The Hindu : Business : Depositors' rights: banks to formulate policy

Online edition of India's National Newspaper
Saturday, May 29, 2004

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Depositors' rights: banks to formulate policy

By Ramnath Subbu

MUMBAI, MAY 28. In a move to alleviate the difficulties of the common person in dealings with banks, the Reserve Bank of India will advise banks to formulate a transparent and comprehensive policy setting out the rights of depositors in general and small depositors in particular. The banks will have to formulate the policy by July 31.

The policy would be required to cover all aspects of maintenance of deposit accounts and settlement of claims of deceased depositors after undertaking a thorough review of these areas in consultation with the Indian Banks Association. The measures will be taken on the lines of the suggestions made by the Committee on Procedures and Performance Audit on Public Services: Banking Operations (Chairman: S. S. Tarapore).

As a follow-up of the mid-term review Monetary and Credit Policy undertaken in November 2003, the RBI had set up a committee on Procedures and Performance Audit on Public Services (Chariman: S.S.Tarapore, former Deputy Governor, RBI).

The Tarapore Committee examined the RBI's procedures and performance under four different areas affecting individual customer transactions. These were foreign exchange, Government transactions, banking operations and currency management. The committee submitted its reports between January and April 2004.

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