Lok Sabha Question No. 3141 (UNSTARRED), answered on 2015-08-07
Subject: Complaints against Credit/Debit Cards
Ministry: FINANCE
Asked by: K. MARAGATHAM, RAYAPATI SAMBASIVA RAO, RAMSINH PATALYABHAI RATHWA, E. AHAMED

**GOVERNMENT OF INDIA**

**MINISTRY OF FINANCE**

**DEPARTMENT OF FINANCIAL SERVICES**

**LOK SABHA**

**UNSTARRED QUESTION NO. 3141**

**TO BE ANSWERED ON THE 7** **th** **AUGUST, 2015/16 SHRAVANA, 1937 (SAKA)**

**COMPLAINTS AGAINST CREDIT/DEBIT CARDS**

**QUESTION**

**3141.		SHRIMATI K.    MARAGATHAM:**

**SHRI RAYAPATI SAMBASIVA RAO:**

**SHRI RAMSINH RATHWA:**

**SHRI E. AHAMED:**

Will the Minister of FINANCE be pleased to state:

(a) whether the Government has asked the banks to address the complaints pertaining to credit/debit cards more gracefully and if so, the details thereof;

(b) whether the majority of complaints pertains to debit cards involving debiting of amount for not drawn or disbursed through ATM and if so, the details thereof;

(c) whether the Reserve Bank of India (RBI) has conducted any study on usage of debit/credit cards and if so, the details thereof;

(d) whether the Government has received any complaints against banks for selling their cards by making false lucrative offers and charging exorbitant fee;

(e) if so, the details thereof during the last three years and the current year, bankwise including IndusInd Bank; and

(f) the steps taken/being taken by the Government to laid down guidelines and to curb such lucrative offers by banks?

**ANSWER**

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

**(SHRI JAYANT SINHA)**

1. & (b): The Government and the Reserve Bank of India have issued guidelines / instructions to   banks to address all the public grievances/ complaints promptly and gracefully including those pertaining to credit/debit cards vide Department of Financial Services’ D.O. letter No. 11/3/2015-BO.III dated 19.02.2015 and Reserve Bank of India Master Circular DBR No. FSD.BC.18/24.01.009/2015-16 dated 01.07.2015 on “Credit Card operations of banks and NBFCs and debit cards and Pre-paid Card Operations of Banks, which communicates as follows:

Generally, a time limit of 60 (sixty) days may be      given to the customers for referring their complaints/grievances.  The instructions on credit card issuing banks are applicable mutatis-mutandis to NBFCs issuing credit cards.  The banks should publicize through their websites and other means, the interest rates charged to various categories of customers including the methodology of finance charges.  The card issuers should ensure that there is no delay in dispatching bills and the customer has sufficient number of days for making payment before the interest starts getting charged.  In the matter of recovery of dues, banks should ensure that they, as also their agents, adhere to the extant instructions on Fair Practice Code for lenders (as also BCSBI’s Code of Bank’s Commitment to Customers.

The majority of complaints relating to ATM/Debit cards pertain to ATM failed transactions where the customer’s account has been debited and the cash has not been dispensed by the ATM machine.  The customers lodge their complaints for these failed transactions and the issuing banks credit back the account of the customer within 7 working days as per guidelines, failure to re-credit the customer’s account shall entail payment of compensation to the customer @Rs.100 per day. Bank-wise data on complaints about non / short dispensation of cash from ATM cards (2014-15) and   complaints regarding ATM / Debit / Credit cards of the last three years are at Annex-I & Annex-II.

(c): No study has been conducted on usage of debit/credit cards.

(d) to (f): Banks are not selling cards by making false lucrative offers nor charging exorbitant fee for selling their cards.

