FAIR PRACTICE CODE (FPC) for LENDING
1. APPLICATIONS FOR LOANS AND THEIR PROCESSING
2. LOAN APPRAISAL AND TERMS/ CONDITIONS
3. DISBURSEMENT OF LOANS INCLUDING CHANGE IN TERMS AND CONDITIONS
4. POST DISBURSEMENT SUPERVISION
5. GENERAL
6. GRIEVANCES REDRESSAL MECHANISM
1.1 SIMPLE AND INFORMATIVE LOAN APPLICATIONS
Loan Application forms in respect of Priority Sector advances up to Rs. 2.00 lac as well as all other loan applications have been made informative by including information about fees/charges payable for processing on sanctioned amount, pre-payment charges, check list for papers required for appraisal and sanction/rejection of the proposal. Loan Application receipt/acknowledgment has been made part of the loan application for convenience.
The processing fee shall be charged on the sanctioned amount. So it follows that in case of rejection no processing fee shall be charged.
For time frame for disposal of loan application refer to FPC -1.3 below
1.2 RECEIPT/ACKNOWLEDMENT OF LOAN APPLICATION
i) Every loan application shall be acknowledged/receipted and receipt/acknowledgment shall be given to the borrower-applicant.
In order to facilitate the system, acknowledgment /receipt has been made part of the Loan Application through perforation.
The acknowledgment/receipt shall be given in the following form
Receipt/Acknowledgment For Loan Application
Serial No._____ Branch__________________
Date___________
Received From_______________________________________________
application for credit facilities for funded limit(s) of Rs._________________ and non-funded limit(s) of Rs.__________ along with documents as per check list. Processing fee of Rs._______________ shall be charged on the sanctioned amount.
Disposal of the loan application shall be done within __________ days subject , however, to submission by you of complete/additional information desired by the bank for appraisal of your loan application as under:
1.__________________________________________________________
2.__________________________________________________________
3.__________________________________________________________
Signatures Signatures of Branch Manager
Name Name of Branch Manager
Designation
Date
1.3 Time Frame for disposal of a Loan Application
Loan Application shall be disposed within time frame as under , subject, however, to submission by the applicant of complete/additional information desired by the Bank for appraisal.
| IN DAYS | B.O. LEVEL | Z.O. LEVEL | |
| i. | Fresh/enhancement proposal | 10 | 10 |
| ii. | Renewal/reviewal proposal | 07 | 07 |
| iii. | Adhoc | 05 | 05 |
Time for disposal of the loan proposal shall be stated in the acknowledgment/receipt given for loan applications for all loans irrespective of the amount involved.
1.4 CHECK LIST FOR DOCUMENTS TO BE ATTACHED WITH A LOAN APPLICATION
i) To facilitate early disposal of loan application, the Bank shall provide check-list with loan application ( The check -list has been made part of the loan application)
ii) In case of loans upto Rs. 2.00 Lakhs, the additional details/documents shall be intimated to the prospective borrower at the time of giving acknowledgement and incorporated in the acknowledgment .
iii) In all other cases the requirement of additional details/documents shall be intimated in writing either at the time of acknowledgment or within two days of acknowledgment of the loan application.
1.5 REJECTION OF A LOAN APPLICATION
The Bank shall intimate the loan applicant the reasons of rejection in writing within the time frame, stated in FPC 1.3 above, of disposal of loan application.
The decline of proposals relating to SC/ST shall be decided by the authority next to the competent authority in each case.
2.1 ASSESSMENT OF CREDIT NEEDS OF A LOAN APPLICANT
The requirement of the funds shall be assessed keeping in view loan/limit applied by the borrower-applicant and actual business need computed on the basis of prevalent policy of the Bank for assessing credit requirement subject however to the prevalent Loan Policy document of the Bank.
2.2 CONVEYING OF TERMS AND CONDITIONS OF SANCTION TO THE BORROWER
The borrower-applicant shall be conveyed sanction letter containing all terms and conditions of sanction under his/her/authorized signatories signatures on the office copy for having accepted the terms and conditions of sanction.
2.3 LOAN AGREEMENT/SANCTION LETTER
Loan Agreement ( i.e. Sanction letter specifying all terms and conditions of sanction duly signed by the borrower(s) for having accepted the terms and conditions) along with copies of Loan Agreements i.e. security documents executed by the borrower for the credit facility(ies) availed shall be given to the borrower
2.4 CREDIT FACILITIES AT THE DISCRETION OF THE BANK
Loan Agreement/Sanction Letter shall stipulate that the following credit facilities are at the discretion of the Bank:-
i) allowing drawings beyond the sanctioned limits - not allowed, unless requested well in advance with justification for temporary/adhoc accommodation and subject to permission of the competent authority as per laid down procedure.
ii) honoring the cheques issued for the purpose other than agreed - will not be honored if violative of the end use/purpose of the loan/limit applied by the borrower and as per sanction.
iii) disallowing large cash withdrawals - large cash withdrawal will be allowed subject to satisfaction of the branch manager as conforming to the purpose for which the facility has been sanctioned and is not disproportionate to the normal requirement of the trade/business and conforming to the I.T. Act.
iv) obligation to meet further requirements of the borrowers on account of growth in business etc. without proper revision and sanction in credit limits - not allowed, unless requested well in advance with justification for temporary/adhoc accommodation/ regular enhancement and subject conformation to prevalent Loan Policy of the Bank and to satisfaction and permission of the competent authority as per laid down procedure. Further, request for repeated temporary/adhoc accommodation will not be entertained. Adhoc limit will not be allowed for more than two times in a year and shall not be allowed within 3 months of date of sanction of regular facility. where adhoc limit has been allowed no temporary facility will be allowed.
