CENTRAL BANK OF INDIA RD SCAM

[IndieCorner:)]

Hi everyone. I am not sure if this is the right place to post this but I am in very helpless situation, so sorry in advance.

My parents had made an Recurring deposit in Central Bank of India at their home branch back in 2014. This RD was of 10 years and was supposed to mature today, i.e. 13-10-2024. My father and I had been to the bank 7 days agoand told the manager to update the maturity instruction and set it to "Credit to savings ac". He said that nothing could be changed and if he tried to do something at that point we would have faced additional penalty.

Now, today morning I saw that my father got an message from the bank saying amount has been auto renewed for another 10 years. The first installment got deducted as well. I contacted customer care and he said to ask branch manager for closing this auto renewed RD. He also said that since it has been already been renewed, premature withdrawal charges will be levied.

We have recently booked an apartment and this RD amount was needed to pay for that, thus we are in dire need for the cash. I will go to the bank at the first hour but in all likelihood the manager too will say the same that charges will be levied and just deny his fault.

What could be possibly done here? Parents say that they never gave consent for auto renewal and manager too said that it would be credited to account a week ago.

Please help with whatever advise you all can provide.

EDIT : SORRY FOR LABELLING IT AS A SCAM, SOMEONE CHANGE THE TITLE IF YOU CAN... BUT I WAS IN RAGE WHEN I WROTE THIS.. Also I knew there were high chances that it would be auto renewed and so I specifically told the BM about it.. and he was just confidently saying nothing will happen it wont auto renew.

 

[akshayhs]

Please don't tag something as a scam when you haven't lost any money. This seems more of a miscommunication or technical issue between the customer and the bank while someone else will advise you on your redemption issues. I would definitely file a complaint against the branch manager with the Nodal office for miscommunication and demand stringent action

 

[Anupama_Jha]

Please don't tag something as a scam when you haven't lost any money. This seems more of a miscommunication or technical issue between the customer and the bank while someone else will advise you on your redemption issues. I would definitely file a complaint against the branch manager with the Nodal office for miscommunication and demand stringent action

Exactly, PSU banks mostly work in offline mode. So go to head/regional office of your area and give written complaint with each and every event documented.

Before that u can talk with BM regarding this!

 

[Vasuki]

Hi everyone. I am not sure if this is the right place to post this but I am in very helpless situation, so sorry in advance.

My parents had made an Recurring deposit in Central Bank of India at their home branch back in 2014. This RD was of 10 years and was supposed to mature today, i.e. 13-10-2024. My father and I had been to the bank 7 days agoand told the manager to update the maturity instruction and set it to "Credit to savings ac". He said that nothing could be changed and if he tried to do something at that point we would have faced additional penalty.

Now, today morning I saw that my father got an message from the bank saying amount has been auto renewed for another 10 years. The first installment got deducted as well. I contacted customer care and he said to ask branch manager for closing this auto renewed RD. He also said that since it has been already been renewed, premature withdrawal charges will be levied.

We have recently booked an apartment and this RD amount was needed to pay for that, thus we are in dire need for the cash. I will go to the bank at the first hour but in all likelihood the manager too will say the same that charges will be levied and just deny his fault.

What could be possibly done here? Parents say that they never gave consent for auto renewal and manager too said that it would be credited to account a week ago.

Please help with whatever advise you all can provide.

Any money kept in bank is technically payable
If you renewed the RD or even if it happened
Just cancel the RD

Even PPF HAS certain withdrawal situations.

Charges or fine that u have to figure out

If you need money take out with charges,later you can fight it all your life

If you are miser , forget anything I said & have fist fight with manager

 

[deep@vie]

Hi everyone. I am not sure if this is the right place to post this but I am in very helpless situation, so sorry in advance.

My parents had made an Recurring deposit in Central Bank of India at their home branch back in 2014. This RD was of 10 years and was supposed to mature today, i.e. 13-10-2024. My father and I had been to the bank 7 days agoand told the manager to update the maturity instruction and set it to "Credit to savings ac". He said that nothing could be changed and if he tried to do something at that point we would have faced additional penalty.

