Central Information Commission
Mr.Kishanlal Mittal vs Reserve Bank Of India on 9 February, 2012
CENTRAL INFORMATION COMMISSION
Club Building (Near Post Office)
Old JNU Campus, New Delhi - 110067
Tel: +91-11-26161796
Decision No. CIC/SG/A/2011/003606/17258
Appeal No. CIC/SG/A/2011/003606
Relevant Facts emerging from the Appeal
Appellant : Mr. Kishanlal Mittal,
1305 Dhruv,Ashok VarBonvaIi East,
Mumbai- 400066.
Respondent : Mr. G. Srinivas
PIO & General Manager Reserve Bank of India, Central Office Building, Foreign Exchange Department Shahid Bhagat Singh Marg, Fort, Mumbai-400 001 RTI application filed on : 24/08/2011, PIO replied : 09/09/2011, 12/09/2011, 15/09/2011, 23/09/2011 First appeal filed on : 16/09/2011, 19/09/2011, 20/09/2011, 28/09/2011 First Appellate Authority order : No reply Second Appeal received on : 15/12/2011 Information Sought:
a) Is RBI aware that certain agencies are charging transaction fees above the payable amount on credit card transactions? Has RBI allowed such transaction fees to be levied and if RBI has not allowed, kindly provide details of action taken on the same by RBI kindly provided copies of correspondences with file notings et al in the regards.
b) What is the time allowed for NEFT transactions by RBI? Is there any relaxation in timings by RBI over the normally allowed timings to banks? What are the instructions to bank for credit of NEFT transaction-i.e. whether banks can credit the NEFT transactions in a common pool account and transfer later to recipient party account? If such practice is not allowed, kindly provide details of action taken on bank on account of such mat practice? What is the transaction narration to be reflected in recipient's account advised to banks by RBI?
c) What is the time allowed for RTGS transactions by RBI? Is there any relaxation in timings by RBI over the normally allowed timings to banks? What are the instructions to bank for credit of RTGS transaction-i.e. whether banks can credit the RTGS transactions in a common pool account and transfer later to recipient party account? If such practice is not allowed, kindly provide details of action taken on bank on account of such mat practice? What is the transaction narration to be reflected in recipient's account advised to banks by RBI?
d) Has RBI allowed the payment systems offered on the links below:
http://www.icicibank.com/online-services/clicktopay/index rimer.html http://sbicard.com/services for you/paynet pay online 0 011850.html. Is 3 days lead time for payment to be credited in above payment systems approved by RBI?
e) Kindly provide details of transaction numbers AX1S111183007320, UT1BH11204029131 as to when they were cleared by RBI system and when they were credited to recipient account with exact time of initiation of transaction and exact time of credit in recipient account.
f) Kindly provide details of minutes of meeting of RBI Board for 2 years and minutes of meeting of committees of directors. Also kindly provide copies of all correspondences with file notings on sou moto disclosure mandated as directed by CIC in case of /SM/A/2010/000148.Page 1 of 5
g) Is RBI aware of ATM frauds? Kindly provide details ATM frauds reported to RBI and action taken to prevent them in future.
Reply of the Public Information Officer (PIO):
PIO's Reply vide..Dated-23/09/2011 Please refer to question (f) of your captioned application dated August 24, 2011 (seeking information under Right To Information Act, 2005) requesting us to provide you the following information:
i) Details of the minutes of the meetings of RBI Board for the last two years and minutes of the meetings of the Committees of Directors.
ii) Copies of all correspondence with file notings on suo moto disclosure as directed by the CIC in case No. CIC/SM/A/010/000148.
2. Having carefully examined your request for minutes of the RBI Board and its Committees for the last two years, we would like to state that the papers sought by you contain various information. As you have not identified the information required by you with reference to the subject matter, or otherwise, we regret our inability to comply with your request. In case you need any specific information contained in the said papers, it is open to you to make a fresh application for the information required by you. We request you to identify the information required with reference to the subject matter or otherwise, which would facilitate the supply of the information required.
3. We also advise our inability to furnish the papers you have asked for the last two years as they are voluminous, spread over several files and concern various departments of RBI. The task of screening and compiling them would be extremely laborious and time consuming. As this would disproportionately divert our resources, we are not under obligation to provide them by virtue of the provision contained under Section 7(9) of the RTI Act, 2005.
4. As regards file noting on disclosure mandated by CIC, the CPIO of RIA Division which is our nodal department for RTI matters will be sending a reply directly to you.