*****

**Annex I**

**Complaints Received  by the Offices of Banking Ombudsmen on non/short dispensation of cash from ATM Cards  (2014-15)**

| **Bank Name**                            | **Non/Short dispensation of cash from ATMs (2014-15)**  **July 1, 2014- June 30, 15**   |
|------------------------------------------|-----------------------------------------------------------------------------------------|
| STATE BANK OF BIKANER AND JAIPUR         | 140                                                                                     |
| STATE BANK OF HYDERABAD                  | 93                                                                                      |
| STATE BANK OF INDIA                      | 1991                                                                                    |
| STATE BANK OF MYSORE                     | 40                                                                                      |
| STATE BANK OF PATIALA                    | 57                                                                                      |
| STATE BANK OF TRAVANCORE                 | 95                                                                                      |
| ALLAHABAD BANK                           | 84                                                                                      |
| ANDHRA BANK                              | 95                                                                                      |
| BANK OF BARODA                           | 228                                                                                     |
| BANK OF INDIA                            | 199                                                                                     |
| BANK OF MAHARASHTRA                      | 30                                                                                      |
| CANARA BANK                              | 318                                                                                     |
| CENTRAL BANK OF INDIA                    | 200                                                                                     |
| CORPORATION BANK                         | 123                                                                                     |
| DENA BANK                                | 55                                                                                      |
| INDIAN BANK                              | 104                                                                                     |
| INDIAN OVERSEAS BANK                     | 140                                                                                     |
| ORIENTAL BANK OF COMMERCE                | 134                                                                                     |
| PUNJAB AND SIND BANK                     | 28                                                                                      |
| PUNJAB NATIONAL BANK                     | 760                                                                                     |
| SYNDICATE BANK                           | 99                                                                                      |
| UCO BANK                                 | 105                                                                                     |
| UNION BANK OF INDIA                      | 245                                                                                     |
| UNITED BANK OF INDIA                     | 95                                                                                      |
| VIJAYA BANK                              | 42                                                                                      |
| **OTHER PUBLIC SECTOR BANK**             |                                                                                         |
| IDBI BANK LIMITED                        | 144                                                                                     |
| **PRIVATE SECTOR BANKS**                 |                                                                                         |
| CITY UNION BANK LIMITED                  | 7                                                                                       |
| FEDERAL BANK LTD                         | 40                                                                                      |
| ING VYSYA BANK LTD                       | 16                                                                                      |
| JAMMU AND KASHMIR BANK LTD               | 12                                                                                      |
| KARNATAKA BANK LTD                       | 16                                                                                      |
| KARUR VYSYA BANK LTD                     | 21                                                                                      |
| LAKSHMI VILAS BANK LTD                   | 5                                                                                       |
| NAINITAL BANK LTD                        | 1                                                                                       |
| RATNAKAR BANK LTD                        | 6                                                                                       |
| SOUTH INDIAN BANK LTD                    | 20                                                                                      |
| TAMILNAD MERCANTILE BANK LTD             | 6                                                                                       |
| THE DHANALAKSHMI BANK LTD                | 5                                                                                       |
| AXIS BANK LIMITED                        | 304                                                                                     |
| DCB BANK LIMITED                         | 6                                                                                       |
| HDFC BANK LTD.                           | 183                                                                                     |
| ICICI BANK LIMITED                       | 396                                                                                     |
| INDUSIND BANK LTD                        | 17                                                                                      |
| KOTAK MAHINDRA BANK LTD.                 | 48                                                                                      |
| YES BANK LTD.                            | 39                                                                                      |
| **FOREIGN BANKS**                        |                                                                                         |
| CITIBANK N.A                             | 37                                                                                      |
| DEUTSCHE BANK(ASIA)                      | 3                                                                                       |
| HONGKONG AND SHANGHAI BANKING CORPN.LTD. | 3                                                                                       |
| ROYAL BANK OF SCOTLAND                   | 12                                                                                      |
| STANDARD CHARTERED BANK                  | 27                                                                                      |
| OTHERS                                   | 116                                                                                     |
| **Total**                                | **6990**                                                                                |