Request for regular enhancement of the sanctioned limit within six months of date of last regular sanction will not be entertained.
For guidelines in detail for applying temporary/adhoc facility the borrower is advised to contact the branch manager.
v) disallowing drawings on a borrowal account on its classification as a non- performing asset -- Bank will not allow drawls in a NPA borrowal account and may seek legal remedies to recover its dues. Rehabilitation/restructuring may be resorted in case of viable proposal and promoter's commitment to turn the account into performing category.
vi) on account of non-compliance with the terms of sanction.
-The Bank will not release funds without compliance of all terms of sanction.
-In case funds are released on commitment of the borrower to fulfill a minor term of sanction, which may not jeopardize bank's funds , within specified period, then after lapse of the specified period , the bank may stop withdrawal in the account and may recall the entire dues.
-In case, the borrower does not comply to lending discipline as enumerated in terms of sanction, the withdrawal in the account may be stopped, pecuniary penalties may be imposed and/or entire amount may be recalled depending upon the gravity/repetition
of the default.
2.5 LENDING UNDER CONSORTIUM OF BANKS
In case of consortium advances, formal disposal of credit proposals shall be done within the following maximum time limits or otherwise within time schedule decided by the participating banks in the consortium, provided applications/proposals are received together with required details/information supported by requisite financial and operating statements:
| i. | Fresh/enhancement | 60 days (45 days)* |
| ii. | Renewal | 45 days (30 days)* |
| iii. | Adhoc | 30 days (15 days)* |
* Figures in brackets are the maximum time-frame for sanction of Export credit limits.
3.1 Disbursement of loans/advances shall be upon completion/execution of all security documents and other documents as per terms and conditions of the sanction mentioned in the sanction letter and compliance of all terms and conditions of sanction including legal and statutory conditions,0 by the borrower(s).
3.2 Partial disbursement/release in anticipation of the sanction shall not be done.
3.3 The Bank may, at its discretion, release the credit facility(ies) without compliance with some Indispensable Requirement(IR)/ terms of sanction , non-compliance of which , at the time of disbursement , may not jeopardize bank's advance and on commitment of the borrower to fulfill the minor IR/term of the sanction within specified period, then after lapse of the specified period, the bank may stop withdrawal in the account and may recall the entire dues.
3.4 The Bank informs/stipulates in the sanction , copy of which is provided to the borrower, that any change in rate of interest and service charges etc. in future will be displayed on the Bank notice board and/or through Press Release to some National Dailies and no separate intimation will be given to the borrower(s) in this regard. Change in other terms and conditions shall be conveyed in writing to the borrower.
Usually changes in interest rates and charges are effected only prospectively.
4.1 POST-DISBURSEMENT SUPERVISION
The Bank shall do constructively post disbursement supervision and monitoring , particularly in respect of loans up to Rs. 2.0 lac taking into account " The Bank -related" genuine difficulty, if any, that the borrower may face.
4.2 NOTICE TO THE BORRORE
The Bank shall give notice to a borrower before taking a decision to recall/accelerate payment or performance under the agreement or seeking additional securities, as specified in the loan agreement or a reasonable period, if no such condition exits in the loan agreement.
4.3 RELEASE OF SECURITIES
The Bank shall release all securities on receiving payment of loan or realisation of loan subject to any legitimate right of lien for any other claim the Bank may have against borrowers. If such right of set off is to be exercised, borrowers shall be given notice about the same with full particulars about the remaining claims and the documents under which the Bank is entitled to retain the securities till the relevant claim is settled / paid.
5.1 The Bank shall restrain from interference in the affairs of the borrowers except for what is provided in the terms and conditions of the loan sanction documents(unless new information, not earlier disclosed by the borrower, has come to the notice of the lender).
5.2 The Bank shall not discriminate on grounds of sex, caste and religion in the matter of lending. However, this does not preclude the Bank from participating in credit-linked schemes framed for weaker sections of the society.
5.3 In the matter of recovery of loans, the Bank shall not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc.
5.4 In case of receipt of request for transfer of borrowal account, either from the borrower or from a bank/financial institution, which proposes to take over the account, the consent or otherwise i.e. objection of the lender, if any, shall be conveyed within 21 days from the date of receipt of request.
