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Introduction
Reserve Bank has issued various guidelines on Customer Service in general and on specific aspects relating to immediate credit for the outstation instruments sent for collection, payment of interest for delay in collection of instrument, adherence of time schedule in such matters as payment to customers, issue of DDs/TTs, issue of cheque books, etc. The Bank in endeavor to provide better customer services adopts the following in its Customer Service Policy
2. Service at the Counters
2.1 Business and working hours
The Cash Transaction Business Hours are hereby fixed from 10.00 A.M. to 4.00 P.M on all business days. Non Cash Transactions may be carried out till 4.30 P.M. on all working days.The employees are expected to be at their seats at the commencement of the business hours and attend to all the customers who are in the branch prior to the close of business hours.
2.2 Display of time norms
Time norms for specified business transactions should be displayed prominently in the banking hall so that it attracts the customers' attention as well as that of the employees for adherence.
2.3 There are complaints that counters are closed at the end of business hours, without disposing of customers. All customers who enter the banking hall before the close of business hours may be attended to.
2.4 Extension of business hours for non-cash transactions: Staff at the counters may undertake the following transactions during the extended business hours.
(a) non-voucher generating transactions:
i. issue of passbook/statement of accounts
ii. issue of cheque book
iii. delivery of term deposit receipts/drafts
iv. acceptance of share application form; and
v. acceptance of clearing cheques/bills for collection
(b) voucher generating transactions:
i. issue of term deposit receipts (TDR)
ii. acceptance of cheques for locker rent due;
iii. acceptance of individual cheques for transfer credit
2.5 Uninterrupted Service
Branch may devise appropriate procedures to ensure that no counter remains unattended during the business hours and uninterrupted service is rendered to the customers by making adequate relief arrangements as may be necessary. Single window concept may be introduced in absence of sufficient staff or staff on leave.
2.6 Provision of Note Counting Machines on counters
All branches should install dual display note counting machines at the payment counters of their branches for the use of their customers towards building confidence in the minds of the public to accept note packets secured with paper bands.
2.8. Facilities at Extension Counters
Banks are allowed to undertake following limited transactions at the Extension Counters:
i. Deposit / withdrawal transactions,
ii. Issue and encashment of drafts and mail transfers,
iii. Collection of bills,
iv. Advances against fixed deposits of their customers (within the sanctioning power of the official concerned at the Extension Counter) and
v. Disbursement of other loans (only for individuals) sanctioned by the Head Office/ base branch up to the limit of 10 lakh per loanee only.
3. Deposit and other Accounts
3.1 Rights of Transgender Persons-Changes in Bank Forms/Applications
Branches are directed to include 'third gender' in all forms / applications etc wherein any gender classification is envisaged.
3.2 Savings bank passbooks/ statement of accounts
(a) Branches should ensure that full address / telephone number of the branch is invariably mentioned in the Pass Book / Statement of Accounts issued to account holders.
(b) Branch should provide MICR code and IFSC Code of the branch in all passbook /statement of account to their account holders.
(c) Branches should invariably offer passbook facility to all their savings bank account-holders (individuals). The cost of providing such passbooks should not be recovered from the customers.
(d) Branch must ensure that the passbooks are updated on an ongoing basis, and complete and correct particulars are written in a legible hand
(e) Customers also need to be educated to submit the passbooks regularly for updating
(f) As a rule, passbooks may be updated immediately on submission. If updating is not possible immediately due to a large number of entries, then paper tokens be issued for collection of passbooks on the next day.
(g) Remitter details should be furnished in pass book / pass sheet / account statement for credits received by customers through NEFT / NECS / ECS
3.3 Term deposits
(a) Branches should ensure that various term deposit schemes are made known to the customers through proper publicity and advice. The customers need to also be informed specifically of the provision of monthly interest on term deposits at a discounted rate and the facility of safe custody of term deposit receipts.
(b) Term deposit application forms may be so devised as to contain a direction for disposal of deposits on maturity. In those cases where the customer does not indicate the course of action by the bank on maturity of deposits, banks may as a rule auto renew the term deposit for a period for which the term deposit was originally made at the then prevailing rate. If the customer approaches the branch at a future date and desires to withdraw the amount the branch may make pre-payment according to the then prevailing rules. In no case the interest paid should be less than saving interest rate for pre mature disposal of term deposits.
3.4 Advisory Services on deposit schemes
There is room for providing customer satisfaction by assisting customers in taking proper decisions for investment in various deposit schemes having regard to their particular needs and expectations. The bank should provide assistance/guidance to customers in the area of investment of funds in the various deposit schemes vis-à-vis the requirement of the customers.
