Auto-Renewal of Term Deposit Receipts – Suggestion

Date: 07-06-2017                                                                             by email

TO CGM, RBI CONSUMER EDUCATION AND PROTECTION DEPT MUMBAI 

To,

Chief General Manager
Consumer Education and Protection Department
Reserve Bank of India
1st Floor, Amar Building, Sir P.M. Road,

Mumbai-400 001

Email: helpdoc@rbi.org.in

Respected Sir,

Subject: Auto-Renewal of Term Deposit Receipts – Suggestion

I have experienced that very few banks convey details of auto-renewal of term deposits to customers either by email or SMS or hard copy. The system of the bank auto-renews as per standing mandate at the time of initial deposit, without giving details of auto-renewed deposit receipt as to rate of interest, maturity value, next due date etc. Thus depositors are in dark as to details of auto renewed term deposit receipts to the customer. Such a situation is anti-consumer and breaches right to know. RBI too will not appreciate such secrecy by banks, when money belongs to depositors and on which banks survive.

I humbly suggest that Banks should be advised to mandatorily advise vital information of auto-renewed term deposit by email or SMS or in hard copy.

Thanking you,

Yours faithfully,

 J P Shah

Copy by email to:

Consumer Education and Research Centre, Ahmedabad.