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IBA has suggested that banks should acknowledge loan applications on the date of receipt at the branches.

MUMBAI, Aug 7

WITH a view to improving customer service in banks, the Indian Banks' Association (IBA) has suggested that loan applications should be disposed of within two weeks in respect of loans up to Rs 25,000 to small borrowers, SSI units and sponsored schemes.

In respect of other loans up to Rs 5 lakh, banks should dispose of loan applications in four weeks from the date of receipt, provided the applications are complete in all respects, IBA press release said.

These suggestions have been made by the Managing Committee of the IBA after taking into account the existing services being provided to customers by banks. The IBA is expected to forward these suggestions to banks for them to take a view on the matter.

It has been suggested that banks should acknowledge loan applications on the date of receipt at the branches.

ATM cards should be issued free of charge for all eligible customers who qualify under the eligibility criteria fixed by the bank while Net banking facilities should be offered without levy of any fees.

The IBA has recommended that collection charges of outstation cheques up to Rs 5,000 representing pension for ex-servicemen, senior citizens, pensioners who are maintaining accounts with rural branches must be waived. Collection charges up to Rs 10,000 should be waived for physically challenged persons, including the blind.

It has also been suggested that collection charges in case of delays in collection beyond specified periods of around 10-14 days should be waived.

Free remittance facility should be allowed by debit to savings bank accounts maintained by senior citizens for their personal uses.

It also suggested raising the credit limit of outstation instruments from Rs 7,500 to Rs 15,000 for duly introduced and satisfactorily operated accounts.

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