3.5 Brochures/pamphlets for guidance of customers
Bank may make available to the customers brochures/ pamphlets in regional language/Hindi /English giving details of various schemes available and terms and conditions thereof. Such brochures may also contain, among others, dos and don'ts for smooth handling of day-to-day banking transactions, e.g. updating of passbooks, preferably in the leaner weeks of the month, say, third/fourth week, advantages of maintaining joint accounts and nomination, keeping the term deposit receipts in safe custody with the banks with instructions for disposal on maturity etc.
3.6 Claims in respect of missing persons
The settlement of claims in respect of missing persons would be governed by the provisions of Section 107 / 108 of the Indian Evidence Act, 1872. Section 107 deals with presumption of continuance and Section 108 deals with presumption of death. As per the provisions of Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of seven years from the date of his/her being reported missing. As such, the nominee / legal heirs have to raise an express presumption of death of the subscriber under Section 107/108 of the Indian Evidence Act before a competent court. If the court presumes that he/she is dead, then the claim in respect of a missing person can be settled on the basis of the same.
As a policy, which would enable branches to settle the claims of a missing person, after considering the legal opinion and taking into account the facts and circumstances of each case and keeping in view the imperative need to avoid inconvenience and undue hardship to the common person, a threshold limit of Rs 10000/- ( Ten Thousand Only )is fixed , up to which claims in respect of missing persons could be settled without insisting on production of any documentation other than (i) FIR and the non-traceable report issued by police authorities and (ii) letter of indemnity.
4. Safe Deposit Lockers
4.1. Allotment and operation of Lockers
4.1.1 Linking of Allotment of Lockers to placement of Fixed Deposits
Bank should not link the provisions of lockers facility with placement of fixed or any other deposit beyond what is specifically permitted.
4.1.2 Fixed Deposit as Security for Lockers
Bank may obtain a Fixed Deposit which would cover 3 year's rent and the charges for breaking open the locker in case of an eventuality. However, bank should not insist on such Fixed Deposit from the existing locker hirers.
4.1.3 Wait List of Lockers
Branches should maintain a wait list for the purpose of allotment of lockers and ensure transparency in allotment of lockers. All applications received for allotment of locker should be acknowledged and given a wait list number.
4.1.4 Security aspects relating to Safe Deposit Lockers
(a) Operations of Safe Deposit Vaults/Lockers
Bank should exercise due care and necessary precaution for the protection of the lockers provided to the customer.
(b) Customer due diligence for allotment of lockers
(i) Bank should carry out customer due diligence for both new and existing customers at least to the levels prescribed for customers classified as medium risk. If the customer is classified in a higher risk category, customer due diligence as per KYC norms applicable to such higher risk category should be carried out.
(ii) Where the lockers have not been operated for more than three years for medium risk category or one year for a higher risk category, bank should immediately contact the locker hirer and advise him to either operate the locker or surrender it. This exercise should be carried out even if the locker hirer is paying the rent regularly. Further, bank should ask the locker hirer to give in writing, the reasons why he / she did not operate the locker. In case the locker hirer has some genuine reasons as in the case of NRIs or persons who are out of town due to a transferable job etc., bank may allow the locker hirer to continue with the locker. In case the locker hirer does not respond nor operate the locker, bank should consider opening the lockers after giving due notice to him. In this context, bank should incorporate a clause in the locker agreement that in case the locker is not operated for more than one year, the bank would have the right to cancel the allotment of the locker and open the locker, even if the rent is paid regularly.
(iii) Bank may in consultation with their legal advisers break open the lockers and take stock of inventory wherever necessary.
(iv) In order to facilitate identifying the ownership of the locker keys, banks should introduce a system whereby the locker keys could be embossed with the Identification Code of the bank/branch. An arrangement for installation of necessary machinery at the branches with the help of the vendor company of the locker cabinet may be made for this purpose. The branches concerned may advise all the locker hirers about the embossing of the locker keys. It may also be ensured that the Identification Code is embossed on the locker keys in the presence of the locker hirer only. While Identification Code should be embossed on keys of all new lockers to be installed, in respect of keys of already hired out lockers, the Identification Code may be embossed whenever the hirer visits the bank to operate the locker.
4.1.5 Access to the safe deposit lockers / return of safe custody articles to Survivor(s) / Nominee(s) / Legal heir(s)
For return of contents of lockers / safe custody articles to Survivor / Nominee / Legal Heirs, proper documentation regarding Nominee survivors or legal Heirs may be completed.
