The banks cannot take any hidden charges, according to the central bank.
Nepal Rastra Bank has issued guidelines for banks and financial institutions to cut the jargon and be transparent in matters concerning their services and service charges. The move is meant to ensure that BFIs do not dupe the unsuspecting customers with hidden charges they are not aware of.
NRB’s directive regarding service and hidden charges wants BFIs to throw light on‚ and not hide‚ these charges. ‘Conditions apply’ and conditions written in fine print will not suffice. The BFIs have to publish the additional service and other charges‚ such as rate of penalties‚ as well as any limitations and conditions‚ on the BFIs’ websites‚ leaflets and brochures – in simple language free of banking and legal jargon.
Likewise‚ the BFIs have to publish the rate of interest for depositors and borrowers‚ fine interest‚ management fees and service charges in simple language on the BFIs’ websites‚ brochures and notice boards in their branches‚ so that a layman can easily comprehend the real earnings from the deposits and the real burden of borrowings.
Similarly‚ the directive has also tried to bring uniformity to the service charges being charged by BFIs while conducting collateral valuation‚ blacklisting‚ removing from blacklist‚ issuing cards and providing insurance. In essence‚ this means that service charges being charged from the customers by one BFI should not be higher than that of another.
BFIs will not be allowed to charge the customers while activating the inactive accounts. Due interest will have to be paid for inactive accounts as well. Moreover‚ the BFIs cannot reduce the balance from accounts as penalty for failure to maintain the minimum balance in the account.
BFIs have also been directed to establish information and grievance-hearing desk to redress the woes of customers.
No comments:
Post a Comment