Name of the Policy Compensation Policy

Department Branches Coordination Cell [BRCC]

Year 2021-22
Status Board Approved

1. Introduction:
Technological progress in payments and settlement systems and its qualitative changes
in operational systems and processes that have been undertaken by various players in the
market have enabled banks, financial institutions and other market forces of competition
to come into play to improve efficiencies in providing better service to the customers and
other users of the system. It will be the banks endeavor to offer services to its customers
with best possible utilization of its technology infrastructure. Although, the bank is
offering best services, financial loss might incur to the customer due to deficiency in
service on the part of the Bank or any act of omission or commission directly attributable
to the Bank.
Thus, the Bank has designed a compensation policy to cover areas relating to
unauthorized debiting of account, payment of interest to customers for delayed collection
of cheques /instruments, payment of cheques after acknowledgement of stop payment
instructions, remittances within India, compensation for unauthorized Electronic
transactions under customer Protection-Limited Liability of Customer etc. The policy is
based on principles of transparency and fairness in the treatment of customers.
2. Objective of the Policy:
The objective of this Policy is to establish a system whereby the Bank compensates the
customer for any financial loss he/she might incur due to deficiency in service on the part
of the Bank or any act of omission or commission directly attributable to the Bank. By
ensuring that the customer is compensated before he demands for it, the bank expects
instances when the customer has to approach Banking Ombudsman or any other Forum
for redressal to come down significantly.
3. Provisions of the Policy:
It is reiterated that the Policy covers only compensation for financial losses which
customers might incur due to deficiency in the services offered by the Bank which can be
measured directly and as such the commitments under this Policy are without prejudice
to any right, the Bank will have in defending its position before any forum duty constituted
to adjudicate banker-customer disputes.
Grant of compensation under this Policy is without prejudice to the Bank’s rights in
defending its position before any Court of Law, Tribunal or any other forum duly
constituted to adjudicate Banker Customer disputes and does not constitute admission
to liability or any other issue, of any nature whatsoever, for the purpose of Adjudicatory
Proceedings.
4. Unauthorized/Erroneous Debit:
4.1 If the Bank has raised an unauthorized / erroneous direct debit to an account, the
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Department Branches Coordination Cell [BRCC]
Year 2021-22
Status Board Approved

entry will be reversed immediately on being informed of the erroneous debit, after
verifying the actual position/reasons for same.
4.2 In the event of the unauthorized/erroneous debit has resulted in a financial loss to
the customer by way of reduction in the minimum balance applicable for payment of
interest on savings bank deposit or payment of additional interest to the bank in a loan
account, the Bank will compensate the customer for such loss. Further, if the customer
has suffered any financial loss incidental to return of a cheque or failure of direct debit
instructions due to insufficiency of balance on account of the unauthorized/erroneous
debit, the Bank will compensate the customer to the extent of such financial losses.
4.3 Also the Bank reserves its right to debit the account for reversing the amounts in case
a wrong credit is posted to a customer’s account without payment of any compensation.
Whenever, there is a request from other bank, for reversal of proceeds of RTGS/NEFT due
to error on their part, such request need to be verified from RBI Settlement Report I.e.
Structured Financing Messaging System (SFMS), and on confirmation of error, proceeds
need to be reversed.
4.4 In case verification of the entry reported to be erroneous by the customer does not
involve a third party, the Bank shall arrange to complete the process of verification within
a maximum period of 7 working days from the date of reporting of erroneous debit. In
case, the verification involves a third party or where verifications are to be done at other
banks, the Bank shall complete the verification process within a maximum period of two
month/60 days from the date of reporting of erroneous transaction by the customer.
4.5 The Bank will undertake to carry out direct debit/NACH/ECS/NECS debit instructions
of customers in time. In the event the bank fails to meet such commitments, customer will
be compensated to the extent of any financial loss the customer would incur on account
of delay in carrying out the instruction/ failure to carry out the instructions.
The Bank would debit the customer’s account with any applicable service charge as per
the schedule of charges notified by the Bank. In the event the Bank levies any charge, the
Bank will reverse the charges when pointed out by the customer subject to scrutiny of
agreed terms and conditions.
5. Payment of Cheques after Stop Payment instructions:
In case a cheque has been paid after stop payment instruction is acknowledged by the
Bank, the bank shall reverse the transaction and give value dated credit to protect the
interest of the customer. Any consequential financial loss to the customer will be
compensated. Such debits will be reversed within next 2 working days of the customer
intimating the transaction to the Bank.
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Department Branches Coordination Cell [BRCC]
Year 2021-22
Status Board Approved

