Domain trade brokerage and dispatch incentives
Estimates of the number of casualties vary from 47 to Vargas issued the order so the United States would not invade Colombia.
Secretary of State, dated December 5, , stated: Government now talks of general offensive against strikers as soon as all troopships now on the way arrive early next week. The Dispatch from U. Secretary of State, dated December 29, , stated: Secretary of State, dated January 16, , stated: The Banana massacre is said to be one of the main events that preceded the Bogotazo , the subsequent era of violence known as La Violencia , and the guerrillas who developed in the bipartisan National Front period, creating the ongoing armed conflict in Colombia.
Decades following the Honduran declaration of independence in from the Central American Federation, Honduras was in a state of economic and political strife due to constant conflict with neighboring countries for territorial expansion and control. The Agrarian Law would grant international, multinational companies leniency in tax regulations along with other financial incentives. Davila in , the Vaccaro brothers and Company, helped set the foundation on which the banana republic would struggle to balance and regulate the relationships between American capitalism and Honduran politics.
Samuel Zemurray, a small-sized American entrepreneur, rose to be another contender looking to invest in the Honduran agricultural trade. In , General Bonilla took no time in granting the second railroad concession to the newly incorporated Cuyamel Fruit Company owned by Zemurray.
The time frame for some of these exclusive land, railroad concessions would last up to 99 years. The 1st railroad concession leased the National railroad of Honduras to the Vaccaro Bros. Zemurray granted his concession to the Tela Railroad Company—another division within his own company. United Fruit Company currently Chiquita Brands International would partner with the President Bonilla in the exchange of access and control to Honduras' natural resources plus tax and financial incentives.
In return, President Bonilla would receive cooperation, protection, along with an substantial amount of U. The granting of land ownership in exchange for the railroad concession started the first official competitive market for bananas and giving birth to the banana republic. Cuyamel Fruit Company and the Vaccaro Bros. Bringing western modernization and industrialization to the welcoming Honduran nation. All the while Honduran bureaucrats would continue to take away the indigenous communal lands to trade for capital investment contracts as well as neglect the fair rights of Honduran laborers.
After the peak of the banana republic era, resistance eventually began to grown between small-scale producers and production laborers because the exponential rate in growth of the wealth gap and extreme collusion between the Honduran working and poor class versus the profiting Honduran government officials and the U. Due to the exclusivity of the land concessions and lack of official ownership documentation, Honduran producers and experienced laborers were left with two options to regain these lands— dominio util or dominio pleno.
Dominio util —meaning the land was intended to be developed for the greater good of the public with a possibility of being the granted "full private ownership" versus dominio pleno was the immediate granting of full private ownership with the right to sell.
Additionally, accusations were reported of the Tela Railroad Company placing intense requirements, demanding exclusivity in distribution, and unjustly denying crops produced by small-scale farmers because they were deemed "inadequate". Compromise was attempted between small-scale fruit producers and the multinationals enterprises, but were never reached and resulted in local resistance.
To get an understanding of the dramatic increase in amount of bananas being exported, firstly "in the Atlantida , the Vaccaro Brothers Standard Fruit oversaw the construction of kilometers of railroad between and While these communal services and amenities were offered to both American and Latin American laborers along with their families, they were not equally created, distributed, nor monitored. Americans living in these host countries received much more modernized and above the sub-standardized living conditions that were offered to the Hondurans for housing.
One way this could be observed would be how the Hondurans were given the communal, primitive, but functional means of sanitation for the disposal of human excrement in outhouses or the usage of a single outdoor faucet designated for a unit s.
United Fruit took the first step to control one major factor that could heavily influence the efficiency of each plantation—preventative medicine.
Healthcare, for some laborers and their families would be free of charge, while others would be deducted from their wages. However laborers would be need of these services with the increased exposure to toxic, deadly exposure of chemicals via pesticides, insecticides, fungicide applications, and even the cleaning solutions removal of residue from fungicide applications. Education played another important role within each settlement because it helped create windows of opportunity for children and laborers to expound in subjects and training that majority of host countries could not afford or offer.
While the education for adult laborers would be more vocational, there would be private efforts for education especially in literacy. Each nation varied in the requirements for the elementary schools such as the length of education offered would range from a minimum of 2 years and a max of 6 years. Samuel Zemurray employed agronomists, botanists, and horticulturists to aid in research studies for United Fruit in their time of crisis, as early as when the Panama disease first inhabited crops.
Funding specialized studies to treat Panama disease and supporting the publishing of such findings throughout the ss, Zemurray has consistently been an advocate for agricultural research and education. This was first observed when Zemurray funded the first research station of Lancetilla in Tela, Honduras in and led by Dr. Popenoe as the head agronomist.
