Page 99 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes

Notes While recovering dues, banks/NBFCs should ensure that they, as also their agents,
adhere to the Reserve Bank’s instructions of May 2003 on Fair Practices Code for Lenders
as well as their own code for collection of dues.

Monitoring

Banks/NBFCs and their Standing Committee on Customer Service should review on a
monthly basis the credit card operations including reports of defaulters to CIBIL and
credit card related complaints.
They should also put up a detailed quarterly analysis of credit card related complaints to
their top management.

Self Assessment

Fill in the blanks:

1. ..................................................... include instruments through which payments can be made,
rules, regulations and procedures that guide these payments, institutions which facilitate
payment mechanisms and legal systems etc. that are established to facilitate transfer of
funds between different participants.
2. The central bank of any country is usually the driving force in the ................................ of the
national payment system.
3. Payments can be made between two or more parties by means of .................................
instructions without the use of cheques.
4. The card issuing ........................................ should constitute an internal grievance redressal
machinery and give wide publicity to it through electronic and print media.

5. The process of ............................... payment starts when a payer gives his personal cheque to
the beneficiary.

Task Discuss the functioning and services of NBFC.

Penalty

The Reserve Bank reserves the right to impose any penalty on a bank/NBFC under the provisions
of the Banking Regulation Act, 1949 for violation of any of these guidelines.

!
Caution Banks/NBFCs and their Standing Committee on Customer Service should review
on a monthly basis the credit card operations including reports of defaulters to CIBIL and
credit card related complaints.
1. Electronic Fund Transfer: In absence of the electronic mode of transference of funds from
the bank accounts of one customer to another customer as and when such requests emerged,
intercity transfer of money of the customers was done by the banks through the medium
of demand drafts, mail-transfer and telegraphic transfers. These mediums of transfers had

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