5. If you desire to prefer an appeal against this reply, the same may be preferred within 30 days of receipt of this letter to Shri VS. Das, Appellate Authority and Executive Director, Reserve Bank of India, Central Office Building, Shahid Bhagat Singh Marg, Mumbai -- 400 001.
september5, 2011- PIO's Reply:
Query Reply Is RBI aware that certain agencies We do not have specific information to furnish in this regard since freedom has are charging transaction fees above been given to Scheduled Commercial Banks on all operational matters the payable amount on credit card pertaining to banking transactions. With effect from September,1999 banks transactions? Has RBI allowed such have been given freedom to fix service charges for various types of services
transaction fees to be levied and if rendered by them. While fixing service charges, banks should ensure that the RBI has not allowed, kindly provide charges are reasonable and not out of line with the average cost of providing details of action taken on the same these services.
by RBI. Kindly provide copies of correspondences with file notings et Further, based on the recommendations of the Working Group to formulate a a! in this regard. scheme for ensuring reasonableness of bank charges, RBI has issued a circular DBOD. No. Dir. BC.56/13.03.00/2006-07 dated February 2, 2007 advising scheduled commercial banks to identify basic banking services on the basis of broad parameters indicated by the Working Group and the principles to be adopted I followed by banks for ensuring reasonableness in fixing and communicating service charges for the basic banking services. Similarly, in terms of paragraph 3 of our Master Circular DBOD No .FSD.BC. 14/24.01.011 dated July 01, 2011 on Credit Card Operations it has been stipulated that
(i) The banks/ NBFCs should not levy any charge that was not explicitly indicated to the credit card holder at the time of issue of the card and without getting his / her consent. However, this would not be applicable to charges like service taxes, etc. which may subsequently be levied by the Government or any other statutory authority.
Page 2 of 5(ii) Changes in charges (other than interest) may be made only with prospective effect giving notice of at least one month. If a credit card holder desires to surrender his credit card on account of any change in credit card charges to his disadvantage, he may be permitted to do so without the bank levying any extra charge for such closure. Any request for a closure of a credit card. has to be honoured immediately by the credit card issuer, subject to full settlement of dues by the cardholder.
Further. while issuing cards, the terms and conditions for issue and usage of a credit card should be mentioned in clear and simple language (preferably in English, Hindi and the local language) comprehensible to a card user. The Most Important Terms and Conditions (MITCs) termed as standard set of conditions, should be highlighted and advertised I sent separately to the prospective customer I customers at all the stages i.e. during marketing, at the time of application, at the acceptance stage (welcome kit) and in important subsequent communications.
Kindly provide copies of all The information is exempted from disclosure of such information under clause correspondence, representations, (a) and clause (e) of subsection (1) of section-8 of the right to information act, concepts papers,. minutes of the 2005.
meeting etc. With, file noting on the issue of new bank licences to corporate by RBI.
PIO's reply dated: September 12, 2011
b). What is the time allowed for NEFT transactions by As per our circular dated February 05, 2010, for NEFT RBI? Is there any relaxation in timings by RBI over the there would be eleven hourly settlements starting from 9 normally allowed timings to banks? What are the a.m. to 7 p.m. on all week days and five hourly instructions to bank for credit of NEFT transaction-i.e. settlements from 9 am. to 1 p.m. on Saturdays. The B+2 whether banks can credit the NEFT transactions in a (Batch + 2 hrs.) return discipline would require banks to common pool account and transfer later to recipient party afford credit to beneficiary accounts immediately upon account? If such practice is not allowed kindly provide completion of a batch or else return the transactions details of action taken on bank on account of such mal-
within two hours of completion of the batch settlement. practice? What is the transaction narration to be reflected
2. There is no relaxation in timings over the normally in recipient's account advised to banks by RBI? allowed timings to banks i.e. B+2, except in case of some technical problem in the system.
3. No instructions have been issued by RBI in regard to crediting the NEFT transactions in a common pool account by the banks and transfer later to recipient party account.
4. According to our circular dated October 08, 2010, originating/remitting/sending customer name is to be captured and printed in the pass book/account statement for NEFT transaction. The circulars are available on RBI website under webpage of Payment and Settlement System.
C) What is the time allowed for RTGS transactions The time allowed by RBI for RTGS transactions is as by RBI? under (at RBI Central System):
Days Customer Inter-bank
Transactions Transactions
Monday-- 9:00 hours to 9:00 hours to
Friday 16:30 hours 18:00 hours
Saturday 9:00 hours to 9:00 hours to
13:30 hours 15:00 hours
RBI has advised all banks to provide customer window
Is there any relaxation in timings by RBI over the commisurating with RBI business sessions. This time Page 3 of 5 normally allowed timings to banks? window may differ from bank to bank for their customers What are the instructions to bank for credit of RTGS In general, the business window stated above is followed. transaction i.e. whether banks can credit the RTGS However, the business sessions are sometimes extended, transactions in a common pool account and transfer later if required. to recipient party account? RBI has not prescribed any procedure on crediting the If such practice is not allowed, kindly provide details of recipient party account. It is bank's internal accounting action taken on bank on account of such mal practice? practice. What is the transaction narration to be reflected in Not applicable. recipient's account advised to banks by RBI? As per the RBI circular No. 426 dated April 8, 2009, banks have to provide the name of the remitter in the passbook / account statement of recipient.