There were certain requirements before a student could be accepted into the fully paid for 3-year program including additional expenses room and board, clothing, food, stc , a few being a male between the ages of , 6 years of elementary education, plus an additional 2 years of secondary. This was one way in which the United Fruit Company undertook to discharge its obligation of social responsibility in those countries in which it operates-and even to help others.
Epidemic diseases would cyclically strike the banana enterprise in the form of Panama disease, black sigatoka , and Moko Ralstonia solanacearum. Large investments of capital, resources, time, tactical practices, and extensive research would be necessary in search for a solution. The agriculture research facilities employed by United Fruit pioneered in the field of treatment with physical solutions such as Fusarium wilt "flood fallowing" and chemical creations such as the Bordeaux mixture spray.
These forms of treatment and control would be rigorously applied by laborers on a daily basis and for long periods of time so that they would be as effective as possible. Potentially toxic chemicals were constantly exposed to workers such as copper II sulfate in Bordeaux spray, 1,2-Dibromochloropropane in Nemagon the treatment for Moko, or the sigatoka control process that began a chemical spray followed by an acid wash of bananas post-harvesting.
The fungicidal treatments would cause workers to inhale fungicidal dust and come into direct skin contact with the chemicals without means of decontamination until the end of their workday. While the Panama disease was the first major challenging and aggressive epidemic, again United Fruit would be faced with an even more combative fungal disease, Black sigatoka, in In , El Prision Verde "The Green Prison" , written by Ramon Amaya Amador , a leading member of the Honduran communist Party, exposed the injustices of working and living conditions on banana plantations with the story of Martin Samayoa, a former Bordeaux spray applicator.
The Bordeaux spray in particular is a blue-green color and many sources referring to its usage usually bring to light the apparent identification of those susceptible to copper toxicity based on their appearance after working. For example, Pericos "parakeets" was the nickname given to spray workers in Puerto Rico because of the blue-green coloring left on their clothing after a full day of spraying. Little evidence was collected in the ss by neither the American nor Honduran officials to address these acute, chronic, and deadly affects and illnesses warranted from the chemical exposure such as tuberculosis, long-term respiratory problems, weight loss, infertility, cancer, and death.
Many laborers were discouraged to voice the pain caused from physical injustices that occurred from the chemicals penetrating their skin or by inhalation from fungicide fumes in long labor-intensive hours spraying the applications.
Without any specialized health care targeted to cure these unabating ailments and little to no compensation of workers who did become gravely ill. That is until the legalization of labor unionization and organized resistance. Labor resistance, although was most progressive in the s to the s, there has been a consistent presence of abrasiveness towards multinational enterprises such as United Fruit. General Bonilla's choice to approve the concessions without demanding the establishment of fair labor rights and market price, nor enforce a comprise between small-scale fruit producers and the conglomerate of U.
From to , the power and economic hegemony allotted to the American multinational corporations by host countries was designed to bring nations such as Honduras out of foreign debt and economic turmoil all the while decreasing the expenses of production, increasing the levels of efficiency and profit, and thriving in a tariff-free economic system. However, the growing demand for bananas surpassed the supply because of challenges such as invasive fruit diseases Panama, sigtaoka, and moko plus human illnesses from extreme working conditions chemical toxicity and transferable diseases.
Laborers, began to organize, protest, and expose the conditions in what they were suffering from at the location of their division. Small-scale fruit producers would also join the opposition to regain equality in the market economy and push for the redistribution of the taken communal lands sold to American multinational corporations. Referencing to the Honduran administrations from , Marcelo Bucheli interpreted their acts of collusion and stated "The dictators helped United Fruit's business by creating a system with little or no social reform, and in return United Fruit helped them remain in power".
Honduran laborers were demanding fair pay, economic rights, checked national authority, and eradication of imperialist capitalism. Under the administration of Galvez strides were taken to put into affect the negotiated improvements of workers rights. Honduran laborers gained the right for shorter work days, paid holidays, limited employee responsibility for injuries, the improvement of employment regulation over women and children, and the legalization of unionization.
In the summer of the strike ended, yet the demand for economic nationalism and social reform was just beginning to gain even more momentum going into the ss. With a view to minimizing instances of customer complaints, all participant banks both direct as well as sub-members , are advised to ensure adherence to extant instructions as under:.
Positive confirmation of credit to beneficiary account is invariably sent for all inward transactions received by the bank. In case of delayed credits or delayed returns, the penal interest as applicable is paid suo-moto to the customer. Even in the case of back-dating or value-dating such delayed transactions, banks should pay the penal interest for the delayed period. However, banks may place per transaction limits based on their own risk perception with the approval of its Board.
