Fair Lending Practice Code

RUCB FAIR LENDING PRACTICES CODE (RUCBFLPC)

1. Preamble

Scope:

The Rajasthan Urban Cooperative Bank Ltd. Fair Lending Practices Code (RUCBFLPC for short) is a voluntary code adopted by us as commended by Indian Bank's Association (IBA) based on the guidelines of Reserve Bank of India (RBI). It aims to provide valuable inputs to customers and facilitates effective interaction of customers with us.

Extent:

There are 8 important declarations with RUCBFLPC from our Bank, the spirit of which pervades the entire Fair Practices Code prescribed by RBI.

2. Important declarations:

Our Bank declares and undertakes

To provide professional, efficient, courteous, diligent and speedy services in the matter of retail lending
Not to discriminate on the basis of religion, caste, sex, descent or any of them
To be fair and honest in advertisement and marketing of Loan Products
To provide customers with accurate and timely disclosure of terms, costs, rights and liabilities as regards loan transactions.
If sought, to provide such assistance or advice to customers applying for loans.
To attempt in good faith to resolve any disputes or differences with customers by setting up complaint redressal cells within the organizations.
To comply with all the regulatory requirements in good faith.
To spread general awareness about potential risks in contracting loans and encourage customers to take independent financial advice and not act only on representations from banks.

3. Fair Practices:

3.1 Product Information

A prospective customer would be given all the necessary information adequately explaining the range of loan products available with our Bank to suit his needs.
On exercise of choice, the customer would be given the relevant information about the loan product of his choice.
The Customer would be explained the processes involved till sanction and disbursement of loan and would be notified of timeframe within which all the processes will be completed ordinarily at our Bank.
The Customer would be informed of the names and phone numbers of branches and the persons whom he can contact for the purpose of loan to suit his needs.

3.2 Interest Rates:

3.2.1 Interest Rates for different loan products would be made available through and in any one or all of the following media, namely:
In our Bank's Web site Through prominent display in the branches and at other delivery points Through other media from time to time
3.2.2 Customers would be entitled to receive periodic updates on the interest rates applicable to their accounts.
3.2.3 On demand, Customers can have full details of method of application of interest.

3.3 Revision in Interest Rates:

Our Bank would notify immediately or as soon as possible any revision in the existing interest rates and makes them available to the customers in the media listed in Para 3.2.1.
Interest Rate revisions to the existing customers would be notified within 3 working days from the date of change.

3.10 Grievance Redressal:

All disputes arising on account of implementation of our fair lending practices code shall be heard and disposed of by an authority who is at the next higher level to the functionary (who is not below the controlling authority) whose decision has been disputed as a violation of the fair practices code of the Bank. The Board of Directors itself shall be the deciding authority in respect of sanctions made by the Loan Committee.Our Bank would make available all the details, namely; Where a complaint can be made How a complaint should be made When to expect a reply Whom to approach for redressal of grievance etc., to the customers individually on demand and through the media listed in Para 3.2.1. Response to a complaint whether positive or negative or requiring more time for redressal would be given within a maximum period of four weeks from the date of complaint, unless the nature of complaint is such that it requires verification of voluminous facts and figures.