Fd interest

first of all. fd is auto renewed for the same period which was booked originally,

if you dont provide PAN, then they can tds at 20%, not otherwise

after giving PAN and if your interest amt exceeds, 10000/= per year. then only they can deduct tds,

Rahul Sir,
Thanks for answering about TDS Query.

1. Bank have not Done Auto Renewal.
2.They are Dening for giving me even saving rate interest for 2008-12 period.

But BOB, IDBI, HDFC Banks are helpful in this matter.
These banks  told me that they do auto renewal or provide S/B interest but UCO Bank is not listening these issues..

How can i confirm about auto renewal of my old FD?
Can i claim S/B interest if i dont renewal FD?
 I tried a lots to talk UCO Bank Kolkatta HO and Customer Care but no answering as Busy tone.

Please advise me if i have any right or not?
and if i have then what steps i shold take now.

Approach Banking Ombudsman in your state for appropriate reliefs

Aravinthan Sir,
I called Jaipur H.O. they suggested me First talk with Branch Manager and second  take note this in writing.
Then i can Go for Lokpal.
Thanks for your Suggestion Sir
 

Dear Nishant

1) FD is auto-renewed if you opt for this option, not unilaterally by the Bank.

2) There is no RBI instruction on such FDs which have matured but have not been paid back to the customer. RBI has only asked Banks to have policies on their own provided that they do not discriminate between customers.

3) UCO Bank must have a policy of paying savings bank a/c (SB) rate for such unclaimed deposits. So UCO is correct in applying SB rate to the FD for 2008-2012.

4) Regarding TDS, pls note that TDS is applicable on the interest amount on FD, regardless of the rate of interest. So, though interest has been applied at SB rate, since the interest income is on a FD a/c, TDS shall definitely be applicable as per TDS rules.

5) You can claim interest on the overdue FD (at whatever applicable rate as UCO Bank policies) only if you renew the FD, not otherwise. But pls check with UCO on this.

I think UCO Bank is correct is all respects, except for misbehaviour. In the future, pls make sure that whenever you make FDs at any bank, opt for auto renewal mode to avoid such issues.

The action of the bank is granting only SB interest and also deducting TDS were wrong. Bank will not renew automatically when the FD is matured. But as per banking practice, if the depositor renewed the deposit for a period, more than the duration after the date of maturity, the bank has to pay interest applicable to the period from the date of previous maturity, for the bidated period, at the rate applicable for such period. In the instant case, cause to issue a legal notice to the bank through an expert local advocate requesting to make payment of interest for FD for the bidated period and also to refund the TDS deducted if any.

I am afraid Raju O.F.is wrong.

This is what RBI says (see https://www.rbi.org.in/commonman/English/scriptts/Notification.aspx?Id=82): In the case of overdue deposits where the overdue period exceeds 14 days and if the depositor places the entire amount of overdue deposit or a portion thereof as a fresh term deposit, the bank may fix its own interest rates for the overdue period on the amount so placed as a fresh deposit".

This is what UCO Bank says (see https://www.ucobank.com/fixed_deposit.htm):

20. If the customer neither obtains payment nor renews the Fixed Deposit although the term is over, it is called an overdue Fixed Deposit. Payment/renewal of overdue Fixed Deposit is governed by following rules.Renewal is carried out at the rate of interest prevailing on the date of maturity provided overdue period does not exceed 14 days from the date of maturity.Where overdue period exceeds 14 days, interest would be paid provided the depositor renews the deposit for a further minimum period for which the deposit is lying overdue. If not renewed for a time equal to or more than overdue period, interest rate applicable to Savings Bank deposit is payable on the deposit.The interest for the overdue period will be paid at the rate prevailing on the date of maturity or on the date of carrying out renewal, whichever is less. This interest may be paid to the depositor or clubbed with the deposit for renewal.