6.1 To enable the customers to voice their grievances or offer suggestions for improvement in customer service,"Customer Day" is observed at all the offices of the bank across the organization covering branches, Zonal Offices and Head Office, on 15th of every month(next day if 15th is a holiday or a half day). During specified hours on this day any customer can meet senior/top executives of the Bank, including Chairman & Managing Director, without prior appointment.
6.2 Customer Service Committee Meetings are held on monthly basis on first Monday of each month at all branches / Zonal Offices. Customer/borrower can also attend the same and give your suggestions/air your grievances.
6.3 In case of any complaint , the matter may be first brought to the notice of concerned branch manager for immediate redressal. If the complaint is not redressed to the satisfaction of the customer, the matter may be taken up with the Zonal Manager, as
per address given in the schedule- III.
6.4 If the complainant still feels unsatisfied with the response received, he can address his complaint to the Bank's nodal officer designated to deal with customers' complaints/grievances giving full details of the case,as per schedule -I
6.5 After exhausting all the above machinery/channels, if the customer is not satisfied, he may write to Chairman & Managing Director of the Bank.
6.6 Even after this , not satisfied he is free to take recourse to the following:
i. Directorate of Public Grievances, Govt. of India, Cabinet Secretariat , Sansad Marg, New Delhi.
ii. The Banking Ombudsman located in State Capitals, under RBI Ombudsman Scheme, 1995, at the addresses given in the schedule-II.
iii. The District Consumer Forum under Consumer Protection Act1985.
6.7 Anonymous complaints will not be entertained .
6.8 Every complaint/grievances shall be disposed of within a period of 7 days on its receipt at the place where cause of action lies i.e. Branch. Under no circumstances , a complaint/grievance shall be allowed to remain pending for more than 15 days without proper reason
SCHEDULE - I
In case any clarification is required on matters relating to customer service as given in Citizens’ Charter and for all complaint against working of branches, please contact the following :-
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For all complaints against working of Branches:
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General Manager (Inspection)
Punjab & Sind Bank, Bank House, 21 Rajendra Place,
New Delhi - 110 008. Phone : 25726939 -
Deputy General Manager (Inspection)
Punjab & Sind Bank, H.O. Inspection Department,
2239, Gurdwara Road, Karol Bagh,
New Delhi -110005. Phone : 25769911 -
The Zonal Manager of Concerned Branch,
The address of the Zonal Offices is given in schedule - II
-
-
For Staff Matters:
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General Manager (Personnel)
Punjab & Sind Bank, Bank House, 21 Rajendra Place,
New Delhi - 110008. Phone : 25817353
-
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For all Advances & Export Credit :
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General Manager (Advances),
Punjab & Sind Bank, Bank House , 21 Rajendra Place ,
New Delhi - 110008, Phone : 25783589
-
-
Other Official who can be contacted :
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Deputy General Manager (Planning & Development)
Punjab & Sind Bank, Bank House, 21 Rajendra Place,
New Delhi-110008. Phone : 25765886
-
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Chief Host :
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The Customer Service Division,
Punjab & Sind Bank, Bank House, 21 Rajendra Place,
New Delhi - 110008. Phone : 25719254
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SCHEDULE
- II
NAME & ADDRESS of BANKING OMBUDSMAN AND AREA of OPERATION
Maharashtra & Goa THE
OMBUDSMAN Rajasthan THE
OMBUDSMAN
Himacal Pradesh, Punjab and Union Territory of Chandigarh THE
OMBUDSMAN
Tamil Nadu, Union Territory of Pondicherry and Andaman & Nicobar Islands THE
OMBUDSMAN
|
Karnataka THE
OMBUDSMAN
Madhya Pradesh THE
OMBUDSMAN
Delhi, Haryana, Jammu & Kashmir& Ghaziabad District (U.P) THE
OMBUDSMAN
Assam, Arunachal Pradesh Manipur, Tripura & Nagaland
|
Andhra Pradesh THE
OMBUDSMAN
Bihar THE
OMBUDSMAN
Uttar Pradesh Excluding Distt. Ghaziabad
THE
OMBUDSMAN
|
West Bengal & Sikkim THE
OMBUDSMAN
THE
OMBUDSMAN
Kerala, Union Territory of Lakshadeep
|
SCHEDULE
- III
ADDRESS OF ZONAL OFFICES
Zonal Office,
Amritsar Zonal Office,
Bareilly
Zonal Office,
Bhopal Zonal Office,
Bathinda Zonal Office,
Kolkata |
Zonal
Office, Chennai Zonal
Office, Chandigarh I Zonal
Office, Chandigarh II Zonal
Office, New Delhi Zonal
Office,Faridkot Zonal
Office, Gurdaspur |
Zonal Office ,Guwahati Zonal office ,
Haryana, Zonal office ,
Jalandhar Zonal office ,
Jaipur Zonal Office ,
Lucknow |
Zonal Office,
Ludhiana Zonal Office
,Mumbai Zonal Office, Dehradun Zonal Office ,Patiala Zonal Office, Hoshiarpur |