Banking: Uday Sareen

My home loan from a public sector bank ended about two months back. However, the bank has not sent me a letter confirming the closure of the account. Further, they have misplaced the property papers held as collateral. Would they reimburse me for any expenses incurred in getting a fresh set of documents? If not, what are my options?
In such instances, banks usually file a First Information Report (FIR) for the misplaced property papers. Also, they assist you in procuring certified copies of the papers, apart from giving in writing the papers were lost in their custody. The FIR, letter and certified copies largely mitigate any risk in the sale of such properties. All expenses incurred in filing the FIR and procuring the certified copy of the property papers are usually borne by the bank.

Additionally, you may request an indemnity from the bank, consequent to any loss you may sustain on account of marketability of the property due to non availability of the original title deed.

I am moving to Japan for a three-year assignment.
I have four savings accounts, of which I plan to close two before leaving. Will the other two accounts become defunct if there are no transactions?
I intend to keep Rs 50,000 as balance. What should I do to keep the account active without any debit or credit transactions?
Banks typically classify an account ‘inoperative’ when there are no customer initiated transactions for two years. They review these accounts annually and take steps to contact the customer. The rationale behind such a classification is to protect your money from being misused by others.

It is advisable to inform your bank when your residential status changes from a resident to a non-resident. Secondly, inform the bank of the possibility of you not operating the account for some time. The bank shall classify your account as a non-resident ordinary (NRO) account, operative for one year. To ensure a smooth relationship, it is advisable to provide an email address where the bank can contact you.

I want to take a loan against my mutual fund units. What is the process? How will the bank decide if I am eligible for the loan and for what amount? Would the approval depend on whether the units are held in dematerialised form or not?
To avail a loan against your mutual fund units, you need to ascertain if the units are approved by the bank for lending against. Banks typically lend against open-ended mutual funds. Further, the units do not need to be in demat form for the same.

On an average, banks lend up to 50 per cent of the value of equity mutual fund units and higher for debt mutual funds. The bank will check your credit history before sanctioning the loan. Once approved, you will need to complete the requisite documentation.

The writer is country head (retail banking), ING Vysya Bank. The views expressed are his own. You can send your queries to yourmoney@bsmail.in