DEBT COUNSELLING: Sanjay Agarwal

What is the role of a nodal officer in a bank? I have some issues with my bank. How do I get in touch with this official? I am told that the Reserve Bank of India (RBI) has asked banks to mention the name and contact of the nodal officer on their website. But my bank does not have this detail.
Nodal officer is the final authority in a bank for customer grievance redressal, who is to be approached only if other channels and managers have not provided a resolution. You should first write to the local account/branch manager and escalate the matter to the nodal officer only if required. His contact particulars can be taken from the local manager also. However, non-availability of details of the nodal officer on the bank’s website can be reported to the Banking Ombudsman of RBI for your area.

I defaulted on my home loan and the bank sent me a notice. It said the guarantor and I should visit the bank. It also said if I do not meet the bank’s demand within 60 days of receiving the notice, they would resort to Sarfaesi (The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests) Act in India. What is the nature and scope of this act in my case? What happens if I do not obey the order for 60 days?
In your case, it appears that the bank has already resorted to Sarfaesi action by issuing the 60-day notice, which is termed as 'Demand Notice' under the Sarfaesi Act, 2002. In the absence of any reply from you within the stipulated 60-day period, the bank is entitled to take possession of the premises and sell it in accordance with the law and rules laid under the Sarfaesi Act to recover its dues. If a reply is given or an objection is raised by you, the same is required to be replied by the bank regarding its acceptance or non-acceptance, with reasons thereof, within seven days from the date of its receipt. I’d recommend that you give a formal reply to the bank and propose a date and time to discuss the settlement plan. The same may be discussed and put in writing during your visit to the bank.

I just got a new job after being laid off six months ago. In the meanwhile, my credit card bill has run up. I am adamant on creating a corpus that would help me sustain in such difficult times for at least six months as soon as I can. However, my wife has been insisting that I should clear the credit card dues first, which can take up to five months. What do you think is the right way ahead?
While it is important to create a corpus for the future, you must remember that the credit card is the most expensive means to raise funds. Apart from late payment charges that you pay, interest rate on outstanding balances may go up to 40 per cent annually. In addition, you do not get any interest-free period for fresh purchases on the card. You should agree to what your wife is saying.

The writer is the vice-president and group head of retail strategy and branding at Arcil. The counselor’s views expressed here are his own. Send your queries at yourmoney@bsmail.in