Both the drop box facility and the facility for acknowledgement of the cheques at regular collection counters should be available to the customers and no branch should refuse to give an acknowledgement if the customer tenders the cheques at the counters. Banks should ensure that customers are not compelled to drop the cheques in the drop-box. Further, in the context of customer awareness in this regard, banks should invariably display on the cheque drop-box itself that "Customers can also tender the cheques at the counter and obtain acknowledgment on the pay-in-slips".
The above message is required to be displayed in English, Hindi and the concerned regional language of the State. Due to the technological progress in payment and settlement systems and the qualitative changes in operational systems and processes that have been undertaken by a number of banks, it is observed that prescription of a single set of rules may not be appropriate.
Hence, efficiencies in collection of proceeds and providing funds to customers in time are best achieved through a spirit of competition among the banks rather than through issuance of guidelines by RBI. Banks have been advised to reframe their Cheque Collection Policies to include compensation payable for the delay in the collection of local cheques as well.
In case, no rate is specified in the CCP for delay in realisation of local cheques, compensation at savings bank interest rate should be paid for the corresponding period of delay. With a view to encouraging faster migration to CTS standard cheques, banks are advised that non CTS standard instruments will be cleared at less frequent intervals in the CTS clearing centres.
Banks may educate and notify their customers of the likely delay in realisation of non-CTS standard instruments in view of the arrangement for clearing of such instruments at less frequent intervals. They may also put in place appropriate arrangement for handling customer complaints, if any, arising out of this new arrangement. The policy should be placed before the Board of the Bank along with Reserve Bank's earlier instructions as indicated in paragraph 3.
Banks are advised to comply with the final order on 'timeframe for collection of outstation cheques' passed by the National Consumer Disputes Redressal Commission in case no. Further, banks are advised as under:. Ideally, in respect of local clearing, banks shall permit usage of the shadow credit afforded to the customer accounts immediately after closure of relative return clearing and in any case withdrawal shall be allowed on the same day or maximum within an hour of commencement of business on the next working day, subject to usual safeguards.
If there is any delay in collection beyond this period, interest at the rate specified in the CCP of the bank, shall be paid. In case the rate is not specified in the CCP, the applicable rate shall be the interest rate on Fixed Deposits for the corresponding maturity.
The timeframe for collection specified by the Commission shall be treated as outer limit and credit shall be afforded if the process gets completed earlier. Accordingly, banks were directed that they should not collect account payee cheques for any person other than the payee constituent. This instruction would also apply with respect to the cheque drawn by a bank payable to another bank.
Under such arrangements, there should be clear undertaking to the effect that the proceeds of the account payee cheque will be credited to the payee's account only, upon realization.
While collecting the cheques as aforesaid, banks should have a clear representation in writing given by the co-operative credit societies concerned that, upon realization, the proceeds of the cheques will be credited only to the account of the member of the co-operative credit society who is the payee named in the cheque.
This shall, however, be subject to the fulfillment of the requirements of the provisions of Negotiable Instruments Act, , including Section thereof. Bills for collection including bills discounted required to be collected through another bank at the realising centre should be forwarded directly by the forwarding office to the realising office. The delayed period should be reckoned after making allowance for normal transit period based upon a time frame of 2 days each for i Despatch of bills; ii Presentation of bills of drawees iii Remittance of proceeds to the lodger's bank iv Crediting the proceeds to drawer's account.
To the extent the delay is attributing to the drawee's bank, the lodger's bank may recover interest for such delay from that bank. The banks may suitably revise the format of their payment advices to incorporate the above information. Banks have been advised to levy cheque return charges only in cases where the customer is at fault and is responsible for such returns.
The illustrative, but not exhaustive, list of returns, where the customers are not at fault are indicated in the Annex VI. In cases where the cheques need to be re-presented without any recourse to the payee, such re-presentation should be made in the immediate next presentation clearing not later than 24 hours excluding holidays with due notification to the customers of such representation through SMS alert, email etc.
However, it is considered necessary to streamline the procedure to be followed by all banks in this behalf. It is therefore suggested that in addition to the existing instruction in respect of dishonoured instruments for want of funds, banks may follow the additional instructions laid down in paragraph Also, the bank may consider closing current account at its discretion.
However, in respect of advances accounts such as cash credit account, overdraft account, the need for continuance or otherwise of these credit facilities and the cheque facility relating to these accounts should be reviewed by appropriate authority higher than the sanctioning authority.
Similar cautionary advice may be issued if a bank intends to close the account. Further, it is also felt that though it may not be necessary to extend all the steps laid down in our earlier circular to smaller cheques, banks should have their own approach to deal with recalcitrant customers.
The policy should also deal with matters relating to frequent dishonour of ECS mandates. Banks should also lay down requisite internal guidelines for their officers and staff and advise them to adhere to such guidelines and ensure strict compliance thereof to achieve aforesaid object of effective communication and delivery of dishonoured cheque to the payee.