d) Has RBI allowed the payment systems offered on the Both the links indicated above pertain to the mode links below: adopted by banks for enabling their customers to use the http://www.icicibank.com/onlineservices/cIicktopay/inde internet-banking module or the debit card module for x primer.html http://sbicard.com/services for you/payment repayment of credit card dues. Enabling this facility is a pay online 0 011850.html Is 3 days lead time for technology developed by banks. While RBI has permitted payments to be credited in above payment systems the card to card transfer from a debit card for repayment approved by RBI? of credit card dues, the technology adopted by banks is not mandated by RBI.
The three days lead time is also a decision taken by the banks, card companies and the card network operators. RBI has not stipulated any lead time for the same.
e) Kindly provide details of transaction numbers The information is not being provided under section 8(1) AX1S11183007320,UT1BH11204029131 as to when (e) of the Right to they were cleared by RBI system and when they were Information Act2005. credited to recipient's account with exact time of initiation of transaction and exact time of credit in recipient's account.
h) Is RBI aware of ATM frauds. Kindly provide details The frauds are not directly reported to this department. ATM frauds reported to RBI and action taken to prevent However, to ensure protection to customers against ATM them in future. frauds, this department has issued following guidelines(copies enclosed):
1. Circular RBI/2009- 1 0/DPSS.CO.No. 882/02.23.02/2009-10 dated October 18, 2010 on Transactions at ATM wherein pin validation has been mandated for every transaction, including balance inquiry facilitated through ATMs.
2. Circular RBI/2010-11/449 DPSS. CO.
PD2224/02.14.003/2010-2011 dated March 29,2011 wherein online alerts to the cardholder for usage of credit/debit cards has been mandated for all types of transactions irrespective of the amount involved and the channel used.
Reply Dated 09/09/2011:
Is RBI aware of ATM Frauds, Details of ATM frauds reported by banks to RBI from year 2008-09 to June 2011 are kindly provide details of ATM as per annex.
frauds reported to RBI and RBI has issued instructions to banks regarding security of ATM and as disclosing the action taken to prevent them in same would compromise their security they are exempt from disclosure in terms of future section 8(1) (d) of RTI Act 2005.
Grounds for the First Appeal:
(a) Direct the CPIO to provide all the information requested free of cost. The appellate authority should also be suitably censured'.
(b) Take action on the CPIO u/s 20(1) and 20(2) for the delay and creating willful impediment & malafide intent to deny access of information'.
(c) Also provide for compensation of Rs. 50,000!- for loss and detriment suffered as per section 19(8)(b)'.
(d) The appellant is a senior citizen and hence this appeal may be heard on priority'.Page 4 of 5
Order of the First Appellate Authority (FAA):
No FAA order mentioned.
Grounds for the Second Appeal:
Incomplete and unsatisfactory information provided by the PIO and no reply given by FAA.
Relevant Facts emerging during Hearing:
The following were present Appellant: Mr. Girish Mittal on behalf of Mr. Kishanlal Mittal on video conference from NIC-Mumbai studio;
Respondent: Ms. Jonaki Sain, Dy. Legal Advisor and Mr. G. Srinivas, PIO & General Manager on video conference from RBI-Studio;
The IO has provided certain information and the Commission is reframing some queries with the help of the appellant as below:
1- Query(b): Whether RBI has taken any action if B+2 is not followed for NEFT transactions. 2- Query(e): The PIO states that information can be provided if the Appellant furnishes the date of the transactions and whether it was NEFT or RTGS and specify that this relates to his personal account. The Appellant will send this information to the PIO at email [email protected] by today evening.
3- Query(f): The PIO will provide the minutes of the board meetings of the RTI for the last two years on a CD to the appellant. If any of the details are exempt under Section 8(1) of the RTI Act they may be severed as per the provisions of Section 10 of the RTI Act. The Commission also directs RBI to disclose minutes of its meetings on it website as per the requirements of Section-4 of the RTI Act. RBI may severe any information that is exempt as per the provisions under Section 10 of the RTI Act. The RBI will display minutes of its board meetings by 01 April 2012 of all board meetings held thereafter.
Decision:
The Appeal is allowed.
The PIO is directed to provide the information on the points listed above to the Appellant before 10 March 2012.
The PIO is also directed to ensure that minutes of the board meetings as directed above are displayed on the website before 01 April 2012. The PIO will send a compliance report to the Commission before 05 April 2012 on [email protected]. 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 09 February 2012 (In any correspondence on this decision, mention the complete decision number.)(SH) Page 5 of 5