PNB unethically charging customers for stamp duty - a write up

[xfactcc]

I am posting this thread to share my recent experience with PNB which I found to be quite fishy and I think you need to know so you too can watch out and probably avoid the same.

As you know that locker holders in banks are now being asked to submit a supplementary locker agreement as per RBI's direction where as per what I learnt, the bank is held responsible if there is damage due to 'fire'. Previously the new/revised locker agreement was to be submitted to the bank. Relevantly I can vaguely remember I read here somewhere that someone with relationship BOB saw the original agreement and approached RBI BO because the write up was not appropriate and the bank had to change the agreement and they signed the modified agreement after RBI's intervention, I can't find that thread now unfortunately.

Anyway, my father who is a long term PNB customer had already submitted the revised locker agreement by May, he had to pay like every other customer a whopping Rs. 120 for the stamp paper of Rs. 100, Rs. 20 was charged as 'vendor charge' and no receipt was provided. I wasn't there with him, when he told me this, found it to be quite fishy.

Now fast forward regarding supplementary locker agreement, he received a SMS on his phone from PNB stating that supplementary locker agreement is to be submitted and the 'stamp duty cost will be borne by the bank', also mentioned here on bank's website. He went to the bank for the same, and there he saw that everyone is being charged Rs. 50 for stamp paper of Rs. 50, he even told that to another customer who was there for the agreement submission, but he paid and left anyway.

When my father showed the message to the sub-staff and said bank is supposed to bear the cost, he said everyone is paying it... then he approached the manager, he concurred that bank is supposed to bear it, my father was asked to wait, and after few hours when nearly everyone was done and closing time approached, the manager came back and gave him a Rs. 10 stamp paper and he brought it home and next day submitted it, he wasn't charged.

Everyone else he saw was paying Rs. 50 without objection. Bank did have Rs. 10 stamp paper it appears but they still provided Rs. 50 stamp paper to everyone else and charged for it to unsuspecting customers. What do you think was going on? Day time loot by a PSB?

This happened few weeks ago, so please be vigilant so you are not looted by the institutions you are supposed to trust.

PS. The branch is 16320.

 

[NOOBY]

Even I have same question

@TechnoFino @bhavyegoel can you shed some light on this ?

News articles have mentioned that the deadline has been extended till 30th December 2023 and some have mentioned that the new stamp duty cost for agreement has to be borne by the bank.

Quoting out look:
To ensure transparency, new and existing customers will sign a locker agreement with the bank on stamp paper. The cost of documentation will be borne by the bank, and the agreement will include details of the user and bank’s rights and duties, locker rent, escalation clauses, and more.

So do we actually need to pay for stamp (existing locker holder) or are they trying to save money ?

Also, the denomination of stamp paper amount too (not sure how that is being calculated as same bank, different branches are asking for different valued stamp papers)

 

[xfactcc]

Also, the denomination of stamp paper amount too (not sure how that is being calculated as same bank, different branches are asking for different valued stamp papers)

The locker agreement has to be done on a stamp paper of minimum value to be valid i.e., ₹10 onwards I think. But branches are sourcing whatever they can as per their convenience, availability, or agenda as I heard.

 

[NOOBY]

The locker agreement has to be done on a stamp paper of minimum value to be valid i.e., ₹10 onwards I think. But branches are sourcing whatever they can as per their convenience, availability, or agenda as I heard.

they can source whatever they want.. but why on our account (why ask us to pay for it) ?

If RBI is okay with ₹10, then why ask ₹500 stamp paper charges from account holders ?

 

[RAMESH BABU N]

Please note n remember that :

1. Stamp Act is a state subject. What is applicable in AP will not be applicable in other states. Rates n procedures vary.

2. Locker Agreements are undertakings n cover other Contingent covenants - signed by the hirer(s) - as per the Local Stamp Act rates - n submit it to the bank. Stamp duty is to be paid by the hirer(s).

3. There are many procedural issues to comply with - it being a legally enforceable document. Like signing on each page, in full, with NO overwriting n cuttings. ALL Joint hirers must sign together.

4. Stamping done in one state and signed in another state is invalid n makes the document null n void.

5. Green bond paper should be used.

6. Affixing NJA stamps - Non Judicial Adhesive stamps - n CANCELLING them by the stamp vendor only is a must.

7. VERY VERY IMPORTANT - As locker agreement does NOT specify any AMOUNT, there is a special RATE at which it must be stamped. In AP, it is Rs 200/-.


I hope the above would clarify a lot doubts in this area.

 

[NOOBY]

7. VERY VERY IMPORTANT - As locker agreement does NOT specify any AMOUNT, there is a special RATE at which it must be stamped. In AP, it is Rs 200/-.

