Exchange of soiled or dirty notes

Dirty or slightly torn notes, called soiled notes, can be easily exchanged at bank branches. For this, you do not need to have an account in that bank. If the condition of such notes is satisfactory, the bank immediately gives new notes in exchange or deposits the same amount in the account.

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Loan Foreclosure Charges: If you have also taken a home loan or personal loan from a bank, then this news is useful for you. Yes, the Reserve Bank (RBI) has issued some draft guidelines, in which it has been proposed to remove the foreclosure fee and prepayment penalty on loans with floating interest rates. RBI has sought opinion from the general public on this by March 21, 2025. When these rules are finalized, the changed rules will be applied to loans or advances. Under this, foreclosure will be done after the date mentioned in the final circular. These rules will apply to all banks and NBFCs.

There is no charge on business loan as well

According to the draft, if a person takes a loan with floating rate (changing interest rate), then he will not have to pay any kind of charge for repaying or closing the loan before time. However, this charge will be levied on business loans. Apart from this, no charge will be levied on floating rate business loans given to personal and small businesses (MSE), but some cooperative banks and NBFCs have been exempted from this. This rule will apply to all types of floating rate loans. Whether the loan is taken from anywhere and whether the loan is repaid in full or in part.

There will be no time limit.

Charges on other types of loans will be levied as per the policy of the bank or financial institution. Banks or financial institutions will provide the facility of repaying the loan before time and there will be no minimum time limit for this. If the bank or financial institution itself closes the loan, then no charges will be levied. The rule will also be that all the charges will be informed to the loan taker by the bank in advance. If any charge was waived earlier or was not informed, then it will not be levied later.

What is a floating rate loan?

Floating rate loans are loans in which the interest rate keeps changing. This interest rate changes on some standard like RBI’s repo rate or MCLR. In fixed rate loans, the interest rate remains the same throughout the loan period, but in floating rate loans, the interest rate keeps changing according to the interest rate decisions of RBI during MPC. In simple words, you can also say that in fixed rate loans, the interest always remains the same, whereas in floating rate loans, the interest keeps increasing and decreasing according to the decisions of RBI.

This simply means that when interest rates are low, Gilon borrowers can benefit from lower interest rates. But if interest rates rise, they may have to pay more money. Now, RBI has started reducing interest rates, as it cut the repo rate by 25 basis points earlier this month.

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Bad impact on credit score

If you do not pay your personal loan on time, the first impact is on your credit score. Your credit score gets spoiled, which can make it difficult to get a new loan in the future. You become an unreliable customer for banks and other financial institutions.

legal action might be taken

• In case of default in repaying the loan, the bank or financial institution can take legal action.
• Banks can go to the civil court and file a case against you and demand to seize your property or stop your salary.
• If the bank feels that you have committed fraud intentionally, a case can be registered under Section 420 of the Indian Penal Code. This also includes a jail sentence.

Dealing with recovery agencies

When banks are unable to recover your dues, they take the help of recovery agencies. These agencies try to recover money from you through phone calls and visits. Many times, the customer has to face mental stress and anxiety due to their behavior.

What do RBI rules say?

• The Reserve Bank of India has laid down some strict guidelines for recovery of personal loans:
• It is necessary for banks to give notice to the loan defaulter first.
• The customer must be treated with respect during recovery.
• Banks will have to take special care to avoid harassment by recovery agencies.

What to do if you are unable to repay the loan?

• If you are not able to repay the loan then talk to the bank.
• Negotiate repayment plan: You can ask the bank for new payment options or changes in EMIs.
• Settlement option: A lump sum payment can be arranged by talking to the bank.

The post Personal Loan Default: What action can the bank take against you for not repaying the personal loan, know everything first appeared on Rightsofemployees.com.

Let us tell you that RBI rules apply on bank lockers. The Reserve Bank of India has set a guideline, which gives information like what can be kept in the locker or the liability of the bank in case of theft or loss of any item.

RBI’s bank locker rules also explain the process of renewing the bank locker agreement. Account holders who have entered into agreements for lockers on or before December 31, 2023, will have to sign the revised agreement and submit it to the bank.

Who can open a bank locker and what are its basic requirements?

In some banks, to avail the locker facility, customers need to open a savings account or current account in that bank. To avail the locker facility, PAN card or Aadhaar card and a recent photograph along with identification proof and address proof have to be submitted.

Sign the locker agreement: For the locker, the bank provides a document that explains how the bank’s locker service will work. Both parties have to sign this agreement. Locker allotment: Bank lockers range in size from small to large and can be single-tiered or multi-tiered in design. After getting the locker, the customer is given a specific number of keys to open his locker and the bank has the master key. Payment:

In most cases, banks demand a security deposit which can be in the form of a fixed deposit or a cash amount. Apart from this, the fee for renting a locker depends on the location of the branch and the size of the locker being rented. Important things related to bank locker:

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Bank lockers are quite safe. However, to be on the safer side, you should get the valuables kept in your locker insured as most banks provide a disclaimer stating that they will not be responsible for any loss of items kept in the locker.

Make sure to nominate someone for the locker so that after the death of the account holder, he/she can access the locker.

According to the new rule, in case of any loss caused to the user due to negligence on the part of the bank, the maximum liability of the bank will be 100 times the annual locker rent. That is, the bank will have to pay 100 times the annual fee of the locker to the user. The bank will not have any liability in case of natural disasters.

Natural disaster means earthquake, flood, lightning, storm etc. The bank will not be responsible for any damage caused to the bank locker due to them.

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Banks give compensation only in some cases. Let us know about the rules for keeping your belongings in a bank locker.

The bank does not take responsibility in these cases

When you rent a locker from a bank, it is similar to the relationship between a landlord and a tenant. Just as a landlord does not take responsibility for the belongings of the tenant, the bank does not take responsibility for the items kept in your locker.

Also Read: Public Holiday: Schools-colleges-banks will remain closed in this state on August 9, know why?

There is a contract between you and the bank which states that they will not be liable for any damage in case of natural disasters or other unforeseen events. The bank will try to keep your belongings safe, but they will not take responsibility for any potential damage.

This is what RBI rules say

RBI has implemented new rules for lockers from January 2022. Due to which banks can no longer escape responsibility for the items kept in the locker. If there is any mishap like theft, fraud, fire or building collapse, the bank’s liability is limited to 100 times the annual rent. Banks also have to ensure that the locker is secure and inform customers via email and text if someone accesses it.

All locker rooms now require CCTV surveillance and the footage has to be saved for 180 days. If a bank employee messes up and breaches security or loses something from the locker, the bank has to take the blame.

The post Bank Locker Rule: The bank does not take responsibility in these cases, know rules here first appeared on Rightsofemployees.com.