1.0 PREAMBLE Fair Practice Code (FPC) for Lenders aims to provide valuable inputs to Customers and facilitate effective interaction of customers with the Bank especially seeking Retail Credit facilities up to Rs. 2 lakh.
FPC is put in place by our Bank with effect from 20/02/2004.
The Bank reserves the right to modify / incorporate /delete any of the clauses in this FPC at any time and will announce the revised code, in place of the present FPC furnished hereunder:
2.0 IMPORTANT DECLARATIONS: Our Bank declares and undertakes
?To provide professional, efficient, courteous, diligent and speedy services in the matter of retail lending.
?Not to discriminate on the basis of religion, caste, sex, descent or any of them
?To be fair and honest in advertisement and marketing of Loan Products
?To provide customers with accurate and timely disclosure of terms, costs, rights and liabilities as regards loan transactions.
?If sought, to provide such assistance or advise to customers applying for loans.
?To attempt in good faith to resolve any disputes or differences with customers by setting up complaint redressal cells within the organizations.
?To comply with all the regulatory requirements in good faith.
?To spread general awareness about potential risks in contracting loans and encourage customers to take independent financial advice And not act only on representation from banks.
3.0 FAIR PRACTICES: 3.1 Product Information: a) A prospective customer would be given all the necessary information adequately explaining the range of loan products available with our Bank to suit his needs. b) on exercise of choice, the customer would be given the relevant information about the loan product of his choice. c) The customer would be explained the processes involved till sanction and disbursement of loan and would be notified of time frame within which all the processes will be completed ordinarily at our Bank. d) The customer would be informed of the names and phone numbers of branches and the persons whom he can contact for the purpose of loan to suit his needs. e) The Customer would be informed the procedure involved in servicing and closure of the loan taken.
3.2 Interest Rates:
3.2.1 Interest Rates for different loan products would be made available through and in any one or all of the following media, namely: a) In our Bank's Web site b) Over phone, if Tele Banking Services are provided. c) Through prominent display in the branches and at other delivery points. d) Through other media from time to time.
3.2.2 Customers would be entitled to receive periodic updates on the interest rates applicable to their accounts.
3.2.3 on demand, Customers can have full details of method of application of interest.
3.3 Revision in Interest Rates: a) Our Bank would notify immediately or as soon as possible any revision in the existing interest rates and make them available to the customers in the media listed in Para 3.2.1 b) Interest Rate revisions to the existing customers are proposed to be notified within 7 working days from the date of change.
3.4. Default Interest/Penal Interest: Our Bank would notify clearly about the default interest/penal interest rates to the prospective customers.
3.5. Charges: a) Our Bank would notify details of all charges payable by the customers in relation to their loan account. b) Our Bank would make available for the benefit of prospective customers all the details relating to charges generally in respect of retail get a mandate for debiting the said account along with the documentation.
3.6. Terms and Conditions for Lending: a) Our Bank would ordinarily give an acknowledgment of receipt of loan request and if demanded by the customer, a copy of the application form duly acknowledged would also be given, as soon as the customer chooses to buy a product or service of his choice.In respect of loan applications under Priority Sector Advances upto Rs. 2 lakh the acknowledgment will indicate the time frame for disposal of such application.
Time frame for disposal of application of Priority Sector Advances up to Rs. 2 lakh shall be as under:
Priority Sector (Other than SSI)
Small Scale Industries
Size of Credit facilities Time frame
Size of Credit facilities Time frame
Upto Rs. 0.25 lakh 15 days
Upto Rs. 0.25 lakh 15 days
More than 0.25 lakh 8- 9 weeks
Over Rs.0.25 lakh but upto Rs. 5 lakhs 4 weeks
Above Rs. 5 lakh 8 weeks
Time frame for disposal of application of Retail Banking Products upto Rs. 2 lakh shall be as under:
Proposals under Retail Banking Schemes
In all other cases :
Proposal for sanction of fresh/enhancement of credit limits
Proposal for renewal of existing limits
Proposal for sanction of ad-hoc credit facilities
b) Immediately after the decision to sanction the loan, our Bank would show draft of the documents that the customer is required to execute and would explain, if demanded by the customers, the relevant terms and conditions for sanction and disbursement of loan.
c) Loan Application forms, Draft documents or such other papers to be signed by a customer should comprehensively contain all the terms and conditions relating to the product or service of his choice.
d) Wherever possible, reasons for rejection of loan would be conveyed to the customers.
e) Before disbursement of loan and on immediate execution of the loan documents, our Bank would deliver a copy of duly executed documents to the customers, if demanded.
3.7. Account Practices:
a) Our Bank would provide regular statement of accounts, unless not found necessary by the customers.
b) Our Bank would notify relevant due dates for application of agreed interest, penal interest, default interest, and charges if they are not mentioned in the Loan applications, documents or correspondence.
c) Our Bank would notify in advance any change in accounting practices that would affect the customer, before implementation.
3.8. Information Secrecy:
a) All personal information of the customer would be confidential and would not be disclosed to any third party unless agreed to by the customer. The term "Third party" excludes all Law enforcement agencies, Credit Information Bureau, Reserve Bank of India, other banks and financial institution. b) Subject to above Para, customer information would be revealed only under the following circumstances, namely:
?If Our Bank is compelled by law.
?If it is in the Public Interest to reveal the information.
?If the interests of our Bank require disclosure.
3.9. Financial Distress:
a) Our Bank would reckon cases of customer's financial distress and consider them sympathetically. b) Customer would be encouraged to inform about their financial distress as soon as possible. c) Our Bank would adequately train the operational staff to give patient hearing to the customers in financial distress and would render such help as may be possible in their view.
3.10 Grievance Redressal
a) Our Bank would have a Grievance Redressal Cell within the organization
Our Bank has Grievances Redressal Mechanism at 1) At Branch , 2)At Regional Office 3) At Head Office
b) Our Bank would make available all the details, namely;
Where a complaint can be made
Complaint can be made at Branch/ at concerned Regional Office/at Customer Service Cell, Dena Bank, Head Office, Mumbai
ii) How a complaint should be made.
ii) The grievances /complaints can be sent by post or can be lodged on our Bank web site, or by sending to the bank feedback form on customer service by giving details of grievances or sending complaints on e-mail address or fax, or by dropping the complaint in complaints box displayed in branches.
iii) When to expect a reply
iii) Response to a complaint whether positive or negative or requiring more time for redressal, would be given within the maximum period of four weeks from the date of complaint, unless the nature of complaint is such that it requires verification of voluminous facts and figures.
iv) Whom to approach for redressal of grievance etc.,
The customer can lodge a complaint regarding any deficiency in service to the Branch Manager.
If the complaint is not redressed by the branch to the satisfaction of the customer, or no reply is received by the complainant within the prescribed time, then the matter may be referred to the Regional Manager concerned.
If the complainant is still not satisfied with the responses received or no reply is received then the customer can address his complaint to the General Manager, in charge of Customer Service Cell at Head Office, Mumbai at following address:
The General Manager, Customer Service Cell, Dena Bank, Dena Corporate Centre C-10, G Block, Bandra-Kurla Complex Bandra [E]. Mumbai- 400 051