Sharad S.

Phadke
339, Narayan Peth,
Near Modi Ganapati,
Pune 411 030
Email: sharadphadke@gmail.com
Cell: 09881129521
________________________________________________________________

Date: June 20th, 2014

by speed post
To,
The Governor,
Reserve Bank of India
Central Office Building, 18th Floor,
Shahid Bhagat Singh Road,
Mumbai-400 001
Respected Sir,
Subject: COMPLAINT AGAINST CORPORATION BANK FOR
NON-PAYMENT OF COMPENSATION FOR DELAY IN
REFUND OF ATM FAILED TRANSACTION AMOUNT, AS
MANDATED BY RBI

I am filing this complaint cum Social Audit for RBI two directives wide
circular No RBI/2009-2010/100/DPSS No.101/02.10.02/2009-2010 dated
17-07-2009 and RBI/2010/11/547/DPSS.PD.No.2632/02.10.002 / 2010-2011
dated 27-05-2011.
2. I now enclose my analysis of information received from Corporation
Bank, [Social Audit] which is provided on CD under RTI. I have scrutinized
each transaction and by reckoning 14 day time [12 working days + maximum 2
days for holidays] or 8 days [7 working days + 1 day holiday] for refunding the
failed amount from date of receipt of complaint by bank. These details pertain
to transactions which have failed at ATMs of all other banks which speak of
quality of their ATMs and its functioning of staff. Scrutiny reveals that total
whopping amount of Rs.9,78,72,500/- is not paid by Corporation Bank as
compensation for ATM failed transactions for 2010-11 and 2011-12. These
transactions have failed at different ATMs of other Banks with their own bank.
My complaint dated 05-06-2014 relating to customers of Corporation
Bank whose transactions have failed at ATMs of SBI, is pending with Dept of
Banking Operation, RBI, Mumbai.
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3. This is just a sample social audit covering time span 2010 to 2012
from the data they supplied. RTI revelations are indicative of the fact that most
Banks in the country are indulging in ditching its account holders as above,
presumably with the blessing or connivance of higher management and
auditors. This is generic in nature and not a single aberration. I think it is a
serious matter for RBI to act decisively and firmly, which is substance of good
governance, if it means business for RBI for the benefit of common men of
India and inclusive growth.
4. Brief summary is as under:
For 2010 2011 Financial Year
Sr. No.
ATM
Total Amount
BANK

No. of
Complaints

Remark

ACB

1,51,300.00

not collected & paid

ALB

1,32,700.00

57

not collected & paid

AXB

3,23,000.00

26

not collected & paid

BOB

13,43,600-00

122

not collected & paid

BOI

29,89,900-00

232

not collected & paid

BOM

2,25,300-00

18

not collected & paid

CBI

3,03,000-00

27

not collected & paid

CNB

28,69,600-00

412

not collected & paid

COB

55,500-00

not collected & paid

10

CSB

22,000-00

not collected & paid

11

CUB

1,38,800-00

15

not collected & paid

12

DLB

5,92,700-00

55

not collected & paid

13

FBL

2,78,600-00

19

not collected & paid

14

ICI

31,41,200-00

238

not collected & paid

15

IIB

2,34,800

17

not collected & paid

16

INB

4,31,000-00

54

not collected & paid

17

IOB

8,43,600-00

58

not collected & paid

18

JKB

62,500-00

not collected & paid

19

KTB

42,33,200-00

351

not collected & paid

20

KVB

3,37,600-00

30

not collected & paid

21

LVB

5,22,800-00

47

not collected & paid

22

MIT

1,15,60,700-00 934

not collected & paid

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23

NMT

5,43,400-00

46

not collected & paid

24

OBC

17,11,700-00

137

not collected & paid

25

PMB

20,200-00

not collected & paid

26

PSB

17,200-00

not collected & paid

27

SIB

6,93,100-00

63

not collected & paid

28

SRC

3,12,400-00

16

not collected & paid

29

SVC

19,800-00

not collected & paid

30

SYB

21,25,700-00

167

not collected & paid

31

TMB

1,67,300-00

12

not collected & paid

32

UBI

3,24,000-00

19

not collected & paid

33

UCO

3,55,800-00

34

not collected & paid

34

UOB

31,35,200-00

240

not collected & paid

35

VJB

7,38,400-00

62

not collected & paid

36

YBL

5,61,500-00

46

not collected & paid

37

CORPO.
BANK

6,17,600-00

715

TOTAL

5,86,99,400.00 Five Crore eighty six lakhs ninetynine thousand four hundred only.

