NON CTS INSTRUMENTS BY BANKS - DEFICIENCY IN SERVICE

The Reserve Bank of India           /              Regional Director,

Central Office                                    /              Reserve Bank of India

Mumbai                                               /              Rajaji Salai, Chennai 600 001

BANKS STILL ISSUING NON-CTS  DEMAND DRAFTS

ABNORMAL DELAY IN ENCASHMENT OF DDs

CONSUMERS ARE FACING DIFFICULTIES

The public are facing lots of difficulties because of some banks’ non adherence of instructions issued BY Reserve Bank  of India, in respect of CTS instruments.  Because of issuing non CTS Demand Drafts by some of the Bank branches, the payees’ are unable to encash the draft immediately and have to wait for 10 days of presentation to the collecting banks, which requires RBI’s immediate intervention.

The RBI had issued instructions  in 2012 itself that  all the  banks  should issue only CTS-2010 compliant cheque books, demand drafts and pay orders henceforth. The banks should not charge any of its savings bank account customers when the CTS-2010 compliant cheque book is issued for the first time.

Discouraging non CTS instruments, after two years,  RBI restricted  non-CTS instruments payment (clearing)  as under:

From 1st Jan to 30th Apr,2014: Thrice a Week  Monday, Wednesday & Friday

From 1st May to 31st Oct, 2014:Twice a Week on Monday & Friday

From 1st Nov, 2014 onwards: Once a Week - Monday (before 11.00 am)

Hence from 01/11/2014, if one presents a non-CTS demand draft on Monday, it could be sent for payment / clearing only on next Monday and proceeds could be credited to his account only on Tuesday or Wednesday.  Hence it takes about 10 days for encasing a Demand Draft – for no fault of the customer (payee).

Unfortunately some of the banks are even now issuing only NON CTS Demand Draft resulting abnormal delay in getting it encashed by the payee.    It seems that these banks’  branches want to exhaust all non CTS demand drafts, without bothering about customers’ interest.  Non CTS cheques are still in circulation and it may even due to customers not availing these CTS Cheques from their Banks.  But how the Banks themselves could issue non CTS Demand Drafts / Pay order even now, neither bothered about  RBI’s instruction nor the customers?

In this connection we wish to point out that issuing of Non CTS Drafts and Pay Orders by the Banks, is a “Deficieincy in Service”, since these are issued against the instructions of RBI and hence Damages and Compensation could be claimed through Consumer court from the Banks that issued Non-CTS Drafts / Pay order etc.  

Quite a number of Banks’ branches are still in the habit of issuing Non CTS Drafts, which could be easily verified through Non-CTS clearing data.   It should be viewed very seriously and RBI should take strong action against such Banks, in the interest of the public.

For Coimbatore Consumer Cause

Secretary

TAKTAL TICKETS WITH “DYNAMIC PRICING SCHEME” & PREMIUM TRAINS

TAKTAL TICKETS WITH “DYNAMIC PRICING SCHEME” & PREMIUM TRAINS

STRONGLY OPPOSED SINCE IT IS NOTHING BUT FLEECING  ; 

WHO BITS MORE – HE GETS IT.   RAILWAYS COULD EARN MORE INCOME IF TICKETS ARE AUCTIONED

The Railways had found out yet another way to earn more money in the name of “Dynamic pricing scheme” in respect of Tatkal Tickets and by name “Premium Train” and we strongly oppose it and condemn the same.

The Railways had started to charge more for 50% Tatkal tickets in the name of “Dynamic pricing scheme”.  The reason claimed by Railways is that  the scheme has been launched to deal with the problem of tout and it will help facilitating needy passengers to get tickets.   The Railway is fleecing consumers as if it is in the consumers’ interest.   If some one is selling tickets illegally the Railways should take strong action against them and it could not legalize illegal black marketing.

