Banking: Prashant Joshi

How do banks charge the penalty for premature withdrawal on term deposits?
The penal rate is reduced from the interest rate applicable for the tenure your fixed deposit (FD) has completed. For example, the interest payable on the premature withdrawal of term deposits is one per cent below the rate applicable for the period the deposit has remained with the bank, or one per cent below the contracted rate, whichever is lower. Please note that the penal rate may vary across different banks..

10 years back, I took a housing loan of Rs 15 lakh from a private sector bank. Over the last two years, I could not pay the equated monthly instalments (EMIs) on time due to financial difficulties. However, I repaid the entire loan in December 2010. Still, the bank is not returning the original documents of the house which I had submitted while availing the loan. On enquiring about the same, I didn’t get a satisfactory answer. What should I do?
Please approach the relevant department of the bank to understand the reasons behind the bank’s refusal to return the original property documents. Given the payment difficulties you had, there might be some unpaid interest or charges even as you have cleared the balance loan outstanding. You can also approach the nodal officer of the bank. If you are dissatisfied with the response, you can approach the banking ombudsman.

 

I hold a joint savings account with my wife. I want to link the same to my demat account. However, the demat account is not held jointly. Is it possible to link it to the joint savings account?
Yes, it is possible to link the demat account held in your name to the savings account held jointly with your wife.

I started my new job about two months back. I changed my residence last week and requested for a change in my correspondence address. However, the bank did not update the address and delivered my new debit card and PIN number to the old address. My card was misused and some money was withdrawn. However, the bank is refusing to compensate me. What can I do?
Each bank follows the Reserve Bank of India (RBI) guidelines and its own policy pertaining to the documents required, the checks undertaken and the time taken for changing a customer’s address. Your bank would have informed you of these requirements when you approached them for changing your address. You need to adhere to the requirements prescribed by your bank to ensure your new address is updated in their records.

In any case, the bank is supposed to deliver the debit card and the PIN through a special arrangement with a courier company such that the card/PIN is delivered to you personally (against production of a photo id). You may take up the matter with your bank. If you do not receive a timely and favorable response, you can choose to escalate the matter to the nodal officer of the bank (details of nodal officers should be available on the bank’s website), failing which you can take up the matter with the banking ombudsman.

The writer is MD & head, private & business clients (India), Deutsche Bank. Send your queries to yourmoney@bsmail.in