Central Information Commission
Miss. M K Sharma vs Reserve Bank Of India on 4 October, 2011
CENTRAL INFORMATION COMMISSION
Club Building, Old JNU Campus,
Opposite Ber Sarai, New Delhi -110067
Tel: + 91 11 26161796
Decision No. CIC/SM/A/2011/001218/SG/15034
Appeal No. CIC/SM/A/2011/001218/SG
Relevant Facts emerging from the Appeal:
Appellant : Mr. M. K. Sharma
31-B, IST Floor, RSEB Colony,
Vaishali Nagar
Jaipur-302021
Respondent (1) : Mr. Deepak Singhal
CPIO & Chief General Manager Reserve Bank of India (RBI), Department of Banking Operations and Development, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai- 400001 (2) : Public Information Officer Reserve Bank of India Rambagh Circle, Jaipur RTI application filed on : 29/6/2010 PIO replied : 6/8/2010 and 12/8/2010 First Appeal filed on : 3/08/2010 Order of First Appellate Authority : 27/9/2010 Second Appeal received on : 13/4/2011 No. Information sought PIO's Reply
1. Names of the banks operating in Rajasthan which This part of the query will be replied directly by governed/controlled by norms our Department of Statistical Information and Does HDFC Bank falls in this list? Management. Can RBI exercise any supervision/control/regulate This part of the query will be replied directly by over HDFC Bank, if yes then to what extent? Does our Department of Statistical Information and HDFC Bank operations have to work compulsorily Management. under RBI guidelines and rules? Reserve Bank of India regulates HDFC Bank Ltd in terms of the provisions of Banking Regulation Act, 1949 and Reserve Bank of India Act, All banks have to adhere to the guidelines and rules framed by Reserve Bank of India. 1934.
2. A. What are the norms, rules and procedures set by In terms of extant guidelines issued by RBI, in RBI, the context of granting greater functional by which RBI may govern/exercise control over autonomy to banks, freedom has been given to HDFC Bank for levying service charges on its scheduled commercial banks including public account holders and depositors, while opening a sector banks, private sector banks and foreign new account. banks, on all operational matters pertaining to B. How does RBI approve them? banking transactions. With effect from Page 1 of 5 C. Is it a fact that HDFC Bank may levy any service September 1999 banks hare?riveWTeedoñEtThx charge at its own discretion and sweet will and also service charges or various types of Services with consent /approval of RBl? rendredTh5r1hEm[ While fixing service D. What process these banks have to follow for charges, ban1c should ensure that the charges deciding and levying service charges? ratify/ are reasonabl&aiid ndf out of line with thThVeiièThds1 of providing these services. - . -
Please refer to the comments against query no. 2 A. In terms of extant guidelines issued by RBI, in the context of granting greater functional autonomy to banks, freedom has been given to scheduled commercial banks on all operational matters pertaining to banking transactions. With effect from September, 1999 banks have been given freedom to fix service charges for various types of services rendered by them.
Further, in terms of paragraph 6.2 and Annex I of the Master Circular dated July 1, 2009 on Customer Service (extract enclosed), banks have been advised that they should make basic banking services available at reasonable prices I charges to customers.
While fixing service charges, banks should ensure that the charges are reasonable and not out of line with the average cost of providing these services. Banks are also required to ensure that customers are made aware of the service charges upfront and changes in the service charges are implemented only with prior notice to customers. The actual charges levied by banks for various service charges are determined by banks themselves as per their Board approved policies.
In terms of paragraph 8.4 of the above Master Circular dated July 1, 2009 on Customer Service, banks have been advised to display on their web sites, as per a prescribed format, information relating to interest rates and service charges which would enable the customer to obtain the desired information at a quick glance. The above Master Circular is available on RBI's web site www.rbi.orq.in.