6. Fraudulent collection of cheques under CTS:

If a cheque presented under CTS is fraudulently collected in the account maintained with
our Bank, the Bank will immediately make payment of the disputed amount to the
drawee/paying bank on being informed of the fraudulent collection, after verifying the
position. The payment in such cases will be made on a case-to-case basis with the
approval of competent authority/Official.
7. Payment of Interest for delayed Collection / delayed Interest credit:
As part of the compensation policy, the Bank will pay interest to its customer on the
amount of collection Instruments in case there is delay in giving credit beyond the time
period specified in Bank’s cheque collection policy. There shall be no distinction between
instruments drawn on the bank’s own branches or on other banks for the purpose of
payment of interest on delayed collection.
7.1 Interest for delayed collection shall be paid at the following rates:
a. Savings Bank rate for the period of delay beyond T+2 days in collection of local
cheques.
b. Savings Bank rate for the period of delay beyond T+6 days in collection of
outstation cheques sent to Bank’s own branches at other centers.
c. In case of cheques sent to other bank branches for collection where delay is
beyond T+10 days’ interest will be paid at the rate applicable to term deposit for
the respective period or Savings Bank rate, whichever is higher.
d. In case of extraordinary delay, i.e. delays exceeding 90 days interest will be paid at
the rate of 2% above the corresponding Term deposit rate.
e. In the event the proceeds of cheque under collection were to be credited to an
overdraft/loan account of the customer, interest will be paid at the rate applicable
to the loan account. For extra ordinary delays, interest will be paid at the rate of
2% above the rate applicable to the loan account.
8. Compensation for Loss of Instrument in Transit:
The bank’s compensation policy towards financial loss suffered by the customers due to
loss of instrument after it has been handed over to the bank for collection by the customer
would also be as indicated in our "Policy on Collection of Cheques ". The reasons of loss
in transit and compensation payable is given here below.
9. Cheques / Instruments lost in transit / In clearing process or at paying bank’s
branch:
In the event a cheque or an instrument accepted for collection is lost in transit or in the
clearing process or at the paying bank’s branch, the Bank shall immediately on coming to
know of the loss, bring the same to the notice of the account holder so that he/she can
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Department Branches Coordination Cell [BRCC]
Year 2021-22
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inform the drawer to record stop payment and also take care that cheques, if any, issued
by him / her are not dishonored due to non-credit of the amount of the lost cheques /
instruments. The Bank would provide all required reasonable assistance to the customer
to obtain a duplicate instrument from the drawer of the cheque.
In line with the Compensation Policy of the Bank, the Bank will compensate the account
holder in respect of instruments lost in transit in the following way:
1. In case intimation regarding loss of instrument is conveyed to the customer
beyond the time limit stipulated for collection i.e.
a. Cheques/ Instruments drawn on one of our branch deposited at another
center same day.
b. Cheques/Instruments drawn on other bank and sent for collection to:
Centers where we have a branch - Maximum T+6 days
Centers where we do not have a branch:

Centers Maximum Timeframe(in days)

State Capitals 7
Major Cities 10
Other Locations 14

2. If the period (7/10/14 days as the case may be) exceeds interest will be paid for the
period exceeding the stipulated collection period at the rates specified above.
3. In addition, Bank will pay interest on the amount of the cheque for a further period
of 15 days at Savings Bank rate to provide for likely further delay in obtaining
duplicate cheque/instrument and collection thereof.
4. The Bank would also compensate the customer for any reasonable charges he/she
incurs in getting duplicate cheque/instrument upon production of receipt, in the
event the instrument is to be obtained from a bank/institution who would charge
a fee if any for issue of duplicate instrument.
9.1 Fraudulent encashment of cheques lost in transit:
In case cheques sent for collection by our Bank are lost in transit and later on fraudulently
enchased by collecting/presenting through other banks, the Bank will make payment of
the disputed amount to the original payee who has not received the credit, on being
informed of the fraudulent collection, after verifying the position and /or declaration of
fraud as per Bank’s procedure. The payment in such cases will be made on a case-to-case
basis with the approval of Competent Authority.
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Department Branches Coordination Cell [BRCC]
Year 2021-22
Status Board Approved