| **Complaints Received  by the Offices of Banking Ombudsmen on ATM /Debit/Credit Cards(July- June) - Annex-II**   |             |           |            |           |             |           |            |           |             |           |            |           |
|------------------------------------------------------------------------------------------------------------------|-------------|-----------|------------|-----------|-------------|-----------|------------|-----------|-------------|-----------|------------|-----------|
|                                                                                                                  |             |           |            |           |             |           |            |           |             |           |            |           |
| **Bank Name**                                                                                                    | **2012-13** |           |            |           | **2013-14** |           |            |           | **2014-15** |           |            |           |
|                                                                                                                  | **ATM**     | **Debit** | **Credit** | **Total** | **ATM**     | **Debit** | **Credit** | **Total** | **ATM**     | **Debit** | **Credit** | **Total** |
| **Public Sector Banks**                                                                                          |             |           |            |           |             |           |            |           |             |           |            |           |
| STATE BANK OF INDIA                                                                                              | 3376        | 457       | 1628       | **5461**  | 2983        | 476       | 1535       | **4994**  | 2595        | 491       | 2290       | **5376**  |
| STATE BANK OF BIKANER AND JAIPUR                                                                                 | 140         | 4         | 21         | **165**   | 144         | 9         | 2          | **155**   | 166         | 6         | 0          | **172**   |
| STATE BANK OF HYDERABAD                                                                                          | 150         | 34        | 1          | **185**   | 144         | 35        | 0          | **179**   | 105         | 27        | 2          | **134**   |
| STATE BANK OF MYSORE                                                                                             | 56          | 4         | 0          | **60**    | 37          | 12        | 0          | **49**    | 18          | 33        | 1          | **52**    |
| STATE BANK OF PATIALA                                                                                            | 141         | 10        | 1          | **152**   | 101         | 6         | 0          | **107**   | 84          | 12        | 4          | **100**   |
| STATE BANK OF TRAVANCORE                                                                                         | 72          | 10        | 1          | **83**    | 89          | 9         | 0          | **98**    | 100         | 18        | 2          | **120**   |
| ALLAHABAD BANK                                                                                                   | 89          | 10        | 6          | **105**   | 94          | 5         | 1          | **100**   | 116         | 10        | 11         | **137**   |
| ANDHRA BANK                                                                                                      | 84          | 15        | 14         | **113**   | 89          | 20        | 12         | **121**   | 108         | 21        | 25         | **154**   |
| BANK OF BARODA                                                                                                   | 198         | 47        | 46         | **291**   | 283         | 53        | 48         | **384**   | 289         | 83        | 67         | **439**   |
| BANK OF INDIA                                                                                                    | 216         | 36        | 46         | **298**   | 199         | 45        | 59         | **303**   | 259         | 70        | 22         | **351**   |
| BANK OF MAHARASHTRA                                                                                              | 42          | 6         | 1          | **49**    | 59          | 11        | 2          | **72**    | 40          | 16        | 0          | **56**    |
| CANARA BANK                                                                                                      | 272         | 53        | 26         | **351**   | 295         | 86        | 21         | **402**   | 391         | 101       | 37         | **529**   |
| CENTRAL BANK OF INDIA                                                                                            | 152         | 20        | 13         | **185**   | 215         | 27        | 10         | **252**   | 220         | 37        | 17         | **274**   |
| CORPORATION BANK                                                                                                 | 111         | 17        | 20         | **148**   | 157         | 25        | 22         | **204**   | 162         | 21        | 11         | **194**   |
| DENA BANK                                                                                                        | 25          | 3         | 1          | **29**    | 35          | 12        | 2          | **49**    | 66          | 14        | 1          | **81**    |
| INDIAN BANK                                                                                                      | 94          | 9         | 9          | **112**   | 127         | 29        | 6          | **162**   | 133         | 15        | 11         | **159**   |