4.1.6 Access to the safe deposit lockers / return of safe custody articles (with survivor/nominee clause)
If the sole locker hirer nominates a person, bank should give to such nominee access of the locker and liberty to remove the contents of the locker in the event of the death of the sole locker hirer. In case the locker was hired jointly with the instructions to operate it under joint signatures, and the locker hirer(s) nominates person(s), in the event of death of any of the locker hirers, the bank should give access of the locker and the liberty to remove the contents jointly to the survivor(s) and the nominee(s). In case the locker was hired jointly with survivorship clause and the hirers instructed that the access of the locker should be given over to ‘either or survivor’, ‘anyone or survivor’ or ‘former or survivor’ or according to any other survivorship clause, bank should follow the mandate in the event of the death of one or more of the locker hirers. However, bank should take the following precautions before handing over the contents:
a. Bank should exercise due care and caution in establishing the identity of the survivor(s)/ nominee(s) and the fact of death of the locker hirer by obtaining appropriate documentary evidence.
b. Bank should make diligent effort to find out if there is any order from a competent court restraining the bank from giving access to the locker of the deceased.
c. Banks should make it clear to the survivor(s) / nominee(s) that access to locker / safe custody articles is given to them only as a trustee of the legal heirs of the deceased locker hirer; such access given to them shall not affect the right or claim which any person may have against the survivor(s) / nominee(s) to whom the access is given.
4.1.7 Access to the safe deposit lockers / return of safe custody articles (without survivor/nominee clause)
There is an imperative need to avoid inconvenience and undue hardship to legal heir(s) of the locker hirer(s). In case where the deceased locker hirer had not made any nomination or where the joint hirers had not given any mandate that the access may be given to one or more of the survivors by a clear survivorship clause, bank may adopt a customer-friendly procedure drawn up in consultation with their legal advisers for giving access to legal heir(s) / legal representative of the deceased locker hirer. Similar procedure should be followed for the articles under safe custody of the bank.
4.1.8 The provisions of Sections 45 ZC to 45 ZF of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies (AACS)) and the Co-operative Banks (Nomination) Rules, 1985 and the relevant provisions of Indian Contract Act and Indian Succession Act will be applicable on the bank in all cases.
4.1.9 Bank should prepare an inventory before returning articles left in safe custody / before permitting removal of the contents of a safe deposit
4.2 Customer Guidance and Publicity
Benefits of nomination / survivorship clause
Bank should give wide publicity and provide guidance to locker-hirers / depositors of safe custody articles on the benefits of the nomination facility and the survivorship clause.
4.3 IT enabled Financial Inclusion
Bank is urged to scale up IT initiatives for financial inclusion speedily while ensuring that solutions are highly secure, amenable to audit, and follow widely accepted open standards to ensure eventual inter-operability among the different systems.
5. Banking facilities to the visually challenged
All the banking facilities such as cheque book facility including third party cheques, ATM facility, Net banking facility, locker facility, retail loans, credit cards etc. are required to be invariably offered to the visually challenged without any discrimination. Branches may render all possible assistance to the visually challenged for availing the various banking facilities.
In addition to the above, magnifying glasses should also be provided in all bank branches for the use of persons with low vision, wherever they require, for carrying out banking transactions with ease. Branches should display at a prominent place notice about the availability of magnifying glasses and other facilities available for persons with disabilities.
6. Identity badges
Each employee may wear on his person, identity badge with photograph and name prominently displayed on it. Besides giving an official touch, it will create a better rapport with the customers.
7. Job enrichment
Periodic change of duties and job rotation among employees is necessary. Elementary checking functions such as authentication of pass books/ issuance of receipts for cheques deposited for credit to the customers' accounts etc., would not only make useful contribution towards customer service but also would give a boost to the morale and self image of the employees.
8. Training
It is essential to align the training programs to the needs in various areas with an eye on customer service. The employees should be trained to develop the right kind of attitude towards customer service, and empathy towards customer needs and expectations. Training programs may be so devised as to bring about positive attitudinal changes compatible to customer orientation.
9. Induction training
Training to new recruits should be a precursor to other follow - up training programs. All new recruits, i.e. clerks/officers should be necessarily exposed to induction program immediately after recruitment.