This is what UCO Bank says (see https://www.ucobank.com/policy-on-bank-deposits.htm):

 When a term deposit is renewed on maturity, the deposit interest rate for the renewal  period specified by the depositor as applicable on the date of maturity would be applied. If request for renewal is received after the date of maturity, such overdue deposits will be renewed with effect from the date of maturity at interest rate applicable as on the due date, provided  such request is received within 14 days from the date of maturity. In respect of overdue deposits renewed after 14 days from the date of maturity, the term deposit shall be renewed from the date of request by the depositor and interest for the overdue period will be paid at the rates decided by the Bank from time to time.

 I stand by what I said.  

Has bank supplied any intimation to you seeking your instructions?

You may invoke the provisions specified by Indian Bank’s Association in clause K vide which banks have to seek instructions by sending intimation to customer.

However you should take some witnesses with you to the bank and force BM to look into the files and declare that no communication was sent. Banks have to be astute and perfect in record keeping, therefore can’t claim that copy of the letter was lying somewhere else and now we have find it and letter was sent by ordinary post {banks are known to do it}. It shall be appropriate to record {audio/visual. Mobile comes handy}. Customer can demand to be given bank manual in branch. CCTV footage can be demanded.

In a certain case customer went to bank with members of locality and community and placed phone call to RM of the Union Bank of India and all witnesses were effective hence RM had to send an official at once to the branch and the official made a note that certain documents are not in the bank as claimed by BM and hence matter became on record. Customer and witnesses signed on minutes on the post and obtained acknowledgement from BM and official sent by RM. Later they stated to RM that they shall invoke if RM does not reply to complaint and enclose report and findings by official sent by RM, and all members of the locality and community shall start pulling out of the bank in writing with a copy to Chairman of the bank and other authorities as deemed fit an they may approach media as well.

RM bowed and obliged and the customer obtained relief.

RBI has issued guidelines to approach a/c holders of unclaimed deposits.

Has bank approached you?

https://www.iba.org.in/model_depositpolicy.asp

Model Deposit Policy

One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking System. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives / advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time.

The document recognises the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposits accounts,

Account Opening and Operation of Deposit Accounts

K) The term deposit account holders at the time of placing their deposits can give instructions with regard to closure of deposit account or renewal of deposit for further period on the date of maturity. In absence of such mandate, the Bank will seek instructions from the depositor/s as to the disposal of the deposit by sending an intimation before 15 days of the maturity date of term deposit.

RENEWAL OF OVERDUE TERM DEPOSITS

i) When a term deposit is renewed on maturity, on renewed deposit interest rate for the period specified by the depositor as applicable on the date of maturity would be applied. If request for renewal is received after the date of maturity, such overdue deposits will be renewed with effect from the date of maturity at interest rate applicable as on the due date, provided such request is received within 14 days from the date of maturity. In respect of overdue deposits renewed after 14 days from the date of maturity, interest for the overdue period will be paid at the rates decided by the Bank from time to time. .

https://rbi.org.in/scriptts/NotificationUser.aspx?Id=7260&Mode=0

Please refer to paragraphs 102 and 103 of the Monetary Policy Statement for the year 2012-13, announced on April 17, 2012 proposing certain measures for strengthening the Regulatory Framework for Unclaimed Deposits.

1.          Despite the above instructions, banks have not been pro-active in tracing customers linked with unclaimed deposits/inoperative accounts.

2.          On a review, with a view to further strengthen the regulatory framework for inoperative accounts and unclaimed deposits, banks are advised to put in place a Board approved policy on classification of unclaimed deposits; grievance redressal mechanism for quick resolution of complaints; record keeping; and periodic review of such accounts.

https://rbi.org.in/scriptts/NotificationUser.aspx?Id=6994&Mode=0

Please refer to our Circular DBOD.No.Leg.BC.34/09.07.005/2008-09 dated August 22, 2008, wherein detailed instructions have been given to banks on dealing with unclaimed deposits / inoperative accounts.  They have been advised to find the whereabouts of the customers and their legal heirs.

2. Keeping in view public interest, it has been decided that banks should, in addition to the instructions contained in the above mentioned circular, play a more pro-active role in finding the whereabouts of the accountholders of unclaimed deposits/ inoperative accounts. 