Now, today morning I saw that my father got an message from the bank saying amount has been auto renewed for another 10 years. The first installment got deducted as well. I contacted customer care and he said to ask branch manager for closing this auto renewed RD. He also said that since it has been already been renewed, premature withdrawal charges will be levied.

We have recently booked an apartment and this RD amount was needed to pay for that, thus we are in dire need for the cash. I will go to the bank at the first hour but in all likelihood the manager too will say the same that charges will be levied and just deny his fault.

What could be possibly done here? Parents say that they never gave consent for auto renewal and manager too said that it would be credited to account a week ago.

Please help with whatever advise you all can provide.

Submit an application with the BM & e-mail it to all the concerned persons over e-mail.
If you need funds urgently, withdraw the funds & ask for the refund(penalties) & if they deny,raise to RBI ombudsman after 30 days, RBO will get you the penalty along with the compensation don't worry, just raise to RBO you didn't give the consent,you should get the compensation above 10k along with the penalties.

 

[KGSIPO]

No bank can refuse to give the amount of less than the mature amount after penalty. In your case, your RD is matured and renewal is done. If at all any penalty, they can deduct maximum from the 1 st installment only. Don't worry .The bank will close happily and credit to savings account .

 

[RAMESH BABU N]

Many accounting systems (CBS) of banks do not permit changes in the last month just before the maturity. So, by default, the matured RD will get auto renewed.

Nothing to worry. From the next day onwards, the customer can demand closure of the RD and get the money on the same day. No penalty. As the account will be treated as a fresh account n no interest was calculated, accrued, paid or capitalized.

Customer may have been ignorant of the auto renewal feature - that was 10 years back. No issues.

But, calling it as a SCAM is too much.

If the customer has NetBanking (INB) enabled for his SB/RD, he can also cancel the RD online - without even going to the branch. I hope CBI's CBS allows such INB facility/feature.

 

[IndieCorner:)]

Many accounting systems (CBS) of banks do not permit changes in the last month just before the maturity. So, by default, the matured RD will get auto renewed.

Nothing to worry. From the next day onwards, the customer can demand closure of the RD and get the money on the same day. No penalty. As the account will be treated as a fresh account n no interest was calculated, accrued, paid or capitalized.

Customer may have been ignorant of the auto renewal feature - that was 10 years back. No issues.

But, calling it as a SCAM is too much.

If the customer has NetBanking (INB) enabled for his SB/RD, he can also cancel the RD online - without even going to the branch. I hope CBI's CBS allows such INB facility/feature.

maybe calling it a scam is a bit too much, but when I went to home branch and specifically asked the manager that r u sure it wont auto renew or anything, he told me clearly that it wont auto renew and if u try to change now, you would incur lots of penalties. He advised me to come back any day after it matures. So isn't this a sort of malpractice? He straight up misguided me about the maturity instruction.

Also, this bank is outdated. So deposits done offline can't be closed online. Heck, one needs to visit branch to get his money even after maturity and it doesn't even get credited back to account on its own like it does in banks like sbi, etc.

 

[RAMESH BABU N]

maybe calling it a scam is a bit too much, but when I went to home branch and specifically asked the manager that r u sure it wont auto renew or anything, he told me clearly that it wont auto renew and if u try to change now, you would incur lots of penalties. He advised me to come back any day after it matures. So isn't this a sort of malpractice? He straight up misguided me about the maturity instruction.

Also, this bank is outdated. So deposits done offline can't be closed online. Heck, one needs to visit branch to get his money even after maturity and it doesn't even get credited back to account on its own like it does in banks like sbi, etc.

If the RD has a 10 yr run, they would have issued a physical RD Passbook which contains most of the T&Cs - though 10 yr old - applicable. You guys must be having it ? Just look into that to know whether BM did a malpractice or not.

