Friday, June 23, 2017

RBI Missive @ Recording of Details of Transactions in Passbook/ Statement of Account


           Reserve Bank of India has issued fresh guidelines regarding ‘Recording of Details of Transactions in Passbook/ Statement of Account’,

          Q: What is Bank Passbook/Statement of Account?
Ans: Statement is a record of all money going into and coming out of your account over a period of time.  

Bank statements can be accessed through Net Banking, Mobile Banking APP, online or on paper.

Your statement will show your balance at a given time and the money you have available to take out of the account.

Reserve Bank of India’s Circular No RBI/2016-17/326 DBR.No.Leg.BC.76/09.07.005/2016-17, dt June 22, 2017, highlights the basic details which have to reflect in the Bank Account Passbook/Statement of Account .

Illustrative narrations to be recorded in the Statement of Account/ Passbook

Two categories of transactions reflect in the Bank Account Passbook/Statement of Account - Debit Category and Credit Category

Debit means withdrawal and Credit means deposit

I.       Debit entries

a) Payment to third parties      

(i) Name of the payee
(ii) Mode – Transfer, clearing, inter-branch, RTGS/ NEFT, cash, cheque (number)
(iii) Name of the transferee bank, if the payment is made through clearing/ inter-branch transaction/ RTGS/ NEFT

b) Payment to ‘self’         

(i) Indicate “Self” as payee
(ii) Name of the ATM/ branch if the payment is made by ATM/ another branch

c) Issuance of drafts/ pay orders/ any other payment instrument      

(i) Name of the payee (in brief/ acronym)
(ii) Name of the drawee bank/ branch/ service branch

d) Bank charges    

(i) Nature of the charges – fee/ commission/ fine/ penalty etc.
(ii) Reasons for the charges, in brief – e.g. return of cheque (number), commission/ fee on draft issued/ remittance (draft number), cheque collection charge (number), issuance of cheque book, SMS alerts, ATM fees, additional cash withdrawals, etc.

e) Reversal of wrong credits    

(i) Date of the original credit entry reversed
(ii) Reasons for reversal, in brief

f) Recovery of instalments of a loan/ interest on loan      

(i) Loan account number
(ii) Name of the Loan account holder


g) Creation of fixed deposit/ recurring deposit     

(i) Fixed Deposit/ Recurring Deposit Account/ Receipt number
(ii) Name of the Fixed Deposit/ Recurring Deposit Account holder

h) Transactions at POS   

(i) Transaction date, time and identification number
(ii) Location of the POS

i) Any other (i) Provide adequate details on the same lines as mentioned above.

Note: In case of single debit in account with multiple credits, the payee name/ account number/ branch/ bank shall not be recorded. However, the fact of “multiple payees” will be indicated.


II.     Credit Entries

a) Cash deposit     

(i) Indicate that it is a “cash deposit”
(ii) Name of the depositor – self/ third party

b) Receipt from third parties  

(i) Name of the remitter/ transferor
(ii) Mode – Transfer, inter-branch, RTGS/ NEFT, cash, etc.
(iii) Name of the transferor bank, if the payment is received through inter-branch transaction, RTGS/ NEFT

c) Proceeds of clearing/ collection/ draft etc. paid

(i) Name of the draft issuing bank
(ii) Date and number of the cheque/ draft

d) Reversal of wrong debits (including charges)     

(i) Date of the original debit entry reversed
(ii) Reasons for reversal, in brief


e) Interest on deposits  

(i) Mention if it is interest paid on the Savings Account/ Fixed Deposit
(ii) Mention the respective Fixed Deposit Account/ Receipt Number if it is interest paid on Fixed Deposit(s)

f) Maturity proceeds of fixed deposit/ recurring deposit         

(i) Name of the Fixed Deposit/ Recurring Deposit holder
(ii) Fixed Deposit/ Recurring Deposit account/ receipt number
(iii) Date of maturity

g) Loan proceeds    (i) Loan account number

h) Any other          (i) Provide adequate details


          The operative date of the circular is not mentioned, this means that the banks have to implement these changes immediately

Extract from:  BCSBI Code of Banks Commitment to Customers

Quote:

Statements: To help you manage your account and check entries in it, we will provide you with a monthly statement of account unless you have opted for a pass book.

Unquote:

          Reserve Bank of India vide Paragraphs 6 and 7 of Circular DBOD.No.Leg.BC.74/09.07.005/2003-04 dated April 10, 2004 had advised  banks to avoid inscrutable entries in passbooks/ statements of account and ensure that brief, intelligible particulars are invariably entered in passbooks/ statements of account with a view to avoiding inconvenience to depositors.

          However, account-holders have approached Reserve Bank of India or highlighted in various forums the difficulties in interpreting details in Bank Account Passbook/Statement of Account.
         
          Statement of Accounts not only assists account holders to keep a track of thief financial transactions but also assist third-parties to arrive at the financial position of the account holders.
         
          Hence it is of utmost importance that the Transactions Details in Bank Account Passbook/Statement of Account are legible and make sense to the reader. The clearer are the transaction details, the less account holders will approach Bank staff/Call Centre for clarity.


 Additional specific guidelines::

NACH:
         
As per NPCI NACH Circular dt October 05, 2016, Sponsor Banks have to provide ‘User Name’, and ‘User Ref No’, in the transaction file. This will enable Destination Banks to consume these details and ensure that the same reflect in the account holders Passbook/Statement of Account.
         
NEFT:

As per RBI NEFT procedural guidelines, beneficiary has to be advised of the Receipt of Funds in his/her bank account. The Account Statement / Pass Book entry or any online messaging system shall indicate briefly the source of funds as well.

For this purpose, the mandatory field 6091 which contains the remitter's name shall be picked up for the source of credit and information contained shall be printed in the Account Statement / Pass Book. Banks originating transactions shall ensure proper and meaningful details are provided in this field.



Description of field 6091 is:

M  6091  Sending customer a/c name    50x    Sender's account name
         

Sender to be advised in Case of NEFT Returns - If the beneficiary specified in the sender's payment instruction fails to get payment through the NEFT system for some valid reasons, the sender shall be informed immediately after the sending bank gets the returned NEFT.

The originating bank shall provide the description “NEFT-Return” in the pass book / account statement of the originator whose NEFT transaction is returned.



Additional Reading:

01) ‘Make bank statements less cryptic’


02)            A PAPER TO PROVIDE MEANINGFUL INFORMATION IN THE BANK PASSBOOK/ ACCOUNT STATEMENTS

03)           History of Passbook






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