| INDIAN OVERSEAS BANK                                                                                             | 187         | 37        | 9          | **233**   | 180         | 40        | 25         | **245**   | 185         | 42        | 13         | **240**   |
| ORIENTAL BANK OF COMMERCE                                                                                        | 141         | 12        | 4          | **157**   | 152         | 12        | 0          | **164**   | 173         | 30        | 1          | **204**   |
| PUNJAB AND SIND BANK                                                                                             | 22          | 1         | 2          | **25**    | 14          | 1         | 1          | **16**    | 40          | 3         | 1          | **44**    |
| PUNJAB NATIONAL BANK                                                                                             | 782         | 73        | 46         | **901**   | 964         | 66        | 35         | **1065**  | 1022        | 118       | 28         | **1168**  |
| SYNDICATE BANK                                                                                                   | 117         | 34        | 20         | **171**   | 147         | 29        | 27         | **203**   | 101         | 47        | 6          | **154**   |
| UCO BANK                                                                                                         | 105         | 17        | 2          | **124**   | 95          | 9         | 1          | **105**   | 111         | 11        | 0          | **122**   |
| UNION BANK OF INDIA                                                                                              | 271         | 44        | 26         | **341**   | 333         | 64        | 19         | **416**   | 330         | 34        | 21         | **385**   |
| UNITED BANK OF INDIA                                                                                             | 95          | 9         | 0          | **104**   | 89          | 11        | 1          | **101**   | 105         | 16        | 1          | **122**   |
| VIJAYA BANK                                                                                                      | 43          | 15        | 10         | **68**    | 35          | 15        | 4          | **54**    | 38          | 17        | 2          | **57**    |
| IDBI BANK LIMITED                                                                                                | 130         | 23        | 3          | **156**   | 113         | 31        | 3          | **147**   | 143         | 46        | 3          | **192**   |
|                                                                                                                  |             |           |            |           |             |           |            |           |             |           |            |           |
| **Private Sector Banks**                                                                                         |             |           |            |           |             |           |            |           |             |           |            |           |
| CATHOLIC SYRIAN BANK LTD                                                                                         | 0           | 1         | 0          | **1**     | 3           | 1         | 0          | **4**     | 0           | 0         | 0          | **0**     |
| CITY UNION BANK LIMITED                                                                                          | 7           | 3         | 0          | **10**    | 8           | 0         | 0          | **8**     | 10          | 1         | 1          | **12**    |
| FEDERAL BANK LTD                                                                                                 | 25          | 11        | 0          | **36**    | 18          | 10        | 1          | **29**    | 43          | 6         | 1          | **50**    |
| ING VYSYA BANK LTD                                                                                               | 24          | 7         | 3          | **34**    | 49          | 6         | 1          | **56**    | 18          | 7         | 4          | **29**    |
| JAMMU AND KASHMIR BANK LTD                                                                                       | 18          | 3         | 4          | **25**    | 15          | 3         | 3          | **21**    | 21          | 3         | 4          | **28**    |
| KARNATAKA BANK LTD                                                                                               | 21          | 4         | 0          | **25**    | 25          | 8         | 0          | **33**    | 16          | 6         | 1          | **23**    |
| KARUR VYSYA BANK LTD                                                                                             | 21          | 2         | 0          | **23**    | 20          | 3         | 1          | **24**    | 27          | 4         | 2          | **33**    |
| LAKSHMI VILAS BANK LTD                                                                                           | 12          | 0         | 0          | **12**    | 10          | 3         | 0          | **13**    | 6           | 2         | 0          | **8**     |
| NAINITAL BANK LTD                                                                                                | 0           | 0         | 0          | **0**     | 0           | 0         | 0          | **0**     | 2           | 0         | 0          | **2**     |
| RATNAKAR BANK LTD                                                                                                | 0           | 0         | 0          | **0**     | 2           | 0         | 6          | **8**     | 6           | 3         | 49         | **58**    |
| SOUTH INDIAN BANK LTD                                                                                            | 15          | 4         | 1          | **20**    | 30          | 6         | 2          | **38**    | 24          | 1         | 0          | **25**    |
