amount of Rs.9,78,72,500/- is not paid by Corporation Bank as compensation for ATM failed transactions for 2010-11 and 2011-12. These transactions have failed at different ATMs of other Banks with their own bank.

My complaint dated 05-06-2014 relating to customers of Corporation

Bank whose transactions have failed at ATMs of SBI, is pending with Dept of Banking Operation, RBI, Mumbai.

mailto:[email protected]

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3. This is just a sample social audit covering time span 2010 to 2012 from the data they supplied. RTI revelations are indicative of the fact that most Banks in the country are indulging in ditching its account holders as above, presumably with the blessing or connivance of higher management and auditors. This is generic in nature and not a single aberration. I think it is a serious matter for RBI to act decisively and firmly, which is substance of good governance, if it means business for RBI for the benefit of common men of India and inclusive growth.

4. Brief summary is as under: For 2010 2011 Financial Year

Sr. No. ATM BANK

Total Amount No. of Complaints

Remark

1 ACB 1,51,300.00 6 not collected & paid

2 ALB 1,32,700.00 57 not collected & paid

3 AXB 3,23,000.00 26 not collected & paid

4 BOB 13,43,600-00 122 not collected & paid

5 BOI 29,89,900-00 232 not collected & paid

6 BOM 2,25,300-00 18 not collected & paid

7 CBI 3,03,000-00 27 not collected & paid

8 CNB 28,69,600-00 412 not collected & paid

9 COB 55,500-00 2 not collected & paid

10 CSB 22,000-00 4 not collected & paid

11 CUB 1,38,800-00 15 not collected & paid

12 DLB 5,92,700-00 55 not collected & paid

13 FBL 2,78,600-00 19 not collected & paid

14 ICI 31,41,200-00 238 not collected & paid

15 IIB 2,34,800 17 not collected & paid

16 INB 4,31,000-00 54 not collected & paid

17 IOB 8,43,600-00 58 not collected & paid

18 JKB 62,500-00 6 not collected & paid

19 KTB 42,33,200-00 351 not collected & paid

20 KVB 3,37,600-00 30 not collected & paid

21 LVB 5,22,800-00 47 not collected & paid

22 MIT 1,15,60,700-00 934 not collected & paid

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23 NMT 5,43,400-00 46 not collected & paid

24 OBC 17,11,700-00 137 not collected & paid

25 PMB 20,200-00 1 not collected & paid

26 PSB 17,200-00 1 not collected & paid

27 SIB 6,93,100-00 63 not collected & paid

28 SRC 3,12,400-00 16 not collected & paid

29 SVC 19,800-00 2 not collected & paid

30 SYB 21,25,700-00 167 not collected & paid

31 TMB 1,67,300-00 12 not collected & paid

32 UBI 3,24,000-00 19 not collected & paid

33 UCO 3,55,800-00 34 not collected & paid

34 UOB 31,35,200-00 240 not collected & paid

35 VJB 7,38,400-00 62 not collected & paid

36 YBL 5,61,500-00 46 not collected & paid

37 CORPO. BANK

6,17,600-00 715 NOT PAID TO CUSTOMER

TOTAL 5,86,99,400.00 Five Crore eighty six lakhs ninety-nine thousand four hundred only.

5. It is surprising to note that there is not a single case reported for ATM

of Punjab National Bank, which is No. 2 in Nationalized Bank. There are many case of each bank where complaint is resolved before complaint date, which is impossible since no one will pay before getting the complaint. This indicates the data supplied by the Bank is false or manipulated.

