Banks finally getting booked for overcharging
RBI imposes a penalty of ₹3.95 Crores on Kotak Mahindra Bank Ltd. for overcharging customers (attached)
Going forward, banks will think twice before troubling or overcharging customers.
You need to know your rights, i.e., why the RBI penalised KMB ltd and get your bank booked for malpractices
(1) Bank charged foreclosure fee when it wasn't mentioned in the agreement.
As per RBI norms, Banks can't charge foreclosure in any situation on home loans.
(2) Bank charged loan interest from the date from which disbursement was due.
Ideally, they should've charged from the day the loan was actually disbursed.
(3) Bank failed to ensure that customers are not called after 7PM or before 7AM.
==========
A friend of mine had to run from pillar to post to get his property documents from the same bank despite closing his loan.
The same bank force sells insurance even if you are adequately insured at the time of disbursement of loan. This is prohibited under law.
Next time the RM troubles you, show them this press release and say that if they trouble you, you can reach out to the RBI. more
Going forward, banks will think twice before troubling or overcharging customers.
You need to know your rights, i.e., why the RBI penalised KMB ltd and get your bank booked for malpractices
(1) Bank charged foreclosure fee when it wasn't mentioned in the agreement.
As per RBI norms, Banks can't charge foreclosure in any situation on home loans.
(2) Bank charged loan interest from the date from which disbursement was due.
Ideally, they should've charged from the day the loan was actually disbursed.
(3) Bank failed to ensure that customers are not called after 7PM or before 7AM.
==========
A friend of mine had to run from pillar to post to get his property documents from the same bank despite closing his loan.
The same bank force sells insurance even if you are adequately insured at the time of disbursement of loan. This is prohibited under law.
Next time the RM troubles you, show them this press release and say that if they trouble you, you can reach out to the RBI. more
Viewed by 2044
View all 6 comments Below 6 comments
HDFC Bank has also started charging very high or looting its clients without any pre notice and reason in the name of Minimum Account Balance, Debit Card Annual Charge, Demat Annual Service Charge and other factors since April 2023, beside no response and reply after sending several reminders to explain the reason I am one of the victim. more
Oct 19
Though All the banks are now in the same Train, when Mistreating / Overcharging Customers, We wish, Govt should take SUOMOTO Action, instead of waiting for Whistle blowers, or Complaints from Customer more
Oct 18
RBI should continue to detect such extortion cases by all fin institutions and fine the wrong doers heavily. more
Oct 18
The disturbing part is that someone else is taking the loot in the name of regulation and enforcement. The customers of teh bank are left high and dry with virtually little recourse. Who will tame the regulator now? more
Oct 18
