Canara Bank is renewing FD unethically

[Das.N]

Canara Bank has renewed my fixed deposit of 40000 despite given an instruction of redeem principal and interest (auto close).
Last month, my sister faced the same problem. We thought, probably we have given an instruction of renewal principal and and payout interest. But this month, I have faced the same problem. I have receipt of the fd (while opening), you can see in the image below. There it's clearly showing, that FD was in auto close mode. But I don't know if their system is broken or any bank agent changed the maturity instruction just before the FD maturity to maintain their deposits, it's a clear violation of RBI rules.

I have four Mutual funds SIP (10000X4), I did some FDs in canara bank to gain some extra interest on my principal . FD matures in time and SIP is deducted from that account every month.Thanks God, today is Sunday and the nach mandate didn't hit my account today. Otherwise, they would charge me a hefty fine today.

Should I go to the RBI ombudsman for this case. My faith in canara bank has been shuttered 😔.

All the necessary screenshots of the FD receipts are below. Please check those to verify my incident. I need valuable advice from our community members

 

[Das.N]

First try to resolve it with the Bank.

What should I say, all my FDs are in auto close mode. Despite that they are renewing them.
Same thing happened to my family members. Something unethical is going on.

 

[talkwithfino]

First try to resolve it with the Bank.
Email Canara Bank and attach those FD Advice in the email. Tell them that the FD has been renewed without your consent; so as to close it without any charges drawn on your Account

What should I say, all my FDs are in auto close mode. Despite that they are renewing them.
Same thing happened to my family members. Something unethical is going on.

You can directly mention that- This is regd my FD Acc XXX3333 ( whatever the number is ). I have attached the E-Term Deposit Receipt herewith which clearly states that the FD is supposed to be redeemed in FULL ( principal and interest ) . The auto renewal of the FD has been done without my consent. As such, close the FD without drawing any charges on my account.

On a side note - I do not know about Canara's Internet Banking system. But generally in other Bank's, you can close a FD on your Own. And today is 20th Oct; I don't think there would be any charges applied if you close it today itself. I have close a 6 months/ 1 year Fd after 7 days from the DATE I made the FD; without any charges.
If there is option to close from Internet Banking; just close it directly from there. Will save you from unnecessary hassle.

 

[_amit_]

Canara Bank has renewed my fixed deposit of 40000 despite given an instruction of redeem principal and interest (auto close).
Last month, my sister faced the same problem. We thought, probably we have given an instruction of renewal principal and and payout interest. But this month, I have faced the same problem. I have receipt of the fd (while opening), you can see in the image below. There it's clearly showing, that FD was in auto close mode. But I don't know if their system is broken or any bank agent changed the maturity instruction just before the FD maturity to maintain their deposits, it's a clear violation of RBI rules.

I have four Mutual funds SIP (10000X4), I did some FDs in canara bank to gain some extra interest on my principal . FD matures in time and SIP is deducted from that account every month.Thanks God, today is Sunday and the nach mandate didn't hit my account today. Otherwise, they would charge me a hefty fine today.

Should I go to the RBI ombudsman for this case. My faith in canara bank has been shuttered 😔.

All the necessary screenshots of the FD receipts are below. Please check those to verify my incident. I need valuable advice from our community members View attachment 72611View attachment 72613View attachment 72614

Complain to Canara Nodal to fix this.
Based on their response second step may or may not involve RBIO, because if you approach RBIO without prior bank complain, they might close it. They may not, but why risk it.

If bank fixes this, later tweet about it tagging RBIO about their practices and hope they help. Maybe members with twitter account can retweet for better reach.
If Canara bank does not provide a expected response and does not fix the problem, complain to RBIO along with details about what wrong could have happened if the SIP has hit and also that this seems like a systemic issue rather a single exception of your case.

 

[Das.N]

Complain to Canara Nodal to fix this.
Based on their response second step may or may not involve RBIO, because if you approach RBIO without prior bank complain, they might close it. They may not, but why risk it.

If bank fixes this, later tweet about it tagging RBIO about their practices and hope they help. Maybe members with twitter account can retweet for better reach.
If Canara bank does not provide a expected response and does not fix the problem, complain to RBIO along with details about what wrong could have happened if the SIP has hit and also that this seems like a systemic issue rather a single exception of your case.

Do you the nodal officer's email?

