The recent RBI notification on June 22, 2017, is a much-needed reminder to banks. As almost anyone who has a bank account would have noticed, bank statements/passbooks are not the easiest documents to understand. So many of the entries are made up of random numbers and codes that is just impossible to figure out who the payees or payors are. It can get really frustrating when you have to spend time and effort trying to trace the entries to their source.
For example, an entry in a passbook could show “CDAR-20121890000744687” with a Credit of Rs. 3,000. Now, who exactly made the payment is unclear from this. You have to rake your brains to think of anyone who would have made that deposit – for all you know – you might have made that deposit!
It seems RBI had asked banks to address this issue as far back as 2004. They were clearly aware of the problems faced by customers and hence wanted banks to give statements that could be easily understood by customers. But as we know by now, that circular has been conveniently ignored by almost every bank. I hold accounts in multiple banks and every one of them is guilty of not addressing this issue.
This is a reminder from the RBI to banks to take this matter seriously. Hopefully, banks will understand that this simple change can make the lives of their customers a bit more easier. Let’s make it a point to follow up with banks on this and see how fast they are able to incorporate the changes asked.
At Investjunction, we’ll track this and update you on any improvements that we notice.