9.2 Compensation for loss of Instrument in Transit in case of Discounted cheques:

Where the cheque is lost after it is discounted, the Bank would bear all the costs for
obtaining duplicate instruments but the customer will assist in obtaining duplicate
instrument. However, Customers liability under Negotiable Instrument Act will not be
extinguished till Bank receives the proceeds of the cheque.
10. Issue of Duplicate Demand Draft and Compensation for delays:
Duplicate Draft will be issued within a fortnight from the receipt of such request from the
purchaser thereof provided all the required documentation as per Bank’s procedure in
vogue is completed and submitted by the Customer.
For delay beyond the above stipulated period, interest at the rate applicable for fixed
deposit of corresponding period as existing during that point of time, will be paid as
compensation to the customer for such delay.
It is clarified that the above instructions would be applicable only in cases where the
request for duplicate demand draft is made by the purchaser or the beneficiary and would
not be applicable in the case of draft endowed to third parties.
11. Violation of the Code by Bank’s Agent:
In the event of receipt of any complaint from the customer that the Code of Bank’s
representative/ courier or DSA has engaged in any improper conduct or acted in violation
of the Bank’s Commitment to Customers, which the bank has adopted, the bank shall
endeavor to investigate the matter and endeavor to communicate the findings to the
customer within 7 working days from the date of receipt of complaint and wherever
justified, compensate the customer for, reasonable financial loss, if any, as contemplated
under this policy.
12. Payment of penal interest for delays in Credit/Return of
RTGS/NEFT/NACH/ECS/NECS Transactions:
The Bank would pay interest to its customers on account of delay in credit/ return of
RTGS/ NEFT/NACH/ECS/NECS transactions. The interest will be paid at current/prevailing
RBI LAF Repo Rate plus 2 percent for the period of delay/till the date of refund as the case
may be to the affected customers.
13. Compensation decided by Banking Ombudsman/Consumer Forum/lnternal
Ombudsman (IO):
Nowadays in certain cases referred to Banking Ombudsman and Consumer Forum, banks
have been ordered to pay compensation to complainants. With a view to settle
compensation without delay and as per the Compensation Policy, Bank will pay
compensation as decided by the Internal Ombudsman (IO)/Banking Ombudsman
(BO)/Consumer Forum Cases, as per the delegation/ limit.
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Department Branches Coordination Cell [BRCC]
Year 2021-22
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13.1 Advisories by Banking Ombudsman: The payment in case of Advisories issued by

the Banking Ombudsman has to be made within 30 days without fail, by obtaining
sanction from the respective Delegated Authority.
13.2 Awards by Banking Ombudsman: The Advisories if not paid within the stipulated
time period, then, it becomes award. Banking Ombudsman may issue award against the
bank, which reflects in the Banks Balance Sheet, hence, utmost care need to be taken to
meet the advisory well in time.
14. Lenders Liability; Commitment to borrowers:
The Bank has adopted the principles of lenders liability. In terms of the guidelines for
lenders liability, and the Code of Bank’s Commitment to Customer adopted by the Bank,
the Bank would return to the borrowers all the securities/ documents/title deeds of
mortgaged property within 15 days of repayment of all dues to the satisfaction of the
Bank, provided the Bank has not exercised any lien thereon on account of any other dues
to the party, agreed to or contracted by. The bank will compensate the borrower for
monetary loss suffered, if any, due to delay in return of the same. In the event of loss of
title deeds of mortgaged property at the hands of the Bank the compensation to cover
out of pocket expenses for obtaining duplicate documents plus a lump sum amount
Rs.100/- per day beyond 15 days subject to maximum Rs.10,000/- or as may be decided
by the Bank from time to time.
There will be no compensation paid to the Borrower(s) / Guarantor(s) in following
circumstances:
15. Force Majeure events:
If there is delay on part of the Borrower(s) / Guarantor(s). For e.g. if any of the Borrower(s)
/ Guarantor(s) is not available or does not have required Identity Proof/or other required
documents to prove that he/she is the same person.
If the Borrower(s) / Guarantor(s) have changed their residential / mailing address / phone
numbers and have not intimated the bank and bank is not able to contact them for
collection of original title documents. (Intimation by way of phone, letter or email to any
one of the Borrower(s) / Guarantor(s) will be deemed intimation to all Borrower(s) /
Guarantor(s).)
In case the Bank receives any complaint/claim/demand from the Borrowers/Guarantors,
Legal Heir’s, Executors, Successors, Joint Owners/Holders, etc. intimating the Bank about
inter se disputes and/or not to hand over the title documents or hand over the same to
particular persons, etc., then bank shall direct the parties to resolve their disputes and
thereafter approach the Bank with a joint application signed by all concerned for release
of such title documents or obtain necessary direction from Competent Authority/Hon’ble
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Department Branches Coordination Cell [BRCC]
Year 2021-22
Status Board Approved