| TAMILNAD MERCANTILE BANK LTD                                                                                     | 2           | 3         | 0          | **5**     | 6           | 3         | 0          | **9**     | 9           | 0         | 0          | **9**     |
| THE DHANALAKSHMI BANK LTD                                                                                        | 5           | 0         | 0          | **5**     | 9           | 1         | 0          | **10**    | 4           | 4         | 0          | **8**     |
| AXIS BANK LIMITED                                                                                                | 354         | 115       | 314        | **783**   | 315         | 200       | 410        | **925**   | 334         | 176       | 473        | **983**   |
| DEVELOPMENT CREDIT BANK LTD.                                                                                     | 4           | 0         | 0          | **4**     | 3           | 1         | 4          | **8**     | 5           | 1         | 3          | **9**     |
| HDFC BANK LTD.                                                                                                   | 286         | 127       | 1429       | **1842**  | 248         | 133       | 1352       | **1733**  | 201         | 96        | 1303       | **1600**  |
| ICICI BANK LIMITED                                                                                               | 394         | 139       | 1070       | **1603**  | 504         | 232       | 1087       | **1823**  | 481         | 207       | 1229       | **1917**  |
| INDUSIND BANK LTD                                                                                                | 13          | 4         | 95         | **112**   | 20          | 16        | 97         | **133**   | 21          | 17        | 102        | **140**   |
| KOTAK MAHINDRA BANK LTD.                                                                                         | 50          | 10        | 132        | **192**   | 37          | 16        | 210        | **263**   | 57          | 21        | 195        | **273**   |
| YES BANK LTD.                                                                                                    | 18          | 4         | 2          | **24**    | 70          | 12        | 0          | **82**    | 42          | 19        | 0          | **61**    |
|                                                                                                                  |             |           |            |           |             |           |            |           |             |           |            |           |
| FOREIGN BANKS                                                                                                    |             |           |            |           |             |           |            |           |             |           |            |           |
| AMERICAN EXPRESS BANKING CORP.                                                                                   | 2           | 0         | 57         | **59**    | 0           | 0         | 63         | **63**    | 0           | 1         | 70         | **71**    |
| BARCLAYS BANK PLC                                                                                                | 1           | 1         | 90         | **92**    | 0           | 0         | 43         | **43**    | 0           | 0         | 48         | **48**    |
| CITIBANK N.A                                                                                                     | 26          | 17        | 343        | **386**   | 24          | 22        | 280        | **326**   | 32          | 21        | 321        | **374**   |
| DBS BANK LTD.                                                                                                    | 0           | 0         |            | **0**     | 0           | 0         | 0          | **0**     | 0           | 2         | 0          | **2**     |
| DEUTSCHE BANK AG                                                                                                 | 3           | 0         | 7          | **10**    | 5           | 1         | 6          | **12**    | 4           | 2         | 2          | **8**     |
| HONGKONG AND SHANGHAI BANKING CORPN.LTD.                                                                         | 6           | 8         | 284        | **298**   | 5           | 6         | 105        | **116**   | 1           | 6         | 85         | **92**    |
| ROYAL BANK OF SCOTLAND                                                                                           | 13          | 2         | 123        | **138**   | 19          | 8         | 107        | **134**   | 10          | 2         | 62         | **74**    |
| STANDARD CHARTERED BANK                                                                                          | 22          | 12        | 1771       | **1805**  | 21          | 31        | 2087       | **2139**  | 25          | 14        | 894        | **933**   |
|                                                                                                                  |             |           |            |           |             |           |            |           |             |           |            |           |
| RRBs/Scheduled Co-op Bank/Others                                                                                 | 179         | 14        | 63         | **256**   | 185         | 30        | 59         | **274**   | 174         | 17        | 46         | **237**   |
| **Grand Total**                                                                                                  | **8632**    | **1491**  | **7744**   | **17867** | **8824**    | **1890**  | **7760**   | **18474** | **8673**    | **1978**  | **7472**   | **18123** |