10. Complaint box and book
A Complaint cum Suggestion Box may be kept in the bank premises at a prominent place. Every bank branch may also maintain a Complaint Book with adequate number of perforated copies in each set, so designed as to instantly provide the complainant with an acknowledged copy of the complaint
11. Inspection/Audit reports
The internal inspectors/auditors including audit firms engaged for the purpose during the course of their inspection/audit of branches should examine the various customer service aspects including the efficacy of the complaints handling and grievance redressal machinery; and based on their observations, record the improvements and deficiencies in various areas.
12. Complaint prone employees
Placement of employees in customer contact slots should be on a selective basis. By imaginative and innovative approaches, enough number of employees can be brought-up by training. Cases of deliberate recalcitrance and disregard of customer service spirit should be taken note of and kept in concerned employees’ service records apart from taking other action against such employees.
13. Periodical visits by senior officials
Senior officials while visiting the branches should also give priority to the customer service aspects. It will be great advantage if senior official counter checks the actual ‘branch atmosphere’ by having in hand a report on customer service submitted by the branch.
14. Infrastructure provision
Bank may bestow attention to providing adequate space, proper furniture, drinking water facilities, clean environment, (which include keeping the walls free of posters) etc., in their premises to enable conduct of banking transactions smoothly and more comfortably.
15. Customer education
Customer education both in regard to rights and responsibilities in dealing with banks should be viewed as a fundamental issue in any attempt to improve customer service. Customer should be made aware not only of the various schemes and services offered by bank, but also about the formalities, procedures, legal requirements and limitations in the matter of providing services by the bank, through a proper mix of advertisements, literature, interface, seminars, etc. Bank should involve their employees in all customer education programs.
16. Security arrangements
In view of the incidents involving terrorists/dacoits, bank should review and improve upon the existing security system in branches so as to instill confidence amongst the employees and the public. Regular drill/ training to the security staff should be ensured.
17. Fair Practices Code - Display of Bank/ Service Charge Comprehensive Notice Board
Bank should put up in a notice board important aspects or indicators on ‘customer service information’, ‘service charges’, ‘grievance redressal’ and ‘others’. The notice board should be updated on a periodical basis.
Bank should display information relating to interest rates and service charges in their premises as well as post it on tits websites, to enable the customer to obtain the desired
Further, bank should also display at their offices/ branches the service charges relating to the following services in the local languages:
18. Cheque Books/Cheque Collection etc
18.1 Issue of Cheque Books
Bank should ensure that their cheque books are printed with due care and the perforation in the cheque leaves as also binding of cheque books are up to the mark so as to avoid any inconvenience to the customers
18.2 Cheque Drop Facility and the Facility for Acknowledgement of cheques
While the cheque drop facility may be made available to the customers, the facility for acknowledgement of cheques at the regular collection counters should not be denied to them. No branch should refuse to give an acknowledgement on cheques being tendered by customers at their counters. Further, customers should be made aware of both options available to them i.e., dropping cheques in the drop box or tendering them at the counters so that they can take an informed decision in this regard.
18.3 Time frame for collection of cheques
In compliance with the orders of National Consumer Dispute Redressal Commission (NCDRC), the bank have to conform to the timeframe prescribed by it, namely:
a. For local cheques, credit and debit shall be given on the same day or at the most, on the next day.
b. Timeframe for collection of outstation cheques drawn on state capitals / major cities / other locations shall be 7 / 10 / 14 days respectively. If there is any delay in collection of the said cheques beyond this period, interest at the saving deposit rate is to be paid to the payee of the cheques. The timeframe for collection specified by the Commission shall be treated as outer limit and credit shall be afforded if the process gets completed earlier. The bank shall not decline to accept outstation cheques deposited by their customers for collection.
c. The collection period of outstation cheques and interest payable thereon in case of delay shall be published on the notice board in a precise manner in bold / visible letters at a conspicuous place in every branch.
18.4 Collection of account payee cheques – Prohibition on crediting proceeds to third party account
Bank should not collect ‘account payee’ cheques for any person other than the payee constituent. Where the drawer/ payee instructs the bank to credit the proceeds of collection to any account other than that of the payee, the instruction being contrary to the intended inherent character of the ‘account payee’ cheque, bank should ask the drawer/ payee to have the cheque or the account payee mandate thereon withdrawn by the drawer. This instruction will also apply with respect to the cheque drawn by the bank payable to another bank.