Court for a particular/specific course of action. Till such time, and in such similar
circumstances, the Bank shall not liable to release the title documents to the
Borrowers/Guarantors (as the case may be) and shall not be liable to pay any
compensation to any party.
16. Failure of ATM Transactions:
It is mandatory for the Bank to reimburse the customer, the amount wrongfully debited
on account of failed ATM within a maximum period of 5 working days from the receipt of
the complaint. Proactive credit is being given to customer for failed transactions within 5
calendar days, through credit/debit adjustment process. Beyond T+5, compensation of
Rs.100 is being afforded to customer. TAT as per latest RBI Circular DPSS.CO.PD
Ha.629/02.01.014/2019-20 dated September 20, 2019 for Harmonization of Turn Around
Time (TAT) and customer compensation for failed transactions using authorized Payment
Systems is as under:
17. Harmonization of Turnaround Time (TAT) and customer compensation for
failed transactions using authorized Payment System.
17.1 General Instructions covering the Turn Around Time(TAT):
17.1.1 The principle behind the TAT is based on the following:
a. If the transaction is a ‘credit-push’ funds transfer and the beneficiary account is not
credited while the debit to originator has been effected, then credit is to be
effected within the prescribed time period failing which the penalty has to be paid
to the beneficiary.
b. If there is delay in initiation of a transaction at the originator bank’s end beyond
the TAT, then penalty has to be paid to the originator.
17.1.2 A ’Failed Transaction’ is a transaction which has not been fully completed due to
any reason not attributable to the customer such as failure in communication links, non-
availability of cash in an ATM, time-out of sessions, etc. Failed transactions shall also
include the credits which could not be effected to the beneficiary account on account of
lack of full information or lack of proper information and delay in initiating a reversal
transaction.

17.1.3 Terms like Acquirer, Beneficiary, Issuer, Remitter, etc., have meanings as per
common baking parlance.
Harmonization of TAT and customer compensation for failed transactions using
authorized payment systems is as under:
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Department Branches Coordination Cell [BRCC]
Year 2021-22
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S.no Description of the Incident Framework for auto renewal and

compensation
Timeframe for auto Compensation
reversal payable
1 Automated Teller Machines (ATMs) included Micro ATMs
a Customer account debited Proactive reversal (R) of Rs. 100/-per day
but not cash dispensed failed transaction within of delay beyond
a maximum of T+5 days. T+5 days, to the
credit of the
account holder.
2 Card Transaction
a Card to card transfer: Transaction to be Rs. 100/- per day
Card account debited but reversed (R) latest within of delay beyond T
the beneficiary card account T + 1 day, if credit is not + 1 days, to the
not credited. effected to the credit of the
beneficiary account account holder.
b Point of Sale (PoS) (card Auto-reversal within T + Rs. 100/- per day
present) including cash at 5 days of delay beyond T
PoS + 5 days, to the
Account debited but credit of the
confirmation not received at account holder.
merchant location i.e.,
charge-slip not generated.

