CHECK CHANGE IN FLOATING RATE

Check change in floating rate

MUMBAI: Bank customers can look forward to a flourish of consumer-friendly initiatives. One, if you have borrowed against a floating rate of



interest, you can now view any change in reference rate to which your interest rate is pegged on the bank’swebsite. Your bank’s website will also have to mention changes to the reference rate as and when they take place.

Two, beginning October, youwill be able to access free credit counselling at a centre set up by the Banking Code and Standards Board of India (BCSBI), the independent and autonomous watchdog for rules that most banks in India follow.

The centre, situated at BCSBI’s Bandra-Kurla Complex office, will provide credit education to both retail borrowers and banks’ micro &small enterprise (MSE) customers, K J Udeshi, chairperson, BCSBI, said during a joint media briefingwhere officials of RBI and Indian BanksAssociation (IBA)were also present.

The Code — which was first put in place in 2006 ‘‘to provide customerswith a reference document of their rights’’—has been revised to bring in more transparency, better banking practices and a more responsive grievance redressal mechanism in banks. Its objective is to enhance efficiency standards and provide greater protection to customers, said Udeshi.

‘‘The code is meant for those who don’t have (financial) muscle,’’ said KC Chakrabarty, deputy governor, RBI, at the meet.

However, while the Code provides a broad regulatory framework for banks, it leaves pricing and other commercial considerations to banks and market forces. Additionally, there are no provisions under the code to penalise banks for any violations.



source;ET