Further, at every office of the bank a notice requesting the customers to meet the branch manager may be displayed regarding grievances, if the grievances remain unredressed. Complaint book with perforated copies in each set may be introduced, so designed as to instantly provide an acknowledgement to the customers and anintimation to the Controlling Office.
IBA has, for the sake of uniformity, prepared a format of the complaint book with adequate number of perforated copies, which are so designed that the complainant could be given an acknowledged copy instantly. A copy of the complaint is required to be forwarded to the concerned Controlling Office of the bank along with the remark of the Branch Manager within a time frame.
Bank should introduce the complaint book as per the above format for uniformity. These registers should be maintained irrespective of the fact whether a complaint is received or not in the past.
Banks having computerized operations may adopt the afore-said format and generate copies electronically. Further, a complaint form, along with the name of the Nodal Officer for complaint redressal, may be provided in the homepage itself to facilitate complaint submission by customers.
The complaint form should also indicate that the first point for redressal of complaints is the bank itself and that complainants may approach the Banking Ombudsman only if the complaint is not resolved at the bank level within a month. Similar information may be displayed in the boards put up in all the bank branches to indicate the name and address of the Banking Ombudsman.
In addition, the name, address and telephone numbers of the Controlling Authority of the bank to whom complaints can be addressed may also be given prominently. CPPAPS had further recommended that the Statement of complaints and its analysis should also be disclosed by banks along with their financial results.
Further, a suggestion has been received that unimplemented awards of the Banking Ombudsman should also be disclosed along with financial results. The complaints should be analyzed i to identify customer service areas in which the complaints are frequently received; ii to identify frequent sources of complaint; iii to identify systemic deficiencies; and iv for initiating appropriate action to make the grievance redressal mechanism more effective.
Further, banks are also advised to disclose the following brief details along with their financial results:. Further, banks are also advised to place the detailed statement of complaints and its analysis on their web-site for information of the general public at the end of each financial year.
Banks should include all complaints pertaining to ATM cards issued by them in their disclosures. Further, as stated above in Paragraph However, where the complaints are redressed within the next working day, banks need not include the same in the statement of complaints. This is expected to serve as an incentive to the banks and their branches to redress the complaints within the next working day.
This would enable the Nodal Officer to deal with any reference received from the Banking Ombudsman regarding the complaint more effectively. As such, in the final letter sent to the customer regarding redressal of the complaint, banks should indicate that the complainant can also approach the concerned Banking Ombudsman. The details of the concerned Banking Ombudsman should also be included in the letter.
Banks should give wide publicity to the grievance redressal machinery through advertisements and also by placing them on their web sites. With a view to making the Grievance Redressal Mechanism more effective, in addition to the instructions mentioned above, banks are further advised as under:. Ensure that the Principal Nodal Officer appointed under the Banking Ombudsman Scheme is of a sufficiently senior level, not below the rank of a General Manager.
Grievance Redressal Mechanism GRM should be made simpler even if it is linked to call centre of customer care unit without customers facing hassles of proving identity, account details, etc.
Adequate and wider publicity are also required to be given by the respective financial services provider. Road, Mumbai email. Banks should critically examine on an on-going basis as to how Grievances Redressal Machinery is working and whether the same has been found to be effective in achieving improvement in customer service in different areas. Banks should identify areas in which the number of complaints is large or on the increase and consider constituting special squads to look into complaints on the spot in branches against which there are frequent complaints.
The banks may arrange to include one or two sessions on customer service, public relations etc. In cases where the contention of the complainant has not been accepted, a complete reply should be given to him to the extent possible. With a view to further boosting the quality of customer service and ensuring that there is undivided attention to resolution of customer complaints in banks, all public sector banks, and some private sector and foreign banks Annex X have been advised to appoint an internal ombudsman designated as Chief Customer Service Officer CCSO.
These banks have been selected on the basis of their asset size, business mix, etc. Banks have been advised to adhere to the guidelines and procedures for opening and operating deposit accounts to safeguard against unscrupulous persons opening accounts mainly to use them as conduit for fraudulently encashing payment instruments. Besides in cases of the above kind, banks also do not restore funds promptly to customers even in bona-fide cases but defer action till completion of either departmental action or police interrogation.
The following guidelines supersede all the guidelines issued earlier in this regard. The Committee on Procedures and Performance Audit of Public Services CPPAPS observed that linking the lockers facility with placement of fixed or any other deposit beyond what is specifically permitted is a restrictive practice and should be prohibited forthwith.
RBI concurs with the Committee's observations and banks are advised to refrain from such restrictive practices. Banks may face situations where the locker-hirer neither operates the locker nor pays rent.