c Card not present(CNP) (e-

commerce)
Account debited but
confirmation not received at
merchant’s system.
3 Immediate Payment System (IMPS)
a Account debited but the If unable to credit the Rs. 100/- per day
beneficiary account is not beneficiary account, auto of beyond T+1
credited Reversal (R) by the day
Beneficiary bank latest
on T+1 day.
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Department Branches Coordination Cell [BRCC]
Year 2021-22
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4 Unified Payment Interface (UPI)

a Account debited but the If unable to credit the Rs. 100/- per day
beneficiary account is not beneficiary account, auto if delay is beyond
credited (transfer of funds). reversal (R) by the T+1 day.
beneficiary bank at least
on T+1 day.

b Account debited but Auto reversal within T+5 Rs. 100/- per day
transaction confirmation not days. if delay is beyond
received at merchant T+5 days.
location (payment to
merchant).
5 Aadhaar payment Bridge System (APBS)
a Delay in crediting beneficiary Beneficiary bank to Rs. 100/- per day
account reverse the transaction if delay is beyond
within T+1 day. T+1 day.

6 National Automated clearing House (NACH)

a Delay in crediting beneficiary Beneficiary bank to Rs. 100/- per day
account or reversal of reverse the uncredited if delay is beyond
amount. transaction within T+1 T+1 days, to the
day. credit of the
account holder.
b Account debited despite Customer’s bank will be
revocation of debit mandate responsible for such
with the bank by the debit. Resolution to be
customer. completed within T+1
day

* T is the day of transaction and refers to the calendar date.

* R is the day on which the reversal is concluded and the funds are received by the
issuer/Originator. Reversal should be effected at the issuer/Originator end on the same
day when the funds are received from the beneficiary end.
18. Fraudulent / Unauthorized Debits through Alternate Channels:
18.1 Compensating the Customer:
The Bank would provide Immediate compensation in respect of unauthorized transactions
of debit/credit card arising due to clone cards or unauthorized transactions in ‘card not
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Department Branches Coordination Cell [BRCC]
Year 2021-22
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present scenario’.
On the failed online transactions, the Bank through its Customer Care Unit would facilitate
obtaining reimbursement of the amount expeditiously. However, as such reimbursements
have to go through the process of merchant establishments/ payment aggregators; the
Bank’s commitment will be restricted to obtaining reimbursement.
Compensation under the Policy will, however, not be available in case of compromise
of password/security features by the customer.
18.2 Liability Shift on account of ATM cum Debit Card Cloning on our Bank’s ATM’s:
In case of fraudulent cash withdrawals through ATM cum Debit Cards, NPCI has
introduced EMV liability process, where, if fraudulent transaction took place at non EMV
compliant ATM/Terminal, chargeback claim can be lodged as per the HPCI guidelines.
Such claims will be examined by IT Department, Head Office for lodging the claim at NPCI
Portal. The payment in such cases will be made with the approval of Competent Authority
in Head Office authorized to settle claims arising out of unauthorized/erroneous direct
debits to customer’s accounts.
19. Customer Protection - Limiting Liability of Customers in Unauthorized
Electronic Banking Transactions:
With the increased thrust on financial inclusion and customer protection and considering
the recent surge in customer grievances relating to unauthorized transactions resulting in
debits to their accounts/ cards, the criteria for determining the customer liability in these
circumstances have been reviewed by RBI and the revised directions in this regard are set
out below:
19.1 Coverage under this policy for Electronic Banking Transactions:
Customer shall be compensated in line with this policy in case of loss occurring due to
unauthorized transaction as follows:
19.1.1 Zero Liability of a Customer:
1. A customer’s entitlement to zero liability shall arise where the unauthorized
transaction occurs in the following events:
Contributory Fraud/ Negligence/ Deficiency on the part of the bank (irrespective
of whether or not the transaction is reported by the customer).
2. Third party breach where the deficiency lies neither with the bank nor with the
customer but lies elsewhere in the system, and the customer notifies the bank
within 3 working days of receiving the communication from the bank regarding
the unauthorized transaction.
19.1.2 Limited Liability of a Customer: A customer shall be liable for the loss occurring
due to authorized transactions in the following cases:
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Department Branches Coordination Cell [BRCC]
Year 2021-22
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1. Customer shall bear the entire loss in cases where the loss is due to negligence by
the customer, e.g. where the customer has shared payment credentials or
Account/Transaction details, viz. Internet Banking User Id & PIN, Debit/Credit Card
PIN/OTP or due to improper protection on customer devices like mobile / laptop/
desktop leading to malware / Trojan or Phishing / fishing attack. This could also be
due to SIM deactivation by the fraudster. Under such situations, the customer will
bear the entire loss until the customer reports unauthorized transaction to the
bank. Any loss occurring after reporting of unauthorized transaction shall be borne
by the bank.
2. In cases where the responsibility for the unauthorized electronic banking
transaction lies neither with the bank nor with the customer, but lies elsewhere in
the system and when there is a delay (of four to seven working days after receiving
the communication from the bank) on the part of the customer in notifying the
bank of such a transaction, the per transaction liability of the customer shall be
limited to the transaction value or the amount mentioned in below Table,
whichever is lower.
Summary of Customer’s Liability:

