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Shut up and bounce
Updated On: 07 September, 2009 06:55 AM IST | | Prawesh Lama and Surender Sharma
ICICI Bank tried to make ECS transfers on days nationalised banks were shut on strike. At one branch of Canara Bank in Delhi, ECS of 126 customers failed. But ICICI Charged them Rs 221 each. Experts say customers were 'not at fault.'
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ICICI Bank tried to make ECS transfers on days nationalised banks were shut on strike. At one branch of Canara Bank in Delhi, ECS of 126 customers failed. But ICICI Charged them Rs 221 each. Experts say customers were 'not at fault.'
If you are an ICICI Bank customer and your monthly account statement shows a fine of Rs 221 charged for a 'bounced ECS transfer' made on August 6 or 7, chances are you will dismiss it as a petty issue.
But consider this.
On those two days, when all nationalised banks in the country were shut on strike, ICICI Bank reportedly processesed payment of monthly installments against loans on the bank through ECS (Electronic Clearance System). At one branch of the Canara Bank, which was participating in the strike and was therefore closed, ECS transfers of 126 customers 'failed.' ICICI charged each of them a fine of Rs 221 for the 'bounced' ECS. From this branch alone, ICICI collected around Rs 62,000.u00a0
Apart from this, they were charged three per cent premium charges as well. MiD DAY has the list of 126 customers of Canara Bank, Munirka, who had to pay the 'fine'.
The country has 30 nationalised and public sector banks approximately with around 40,000 branches across India. 
'Rules not followed'
Experts say the bank flouted guidelines set by the Reserve Bank of India (RBI) by forwarding ECS transfers of customers to banks that were not working on that day.
Explaining the rules, a senior official from the State Bank of India, wishing anonymity, said, "The Reserve Bank of India says that on days when banks are closed because of holidays, strikes and other similar instances, ECS transfers shouldn't be forwarded. In this particular case too, employees of nationalised banks had given prior notice to the government about the strike. So ICICI should not have processed the ECS with any of these banks. And if it was done, ICICI should not have charged customers for the bounced ECS."
Traumatised customers
The customers are crying foul. "Despite knowing that nationalised banks were on strike, the ICICI Bank lodged the ECS with Canara Bank on August 6. I had Rs 81,000 in my Canara Bank account on that day from which the ECS had to be cleared. How did the ECS in favour of my account bounce? I have taken loans for three vehicles from ICICI and had to pay around Rs 900 for a mistake I did not commit. I have a report from the Canara Bank that says 126 people faced a similar problem. I wonder how many people all over the country, who are paying loan EMIs to ICICI through ECS, had to pay extra charges?" said Sunil Kumar, a placement service owner from Delhi.
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Traumatised: Sunil Kumar, a customer who was fined by ICICI pic/Imtiyaz Khan Read Next Story Trending StoriesLatest Photos |
