FAIR PRACTICES CODE FOR LENDERS  ADOPTED BY THE BANK

1. Our Bank's loan application forms in respect of all categories of loans irrespective of the amount of loan sought by the borrower  shall be comprehensive to include information about rate of interest (fixed / floating) and manner of charging (monthly / quarterly / half-yearly / yearly rests), process fees and other charges, penal interest rates, pre-payment options and any other matter which affects the interest of the borrower, so that a meaningful comparison with that of other banks can be made and informed decision can be taken by the borrower.
2. We shall devise a system of giving acknowledgement for receipt of all loan applications and verify the loan applications within a reasonable period of time. If additional details / documents are required, we shall intimate the borrowers immediately. If all the requirements are complied with by borrowers, we shall acknowledge the same and state the specific time period from the date of acknowledgement within which a decision on the loan request will be conveyed to the borrowers.
3. Acknowledgement will also state the amount of process fees paid or to be paid and the extent to which such fees shall be refunded in the event of rejection of any application for loan.
4. In the case of rejection of any loan application, including credit card application,  irrespective of category/ threshold limit  we shall convey in writing the specific reasons thereof .
5. We shall ensure that there is proper assessment of credit requirement of borrowers. The credit limit, which may be sanctioned, should be mutually settled.
6. Terms and conditions and other caveats governing credit facilities will be arrived at after negotiation with the borrower and shall be reduced in writing duly witnessed and certified by the authorised sanctioning authority; in respect of advances sanctioned by the Board of Directors or its committee, the sanction terms shall be certified internally by the authorised signatory at Company Secretary level and communicated to the Department concerned.
7. Bank will invariably furnish a copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement to all the borrowers at the time of sanction/ disbursement of loans.
8. We shall ensure timely disbursement of loans sanctioned.
9. Stipulation of margin and security shall be based on due diligence and credit worthiness of borrowers.
10. We shall keep the borrowers apprised of the state of their accounts from time to time and shall give notice of any change in the terms and conditions including interest rates, service charges etc. We shall also ensure that changes in interest rates and charges are effected only prospectively. To ensure the above, we shall create appropriate information dissemination mechanism.
11. The loan agreement shall clearly specify our liability to borrowers in regard to allowing drawings beyond the sanctioned limits, honouring the cheques issued for the purpose other than agreed, disallowing large cash withdrawals and obligation to meet further requirements of the borrowers on account of growth in business etc. without proper revision and sanction in credit limits, and disallowing drawings on a borrowal account on its classification as a non- performing asset or on account of non-compliance with the terms of sanction.
12. We shall give reasonable notice to borrowers before taking decision to recall / accelerate payment or performance under the agreement or seeking additional securities.
13. We shall release all securities on receiving payment of loan or realisation of loan subject to any legitimate right of lien for any other claim we 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 we are entitled to retain the securities till the relevant claims are settled / paid.
14.  Bank will 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, comes to the notice of the bank.
15. Bank will not discriminate on grounds of sex, caste and religion in the matter of lending. However, this does not preclude bank from participating in credit-linked schemes framed for weaker sections of the society.
16. In the matter of recovery of loans, the bank will not resort to undue harassment viz., persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc.
17. 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 ie., objection of the bank, if any, will be conveyed within 21 days from the date of receipt of request.

GRIEVANCE REDRESSAL MECHANISM:

All disputes arising out of the decisions of a Bank's functionary shall be heard and disposed off at the next higher level. Disputes arising out of branch decisions will have to be dealt with at RO level for which a Grievance Redressal Cell is formed for expeditious settlement of such grievances. Complaints arising out of decisions at ROs will be dealt with by Head Office - Credit Dept (CD).