To ensure prompt payment of locker rent, banks may at the time of allotment, obtain a Fixed Deposit which would cover 3 years rent and the charges for breaking open the locker in case of an eventuality. However, banks should not insist on such Fixed Deposit from the existing locker-hirers. Branches should maintain a wait list for the purpose of allotment of lockers and ensure transparency in allotment of lockers.
All applications received for allotment of locker should be acknowledged and given a wait list number. Banks should give a copy of the agreement regarding operation of the locker to the locker-hirer at the time of allotment of the locker.
Banks should exercise due care and necessary precaution for the protection of the lockers provided to the customer. The security procedures should be well-documented and the concerned staff should be properly trained in the procedure. The internal auditors should ensure that the procedures are strictly adhered to. In a recent incident, explosives and weapons were found in a locker in a bank branch. This emphasizes that banks should be aware of the risks involved in renting safe deposit lockers.
In this connection, banks should take following measures:. If the customer is classified in a higher risk category, customer due diligence as per KYC norms applicable to such higher risk category should be carried out. This exercise should be carried out even if the locker hirer is paying the rent regularly.
In case the locker-hirer has some genuine reasons as in the case of NRIs or persons who are out of town due to a transferable job etc. In case the locker-hirer does not respond nor operate the locker, banks should consider opening the lockers after giving due notice to him. In this context, banks should incorporate a clause in the locker agreement that in case the locker remains unoperated for more than one year, the bank would have the right to cancel the allotment of the locker and open the locker, even if the rent is paid regularly.
To enable a banking company to make payment to the nominee of a deceased depositor, the amount standing to the credit of the depositor. To enable a banking company to return the articles left by a deceased person in its safe custody to his nominee, after making an inventory of the articles in the manner directed by the Reserve Bank. To enable a banking company to release the contents of a safety locker to the nominee of the hirer of such locker, in the event of the death of the hirer, after making an inventory of the contents of the safety locker in the manner directed by the Reserve Bank.
Since such nomination has to be made in the prescribed manner, the Central Government framed, in consultation with the Reserve Bank of India, the Banking Companies Nomination Rules, These Rules, together with the provision of new Sections 45ZA to 45ZF of the Banking Regulation Act, regarding nomination facilities were brought into force with effect from Nomination Forms for deposit accounts, articles kept in safe custody and contents of safety lockers.
In order to ensure that the amount of deposits, articles left in safe custody and contents of lockers are returned to the genuine nominee, as also to verify the proof of death, banks may devise their own claim formats or follow the procedure, if any, suggested by the Indian Banks' Association for the purpose.
Banks may extend the nomination facility also in respect of deposits held in the name of a sole proprietary concern. Banks should give wide publicity and provide guidance to deposit account holders on the benefits of nomination facility and the survivorship clause. Despite the best efforts in this regard, banks might still be opening single deposit accounts without nomination.
In a case which came up before the Allahabad High Court, the Honourable Court has observed that "it will be most appropriate that the Reserve Bank of India issues guidelines to the effect that no Savings Account or Fixed Deposit in single name be accepted unless name of the nominee is given by the depositors. It will go a long way to serve the purpose of the innocent widows and children, who are dragged on long drawn proceedings in the Court for claiming the amount, which lawfully belongs to them".
Keeping in view the above, banks should generally insist that the person opening a deposit account makes a nomination. In case the person opening an account declines to fill in nomination, the bank should explain the advantages of nomination facility.
If the person opening the account still does not want to nominate, the bank should ask him to give a specific letter to the effect that he does not want to make a nomination.
In case the person opening the account declines to give such a letter, the bank should record the fact on the account opening form and proceed with opening of the account if otherwise found eligible.
Under no circumstances, a bank should refuse to open an account solely on the ground that the person opening the account refused to nominate. Further, in some banks, although there is a system of acknowledgement of nomination as provided in the Savings Bank account opening form, such acknowledgements are actually not given to the customers.
Such acknowledgement should be given to all the customers irrespective of whether the same is demanded by the customers. When a bank account holder has availed himself of nomination facility, the same may be indicated on the passbook so that, in case of death of the account holder, his relatives can know from the pass book that the nomination facility has been availed of by the deceased depositor and take suitable action. Banks may, therefore, introduce the practice of recording on the face of the passbook the position regarding availment of nomination facility with the legend "Nomination Registered".
This may be done in the case of term deposit receipts also. Nomination facility is available for Savings Bank Account opened for credit of pension. Banking Companies Nomination Rules, are distinct from the Arrears of Pension Nomination Rules, and nomination exercised by the pensioner under the latter rules for receipt of arrears of pension will not be valid for the purpose of deposit accounts held by the pensioners with banks for which a separate nomination is necessary in terms of the Banking Companies Nomination Rules, in case a pensioner desires to avail of nomination facility.
