Reference

Title

OIB POLICY FOR COMPENSATION

Date Approved

31st May 2008 5th Audit Committee 2008, 2nd revision 25th October 2010

Related Policies

Cheque Collection Policy, Redressal Policy

Purpose

A Compensation Policy is a statement from the Board, supported by Senior Management, which sets out the basic principles to which all employees of Oman International Bank (‘OIB’) and anyone else who is performing work on behalf of OIB, shall adhere.

Background

The objective of this policy is to establish a system whereby the bank compensates the customer for financial losses without his asking, for any financial loss he/she might incur due to deficiency in service on the part of the bank in defined areas or any act of omission or commission directly attributable to the bank. This policy covers India specific aspects which have been indicated by way of illustrative adoption and commitment of the Board for ensuring total compliance with local regulatory norms.

Policy

The bank will arrange to compensate the customers for the events defined and to the extent specified in the table appended to this policy.

Review of Policy

f and only warranted due to changes in the regulatory guidelines or I T updradation by bank.

Definitions

Compensation means reimbursement for financial loss only to extent suffered by customer.

Policy Owner

Management Committee India

Policy Approver

Board of Directors

History

1st drafted and approved in May 2008. 2nd version(May 10) 3rd revision(June 11)

Supporting

Master Circular of RBI on customer service

Details of events of financial loss and extent of compensation to be given to Customers

Nature of deficiency in service

Details of events causing financial loss to customer

Details of compensation

Time norm

Unauthorised / Erroneous Debit:

If the bank has raised an unauthorized/ erroneous direct debit to an account, the entry will be reversed immediately on being informed of the erroneous debit, after verifying the position. In the event the unauthorized/erroneous debit has resulted in a financial loss for the customer by way of reduction in the minimum balance applicable for payment of interest on savings bank deposit or payment of additional interest to the bank in a loan account or through return of cheque due to such debits.

Bank will compensate the customer to the extent of such financial losses.

To complete the process of verification within a maximum period of 7 working days from the date of reporting of erroneous debit where third party is not involved. 30 days in case where third party is involved.

ECS direct debits/ other debits to accounts

In the event the bank fails to meet such commitments

The bank would debit the customer’s account with any applicable service charge as per the schedule of charges notified by the bank. In the event the bank levies any charge in violation of the arrangement

Customer will be compensated to the extent of any financial loss the customer would incur on account of delay in carrying out the instruction/failure to carry our the instructions.
The bank will reverse the charges when pointed out by the customer subject to scrutiny of agreed terms and conditions
Any consequential financial loss to the customer will also be compensated

Within 7 working days of the customer intimating the transaction to the bank.

Payment of Cheques after Stop Payment Instructions:

In case a cheque has been paid after stop payment instruction is acknowledged by the bank.

The bank shall reverse the transaction and give value-dated credit to protect the interest of the customer. Any consequential financial loss to the customer will be compensated as provided under para 1 above.

Such debits will be reversed within 2 working days of the customer intimating the transaction to the bank.

Foreign Exchange Services

Collection of cheques denominated in foreign currency as indicated in Cheque Collection Policy

The bank will compensate the customer for undue delays in affording credit once proceeds are credited to the Nostro Account of the bank with its correspondent. Such compensation will be given for delays beyond one week from the date of credit to Nostro Account/ due date after taking into account normal cooling period stipulated. The compensation in such cases will be worked out as follows:

Interest for the delay in crediting proceeds as indicated in the collection policy of the bank.
Compensation for any possible loss on account of adverse movement in foreign exchange rate.

Within seven days of establishing the correct position after the reporting of full details and determining the facts by bank .

Collection of payment instruments

Instruments lost in transit

Interest will be paid for the period exceeding the stipulated collection period at the rates specified in Cheque collection Policy
In addition, bank will pay interest on the amount of the cheque for a further period of 15 days at Savings Bank rate to provide for likely further delay in obtaining duplicate cheque/instrument and collection thereof.
The bank would also compensate the customer for any reasonable charges he/she incurs in getting duplicate cheque/instrument upon production of receipt, in the event the instrument is to be obtained from a bank/ institution who would charge a fee for issue of duplicate instrument.

Delay for number of days will be arrived at after date of reporting by customer.

Violation of the Code by bank or its staff

When bank receives report on such cases, it will take appropriate steps to investigate and to handle the complaint.

The bank will compensate the customer for financial losses, if any.

Within one month in line with Redressal policy of the bank.

Delay in crediting the amount of failed ATM transaction

Customer remains out of funds for the days of delay.

Bank will pay suo moto a compensation of Rs.100/- per day for delay beyond 7 days for every day till the time amount is credited back to the account of customer for failed ATM transaction.

The amount of failed ATM transaction must be credited within maximum period of 7 days