However, with a view to mitigating difficulties faced by members of co-operative credit societies in collection of account payee cheques, bank may consider collecting account payee cheques drawn for an amount not exceeding ₹ 50,000 to the account of their customers who are co-operative credit societies if the payees of such cheques are the constituents of such co-operative credit societies. While collecting the cheques as aforesaid, bank should obtain a clear undertaking in writing from the co-operative credit societies concerned that, upon realization, the proceeds of the cheques will be credited only to the account of the member of the co-operative credit society who is the payee named in the cheque. This shall, however, be subject to the fulfillment of the requirements of the provisions of Negotiable Instruments Act, 1881, including Section 131 thereof. The bank shall subject the society to the usual KYC norms and enter into an agreement with the society that the KYC documents in respect of the society’s customers are preserved in the society's records and are available to the bank for scrutiny. The bank should, however, be aware that in the event of a claim by the true owner of the cheque, the rights of the true owner of the cheque are not in any manner affected by these instructions and bank will have to establish that they acted in good faith and without negligence while collecting the cheque in question
18.5. Dishonoured instruments
Bank may ensure that dishonored instrument is returned / dispatched to the customer promptly without delay on the same day but in any case within 24 hours.
18.6 Cheque Related Fraud Cases - Preventive Measures
i. 100% CTS - 2010 compliant cheques will only be used
ii. Ensure that the beneficiary is KYC compliant so that the bank has recourse to him / her as long as he / she remains a customer of the bank.
iii. All cheques above Rs 50000/- ( Fifty Thousand Only ) will be cleared only after receival of advice from the customer for the same.
iv. Close monitoring of credits and debits in newly opened transaction accounts based on risk categorization.
v. Sending an SMS alert to payer / drawer when cheques are received in clearing.
vi. Alert the customer by a phone call and getting the confirmation from the payer / drawer if any suspicion arises.
vii. Contact base branch in case of non-home cheques.
Branches are advised to take appropriate precautionary measures to ensure that the confidential information viz., customer name / account number / signature, cheque serial numbers and other related information are neither compromised nor misused either from the bank or from the vendors' (printers, couriers etc.) side. Due care and secure handling is also to be exercised in the movement of cheques from the time they are tendered over the counters or dropped in the collection boxes by customers.
18.7 Rounding off cheques to the nearest rupee
Branches must ensure that cheques / drafts issued by clients containing fractions of a Rupee are not rejected or dishonoured by them
19. Other instructions
1. Issue of Duplicate Demand Draft without receipt of Non-Payment Advice
The duplicate draft amounting to Rs. 5,000 or less, may be issued on the basis of adequate indemnity and without obtaining Non-Payment Advice (NPA) from the drawee branch.
2 Fixation of time-frame for issue of duplicate demand draft
Bank should ensure that a duplicate demand draft is issued within a fortnight from the receipt of such requests. For delay in issuing duplicate demand draft beyond the above stipulated period, they should pay interest at rate applicable for fixed deposit of corresponding maturity in order to compensate the customer for such delay. These 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 third party endorsements. Senior Officials, while visiting branches, should make it a point to check implementation of the above instructions.
20. Nomination facilities
20.1 The account opening forms must incorporate a space to mention the name and address of the nominee and statutorily prescribed nomination forms may be obtained and preserved with the account opening forms. Availability of nomination facility needs to be widely publicised by printing compatible messages on cheque books/pass books and any other literature reaching the customers.
Nomination should be a rule (rather than an exception) and banksshould endeavor to cover all accounts, existing as well as new, under nomination, exception being the ones where the customer himself would prefer not to nominate; this fact may be recorded rather than left to the conjecture of non-compliance
20.2 Nomination facilities are available not only for deposit accounts but also for safe custody articles and safe deposit lockers. As nomination facility for deposit accounts is more known to the customers, compared to the one available for safe custody articles and safe deposit lockers, publicising availability of the facility for these two services also may be effectively done.
20.3 Statutory provisions for Nomination Facility
The Banking Regulation Act, 1949 (AACS) has been amended by incorporating among others, new sections 45 ZA to 45 ZF, which provide, inter alia, for the following matters:
a. to enable a co-operative bank to make payment to the nominee of a deceased depositor, of the amount standing to the credit of the depositor
b. to enable a co-operative bank to return the articles left by a deceased person in its safe custody to his nominee, after making an inventory of the articles in the manner directed by Reserve Bank
c. to enable a co-operative bank to release the contents of a safety locker to the nominee of the hirer of such locker, in the event of the death of the hirer after making an inventory of the contents of the safety locker in the manner directed by Reserve Bank.
