FAIR LENDING PRACTICES CODE (FLPC for short) is a voluntary code adopted by our Bank, which aims to achieve synchronization of best practices while dealing with Customers in India . It aims to provide valuable inputs to Customers and facilitates effective interaction of customers with the Bank.
FLPC would be applicable in the bank from the date it is placed in Bank’s web site or is otherwise publicized through the media.
FLPC contains 8 important declarations from us, the spirit of which pervades the entire FLPC provisions.
The Bank declares and undertakes
- To provide in a professional manner, efficient, courteous, diligent and speedy services in the matter of retail lending
- Not to discriminate on the basis of religion, caste, sex, descent or any of them
- To be fair and honest in advertisement and marketing of Loan Products
- To provide customers with accurate and timely disclosure of terms, costs, rights and liabilities as regards loan transactions
- If sought, to provide such assistance or advice to customers in contracting loans
- To attempt in good faith to resolve any disputes or differences with customers by setting up complaint redressal cells within the organization.
- To comply with all the regulatory requirements in good faith
- To spread general awareness about potential risks in contracting loans and encourage customers to take independent financial advice and not act only on representations from banks.
Product Inform ation:
- A prospective customer would be given all the necessary information adequately explaining the range of loan products available with the Bank to suit his/her needs.
- On exercise of choice, the customer would be given the relevant information about the loan product of choice.
- The Customer would be explained the processes involved till sanction and disbursement of loan and would be informed of time frame within which all the processes will be completed ordinarily of our Bank.
- The Customer would be informed of the names and phone numbers of branches and the persons whom he can contact for the purpose of loan to suit his needs.
- The customer would be informed the procedure involved in servicing and closure of the loan taken.
Interest rates for different loan products would be made available through and in any one or all of the following media, namely:
- In the Bank’s Web site
- Over phone, if Tele Banking Services are provided
- Through prominent display in the branches and at other delivery points
- Through other media from time to time
Customers would be entitled to receive periodic updates on the interest rates applicable to their accounts.
On demand, Customers can have full details of method of application of interest.
Revision in Interest Rates:
- The Bank would notify immediately or as soon as possible any revision in the existing interest rates and make them available to the customers in the media listed in Para 3.2.1.
- Interest Rate revisions to the existing customers would be notified within 3 working days from the date of change.
Default Interest/Penal Interest
- The Bank would notify clearly about the default interest/penal interest rates to the prospective customers.
- The Bank would notify details of all charges payable by the customers in relation to their loan account.
- The Bank would make available for the benefit of prospective customers all the details relating to charges generally in respect of their retail products in the media specified in Para 3.2.1.
- Any revision in charges would be notified in advance and would also be made available in the media as listed in Para 3.2.1
- Our Bank would clearly specify the charge account for interest and charges, wherever necessary and get a mandate for debiting the said charge account along with the documentation.
Terms and Conditions for Lending :
- The Bank would ordinarily give an acknowledgement of receipt of loan request and if demanded by the customer, a copy of the application form duly acknowledged would also be given, as soon as the customer chooses to buy a product of or service of his choice.
- Immediately after the decision to sanction the loan, the Bank would show draft of the documents that the customer is required to execute and would explain, if demanded by the customer, the relevant terms and conditions for sanction and disbursement of loan.
- Loan Application forms, Draft documents or such other papers to be signed by a customer shall comprehensively contain all the terms and conditions relating to the product or service of his choice.
- Wherever feasible reasons for rejection of loan would be conveyed to the customers.
- Before disbursement of loan and on immediate execution of the loan documents, the Bank shall deliver a copy of the documents to the customers.
- The Bank would provide regular statement of accounts, unless not found necessary by the customers.
- The Bank would notify relevant due dates for application of agreed interest, penal interest, default interest, and charges, if they are not mentioned in the loan applications, documents or correspondence.
- The Bank would notify in advance any change in accounting practices which would affect the customer before implementation.
- All personal information of the customer would be confidential and would not be disclosed to any third party unless agreed to by customer. The term ‘Third Party’ excludes all Law enforcement agencies, Credit Information Bureau, Reserve Bank of India , other banks/financial and lending institutions.
- Subject to above paragraph, customer information would be revealed only under the following circumstances:
- If our Bank is compelled by law.
- If it is in the Public interest to reveal the information
- If the interest of the Bank require disclosure
- The Bank would sympathetically reckon cases of customer’s financial distress.
- Customers would be encouraged to inform about their financial distress as soon as possible.
- The Bank would adequately train the operational staff to give patient hearing to the Customers in financial distress and would try to render such help as may be possible in their view.
- The Bank would have a Grievance Redressal Cell/Department/Center within or outside the organization.
- The would make available all details, namely:
- Where a complaint can be made
- How a complaint should be made
- When to expect a reply
- Whom to approach for redressal of grievance etc. to the customers individually on demand and through the media listed
- Response to a complaint whether positive or negative or requiring more time for redressal would generally be given within a maximum period of four weeks from the date of receipt of complaint, unless the nature of complaint is such that requires verification of voluminous facts and figures.
STRUCTURE OF GRIEVANCE REDRESSAL MECHANISM
Branch/Regional Office Sanctions Deputy General Manager of respective Zonal Office
Zonal Office sanctions – General Manager (Ops)
DGM, Credit Dept., H.O. – General Manager (C&I)
General Managers (H.O.) Sanctions – Chief General Manager
Chief General Manager, HOCC/EC Sanctions – Managing Director
GOI Resolution on Public Interest Disclosure and Protection of Informer
The Government of India has authorized the Central Vigilance Commission (CVC) as the ‘Designated Agency’ to receive written complaints for disclosure on any allegation of Corruption or misuse of office and recommend appropriate action.
- The jurisdiction of the Commission in this regard would be restricted to any employee of the Central Government or of any corporation established by or under any Central Act, Government companies, societies or local authorities owned or controlled by the Central Government. Personnel employed by the State Governments and activities of the State Governments or its Corporations etc. will not come under the purview of the Commission.
- In this regard, the Commission, which will accept such complaints, has the responsibility of keeping the identity of the complainant secret. Hence, it is informed to the general public that any complaint, which is to be made under this resolution should comply with the following aspects.
- The complaint should be in a closed / secured envelope.
- The envelope should be addressed to Secretary, Central Vigilance Commission and should be superscribed “Complaint under The Public Interest Disclosure”. If the envelope is not superscribed and closed, it will not be possible for the Commission to protect the complainant under the above resolution and the complaint will be dealt with as per the normal complaint policy of the Commission. The complainant should give his/her name and address in the beginning or end of complaint or in an attached letter.
- Commission will not entertain anonymous/pseudonymous complaints.
- The text of the complaint should be carefully drafted so as not to give any details or clue as to his/her identity. However, the details of the complaint should be specific and verifiable.
- In order to protect identity of the person, the Commission will not issue any acknowledgement and the whistle-blowers are advised not to enter into any further correspondence with the Commission in their own interest. The Commission assures that, subject to the facts of the case being verifiable, it will take the necessary action, as provided under the Government of India Resolution mentioned above. If any further clarification is required, the Commission will get in touch with the complainant.
- The Commission can also take action against complainants making motivated/vexatious complaints under this Resolution.
- A copy of detailed notification is available on the web-site of the Commission http://www.cvc.nic.in.
Issued in Public Interest by the Central Vigilance Commission, INA, Satarkta Bhawan, New Delhi.