Fraud & fictitious offers increase in 2 years: RBI

KOLKATA: Reserve Bank of India on Friday said fraudulent and fictitious offers though e-mails, mobile phones and SMSs had increased significantly in the last two years despite public awareness by RBI.

"Such fictitious offers had increased in the last two years," RBI general manager C L Nag said here today while addressing media on steps of the central bank in this regard.

He did not give the number of complaints against such fictitious offers it has received, saying most of these were informal.

Nag said several circulars since 2000 had been issued by RBI on such offers and urged people not to be lured by them in which money is asked upfront terming as processing fee, transaction fee, tax clearance and others.

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RBI asks banks to give reasons for returning cheques

Keeping in view the larger interests of customers, the Reserve Bank of India (RBI) today asked banks to inform account holders on the reasons for a cheque being returned or dishonoured.

Banks are advised to indicate the date of return in the 'Cheque Return Memo' without fail, the RBI said in a statement.


The memo that should accompany a cheque dishonoured or returned for any reason is a critical document, more so in case recourse to legal action is necessitated, it said.

Instruments returned unpaid should have a signed objection slip on which a definite and valid reason for refusing payment must be stated, it said.

Certain instances of banks not mentioning the date of return on the cheque return memo have been brought to RBI's notice, it said.

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RBI asks banks to give reasons for returning cheques

Keeping in view the larger interests of customers, the Reserve Bank of India (RBI) today asked banks to inform account holders on the reasons for a cheque being returned or dishonoured.

Banks are advised to indicate the date of return in the 'Cheque Return Memo' without fail, the RBI said in a statement.


The memo that should accompany a cheque dishonoured or returned for any reason is a critical document, more so in case recourse to legal action is necessitated, it said.

Instruments returned unpaid should have a signed objection slip on which a definite and valid reason for refusing payment must be stated, it said.

Certain instances of banks not mentioning the date of return on the cheque return memo have been brought to RBI's notice, it said.

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Asia's oldest co-operative bank closes

The Reserve Bank of India has finally cancelled the licence of Asia's oldest co-operative bank, Vadodara-based Anyonya Co-operative Bank Limited (ACBL), after examining all options for its revival.

RBI sources here said the bank had been ordered to stop all its transactions under Section 35A of the Banking Regulation Act, on September 14, 2007, and the bank downed its shutters in March, 2008. Its annual general meeting in September, 2008 formed a committee to find ways to re-open the bank.

The fate of the bank had been uncertain ever since the RBI clamped restrictions on it for failing to reduce its non-performing assets (NPAs). Revival, merger and liquidation were all discussed for the bank, but nothing worked.

Due to liquidity problems and high NPAs, the bank was placed under directions under Section 35A of the Banking Regulation Act 1949, placing a ceiling on repayment of deposits per depositor.

In a desperate bid to make the bank survive, Vadodara mayor and MP Balkrishna Shukla, along with ACBL chairman Dilip Kelkar and director Vrushal Revadandekar had met Prime Minister Manmohan Singh in March, 2010. Singh had said that he would take up the matter with the RBI. Shukla had also raised the issue in Parliament on March 4 and said that the institute should be granted a heritage status.

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Centre has cleared the appointment of five PSU bank's chiefs

The Centre has cleared the decks for appointing five public sector bank chiefs.

Mr S. Raman, Executive Director, Union Bank of India, will shortly assume charge of Bangalore-headquartered Canara Bank as Chariman and Managing Director.

Mr Ramnath Pradeep, ED, Central Bank of India, will be at the helm of Mangalore-headquartered Corporation Bank as CMD. Mr Arun Kaul, ED, Central Bank of India, will be the new CMD of Kolkata-headquartered UCO Bank.

Mr R. Ramachandran, ED, Syndicate Bank, will be the new CMD of Hyderabad-headquartered Andhra Bank. Mr M. Narendra, ED, Bank of India, will assume charge of Indian Overseas Bank in November.

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