4. Banks should complete action as above by June 30, 2012 and keep their websites updated at regular intervals.

Banks are under Code of Bank’s committement to customers.

“https://www.bcsbi.org.in/PrincipalCodes.html

ceo.bcsbi@rbi.org.in

 ; Website: www.bcsbi.org.in

https://www.bcsbi.org.in/PrincipalCodes_12Feb2011.html

https://rbi.org.in/scriptts/BS_ViewMasCirculardetails.aspx?id=6513#l46

5.8.7 Renewal of Overdue deposits

All aspects concerning renewal of overdue deposits may be decided by individual banks subject to their Board laying down a transparent policy in this regard and the customers being notified of the terms and conditions of renewal including interest rates, at the time of acceptance of deposit. The policy should be non-discretionary and non-discriminatory.

You have to find the loop holes and arrange evidence/witness.

"MUCH ADO ABOUT NOTHING".

It seems that Raju O.F and I are fighting with each other while Nishant Jain must have decided by now what to do.

Raju O.F.: Even if the bank is negligent in sending maturity/reminder letters/notices for overdue deposits, it does not mean that bank is liable to pay compound interest on the overdue tenure. The two things are different. Mr Nishant Jain is also to be blamed since he woke up after 4 years. I think Mr Jain can ask for compensation. if he is able to prove that the bank is negligent, and he has suffered losses due to the bank's negligence. But in no way he can ask for compounded interest.

@ Nishant Jain

It has been pointed out by a senior banker in PNB that even if the customer does not instruct for rollover all FD's as per provision in software are created with rollover option. This is in compliance to RBI  instructions on unclaimed deposits.

The senior banker has also pointed out that this is being done for the last 4 years or so in all branches which are transacting  their business on line e.g. CBS branches.However we have not been able to get the circular issued by the bank as on date.If we get we shall update in the forum.

In the mean time you may approach senior bankers in Uco Bank Regional/Area office { not in the branch where you held FD} and generate information.

You may succeed in geting the soloution you have been looking for. Do not haste.

A smart lawyer may be in a position to get you relief.You may check with lawyer specialising in consumer cases.

When a query is seen, I need not read what other experts had earlier replied on the subject. Hence when I replied for the query, I did not read (even now) what Mr.Prasun Chandra Das  had answered. But I was surprised to note that Mr.Prusun stated I am fighting with him. I do not wish to fight with any body.

In the instant case, whatever be the practice presently adopted by UCO Bank, they had to clarify the same before renewal of the overdue deposit.

Mr Raju -- I wrote that we were fighting only in jest. Pls don't take it seriously.

We may have difference of opinion but if we are really true proffessionals, I cannot beat you in Law and you cannot beat me in Banking. We can only give our opinions and the rest is upto the person who raised the query.

@ Nishant Jain

Try and obtain circulars from your bank on Overdue Deposits..

Previously banks used to issue FD in security form and each time FD was to be produced for payment/extension etc.

Now banks issue acknowledgmernt of payment, since last many years. Many of the banks have auto rollover from the day they started issuing acknowledgment of payment.

Probe and you may find the solution you have been looking for in your bank.

Update the developments in this thread as it shall help many of the fellow citizens, members, bank customers.

For the kind information of Mr.Prasun Chandra Das: I am an old (former) banker having more than 27 years experience in bank. However, I am ignorant many modern illegal practices now aedopted by banks. The most unfortunate thing is that the present bank officers think that whatever they do and pracitice in banks are the correct law/banking practice. Mostly customers do not respond or react ev en when new practices detrimental to their rights and privileges are curtailed by bank or other authorities. I do not suggest to react and quarrel with bank officials for every issues. I started my works in bank when there were no computers and even no calculator for additions; everything with ledgers manually. Present generation staff cannot imagine that atmosphere. But I love the old banking, since almost all customers of the branch were known to me and we respected and loved each other. Now, personally I hate to go to a bank for anything and instead approach an ATM. Bank staff also not happy to meet their customers or to listen to their problems. Customers must satisfy themselves with whatever service received from present bankers.