Banking regulations for housing cooperative societies

This query is : Resolved 
 

(Querist)
01 April 2020

Learned Experts

Banks do not accept online/neft transactions for housing cooperative societies. It is always and at this hour of crisis difficult to operate bank accounts and make payments by cheques or cash. Appreciate guidance as per banking regulation RBI with any notifications to faciliate









Raj Kumar Makkad (Expert)
01 April 2020

Which bank branch is refusing to do such transaction?

Rajendra K Goyal (Expert)
01 April 2020

NEFT is possible between two branches of Banks if:
i) Both are NEFT enabled.
ii) IFSC code for both are available.

Please confirm whether both conditioned are fulfilled in the said cooperative Bank.

Rajendra K Goyal (Expert)
01 April 2020

As of November 30, 2019, NEFT facilities were available at 1,48,477 branches/offices of 216 Banks across the country.
For being part of the NEFT funds transfer network, a bank branch has to be NEFT- enabled. The list of bank-wise branches which are participating in NEFT is provided in the website of Reserve Bank of India at http://www.rbi.org.in/scripts/neft.aspx

Rajendra K Goyal (Expert)
01 April 2020

IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system.

This is an 11 digit code with the first 4 alpha characters representing the bank, and the last 6 characters representing the branch. The 5th character is 0 (zero). IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.

Raj Kumar Makkad (Expert)
01 April 2020

@Expert Rajender Kumar Goyal ji! Despite of reading your lengthy replies giving additional knowledge of IFSC, NEFT etc. of the simple question, what is your final advice to the author?

I am also interested to know the wise reply from your side as some known persons of mine are also facing the similar problem. It would have been better to touch the query instead of diverting the issue to technical side.

Rajendra K Goyal (Expert)
01 April 2020

Sir,
The author should confirm from its Bankr regarding NEFT facility. If not having Bank can start the facility through RBI permission.

Most probably IFSC code issued to the cooperative Bank, if not Bank should proceed to obtain.

Only after this facility can be availed.

In Haryana, Haryana State Cooperative Bank is providing the facility.

Raj Kumar Makkad (Expert)
01 April 2020

Query is banks do not accept. Banks doesn't mean Cooperative bank rather the author wants to convey that the transaction is though on the part of cooperative housing society but the same is with the bank (generally it can safely be derived as National Banks). All Nationalized banks have facility of NEFT so question of obtaining permission do not arise.

Rajendra K Goyal (Expert)
02 April 2020

Cooperative society should proceed to obtain internet Banking facility from his Banker. In some states, accounts of societies are maintained at cooperative Banks, hence primarily the cooperative Banks should approach RBI for starting NEFT facility.

Hemant Agarwal (Expert)
02 April 2020

1. Pass a General Body unanimous resolution, to permit the duly elected MC of CHS, to allow to use facilities of NEFT /RTGS /IMPS.

2. Consequent to above, pass a separate MC unanimous resolution, delegating authority to Treasurer /Secretary to conduct NEFT /RTGS /IMPS transactions (say upto certain limited upper limit amounts, for security against nefarious & swindler MC's).

3. Provide "extract of above resolutions" to the Society's Bankers, file in the separate relevant authority forms and proceed after obtaining authentication details. The Banks CANNOT refuse NEFT /RTGS /IMPS transactions to CHS, under any guise /restrictions etc....

4. For any type of above violation by Bank, Appropriate complaint can be made to RBI, for directions & penalty to Bank.

5. ALL types of Banks in India (including Coop. Banks), have to mandatorily provide NEFT /RTGS /IMPS, to "ALL" types of customers, without any exceptions, whatsoever. Scores of CHS in Mumbai, are already availing such facilities, unhindered.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

P. Venu (Expert)
02 April 2020

It impossible, by logic or or reason, that the Cooperative Societies. are discriminated in this manner. It needs to be ascertained whether this is because of misunderstanding or a wrong practice or because of specific norm laid down by the said Bank or the general norm followed by all the Banks.

Perhaps, the queriest can try to transfer some funds through NEFT/RTGS transfer and seek the reasons, if the requisition is rejected.

Raj Kumar Makkad (Expert)
02 April 2020

I do endorse the advice of P. Venu. Let the society talk to higher officials of the concerned banks making discrimination with it.

T. Kalaiselvan, Advocate (Expert)
02 April 2020

I too endorse the views expressed by learned Sri Venu Sir in this connection.
The author has many options, he should not be struck for being denied with the mentioned facility, he can rectify the issue later on, but for now he may solve the problem by alternate option owing the crisis all over the globe.

Dr J C Vashista (Expert)
03 April 2020

Whether the Cooperative Society has raised this issue with their Banker ? If so, what is their (Bank's) plea for refusing to accept NEFT / IFSC transfer of amount by their members/ debtors ?
Such an action on the part of Bank is invalid, arbitrary and liable to be challenged before its higher authorities, followed by RBI and Banking Ombudsman (if required).



You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now











×

  LAWyersclubindia Menu

CrPC MASTERCLASS     |    x