As such, a nominee cannot be an Association, Trust, Society or any other Organisation or any office-bearer thereof in his official capacity. In view thereof any nomination other than in favour of an individual will not be valid. This is also applicable to deposits having operating instructions "either or survivor". Signatures of the account holders need not be attested by witnesses. It is understood that sometimes the customers opening joint accounts with or without "Either or Survivor" mandate, are dissuaded from exercising the nomination facility.
It is clarified that nomination facility is available for joint deposit accounts also. Banks are, therefore, advised to ensure that their branches offer nomination facility to all deposit accounts including joint accounts opened by the customers. However, the responsibility of the banks in such cases is to ensure that when the contents of a locker were sought to be removed on behalf of the minor nominee, the articles were handed over to a person who, in law, was competent to receive the articles on behalf of the minor.
In such a case, after such removal preceded by an inventory, the nominee and surviving hirer s may still keep the entire contents with the same bank, if they so desire, by entering into a fresh contract of hiring a locker. The banks should endeavour to drive home to their constituents the benefit of nomination facilities and ensure that the message reaches all the constituents by taking all necessary measures for popularising the nomination facility among their constituents.
Illustratively, it should be highlighted in the publicity material that in the event of the death of one of the joint account holders, the right to the deposit proceeds does not automatically devolve on the surviving joint deposit account holder, unless there is a survivorship clause.
The methodology which the banks may like to adopt for this purpose may vary. However, one of the banks has devised a small slip indicating the availability of nomination facility and the slip is inserted in the cheque books and pass books and in current account statements. A specimen format of the slip is given below: For details, please enquire at the Branch".
Settlement of claims in respect of deceased depositors — Simplification of procedure. In case where the deceased depositor had not made any nomination or for the accounts other than those styled as "either or survivor" such as single or jointly operated accounts , banks are required to adopt a simplified procedure for repayment to legal heir s of the depositor keeping in view the imperative need to avoid inconvenience and undue hardship to the common person.
In this context, banks may, keeping in view their risk management systems, fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity. In the case of term deposits, banks are required to incorporate a clause in the account opening form itself to the effect that in the event of the death of the depositor, premature termination of term deposits would be allowed.
The conditions subject to which such premature withdrawal would be permitted may also be specified in the account opening form. Such premature withdrawal would not attract any penal charge.
In this regard, banks could consider adopting either of the following two approaches:. Detailed guidelines in this regard are, however, as follows:. In case the locker was hired jointly with the instructions to operate it under joint signatures, and the locker hirer s nominates person s , in the event of death of any of the locker hirers, the bank should give access of the locker and the liberty to remove the contents jointly to the survivor s and the nominee s.
In case the locker was hired jointly with survivorship clause and the hirers instructed that the access of the locker should be given over to "either or survivor", "anyone or survivor" or "former or survivor" or according to any other survivorship clause, banks should follow the mandate in the event of the death of one or more of the locker-hirers.
Similar procedure should be followed for return of articles placed in the safe custody of the bank. Banks should note that the facility of nomination is not available in case of deposit of safe custody articles by more than one person. There is an imperative need to avoid inconvenience and undue hardship to legal heir s of the locker hirer s. Similar procedure should be followed for the articles under safe custody of the bank. The inventory shall be in the appropriate Forms set out as enclosed to the above Notification or as near thereto as circumstances require.
As per the direction of Reserve Bank, the Indian Banks' Association IBA has formulated a Model Operational Procedure MOP for settlement of claims of the deceased constituents , under various circumstances, consistent with the instructions contained in this circular, for adoption by the banks. The banks should, therefore, undertake a comprehensive review of their extant systems and procedures relating to settlement of claims of their deceased constituents i. Section deals with presumption of continuance and Section deals with presumption of death.
Banks are advised to formulate a policy which would enable them to settle the claims of a missing person after considering the legal opinion and taking into account the facts and circumstances of each case. Further, keeping in view the imperative need to avoid inconvenience and undue hardship to the common person, banks are advised that keeping in view their risk management systems, they may fix a threshold limit, up to which claims in respect of missing persons could be settled without insisting on production of any documentation other than i FIR and the non-traceable report issued by police authorities and ii letter of indemnity.
Banks are further advised that the provisions detailed in Para Release of other assets of the deceased borrowers to their legal heirs. Banks had represented that the principle of not obtaining succession certificates etc. Banks are advised not to insist upon legal representation for release of other assets of deceased customers irrespective of the amount involved.
Further several complaints were received in respect of difficulties faced by the customers on account of their accounts having been classified as inoperative.
Moreover, there is a feeling that banks are undeservedly enjoying the unclaimed deposits, while paying no interest on it. Keeping these factors in view, the instructions issued by RBI have been reviewed and banks are advised to follow the instructions detailed below while dealing with inoperative accounts:. The banks may approach the customers and inform them in writing that there has been no operation in their accounts and ascertain the reasons for the same.