As per IBA guidelines, old/migrated/ physical TD/STD/RD/JD/AD... accounts are given only viewing rights. Trxn rights rests with the branch. You can't do everything online.

So, STOP worrying and STOP blaming. DO the doable thing.

 

[RAMESH BABU N]

10 yrs is too long a period in evolving things.

Look at your own phone. Or PC/TV/laptop....

It appears silly n stupid now when you compare features (or lack of them) in those 10 yr old products - as of now - however great they were once then.

Not for nothing, your dad must have chosen that bank (over whatever other bank names you are reeling out now) for some good reasons then.

By the way, I do not have any experience with that bank whether directly or indirectly.

 

[arunkd386]

No need to worry.close the RD.
Maximum you can be charged Rs 100-200 as cancellation charges and 1% penal interest.

 

[RAMESH BABU N]

Hi everyone. I am not sure if this is the right place to post this but I am in very helpless situation, so sorry in advance.

My parents had made an Recurring deposit in Central Bank of India at their home branch back in 2014. This RD was of 10 years and was supposed to mature today, i.e. 13-10-2024. My father and I had been to the bank 7 days agoand told the manager to update the maturity instruction and set it to "Credit to savings ac". He said that nothing could be changed and if he tried to do something at that point we would have faced additional penalty.

Now, today morning I saw that my father got an message from the bank saying amount has been auto renewed for another 10 years. The first installment got deducted as well. I contacted customer care and he said to ask branch manager for closing this auto renewed RD. He also said that since it has been already been renewed, premature withdrawal charges will be levied.

We have recently booked an apartment and this RD amount was needed to pay for that, thus we are in dire need for the cash. I will go to the bank at the first hour but in all likelihood the manager too will say the same that charges will be levied and just deny his fault.

What could be possibly done here? Parents say that they never gave consent for auto renewal and manager too said that it would be credited to account a week ago.

Please help with whatever advise you all can provide.

EDIT : SORRY FOR LABELLING IT AS A SCAM, SOMEONE CHANGE THE TITLE IF YOU CAN... BUT I WAS IN RAGE WHEN I WROTE THIS.. Also I knew there were high chances that it would be auto renewed and so I specifically told the BM about it.. and he was just confidently saying nothing will happen it wont auto renew.

What's the outcome ?
Update it.

 

[nh124001]

10 yrs is too long a period in evolving things.

Look at your own phone. Or PC/TV/laptop....

It appears silly n stupid now when you compare features (or lack of them) in those 10 yr old products - as of now - however great they were once then.

Not for nothing, your dad must have chosen that bank (over whatever other bank names you are reeling out now) for some good reasons then.

By the way, I do not have any experience with that bank whether directly or indirectly.

sir i have a similar question, i opened a 5year Tax saving FD with indian bank in 2017, that FD got auto renewed automatically in 2022 i think so, now can i break that FD? (as far as i know i can't break 5yrs Tax saving FD!!)

 

[RAMESH BABU N]

sir i have a similar question, i opened a 5year Tax saving FD with indian bank in 2017, that FD got auto renewed automatically in 2022 i think so, now can i break that FD? (as far as i know i can't break 5yrs Tax saving FD!!)

Such Tax Saving FDs do not have premature closure option.

Have you given - written clearly - in your original application of 2017 - to renew the FD on maturity ? Or, did the bank do it on it's own ?

If they did on their own without your concurrence in writing, you can now ask them to cancel it - as the initial 5 yr lock-in period is over in 2022.

At best, you can't claim tax free status for that any longer.

 

[nh124001]

Such Tax Saving FDs do not have premature closure option.

Have you given - written clearly - in your original application of 2017 - to renew the FD on maturity ? Or, did the bank do it on it's own ?

If they did on their own without your concurrence in writing, you can now ask them to cancel it - as the initial 5 yr lock-in period is over in 2022.

At best, you can't claim tax free status for that any longer.

i exactly did not remember(may be i did not give any maturity instruction)

"At best, you can't claim tax free status for that any longer." what does that mean, i am not taking any 80C benefit from that FD