Post Dated Cheques

Citi bank does not refuse to accept post dated cheques and always present the same in time and collects the payment.

Bank is seeking their convenience and making a nonsense statement that "it is difficult for them to segregate the Post dated cheques and hence will not accept." If an organization like Bank can not organize the instrument like cheques and present in a responsible manner then they also can not expect secretarial assistance from the customer.

They must be refusing to issue acknowledgment of the cheque and probably that is why you are dropping it in drop box. HDFC bank accepts credit card payment by cheques on the same pay in slip meant for cash/cheque/DD deposit in bank accounts and issues acknowledgment. You may obtain a copy of the same from HDFC bank. If the bank has presented cheque before date and cheque bounced then you are well within your rights to ask them supply you the instrument and bank memo and that you shall pay cash or DD on its receipt and  they should communicate to you in writing on their letterhead under original seal and signature. if they refuse you can even ask to submit to you indemnity bond that they shall never present the cheque again for payment and shall return it you after the payment is deposited by you.

The earnings of the bank from credit card business is probably highest compared to any other business e.g. bank earns @2.5% fro the vendor where the card is swiped, if the cheque has bounced bank charges @3.5-3.75%%/per month + late payment charge+ finance charge and then there is a threat to declare the customer defaulter.

The customers usually either does not act or do not properly and then repent later.

Whatever they may write on their website you are within your rights to ask them to inform each and everything to you on paper in writing by registered post and seek your consent.

Express yourself strongly by letter under proper acknowledgment, properly to Branch manager/Nodal Officer of the bank with a copy to RBI and take further action based on their reply. If you are regular in making your payments you are good for any bank and should be in demand, then why to stick to a bank whose services also found below satisfactory by you. Inflict shame and penalty on them before you separate.

dear subramaniam - being a banker, i know for a fact that segregating current dated chqs and post dated chqs is a real pain. i appreciate that you pay the dues in full and before the due date (i do so too). let me explain the issue this way: when you drop the chq favouring hsbc credit card no xxxx, you are actually asking hsbc credit card dept to collect the money from your bank a/c. hsbc card dept shall present the chq to your banker (hsbc again) but your banker shall bounce the chq because the chq is post dated. i think banking wise hsbc card dept is not obliged to check the dates. i think you are taking the issue too seriously. pls set up a standing instruction with the card dept so that the amount due is debited from your savings a/c on the due date. you can also pay by internet banking/atm easily.  

Taking a cue from various posts and publications CC customer may avoid keeping saving bank a/c with the same bank which has issued CC. There are issues attached with ATM/internet banking. In case of an issue either the reoloution is not provided or gets delayed beyond tolerable limits.

Does this bank decline to accept Post dated DD i.e DD supplied before due date of payment?

Let the bank state in writing post dated cheques can be rejected in line with some existing rules, RBI guidelines.

Citibank accepts post dated cheques even as on date, issues acknowledgment( there is separate pay in slip for CC payment) and banks the cheque without any error.

HSBC must be accepting loan a/c payments e.g. EMI, by post dated cheques and must be collecting PDC while processing loan. How do they segrregate PDC in case of loan? The bank treat both loan and CC amount as debt.....

CC companies declare on thier websites,promotional literature, thru their staff that CC customer enjoy credit period upto......days from date of bill and thus customer would like to enjoy this period.

Now HDFC bank asks CC customers to drop the cheque in drop box and has stopped issuing acknowledgment. Banks are running away from ownership and liability although banks can not decline to issue acknowledment.

Do bank produce/submit record easily in the court(s) of law although they are custodian of record?

https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=508

Methods of Making Payments

FAQs

4. What are the ways in which a customer can make payments through banks?

Customer can make payments by issuing paper based instruments like cheques, demand drafts, payment orders etc or by advising bank to debit his account and originate an electronic payment eg. ECS, NEFT/EFT, RTGS, etc.

Many establishments issue PDC for making thier payments e.g. Life Insurance Ventures of banks.

29. How does RBI regulate payment systems?

The Board for regulation and supervision of Payment and Settlement Systems (BPSS) is a sub-committee of the Central Board of the RBI and is the highest policy making body on payment system. The Board as well as the council are assisted by a recently created department the Department of Payment and settlement Systems (DPSS). The Board has been entrusted with the responsibility to authorise, prescribe policies and set standards for all existing and future payment systems in the country. The Board also has the powers to determine membership criteria to these systems and related policies.

https://www.creditconsumersassociation.org

has given some meaningful petitions to RBI. It is understood that as in many other publications RBI is silent.

Dear Kumar Doab.. i have not questioned the legality involved in accepting PDCs issued for payment of CC dues. As a banker I have said what I feel the practical problem for the Banker is. I am sure you know that a lot of 'Practice' goes on in Banking, which is not law, but tantamounts to law (for example, the validity period of chq is not under any law -- it is a practice and as per concurrence by RBI). I have been a CC user since 2002 and have been paying by ATM and Internet Banking, without any problem, ever. Suing the Bank for an issue as trivial as non-acceptance of PDCs is a waste of time, money and effort.