6. For the year 2011-2012 the data as compare to last year is less and hence the performance appears as better. But I have doubts on this. Statement for this year is as under:

Sr. No. ATM BANK

Total Amount No. of Complaints

Remark

1 ALB 1,34,400.00 10 not collected & paid

2 AXB 83,100.00 10 not collected & paid

3 BOB 5,91,500.00 47 not collected & paid

4 BOI 27,22,900.00 244 not collected & paid

5 BOM 1,74,100.00 16 not collected & paid

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6 CBI 12,21,200.00 79 not collected & paid

7 CNB 19,83,800.00 168 not collected & paid

8 CUB 6,21,200.00 43 not collected & paid

9 COB 29,100.00 2 not collected & paid

10 CSB 53,300.00 4 not collected & paid

11 DLB 2,70,700.00 39 not collected & paid

12 DNB 93,800.00 8 not collected & paid

13 DSB 8,700.00 1 not collected & paid

14 FBL 1,37,900.00 11 not collected & paid

15 ICI 17,69,200.00 160 not collected & paid

16 IDB 17,400.00 2 not collected & paid

17 IIB 1,01,600.00 11 not collected & paid

18 INB 2,59,200.00 21 not collected & paid

19 Euronet 3,51,700.00 129 Corporation Bank Customers. Bank has not paid compensation.

20 Corpo. BANK

13,200.00

Total 1,18,51,400.00 One Crore eighteen lakh fifty one thousand four hundred only.

7. I therefore lodge this complaint with a request as under:

A] Bank be ordered to comply with said directives of RBI dated 17-07-2009 and 27/05/2011 in the matter of Corporation Bank customers as mentioned above. This is on a CD where information is sorted in different manner to assess the quality of working of Corporation Bank.

B] RBI enquiry be ordered and exemplary penalty or such other action be ordered for mischievous violation of RBI directives.

C] RBI should recommend departmental enquiry to fix accountability for flouting RBI circulars by operating and supervising staff of the bank, otherwise penalty will have to be borne by public money with no accountability of officers/executives.

D] Such other action be initiated to ensure that not only this bank complies with your said directives [and amendments] but also all other banks pay compensation for all failed transactions.

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E] RBI may also order re-scrutiny of quarterly returns that banks submit on failed transactions to RBI with banks board sanction. It is noticed from the data given by many banks that the compensation paid by the bank is huge and beneficiaries are less. This is just an eye wash and I am surprised how not a single bank data supplied is checked by RBI.

8. Incidentally I add that RBIs counterpart IRDA has imposed penalty of Rs.1.77 crores on Reliance Life Insurance Co Ltd, vide its order dated 11-04-2014 for violation of various IRDA directives/regulations. A common man like me humbly expects that sanctity of RBI directives is also restored, if common citizens are to be really served in a democratic country, where he is the ultimate authority. My above efforts are manifestation of scan respect bank officers have for mandates of RBI, when it comes to benefit of common men/women. I hope my above prayers are in line with Good Governance concept of our Honble new Prime Minister.

9. I am enclosing sorted data of non-payment which is related to all other banks ATM, received from said bank under RTI Act, together with my analysis in digital form. A huffing amount for these two years runs to 7, 05, 50,800-00 excluding 2,73,21,700.00 making total of 9,78,72,500-00 almost 10 crores !!! This audit is based on Bank supplied data in actual you may find in multiples of this amount shown.

10. Kindly acknowledge receipt of this complaint with complaint number for tracking. I shall be happy to know the details of action taken by RBI [without recourse to RTI], since I have a right to know as a citizen of a democratic country where aam admi or common man is the ultimate authority.

Yours faithfully,

Sharad Phadke Enclosures as above: One CD with sorted data for the year 2010 to 2012 Copies to: 1. Chairman & Mg. Director,

Corporation Bank,

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Mangaladevi Temple Road, Pandeshwar, MANGALORE Karnataka-575 001

common citizens do expect that at least chairperson of such a prestigious bank of the country does not take the matter lightly when it comes to customers benefits mandated by RBI. 2. The Banking Codes and Standards Board of India

Reserve Bank of India Building, C-7, 4th floor, Bandra Kurla Complex, Mumbai-400051 Kindly intervene.

3. Ms Sucheta Dalal,

Money Life foundation, Dadar, Mumbai 400 028 - You may cover in your newsletter/magazine to educate consumers.

Phadke Complaint to RBI

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