Time taken to report the fraudulent

S.
transaction from the date of receiving the Customer’s liability (Rs)
No.
communication from the Bank
1 Within 3 working days Zero liability
Within 4 to 7 working days (Current Accounts/
Cash Credit/ Overdraft Accounts of Individuals
The transaction value or Rs.
2 with annual average balance (during 365 days
10,000 whichever is lower
preceding the incidence of fraud) / limit up to
Rs.25 lakh)
Within 4 to 7 working days (All Other Current/ The transaction value or Rs.
3
Cash credit/ Overdraft Accounts) 25,000 whichever is lower
Full transaction value
4 Beyond 7 working days
(Zero liability on bank)
Note: Any unauthorized electronic banking transaction reported after 7 working days
from the date of receiving the communication will be treated as 100% customer liability.
19.1.3 Third Party Breach:
The following would be considered as Third party breach where deficiency lies neither
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Department Branches Coordination Cell [BRCC]
Year 2021-22
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with the Bank nor with the customer but elsewhere in the system:
a. Application Frauds
b. Account Takeover
c. Skimming / Cloning
d. External Frauds / Compromise of other systems, for e.g. ATMs / mail servers
etc. being compromised
19.1.4 Reversal Timeline for Zero Liability/ Limited Liability of customer:
1. The Bank shall afford shadow credit to the customer account within 10 working
days from the date of reporting in all cases as per above statements. Within 90
days of date of reporting, the Bank shall either establish customer negligence or
provide final credit to customer. Customers will be given value dated credit (based
on date of unauthorized transaction) when customer becomes eligible to be
compensated. In case of Debit Card/ Bank Account, the customer shall not suffer
loss of interest.
2. The Bank, discretion and in circumstances so prevailing may, agree to credit the
customer even in case of an established negligence by the customer.
3. Customer would not be entitled to compensation of loss if any, in case customer
does not agree to get the card hot listed or does not cooperate with the Bank by
providing necessary documents and evidences including but not limited to police
complaint and cardholder dispute form.
4. Compensation would be limited to real loss after deduction of reversals or
recoveries received by the customer.

