On November 14, 2011, I handed over an outstation cheque (account payee) to my bank for collection via pay-in slip. The bank sent the cheque for realisation through Speed Post. Till date, the cheque has not been credited. The bank says the cheque was lost in transit. A complaint filed with Speed Post hasn't helped. I have lodged a complaint with the bank under the Right to Inform-ation Act (RTI), asking for credit of the principal and interest accrued. It hasn't fetched any reply. Am I on the right track?
Only public sector banks are under the purview of the RTI Act. However, the information sought in this case is not of public interest and hence RTI may not be applicable. You may simply lodge a complaint and request your collecting bank to help you obtain a non-payment certificate (NPC) from the drawee bank in confirmation of the lost instrument being outstanding. The collecting banker should provide you the NPC along with a covering letter with details of the instrument and collection reference, with a request to let you obtain a fresh cheque in lieu of the lost one, and to ask the drawer to initiate stop payment with his bankers while issuing a fresh cheque.
My father had borrowed Rs 17 lakh against his property in July 2010, for my higher education. I am in the last semester. He had obtained moratorium for a year. He has paid the interest due till now. Further, he has applied for extension of the moratorium period for another one-and-a-half years. As per rule, displayed on the banker’s website, the moratorium is equal to the duration of the course plus six months. Now the banker is denying extension, even though the duration of the course is not completed. It is insisting for repayment, saying the RBI rules don't permit subsequent extension. Is it true?
Most banks now follow a model scheme prepared by Indian Banks' Association (IBA), which allows for a moratorium of up to a year, after the course period or six months after getting a job, whichever is earlier. RBI has also recommended that banks follow this model scheme. If you're still within this defined moratorium period, you may take this up with your bank once again.
Are education loans cheaper abroad compared to India? Would you suggest students going abroad to study taking loans from banks there?
Interest rates for education loans in the US and in most countries in Western Europe range between 3.5-10 per cent, whereas education loans in India cost between 10.5-14 per cent, depending on the education institution and the customer’s profile.
Education loans usually come with a moratorium on principal repayment, that is, only interest needs to be paid during the duration of the course. Principal repayment starts after the course is completed. In India, loans are issued in rupees and the cost of converting to the desired currency needs to be also considered.
The writer is MD & head of private and business clients (India), Deutsche Bank. Views expressed are his own. Send your queries at yourmoney@bsmail.in