BORROWERS TO GET DETAILED LOAN STATEMENTS SOON

IBA has advised the banks that once year term-loan borrowers should get a statement detailing, among others, balance (loan) outstanding, repayment of principal/ payment of interest during the year, current interest rate, balance tenure of the loan, changes in interest rates and details of prepayment, if any.


Currently, savings bank and current account customers and those enjoying cash credit/ overdraft limits can know transaction details in their accounts by periodically updating their passbook or by getting a statement (either in paper or electronic format) or viewing it on the Internet.


The Association's recommendation to banks on giving loan statements to term loan borrowers annually comes in the wake of a customer service meeting convened a couple of months ago under the chairmanship of Dr K.C. Chakrabarty, Deputy Governor, Reserve Bank of India.


According to the Code of Banks' Commitment to Customers, banks are required to help customers manage their account by providing the latter with a monthly statement of account (unless the customer has an account where he/she has a passbook).


Source: http://www.thehindubusinessline.com/2010/02/03/stories/2010020351860600.htm