 

[Pujaari]

Totally get it, Canara Bank can sometimes feel like the poster child for ‘sarkari’ bank shenanigans. First, try chatting with the banking officer to sort things out. If that doesn’t work or you’re just not feeling it, you can always file a complaint here Grievance (canara banks internal grievance redressal) before approaching the ombudsman
Don’t worry, they’ll have to respond with something useful eventually!

 

[talkwithfino]

Do you the nodal officer's email?

Here you go

Thread 'All Banks Customer Care Dept Email Id'

Apr 14, 2024

Hello Everyone,

Here, you can find Bank's Customer Care Dept details (Banking related queries) - in following order Hdfc >Icici >Kotak >Axis > Standard Chartered >DBS >SBI >Bank of Baroda >IDFC First Bank >Indusind >Yes Bank> Federal> RBL >Deutsche >HSBC >Union Bank of India >PNB >Central Bank of India >Jana Bank >AU Bank >Bandhan Bank >Canara Bank
Thanks to @ritwik2000 for contributing additional information to this Thread

For Credit Card Dept >> https://www.technofino.in/community/threads/all-bank-credit-card-department-email-id-phone-no.529/
For Demat and...

• talkwithfino
• Replies: 89
• Forum: Informative Threads

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[_amit_]

All have Canara FD story of their own. I remember this one where @sjmajumder showed perseverance.

Thread 'Received compensation for harassment from Canara Bank'

Apr 9, 2024

Dear Friends,

Happy to share with you all that I have received a compensation of Rs. 10,000 from Canara Bank for harassment.

Canara Bank gave 0.5% less ROI on 4 FDs auto renewed in Dec 2023. When complained to BM over phone, he asked me to visit branch with the certificates. On reaching branch he introduced me to a lady who takes care of term deposits. She took around 20-30 minutes to understand the issue. Then she asked me to call her after a week. When I called after 10 days, she had completely forgotten about the matter and asked me all the details all over again and then asked me...

• sjmajumder
• canara bank compensation rbi rbi ombudsman
• Replies: 67
• Forum: Bank Account

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• 

 

[pothi]

Should I go to the RBI ombudsman for this case. My faith in canara bank has been shuttered

Close the FD manually and then make a complaint to Canara bank. Wait for 30 days for refund of 1% penalty on premature withdrawal. Then, go to RBI.

My two FDs expire next year. Keeping my fingers crossed.

 

[Das.N]

Close the FD manually and then make a complaint to Canara bank. Wait for 30 days for refund of 1% penalty on premature withdrawal. Then, go to RBI.

My two FDs expire next year. Keeping my fingers crossed.

Yes, I will close my FDs manually because I need that fund to continue my MF SIP, .
And I will not do any kind FD in future in canara bank for my peace of mind.
I have Indusind and HDFC Bank account, they are offering better interest than Canara Bank.
I can't continue my sip with this kind of tension with Canara Bank, If I forget to redeem my FD manually, I will be charged a fine, Because I believe same thing will happen in next month in my account. I have more FDs to mature every 20th of the month.So, it's better to switch to another bank.

 

[brucelee]

Even Union Bank of India has the same issue, every time a fd matures have to manually close after T+1 day through their app or website.

 

[ramkumar_yramkumar_y is verified member.]

You can simply ask your branch to close FD and they'll close. There's nothing much to do.

 

[pothi]

I have more FDs to mature every 20th of the month

Don't put everything in the same basket / bank. Spread it across PSU, private and SFBs.

 

[Das.N]

Don't put everything in the same basket / bank. Spread it across PSU, private and SFBs.

I did FD in Canara for diversification. I have more than 20L fd In HDFC+Indusind.
I did only 40000X12=4.8L fd in Canara for one year SIP of MF and this happened to me.
Now, I will move my SIP FDs to SBI (though they will offer lesser interest rate compared to Canara, but they are reliable)

 

[Bhaskar]

Same issue faced in yono SBI also. Had to manually redeem the amount though no penalty charged.

 

[6ix9ine]

Canara Bank has renewed my fixed deposit of 40000 despite given an instruction of redeem principal and interest (auto close).
Last month, my sister faced the same problem. We thought, probably we have given an instruction of renewal principal and and payout interest. But this month, I have faced the same problem. I have receipt of the fd (while opening), you can see in the image below. There it's clearly showing, that FD was in auto close mode. But I don't know if their system is broken or any bank agent changed the maturity instruction just before the FD maturity to maintain their deposits, it's a clear violation of RBI rules.

