MODULE: 3

MT-307 BANKING CONCEPT and PRACTICES

Topics Covered:

1. Consumer Forum.
2. Consumer Protection Act.

1
 Consumer Forum
 Consumer Redressal Forum
 
Under the Consumer Protection Act, every district has at least one consumer
redressal forum, also known as a consumer court. Here, consumers can get their
grievances heard. Above the district forums are the state commissions. At the top
is the National Consumer Disputes Redressal Commission in New Delhi.
 
A written complaint to the company is taken as proof that it has been informed.
The complaint must be backed by copies of bills, prescriptions, and/or other
relevant documents, and should have a deadline. Consumers can also complain
through a consumer organization.

 Claims of less than Rs. 5-20 lakh should be filed with a District forum
 Claims of Rs. 20-1cr with the State commission.
 Claims of more than Rs. 1cr directly with the National Commission.
Consumer Protection Act
 Banking Consumer Forum
The Disputes Redressal Agencies (District Forums, State Commissions
and National Commission ) under the Consumer Protection Act,1986
adjudicate upon the complaints of consumers relating to defaults in
products and deficiency in service. `Service’ as defined in the Act
includes the provision of facilities in connection with banking.

The decisions of the State Commissions, the National Commission, and

the Supreme Court (as the final authority), on different aspects of
banking and other services offered by banks have been reported in
various law journals.
 Banking Consumer Forum
A banking customer can approach Consumer Forum related to the
below mentioned grievances if he/she faces in banking services:

i. Failure /Delay in repaying deposits

ii. Payment and Collection of Cheques/Drafts
iii. Loans and Advances
 Refusal to grant loans
 Interest
iv. Security for loans
 Non-return of documents
 Insurance of security
v. Lien
vi. Bank Guarantee
vii. Locker
viii. Security in bank’s premises