3. What are the norms, rules and procedures set by Please refer to the comments against query no. 2 RBI, by which any bank and in particular HDFC C, D above. Bank may later amend any charges levied on its Banks are required to take steps to ensure that existing account holders and depositors? customers are made aware of the service charges upfront and changes in the service charges are implemented only with prior notice to the customers. Any changes in the charges should be carried out only with prior notification to the customers of at least 30 days. (Annexure 4(b) to the circular No DBOD DIR BC 56/13.03.00/2006-07 dated February 2,2007) (copy enclosed)
4. Is there any transparency clause (please give Please refer to the comments against query citations) to be followed by banks while deciding no. 2 C, 0 above. service charges amendment?
Page 2 of 55. Does this transparency clause only limited to What is being sought by the applicant is an announcing or dictating charges unilaterally opinion to be formulated by us which is not decided by bank to customers arbitrarily? Or does 'information' as defined under RTI Act, 2005. this means communicating transparently/openly to affected parties that what is the basis/factors/context responsible for amending the charges?
6. Which are the policy matters decisions, The query is vague and not very clear. The amendments of policies that are mandatory for Reserve Bank of India has been empowered HDFC bank, to seek prior under the Banking Regulation Act, 1949 and approval/sanction/ratification from RBI before Reserve Bank of India Act 1934 to issue implementing it? directives/instructions to banks in the light of extant regulatory framework and regulate them in the interest of banking system and depositors / public.
7. On how many occasions in last 5 years HDFC bank Please refer to the comments against query no. 2 has sought approval concurrence, ratification by C, D and 3 above, In view of this, we have no RBI for levying amending, revising service charges information to furnish. on its depositors/customers/account holder? Please give details, which I wish to inspect and request for copies.
8. On how many occasions in last 7 years HDFC bank No information to furnish.
has sought approval, concurrence ratification by RBI for quietly withdrawing free ATM and credit cards given to it's customers/depositors and changing it to debit cards on payment of charges decided by HDFC bank? Please give details which I wish to inspect and request for copies.
9. A. What is time limit as per RBI norms and Indian A. Though no specific time limit is set under the law under which Banking Ombudsman Office has BO Scheme 2006 for disposal of complaints, to acknowledge, call hearing etc. and finally complaints_are_generally acknowledged within disposing oft any complaint reed. by its office? 3 days, and disptsed off within a period of two- B. Is Banking Ombudsman Office (BOS) supposed three months, barring exceptions. to acknowledge the receipt of complaint/ grievance B. Generally complaints are acknowledged to complainant? within 3 days, although there is no such specific C. Is it the sweet will of BOS that he may avoid provision in the Scheme. settlement in both the parties by agreement at his C. The Banking Ombudsman is not a Judicial discretion in some complaints? authority. Parties are free to settle their disputes independent of the Banking Ombudsman. Any party aggrieved with the decision of the Banking Ombudsman could approach the Appellate Authority, in specific cases, and seek a review of the decision given by the Banking Ombudsman. Alternatively, the parties could still exercise the option of agitating the matter before a consumer court/ civil court etc., (Extract of clause 14 of the Banking Ombudsman scheme, 2006 enclosed)
10. 10. In case of any delay what are the duties and No. Please see reply to item 9A above.
responsibility of Banking Ombudsman Office? Is this office supposed to communicate to affected parties reasons of abnormal delay?
11. In last 3
11. 11. In last 3 years how many complaints recd. by 2007-08 2008-09 2009-10 Banking Ombudsman Office, Jaipur and how much 3369 3688 4560 average time generally this office takes for final Generally complaints are disposed off within 2-3 disposal of complaints? months. The information is not available in the Page 3 of 5 Also provide details of complaints recd in the above form it is sought. office in tabulation as under
12. Are there any safe guards available in any RBI All the complaints are entered in the Complaint norm so that these delays are avoided or taken Tracking System -- CTS - in all the 80 offices notice of? and CTS are updated on an ongoing basis. a. I mean is there any mechanism in and over a. Please see reply to item 12 above. Further, the Banking Ombudsman Office which timely disposal of cases is monitored by each Banking review such delays and take cognizance of Ombudsman with the help of his Secretariat. such delays? Which office/officers b. The information is available in the annual jurisdiction this falls in? Report on the Banking Ombudsman Scheme, b. Please furnish copies of any such reviews 2006 which has been placed in the RBI website done and action taken by RB) in last 3 www.rbi.org.in-*For Concerned Person-- years? >Complaiiits4Against Bank-) Banking c. Name any other competent body/ies that Ombudsman. The reports for 2007-08 and keep an eye on working efficiencies of 2Central Office of Reserve Bank of India Banking Ombudsman Office, Jaipur through the Customer Service Department, Mumbal.008-09 is available therein.
c. Central Office of Reserve Bank of India through the Customer Service Department, Mumbai.