20. Roles & Responsibilities of the bank:

1. The Bank shall ensure that the Compensation Policy is available on the Bank’s
website as well as at Bank’s branches for the reference by customers. The Bank
shall also ensure that existing customers are individually informed about the bank’s
policy.
2. The Bank will regularly conduct awareness on carrying out safe electronic banking
transactions to its customers and staff. Information of Safe Banking practices will
be made available through campaigns or any or all of the following - website,
emails, ATMs, Phone Banking, Net Banking, mobile Banking. Such information will
include rights and obligation of the customers as well as non-disclosure of sensitive
information e.g. Password, PIN, OTP, date of birth, MPIN etc.
3. The Bank should communicate to its customers to mandatorily register for SMS
alerts. The Bank will send SMS alerts to all valid registered mobile numbers for all
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Department Branches Coordination Cell [BRCC]
Year 2021-22
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debit electronic banking transactions. The Bank may also send alert by email where
email Id has been registered with the Bank.
4. The Bank will enable various modes for reporting of unauthorized transaction by
customers. These may include SMS, Call Centre, Email, Website, Toll Free Number,
IVR, Phone Banking or through its branches. The Bank will also enable specific
space on its home page where customers can report unauthorized electronic
banking transaction.
5. The Bank shall respond to customer’s notification of unauthorized electronic
banking transaction with acknowledgement specifying Complaint Number, date
and time of transaction alert sent, date and time of receipt of customer’s
notification. On receipt of customer’s notification, the Bank will take immediate
steps to prevent further unauthorized electronic banking transactions in the
account or card.
6. The Bank shall ensure that all such complaints are resolved and liability of customer
if any, established within a maximum of 90 days from the date of receipt of
complaint, failing which, bank would pay compensation as described in this policy.
7. During investigation, in case it is detected that the customer has falsely claimed or
disputed a valid transaction, the bank reserves its right to take due preventive
action of the same including closing the account, blocking card limits or other
course of actions, as per governing laws of land.
8. The Bank may restrict customer from conducting electronic banking transaction
including ATM transaction in case of non-availability of customer’s mobile number.
9. This policy should be read in conjunction with the latest Policies/Guidelines,
Product & Services features, Terms and condition, notices, information etc. placed
in website of the Bank. Clauses from the Bank’s Grievance Redressed Policy shall
form a part of this policy where not specifically addressed in this policy.
21. Rights & Obligations of the Customer:
21.1 Customer is entitled to -
1. SMS alerts on valid registered mobile number for all financial electronic debit
transactions.
2. Email alerts where valid email Id is registered for alerts with the Bank.
3. Register complaint through multiple modes as specified in point relating to Bank’s
roles & responsibilities.
4. Intimation at valid registered email/ mobile number with complaint number and
date & time of complaint.
5. compensation in line with this policy document where applicable. This would
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Department Branches Coordination Cell [BRCC]
Year 2021-22
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include getting shadow credit within 10 working days from reporting date and final
credit within 90 days of reporting date subject to customer fulfilling obligations
detailed herein and with customer liability being limited as specified
21.2 Customer is bound by following obligations with respect to banking activities:
Bank shall inform/update the customers its various initiative/Products/Services/Charges
and more particularly adopted by the Customers from time to time. Other key points are
enumerated as under:
1. Customer shall mandatorily register valid mobile number with the Bank.
2. Customer shall regularly update his /her registered contact details as soon as such
registered details goes to Trash/Spam of SMS/Email and are changed. It will be
responsibility of the customer to view/update with such alerts. Bank will only reach
out to customer at the last registered/known email/ mobile number. Any failure on
the part of customer to update the Bank with changes shall be considered as
customer negligence. Any unauthorized transaction arising out of this
negligence/delay shall be treated as customer liability.
3. Customer should provide all necessary documentation - customer dispute form,
proof of transaction success/ failure and should also file a police complaint and
provide copy of the same to the Bank.
4. Customer should co-operate with the Bank’s investigating authorities and provide
all assistance.
5. Customer must not share sensitive information (such as Debit/Credit Card details
6 PIN, CW, Net Banking Id & password, OTP, transaction PIN, MPIN in case of UPI
transactions, security questions etc.) with any entity, including bank staff.
6. Customer must protect his/her device as per best practices specified on the Bank’s
website, including updating of latest antivirus software on the device (Device
includes smart phone, feature phone, laptop, desktop and Tab) etc.
7. Customer shall abide by the tips and safeguards mentioned on the Bank’s Website
for alerts/updates on Secured Banking.
8. Customer shall go through various instructions and awareness communication
sent by the bank on secured banking.
9. Customer must set transaction limits in various mode of Alternate Banking
Channels to ensure minimized exposure to any such fraudulent attempts.
10. Customer must verify transaction details from time to time in his/her Bank Account
Statement and/or Credit Card Statement and raise query with the bank as soon as
possible in case of any mismatch/discrepancy/disagreement.
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Department Branches Coordination Cell [BRCC]
Year 2021-22
Status Board Approved