Thanks for all the information

but still confused about this.. I have read that SBI is asking ₹100 stamp paper, ICICI is asking ₹300 while HDFC in my state is asking ₹600 😳

I do not have much info about locker agreement, but I assume the agreement would be same across all banks in India (as it's legalities are defined by RBI, maybe I am wrong about this) and so, why banks are asking different stamp amount for the same thing ?

 

[RAMESH BABU N]

Thanks for all the information

but still confused about this.. I have read that SBI is asking ₹100 stamp paper, ICICI is asking ₹300 while HDFC in my state is asking ₹600 😳

I do not have much info about locker agreement, but I assume the agreement would be same across all banks in India (as it's legalities are defined by RBI, maybe I am wrong about this) and so, why banks are asking different stamp amount for the same thing ?

READ MY FIRST TWO POINTS.

EACH STATE HAS DIFFERENT RATES.
STAMP ACT IS A STATE SUBJECT.

 

[NOOBY]

READ MY FIRST TWO POINTS.

EACH STATE HAS DIFFERENT RATES.
STAMP ACT IS A STATE SUBJECT.

MY QUESTION IS "WHY BANKS IN SAME STATE (AND IN SAME CITY) ARE ASKING FOR DIFFERENT STAMP DUTY AMOUNT IF THE AGREEMENT IS SAME/COMMON"

 

[RAMESH BABU N]

MY QUESTION IS "WHY BANKS IN SAME STATE (AND IN SAME CITY) ARE ASKING FOR DIFFERENT STAMP DUTY AMOUNT IF THE AGREEMENT IS SAME/COMMON"

Many a time, the bankers are TOTALLY IGNORANT. Like their customers. They know nothing about the Stamp Act. What they do is - turn the page and learn the work. They do not read, they do not understand and they do not remember. Advanced communication systems have made zombies out of everyone. Reading is forgotten. Remembering is passe. For everything they look to whatsapp and that ignorant guy sitting next.

If a bank has their Controlling Office in another state, then, BLINDLY, they follow what is told to them. It happens most of the time.

I had to talk to the BM/RM/ZM of UBOI (former Andhra Bank) as well as our own SBI branches and educate them on this.

The problem with the under-stamping is that the document becomes ineligible for proceeding legally. And, it can not be rectified later by paying more stamp duty or by paying a penalty. It is null and void legally. Practically, it is then only between the two parties. Over-stamping is OK.

 

[RAMESH BABU N]

A fully trained banker means that he should be knowledgeable in 25+ Acts - the smallest Stamp Act to the voluminous BRA - Bankers Regulation Act - and not to miss Partnership Act, Cooperatives Act, Companies Act (since modified drastically by the MCA - Ministry of Corporate Affairs - after BJP came to power), Negotiable Instuments Act, Information Technology Act.......

And, the thousands of old circulars and dozens of compendia of instructions and guidelines till yesterday. And, not to forget today's. And, keep a track of what is happening in the market.

Except SBI, no other bank can boast of such a long 2-yr training for Probationary Officers, like me. Before they do work in a branch in an independent capacity.

 

[NOOBY]

Many a time, the bankers are TOTALLY IGNORANT. Like their customers. They know nothing about the Stamp Act. What they do is - turn the page and learn the work. They do not read, they do not understand and they do not remember. Advanced communication systems have made zombies out of everyone. Reading is forgotten. Remembering is passe. For everything they look to whatsapp and that ignorant guy sitting next.

If a bank has their Controlling Office in another state, then, BLINDLY, they follow what is told to them. It happens most of the time.

I had to talk to the BM/RM/ZM of UBOI (former Andhra Bank) as well as our own SBI branches and educate them on this.

The problem with the under-stamping is that the document becomes ineligible for proceeding legally. And, it can not be rectified later by paying more stamp duty or by paying a penalty. It is null and void legally. Practically, it is then only between the two parties. Over-stamping is OK.

This.... This is what I wanted to know

Many Thanks!!!

When I asked, I was told by the RM that "the price is decided by Legal team" but even I had a hint that they are making us pay higher stamp duty just to be sure so that it isn't covered (nullified) in future

 

[RAMESH BABU N]

This.... This is what I wanted to know

Many Thanks!!!

When I asked, I was told by the RM that "the price is decided by Legal team" but even I had a hint that they are making us pay higher stamp duty just to be sure so that it isn't covered (nullified) in future

Any document is stamped with the needed stamp duty - applicable on that date of stamping.

If you sign after one month, that day's stamp duty rate will apply. But, if you get it stamped today and execute it (sign it) today, then it is a legal document from today onwards.

Future escalations in the duty structure are NOT related to this current document.