In fact Tatkal tickets itself is nothing but selling of tickets at Balck market rate by Railways itself.   Tatkal quota reduced the number of tickets available to the other genuine passengers in the general category.   If the so-called tatkal tickets were not issued then this would be sold only to the genuine passengers in waitlist for 59 days.  When 1000 people are in the waitlist for months and 1000 tickets are available in Tatkal quota means that these passengers are indirectly compelled to buy only the Tatkal tickets by paying higher rates.  Railways claim that nearly 2 lacs tickets are being sold under tatkal every day and earn more than 1800 crores in a year.  Without any additional expenses to Railways and without any additional facility to passengers the Railways found a way to fleece the passengers.   The dynamic pricing of Tatkal is another way of fleecing more.  We strongly oppose the legalization of Black marketing of Railway tickets.

Even the Parliamentary Committee on Railways had criticized  the Railway for adopting deceptive practices to impose financial burden on the passengers in an indirect manner.   The Railways began fleecing consumers in unethical and illegal ways through administrative orders when Mr.Lallu Prasad was Railway minister which is continuing even now and has ‘improved’ the same. 

More than 300 trains name were changed from Express to Superfast express trains just to collect additional surcharge.  A large number of tickets were kept for selling the tickets for higher rates (like black marketing in cinema theatre) in the name of Tatkal.    Extra reservation charges for tickets booked in other station than the boarding station and Safety charges collected separately etc.

Not satisfied with it the Railways had ‘invented’ another way of fleecing the consumers in the name of ‘Premium Trains” which collects extra amount and some fare is are just little less than Air Fare and it seems that Railways operating Aeroplane in the train racks (in respect of fare alone)

It seems that right from Mr.Lallu days the officials found it convenient to fleece the passengers in unethical ways through administrative orders and it seems that a special team is working in Railway Board to find out more such unethical ways.   We were hopeful that atleast the new govt. would desist from such unethical way of fleecing but new such ways are found out, which we condemn.

PUBLIC NEED NOT PAY COST OF EB POLES FOR CONNECTIONS IF ERECTED ON PUBLIC ROAD

Normally after construction of a new house when a consumer approaches the Electricity Department for new connection, if there was no EB pole near his house, new poles are to be erected.   It has come to our knowledge that in  a number of cases, the consumers were demanded to pay the cost of pole with erection expenses.    Many consumers also are paying the same and get new connection to their houses.

Link to Petition

UNFAIR TRADE PRACTICE BY MOBILE SERVICE PROVIDERS

We request the intervention of the TRAI against the unethical, unfair and illegal practice adopted by  some of the mobile service providers. .

These operators send SMS to all their customers and forcefully charge for the so-called service.   SMSes were sent, offering different services like cricket score, beauty tips, horoscope, fortune,  songs for caller tune etc.    For example there would be an SMS  “ you have subscribed to Cricket at Rs.10/- till ---- date.  To stop SMS  to ---- number.’  

Link to Petition

Latest petition - Unreasonable Bus Fares

The Honourable Chief Minister increased the bus fare reasonably to safeguard the state owned corporations and we welcomed the same as the fare revision was overdue but by collecting more than the fare fixed by the Govt., the  TNSTC( State Owned) officials are squeezing the public and tarnishing  the image of the Govt.   The buses which were plying as ordinary buses and collecting ordinary fare are being illegally named as ‘Express & LSS" and people are being charged exorbitant fares to ride in them. Please click on below link to see the petition to fix the issue.

Link to petition

Public Being Fleeced by Cinema Theaters

Even after more than a Year of High Court order in favour of the Govt. to fix the parking fees in cinema theaters,  the public are fleeced by the cinema theaters due to lack of follow-up action by few District collectors
During the past few years the Govt. had given lot of undue and unjustified concessions to the Film Industry in Tamil nadu.   But even sixteen months  after the Court upheld the position and amendments to Tamil nadu cinema  (Regulation) Rules and GO Ms. 678 dated 18.05.99, the Govt. order is not implemented due to lack of follow up action. This is resulting in the public continuing to suffer due to inaction of few officials.The Court had ordered to re-fix the rates fixed in 1999 since those rates now become obsolete. 
Please click on the link below to see details of the petition to fix this issue

Link to Petition

High Court appreciates Coimbatore Consumer Cause

In the recent two judgments delivered by different Bench, the Hon’ble High court, Madras, had appreciated the efforts of the petitioner for filing the Writ Petitions in Public Interest.

Check the link below for details

Link to Favourable judgements