20.4 Nomination Rules
Since such nomination has to be made in the prescribed manner, the Central Government has framed Co-operative Banks (Nomination) Rules, 1985 in consultation with the Reserve Bank. These Rules, together with the provisions of new Sections 45 ZA to 45 ZF, of Banking Regulation Act, 1949 (AACS) regarding nomination facilities have been brought into force with effect from March 29, 1985.
The Co-operative Banks (Nomination) Rules, 1985, provide for:
i. Nomination forms for deposit accounts, articles kept in safe custody and the contents of safety lockers,
ii. Forms of cancellation and variation of the nomination,
iii. Registration of nominations and cancellation and variation of nominations, and
iv. Matters related to the above.
For the various Forms (DA1, DA2, and DA3 for Bank Deposits, Forms SC1, SC2 and SC3 for articles in safe custody and Forms SL1, SL1A, SL2, SL3 and SL3A for Safety Lockers) prescribed under the Co-operative Banks (Nomination) Rules, 1985 only Thumb-impression(s) shall be attested by two witnesses. The signatures of the account holders need not be attested by witnesses.
20.5 Registration of nomination in banks’ books
In terms of Rules 2(10), 3(9) and 4(10) a co-operative bank is required to register in its books the nomination, cancellation and/or variation of the nomination. The bank should accordingly take action to register nominations or changes therein, if any, made by their depositor(s)/hirer(s) of lockers. Government of India has issued the notification bringing into force the provisions relating to nomination facilities, from March 29, 1985. Bank should therefore, ensure that the nomination facilities are made available to their customers.
20.6 Incorporation of legend ‘Nominations Registered’ in pass book, deposit receipt etc.
Bank should incorporate the legend ‘Nominations Registered’ on every pass book or deposit receipt so as to enable the relatives to know the availment of the nomination facility by the deceased depositor.
21. Timely Issue of TDS Certificate to Customers
Bank is advised to put in place a system that will enable them to provide TDS Certificate in Form 16A to their customers from whose deposit accounts income tax has been deducted at source, within the time –frame prescribed under the Income Tax Rules.
22. Customer Service – Redressal of Grievances
i. Bank should have a robust grievance redressal structure and processes to ensure prompt in-house redressal of all their customer complaints. Bank is advised to ensure that a suitable mechanism exists for receiving and addressing complaints received from their customers with specific emphasis on resolving such complaints fairly and expeditiously regardless of the source of the complaints.
ii. Bank should have a system of acknowledging the complaints, where the complaints are received through letters / forms. Bank should prominently display at the branches the names of officials, who can be contacted for redressal of complaints together with their direct telephone number, fax number, complete address (not Post Box No.) and e-mail address etc. for proper and timely contact by the customers and for enhancing the effectiveness of the redressal machinery.
iii. In the case of fraudulent encashment of third party instruments by unscrupulous persons, by opening deposit accounts in the name/s similar to already established concern/s resulting in erroneous and unwanted debit of drawers’ accounts, it is advised that in cases where bank is at fault, the bank should compensate the customers without demur; and (ii) in cases where neither the bank is at fault nor the customer is at fault but the fault lies elsewhere in the system, then also the bank should compensate the customer (up to a limit) as part of a Board approved customer relations policy.
23. Legal Guardianship Certificate issued under Mental Health Act, 1987 and National Trust for the welfare of persons with autism, cerebral palsy, mental retardation and multiple disabilities Act, 1999.
The Mental Health Act, 1987 provides for a law relating to the treatment and care of mentally ill persons and to make better provision with respect to their property and affairs. According to the said Act, "mentally ill person" means a person who is in need of treatment by reason of any mental disorder other than mental retardation. Sections 53 and 54 of this Act provide for the appointment of guardians for mentally ill persons and in certain cases, managers in respect of their property. The prescribed appointing authorities are the district courts and collectors of districts under the Mental Health Act, 1987.
The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 provides for a law relating to certain specified disabilities. Clause (j) of Section 2 of that Act defines a "person with disability" to mean a person suffering from any of the conditions relating to autism, cerebral palsy, mental retardation or a combination of any two or more of such conditions and includes a person suffering from severe multiple disabilities. This Act empowers a Local Level Committee to appoint a guardian to a person with disabilities, who shall have the care of the person and property of the disabled person.
Branches are advised to take note of the legal position mentioned above and may rely on and be guided by the orders / certificates issued by the competent authority, under the respective Acts, appointing guardians / managers for the purposes of opening / operating bank accounts. In case of doubt, care may be taken to obtain proper legal advice. Banks may also ensure that their branches give proper guidance to their customers so that the guardians / managers of the disabled persons do not face any difficulties in this regard.
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