In case the non- operation in the account is due to shifting of the customers from the locality, they may be asked to provide the details of the new bank accounts to which the balance in the existing account could be transferred. In case of Non Resident accounts, the bank may also contact the account holders through e-mail and obtain their confirmation of the details of the account. However, in case the account holder still does not operate the same during the extended period, banks should classify the same as inoperative account after the expiry of the extended period.
However, the service charges levied by the bank or interest credited by the bank should not be considered. However, the customer should not be inconvenienced in any way, just because his account has been rendered inoperative.
The classification is there only to bring to the attention of dealing staff, the increased risk in the account. The transaction may be monitored at a higher level both from the point of view of preventing fraud and making a Suspicious Transactions Report. However, the entire process should remain un-noticeable by the customer.
Due diligence would mean ensuring genuineness of the transaction, verification of the signature and identity etc. However, it has to be ensured that the customer is not inconvenienced as a result of extra care taken by the bank.
If a Fixed Deposit Receipt matures and proceeds are unpaid, the amount left unclaimed with the bank will attract savings bank rate of interest.
In case such accounts are not in the name of individuals, the names of individuals authorized to operate the accounts should also be indicated. Banks are required to have adequate operational safeguards to ensure that the claimants are genuine. 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.
In order to reduce the risk of fraud etc. However, it has to be ensured that the customer is not inconvenienced in any manner. Resultantly, in cases where scholarship amounts exceed the credit limit, banks do not allow the credit and return the amount to the disbursement account of the Government. Further, in some cases banks are reported to have closed zero balance accounts unilaterally without intimating student beneficiaries concerned.
Instances of banks refusing to open zero balance account for students have also been brought to our notice. The scope of the secrecy law in India has generally followed the common law principles based on implied contract. The bankers' obligation to maintain secrecy arises out of the contractual relationship between the banker and customer, and as such no information should be divulged to third parties except under circumstances which are well defined.
The following exceptions to the said rule are normally accepted:. At the time of opening of accounts of the customers, banks collect certain information. While complying with the above requirements, banks also collect a lot of additional personal information. In this connection, the Committee on Procedures and Performances Audit on Public Services CPPAPS observed that the information collected from the customer was being used for cross selling of services of various products by banks, their subsidiaries and affiliates.
Sometimes, such information was also provided to other agencies. As banks are aware, the information provided by the customer for KYC compliance while opening an account is confidential and divulging any details thereof for cross selling or any other purpose would be in breach of customer confidentiality obligations. Banks should treat the information collected from the customer for the purpose of opening of account as confidential and not divulge any details thereof for cross selling or any other purposes.
Banks may, therefore, ensure that information sought from the customer is relevant to the perceived risk, is not intrusive, and is in conformity with the guidelines issued in this regard.
Wherever banks desire to collect any information about the customer for a purpose other than KYC requirements, it should not form part of the account opening form. Such information may be collected separately, purely on a voluntary basis, after explaining the objectives to the customer and taking his express approval for the specific uses to which such information could be put. Banks should therefore, instruct all the branches to strictly ensure compliance with their obligations to the customer in this regard.
It should be ensured that along with the balance of the account, the relative account opening form, specimen signatures, standing instructions, etc. However, the transferee office should also be separately supplied with a copy of the account transfer letter.
Banks should ensure that depositors dissatisfied with customer service have the facility to switch banks and thwarting depositors from such switches would invite serious adverse action.
There is a need for greater co-ordination between the income-tax department and the banking system. In such cases in addition to the normal criminal action, such staff member should also be proceeded against departmentally. Declaration of Holiday under the Negotiable Instruments Act, In terms of Section 25 of the Negotiable Instruments Act, , the expression "public holiday" includes Sunday and any other day declared by the Central Government by notification in the Official Gazette to be a public holiday.
While delegating the power to declare public holidays within concerned States under Section 25 of the Negotiable Instruments Act, , the Central Government has stipulated that the delegation is subject to the condition that the Central Government may itself exercise the said function, should it deem fit to do so.
This implies that when Central Government itself has notified a day as "public holiday" under Section 25 of the Negotiable Instruments Act, , there is no need for banks to wait for the State Government notification. In predominantly residential areas banks may keep their branches open for business on Sundays by suitably adjusting the holidays.
Standing instructions should be freely accepted on all current and savings bank accounts. Clean overdrafts for small amounts may be permitted at the discretion of branch manager to customers whose dealings have been satisfactory.
Banks may work out schemes in this regard. Issue prices of cash certificates should also be rounded off in the same manner. Name, address, telephone numbers and email address should be given. Do not drop the Challans in the Drop Boxes. In supersession of instructions contained in circular DBOD. Whether a 'Basic Savings Bank Deposit Account' holder can have any other saving account in that bank? Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings account in that bank.