Dear Prasun Chandra Das, Your post(s) in forum has provided valuable advice and information and has enriched the forum. LCI forum is interactive in nature and promotes discussion. Kindly continue to be benefit the  from with your posts.The opinions expressed are not authoritative and commanding. Whatever was available has been shared. The discussions in the forum can at times be generic and be aimed to equip the querist and contributors/visitors/readers to protect from hazards of dealing with various establishments. It is felt and realized that one should acquire the knowledge of process, trends, precedence, practices and exercise caution beforehand to defend oneself from unnecessary harassment and wastage of time and funds. There are legal traps in almost all establishments and almost all establishments conceal vital information on law/rules etc.

We have come across many of the good banks and bankers and still maintain the rapport we were able to strike during our professional transactions. Strikingly it was noticed that Manager(s)-operations of Axis bank are properly informed and well equipped and state with confidence that whatever is stated verbally by them can be given in writing ( It may not be true for all of them Pan India). However credit goes to trainer (Establishment) and learner (Manager(s)-operations).

In one instance, HSBC Bank coerced /forced/pressurized customer to pay Rs.100/ just for submitting a PDC. Such conduct of the bank/banker is deplorable/ punishable. This policy of the bank is not published in any of the domains of the bank. It is understood from another publication that this bank accepts PDC for CC payments for their Gold card. So why has this bank penalized you? May be that you do not own Gold card but some other CC of the bank. You may acquire the MITC/printed version T&C of Gold card and thrash the bank and drill sense.

www.hsbc.co.in/1/PA_1.../content/website/pdf/gold_terms.pdf
"Deposit cash or cheque for credit to your credit card account ..... Deposit any post-dated cheques while settling your Gold Credit Card dues."

This is perturbing.

This bank and almost all other banks publish on their websites, promotional campaigns and prompt the citizens/customers to avail their CC and save time by choosing the multiple options of payment including dropping the cheque in the drop boxes located at various locations. In today’s business scenario if one has to be present in the bank on due date then one may be in the banks on many working days in  a month. While the banks shall depute its staff to pick up forms from a new customer free of cost from any location why the bank can not pick up cheque 2-3 days before due date, without any cost. Try and reason with bank. Banks pick up cheques including PDC for their life insurance ventures from any location without any cost. Such is the pressure for keeping the business in force. You can try it. You can quote that Bank collects the cheque on date, time, venue, appointed by customer (cite reference) then why not from location (say O/o your lawyer against receipt on a set date, time). You may be surprised that for picking up the cheque in case of CC bill payment bank may charge you say Rs.300/

It has been seen that almost all the establishments dealing in CC have altogether different standards for their CC venture, reason being unprecedented, sky high, charges/penalties/interests.   Who shall not tempted to earn sky high rates of penalty, late fees, interest rate, and finance charges?? If you closely examine RBI has instructed that CC bill must reach CC customer 15 days in advance from due date. At times the seal on the national Bill mail service containing bill (banks place it in their premises as per their arrangement with PO) is of even a few days before due date or 20 days before due date but it reaches customer after due date.  How can it be possible as if you post an envelope by ordinary mail from say Chennai to Shimla it may reach in 4 days? Conclusion is across the globe/Pan India, the moment regulator/govt. announces its intent to issue a guideline for the benefit of customer CC companies are busy in finding a way out to circumvent the  process of law, and defy guidelines/rules.

Therefore why should a customer as well not adopt strict, uncompromising, unbending approach? It is imperative that citizen/customer must know the rights. Once a customer succeeds in getting proper service from bank and show them that bank was wrong and customer is aware, bank shall be extra careful, and willing to serve without tantrums.

Succeed with BM of your host branch. You shall remain comfortable. Citizen/customer face hiccups for the first time , later it is  smooth.

At the same time it does not mean that citizen/customer should lower their guard.

RBI has published and courts and declared that banks can not exercise lien on FD's. While the banks/bankers still step on the toes of citizens/customers by inflicting lien on FD. It is seen as happening in case CC issues. Later if the customer arranges to issue legal notice some banks vacate the lien and some banks/bankers till dump the customer in courts. Banks still declare this practice tantamount to law. While it does not.

Many of the ill informed citizens/customers suffer at times due to cold/insensitive/half hearted/coercive approach and conduct of the establishments.

RBI has issued guidelines and accordingly banks have prepared and posted their compensation policy on their websites.

You may first lodge written complaint with BM of the bank under proper acknowledgment and demand to supply reply by redg/speed post only say within next 7 days, and then escalate to RM/CGM/AGM etc or even Nodal officer/Chairman of the bank. If the BM and bank fails to supply reply and award compensation you have the option of approaching BO (if it accepts such complaint), DCDRF, and Civil Court etc.

Dear Kumar Doab, thank you for your kind words. While I agree with you that many a time it requires a legal notice/case in consumer court to shake things up at the Banks, but my suggestion to Subramaniam was made with the practicality involved in mind. He indeed has the option to make payments by ATM/Internet banking (I assume HSBC provides these options). He can easily avoid court cases by switching to a different payment option. ICICI Bank internet banking also allows to schedule a payment, which means that one can, on (say) 1st of a month, schedule a payment to be made on 12th of the month. It is just like a PDC isn't it? Maybe HSBC, being a world renowned Bank, offers the same facility in their internet banking.