tailieunhanh - Model Policy on Bank Deposits

The ESBG appreciates the efforts of the European Commission and the Liikanen Group to strengthen financial stability in the European banking landscape. The ESBG also welcomes the fact that the Liikanen Group brings the risky practices of investment banking including proprietary trading, shadow banking and the ‘Too big to fail-Problem’ to the spotlight, leaving aside the “Vickers Report” approach. In this sense, we appreciate that these proposals do not include any increase in capital requirements for retail banks and do not envisage a separation of businesses for the entire banking system - in. | Model Policy on Bank Deposits Preamble One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact depositors are the major stakeholders of the Banking System. The depositors and their interests from the key area of the regulatory framework for banking in India and this have been enshrined in the Banking Regulation Act 1949. The Reserve Bank of India is empowered to issue directives advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalization in the financial system and deregulation of interest rates banks are now free to formulate deposit products within the broad guidelines issued by RBI. This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. The document recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public conduct and operations of various deposits accounts payment of interest on various deposit accounts closure of deposit accounts method of disposal of deposits of deceased depositors etc. for the benefit of customers. It is expected that this document will impart greater transparency in dealing with the individual customers and create awareness among customers of their rights. The ultimate objective is that the customer will get services they are rightfully entitled to receive without demand. While adopting this policy the bank reiterates its commitments to individual customers outlined in the Code of Banks Commitment to Customer adopted by the banks. This document is a broad framework under which the rights of common depositors are recognized. Detailed operational instructions on various deposit schemes and related services will be issued from time to time. The Bank s website .