The 'Basic Savings Bank Deposit Account' should be considered as a normal banking service available to all customers, through branches. Whether there are any restrictions like age, income, amount, etc criteria for opening BSBDA by banks for individuals? Banks are advised not to impose restrictions like age and income criteria of the individual for opening BSBDA.
The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month. Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document.
Small Accounts can only be opened at CBS linked branches of banks or at such branches where it is possible to manually monitor the fulfilments of the conditions. However, the decision to allow services beyond the minimum prescribed has been left to the discretion of the banks who can either offer additional services free of charge or evolve requirements including pricing structure for additional value-added services on a reasonable and transparent basis to be applied in a non-discriminatory manner with prior intimation to the customers.
Banks are required to put in place a reasonable pricing structure for value added services or prescribe minimum balance requirements which should be displayed prominently and also informed to the customers at the time of account opening. However, in case the banks decide to charge for the additional withdrawal, the pricing structure may be put in place by banks on a reasonable, non-discriminatory and transparent manner by banks.
Provided , however , That the said machinery, equipment, materials and parts are directly and actually needed and used exclusively in the RE facilities for transformation into energy and delivery of energy to the point of use and covered by shipping documents in the name of the duly registered operator to whom the shipment will be directly delivered by customs authorities: Provided , further , That endorsement of the DOE is obtained before the importation of such machinery, equipment, materials and parts are made.
Endorsement of the DOE must be secured before any sale, transfer or disposition of the imported capital equipment, machinery or spare parts is made: Provided , That if such sale, transfer or disposition is made within the ten 10 -year period from the date of importation, any of the following conditions must be present:.
When the aforementioned sale, transfer or disposition is made under any of the conditions provided for in the foregoing paragraphs after ten 10 years from the date of importation, the sale, transfer or disposition shall no longer be subject to the payment of taxes and duties;. Provided , That in case of an integrated resource development and generation facility as provided under Republic Act No.
Provided , however , That operating loss resulting from the availment of incentives provided for in this Act shall not be entitled to NOLCO;. Provided , That the RE Developer shall pass on the savings to the end-users in the form of lower power rates.
Provided , That if it applies for Accelerated Depreciation, the project or its expansions shall no longer be eligible for an ITH. Accelerated depreciation of plant, machinery, and equipment that are reasonably needed and actually used for the exploration, development and utilization of RE resources may be depreciated using a rate not exceeding twice the rate which would have been used had the annual allowance been computed in accordance with the rules and regulations prescribed by the Secretary of the Department of Finance and the provisions of the National Internal Revenue Code NIRC of , as amended.
Any of the following methods of accelerated depreciation may be adopted:. All RE Developers shall be entitled to zero-rated value added tax on its purchases of local supply of goods, properties and services needed for the development, construction and installation of its plant facilities. Provided , That prior approval by the DOE was obtained by the local manufacturer: Provided , further , That the acquisition of such machinery, equipment, materials, and parts shall be made within the validity of the RE operating contract.
Exemption from the Universal Charge. Payment of Transmission Charges. Hybrid and Cogeneration Systems. As used in this Act, RE generating unit with intermittent RE resources refers to a RE generating unit or group of units connected to a common connection point whose RE energy resource is location-specific naturally difficult to precisely predict the availability of RE energy resource thereby making the energy generated variable, unpredictable and irregular and the availability of the resource inherently uncontrollable, which include plants utilizing wind, solar, run-of-river hydro or ocean energy.
Incentives for RE Commercialization. It is further mandated that the applications for registration will be positively acted upon by BOI on the basis of the accreditation issued by DOE. As such, all entities duly accredited by the DOE under this Act shall be entitled to all the incentives provided herein. Provided , however , That the said components, parts and materials are: Provided , further , That prior approval of the DOE was obtained before the importation of such components, parts and materials;.
Provided , That such components, and parts are directly needed and shall be used exclusively by the RE manufacturer, fabricator and supplier for the manufacture, fabrication and sale of the RE equipment: Provided , further , That prior approval by the DOE was obtained by the local manufacturer;. The DOF shall also prescribe the appropriate period for granting the tax rebates. Period of Grant of Fiscal Incentives. The National Renewable Energy Board, in coordination with the Department of Energy, shall submit a yearly report on the implementation of this Act to the Philippine Congress, through the Joint Congressional Power Commission, every January of each year following the period in review, indicating among others, the progress of RE development in the country and the benefits and impact generated by the development and utilization of its renewable energy resources in the context of its energy security and climate change imperatives.
Registration of RE Developers and local manufacturers, fabricators and suppliers of locally-produced renewable energy equipment.