I have four Mutual funds SIP (10000X4), I did some FDs in canara bank to gain some extra interest on my principal . FD matures in time and SIP is deducted from that account every month.Thanks God, today is Sunday and the nach mandate didn't hit my account today. Otherwise, they would charge me a hefty fine today.

Should I go to the RBI ombudsman for this case. My faith in canara bank has been shuttered 😔.

All the necessary screenshots of the FD receipts are below. Please check those to verify my incident. I need valuable advice from our community members View attachment 72611View attachment 72613View attachment 72614

When you are trying to manually break it, does it incur any penalty?

I know about HDFC, with the money maximizer facility, the excess balance is automatically converted into an FD. Upon maturity, it is renewed for another year. This is the default instructions set by the banks for the FDs.

The best part is that I can cancel it on the T+1 day without any penalty. If I try to cancel on the same day, it shows an error, but it works the next day.

For now, break it. If it incur any sort of penalty then RBI bamboo is mandatory.

 

[madukris]

Even IDFC FIRST BANK has done the same thing for my FD Rs 50,000. They did NOT REPLY even to my several mails and messages. Ridiculously enough, its email ID is ALWAYS YOU FIRST. Then I tweeted Amitabh Bachhan ji who is their Brand Ambassdor who praises the Bank , just as he does for other Banks for consideration only known to them. Then within minutes rep sponsre from BANK came , not Mr Amitabhji. Then in a week it is closed. My credit balance of Rs 1 Lakh in CREDIT CARD Ac. ( Deposited for payment of a bill over my Card limit) was not refunded even after several requests and it took a month to get it. I have very well seen the ugly and unethical practices of most Banks , being an Ex Banker myself. Customer interest is not well protected. There is utter lack of control mechanism. There should be a parallel concept like KNOW YOUR BANKER. Each Bank and Corporate, Institution should compulsorily reveal , ON ITS WEBSITE, public complaints received against it and its status. Then others and public will be alerted to remain careful to that extent. Brand Ambassadors know nothing about a product or its promoter character but praise and advertise for it, a disservice to Society. Whatever service we avail, we have to WAIL. ( M KRISHNA RAO, Mob. 9493063880, Vizag )

 

[Baker]

Give me the branch code and I'll give you the nodal officer details.

 

[#aniket]

Canara Bank has renewed my fixed deposit of 40000 despite given an instruction of redeem principal and interest (auto close).
Last month, my sister faced the same problem. We thought, probably we have given an instruction of renewal principal and and payout interest. But this month, I have faced the same problem. I have receipt of the fd (while opening), you can see in the image below. There it's clearly showing, that FD was in auto close mode. But I don't know if their system is broken or any bank agent changed the maturity instruction just before the FD maturity to maintain their deposits, it's a clear violation of RBI rules.

I have four Mutual funds SIP (10000X4), I did some FDs in canara bank to gain some extra interest on my principal . FD matures in time and SIP is deducted from that account every month.Thanks God, today is Sunday and the nach mandate didn't hit my account today. Otherwise, they would charge me a hefty fine today.

Should I go to the RBI ombudsman for this case. My faith in canara bank has been shuttered 😔.

All the necessary screenshots of the FD receipts are below. Please check those to verify my incident. I need valuable advice from our community members View attachment 72611View attachment 72613View attachment 72614

The matter is inorder to register the valid case with RBI BO, firstly you need to make a complaint with Canara only.

Just send them a random mail without attaching proof that the FD was supposed not to get auto renewed, as you weren't consented for the same while making a FD. Then why it got auto renewed, you're asking reason & resolution for the same.

See what they reply, how bluntly they reply and in what tone & then you can proceed with RBI BO attaching proof for claiming your argument, do also mention your sister's incident, tell the BO, that the regulated entity (bank) may give technical fault/ glitch as a reason for this incident but it's just a lame excuse. How same thing can happen with n no. of people? Why they can't make internal periodically?....

Why they lied on making a complaint? Ask compensation also.

Moral: When vigilance fades, exploitation thrives.

 

[Das.N]

Give me the branch code and I'll give you the nodal officer details.

Branch code 2804