NOT PAID TO
CUSTOMER

5. It is surprising to note that there is not a single case reported for ATM
of Punjab National Bank, which is No. 2 in Nationalized Bank. There are many
case of each bank where complaint is resolved before complaint date, which is
impossible since no one will pay before getting the complaint. This indicates
the data supplied by the Bank is false or manipulated.
6. For the year 2011-2012 the data as compare to last year is less and
hence the performance appears as better. But I have doubts on this. Statement
for this year is as under:
Sr. No.

ATM
BANK

Total Amount

No. of
Complaints

Remark

ALB

1,34,400.00

10

not collected & paid

AXB

83,100.00

10

not collected & paid

BOB

5,91,500.00

47

not collected & paid

BOI

27,22,900.00

244

not collected & paid

BOM

1,74,100.00

16

not collected & paid

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CBI

12,21,200.00

79

not collected & paid

CNB

19,83,800.00

168

not collected & paid

CUB

6,21,200.00

43

not collected & paid

COB

29,100.00

not collected & paid

10

CSB

53,300.00

not collected & paid

11

DLB

2,70,700.00

39

not collected & paid

12

DNB

93,800.00

not collected & paid

13

DSB

8,700.00

not collected & paid

14

FBL

1,37,900.00

11

not collected & paid

15

ICI

17,69,200.00

160

not collected & paid

16

IDB

17,400.00

not collected & paid

17

IIB

1,01,600.00

11

not collected & paid

18

INB

2,59,200.00

21

not collected & paid

19

Euronet

3,51,700.00

129

20

Corpo.
BANK

13,200.00

Corporation
Bank
Customers. Bank has
not paid compensation.

Total

1,18,51,400.00 One Crore eighteen lakh fifty one

thousand four hundred only.

7. I therefore lodge this complaint with a request as under:

A] Bank be ordered to comply with said directives of RBI dated 17-07-2009
and 27/05/2011 in the matter of Corporation Bank customers as mentioned
above. This is on a CD where information is sorted in different manner to
assess the quality of working of Corporation Bank.
B] RBI enquiry be ordered and exemplary penalty or such other action be
ordered for mischievous violation of RBI directives.
C] RBI should recommend departmental enquiry to fix accountability for
flouting RBI circulars by operating and supervising staff of the bank, otherwise
penalty will have to be borne by public money with no accountability of
officers/executives.
D] Such other action be initiated to ensure that not only this bank complies
with your said directives [and amendments] but also all other banks pay
compensation for all failed transactions.

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E] RBI may also order re-scrutiny of quarterly returns that banks submit on
failed transactions to RBI with banks board sanction. It is noticed from the
data given by many banks that the compensation paid by the bank is huge and
beneficiaries are less. This is just an eye wash and I am surprised how not a
single bank data supplied is checked by RBI.
8. Incidentally I add that RBIs counterpart IRDA has imposed penalty
of Rs.1.77 crores on Reliance Life Insurance Co Ltd, vide its order dated 1104-2014 for violation of various IRDA directives/regulations. A common man
like me humbly expects that sanctity of RBI directives is also restored, if
common citizens are to be really served in a democratic country, where he is
the ultimate authority. My above efforts are manifestation of scan respect bank
officers have for mandates of RBI, when it comes to benefit of common
men/women. I hope my above prayers are in line with Good Governance
concept of our Honble new Prime Minister.
9. I am enclosing sorted data of non-payment which is related to all other
banks ATM, received from said bank under RTI Act, together with my analysis
in digital form. A huffing amount for these two years runs to 7, 05, 50,800-00
excluding 2,73,21,700.00 making total of 9,78,72,500-00 almost 10
crores !!! This audit is based on Bank supplied data in actual you may
find in multiples of this amount shown.
10. Kindly acknowledge receipt of this complaint with complaint
number for tracking. I shall be happy to know the details of action taken by
RBI [without recourse to RTI], since I have a right to know as a citizen of a
democratic country where aam admi or common man is the ultimate authority.
Yours faithfully,

Sharad Phadke

Enclosures as above:
One CD with sorted data for the year 2010 to 2012
Copies to:
1. Chairman & Mg. Director,
Corporation Bank,
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Mangaladevi Temple Road, Pandeshwar,

MANGALORE Karnataka-575 001
common citizens do expect that at least chairperson of such a
prestigious bank of the country does not take the matter lightly when it
comes to customers benefits mandated by RBI.
2. The Banking Codes and Standards Board of India
Reserve Bank of India Building,
C-7, 4th floor, Bandra Kurla Complex, Mumbai-400051
Kindly intervene.
3. Ms Sucheta Dalal,
Money Life foundation,
Dadar, Mumbai 400 028
- You may cover in your newsletter/magazine to educate consumers.

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