21.3 Notifying the Bank of the unauthorized transaction:

1. Customer shall report unauthorized transaction to the Bank at the earliest, with
basic details such as Account No/Customer ID and/ or Card number, date & time
of transaction and amount of transaction.
2. Customer shall follow bank’s reporting process viz.
a. Notify/ report through SMS, email, website, toll free number, IVR, Phone
Banking or through its branches. In case customer is unable to do so,
customer could report through phone banking or at the nearest branch.
b. Lodge police complaint and maintain copy of the same and furnish police
complaint when sought by bank’s authorized personnel.
3. Customer shall authorize the bank to block the credit/ debit card/ net banking/
account(s) to reduce likelihood of additional loss.
4. Customer to clearly specify the facilities to be blocked failing which the Bank
reserves the right to block all electronic transactions of the customer to protect the
customer’s interest. Also, revoking these blocks would require explicit consent from
customer for each facility.
5. Customer shall share relevant documents as needed for investigation or insurance
claim viz. cardholder dispute form, copy of passport in case of international
transactions and police complaint.
6. Fully co-operate and comply with Bank’s reasonable requirements towards
investigation and provide details of transaction, customer presence, etc.
21.4 Burden of Proof of customer Liability:
The burden of proving customer liability in case of unauthorized electronic banking
transactions shall lie on the bank. The Bank has a process of second factor authentication
for electronic transactions, as regulated by the Reserve Bank of India. Bank has
responsibility to prove that all logs / proofs / reports for confirming two factor
authentication is available. Any unauthorized electronic banking transaction which has
been processed post second factor authentication known only to the customer would be
considered as sufficient proof of customer’s involvement / consent in effecting the
transaction.
22. Reporting and Monitoring:
Digital Banking Department shall report the customer liability cases to the Customer
Service Committee of the Board every Quarter. The reporting shall, inter alia, include
volume/ number of cases and the aggregate value involved and distribution across
various categories of cases viz., card present transactions, card not present transactions,
internet banking, mobile banking, ATM transactions, etc. The Standing Committee on
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Department Branches Coordination Cell [BRCC]
Year 2021-22
Status Board Approved

Customer Service in the bank shall periodically review the unauthorized electronic
banking transactions reported by customers or otherwise, as also the action taken
thereon, the functioning of the grievance redress mechanism and take appropriate
measures to improve the systems and procedures. All such transactions shall be reviewed
by the bank’s internal auditors.
23. Force Majeure:
The Bank shall not be liable to compensate customers for delayed credit if some
unforeseen event (including but not limited to Civil Commotion, Sabotage, Lockout,
Lockdown, Strike or other labor disturbances, accident, fires, natural disasters or other
“Acts of God”, War, Pandemic, Invocation of Disaster Management Act by any authority
of the country such as Central/State/District/Local, Damage to the bank’s facilities or of
its correspondent bank(s), absence of the usual means of communication or all types of
transportation, etc.) beyond the control of the bank, prevents it from performing its
obligations within the specified service delivery parameters.
24. Wealth management Products: Insurance/investment Distribution Related
Customer Grievance:
For any deficiencies in services at the bank level raised by customers, the issue will be
examined by the bank and if the lapse on the part of the bank is confirmed (mis-selling)
the customer will be compensated, based on the facts and circumstances of the case.
25. Customer Responsibility:
25.1 Bank with not be responsible for the loss to the customers due to customer’s
carelessness in keeping the Cheque book, passbook, cards, PIN or other security
information and not following “Do’s and Don’ts” issued by the Bank, until the Bank has
been notified by the customer.
25.2 The Bank will not be responsible for the loss to the customer, if the customer acts
fraudulently and/or acts without reasonable care which has resulted in toss to his/her.
Bank will also not be responsible for the losses arising out of misuse of lost PIN,
compromise of passwords or confidential information, until the time the Bank has been
notified of such loss/compromise and has taken steps to prevent its misuse.
26. Disclaimer Clause:
Notwithstanding anything contained here above, the Bank shall not pay any
compensation in the following cases:
a. Any deficiency with regard to loans and advances activities of the Bank.
b. Dishonor of at par payment agreement with other banks, due to non- funding and
security compliance.
c. In case of delay on account of non-functioning of business due to factors beyond
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Department Branches Coordination Cell [BRCC]
Year 2021-22
Status Board Approved

the control of the bank the period covered by such events shall be omitted for
calculation of delay etc.
d. Where the issues are sub-judice and pending before Courts, Ombudsman,
Arbitrator, Government and/or matter put on hold due to stay.
27. Validity & Review of the Policy:
The Managing Director is authorized to do suitable modifications to the policy in tune
with the regulatory guidelines issued from time to time or internal requirements or as and
when considered necessary.

Sd/-
MANAGING DIRECTOR