13. A complaint was referred to Banking Ombudsman You may get in touch with the Secretary to the Office, Jaipur wide reference No. Banking Ombudsman and a date and time DEABD/E/2010/00126 by dept. of Administrative convenient to them may be fixed for inspecting Reforms & Public Grievances, Delhi. Please allow the documents. Copies of the required me to inspect this file. Please provide certified documents wilt are given to you after the copies of the file showing who all officers handled inspection, after paying the required fees. this complaint and what action (date wise) taken on it including all note sheets etc.
14. Please make me available file of Banking Copies enclosed.
Ombudsman, Jaipur Complaint No. 200910010004193 No. 200910010004261 from the First time it was taken up till final decision including all note sheets and all associated correspondence.
15. Please give details of full name, designation, office a) Shri C.Krishnan, Executive Director, Reserve address, landline, mobile numbers and e-mail ids of Bank of India, following: Customer Service Department. Central Office,
a) First appeal Officer designated in your office to 1st floor, prefer first appeal under section 19 of RTI Act Amar Building, Sir PM Road, Fort, Mumbai-
2005. 400 001
b) Banking Ombudsman and its Secretarial Staff, Office Phone: 022 -2261 1080
RBl, Jaipur. Email id ckrishnanrbi.org.in
c) Appellate authority where one can appeal over b) B.C. Shri P.Vijaykurnar 510773
awards/decisions of Banking Ombudsman Office, [email protected]
Jaipur Smt K. Sundari 5101331 bojaipurrbi.orgin.
c) Deputy Governor
Customer services Department
Reserve Bank of India
Central office building Shahid Bhagat Singh Road, Mumbai- 400001 Grounds for First Appeal :
No information has been provided by the PIO within the time period of 30 days.
Order of the First Appellate Authority :
The FAA upheld with the PIO's decision.
Page 4 of 5
Grounds for Second Appeal :
The Appellant received incomplete, insufficient information and that too after completion of 30 days. The Appellant received unsatisfactory, time barred and much delayed decision of FAA. Relevant Facts emerging during Hearing:
The following were present Appellant: Mr. M.K.Sharma on video conference from NIC-Jaipur Studio; Respondent : Mr. Abhilash, Assistant Legal Advisor on behalf of Mr. Deepak Singhal, CPIO & Chief General Manager on telephone from NIC-Mumbai Studio no. 022-26454740; The Appellant insist that what he is seeking is information. The Commission has looked at the queries and finds that most of the queries expect the PIO to interpret certain rules and regulations. The Appellant insist that what he is seeking is information. The respondent states that there is nothing on record which he can give to the Appellant further that what was provided to him earlier. However the PIO is directed to provide the specific information with respect to query 7 & 16.
With respect to query-11 & 13 the PIO will permit inspection of the relevant records to the Appellant at a time fixed by the Appellant with the Banking Ombudsman at Jaipur.
Decision:
The Appeal is disposed.
The PIO will provide the information with respect to query 7 & 16 as sought in the RTI application to the Appellant before 25 October 2011.
The PIO at the Banking Ombudsman is directed to facilitate an inspection of the records by the Appellant on a mutually fixed date. He will give attested copies of records which the Appellant wants free of cost upto 100 pages.
This decision is announced in open chamber.
Notice of this decision be given free of cost to the parties. Any information in compliance with this Order will be provided free of cost as per Section 7(6) of RTI Act.
Shailesh Gandhi Information Commissioner 04 October 2011 (In any correspondence on this decision, mention the complete decision number. (AM) Page 5 of 5