Kotak Mahindra Bank's Code of Conduct

• Fair practice code
• Code for banking practice
• Code of conduct for DSA
• Corporate Policy Manual on Ethical Conduct, Avoidance of Conflict of Interest And Protection of Confidential And Proprietary Information
• Policy for Grievance Redressal
• Policy on Collection of Dues and Repossession of Security
• Policy for Cheque Collection
• Compensation Policy

Fair Practice Code

INTRODUCTION

The Indian Banks' Association has drafted and circulated a voluntary code which sets the standards for fair practice standards when dealing with individual customers. Though voluntary, the standards set by the IBA in the Fair Practice Code provide valuable guidance to Banks in dealing with customers setting higher standards in our dealings with customers and promotes competition and market forces.

It is, and shall be, our policy to make credit products available to all qualified applicants without discrimination on the basis of race, caste, colour, religion, sex, marital status, age (over that of majority), or handicap.

Our policy is to treat all the clients consistently and fairly. Our employees will offer assistance, encouragement and service in a fair, equitable and consistent manner. We will also communicate our Fair Practice Code to our customers by placing it on the bank's website.

We shall ensure that charges/fees which affect the interest of the prospective borrowers are appropriately informed to the borrower. Terms and conditions pertaining to the facility will be conveyed to prospective borrowers. We commit that disputes arising out of the lending decisions will be appropriately resolved by a grievance redressal mechanism set up by us.

We will ensure that the implementation of the Fair Practice Code is the responsibility of the entire organisation. Bank's Fair lending practices shall apply across all aspects of our operations including marketing, loan origination, processing, underwriting, servicing, and collection activities. Our commitment to Fair Practice Code would be demonstrated in terms of employee accountability, monitoring and auditing programs, training and technology.

The Bank's Board of Directors and the Management Team is responsible for establishing practices designed to ensure that our operations reflect our strong commitment to fair lending and that all employees are aware of that commitment.

Kotak Mahindra Bank Limited is committed to providing service of the highest quality to its clients.

This Fair Practice Code applies to the following categories of products and services offered by us (currently offered or which maybe introduced at a future date).

• Deposit Accounts - Current, Savings and Term Deposits
• Collection and Remittance services offered by Banks
• Loans and overdrafts
• Foreign Exchange Services
• Card Products
• Third Party products offered through our network
• Advisory services other para Banking services.

The Fair Practice Code is applicable to all of the above irrespective of whether the same is provided at the Branch, over the phone, by post, through interactive electronic devices likes kiosks, on the internet or by any other method we maybe currently using or may introduce at a future date. (Commitments made in the Code are applicable under normal operating environment).

The key commitments which we promise to follow in our dealing with our customers :

1. Act fairly and reasonably in all our dealings with our customers by ensuring :
   
   
   • Our products, services, procedures and practices will meet the commitments and standards in this Code.
   • Our products and services will meet relevant laws and regulations
   • Our dealings with our customers will rest on ethical principles of integrity and transparency.
     
     
2. We will assist customers in understanding how our financial products and services work by
   
   
   • Providing information about them in simple Hindi and/or English and/or the local language
   • Explaining their financial implications and
   • Helping the customer choose the one that meets his / her needs.
     
     
3. We will make every attempt to ensure that customers have a trouble free experience in dealing with us; but if something does go wrong, we will deal with the same quickly and sympathetically
   
   
   • Mistakes will be corrected quickly
   • Complaints will be handled quickly
   • In case a customer is not satisfied with the way a complaint is handled, we will guide the customer on how to take the complaint forward
   • We will reverse any charges applied to a customer's account due to an error on our part
     
     
4. The Code will be publicised by us through our website.

INFORMATION

We will guide our customers in choosing products and services which meet his / her requirements.

1. At the time of opening an account / before the customer relationship is established, we will :
   
   
   • Give the customer information explaining the key features of the services and products the customer has shown interest in
   • Give information on accounts, products and services which may suit the customer's needs
   • Clearly state the information that we require to collect from the customer to fulfil our KYC norms and to comply with legal and regulatory requirements.
   • Request for additional information about the customer and his / her family to build a database; but this information is furnished by the customer only if s/he wishes to do so. We will not compel the customer to part with additional information for opening an Account.
   
   
2. We will provide information on the various channels that can be used to access its products and services. The customer will also be informed on where further information on this is available.
   
   
3. Once a customer has chosen an Account; we will tell the customer how it works.
   
   
4. We will guide our customers on rights and responsibilities specific to the mode of operation under which the account is opened.
   
   
5. We will recommend nomination facility to all our customers at the time of opening deposit accounts or availing of a safe deposit locker.
   
   
6. In case a customer had not availed of a nomination, we will provide guidance in dealing with deposits and other assets held by us in the name of a deceased person.

1. A customer may find our Term Deposit Interest Rates through
   
   
   • Branches
   • Calling our Customer Contact Centre (Phone Banking)
   • Our website
   • Asking any of our designated staff
     
     
2. At the time of opening an account or availing of a loan, we will provide the customer with information on
   
   
   • The rate of interest applied to the customer's accounts
   • When interest will be paid on the account
   • When interest will be debited to the account (in case of loan account)
     
     
3. We will also provide customers with information such as web site address, Customer Contact Centre numbers and other ways for the customer to find out about changes in the rate of interest.
   
   
4. We will explain how interest is applied to the customer's account; interest will be calculated in accordance with the formulae and conventions advised by Indian Banks' Association.
   
   
5. Change in Interest Rates : When we change interest rates on products, the updated information will be made available through channels like our website and Phone Banking in as short a time as possible and in any case within three working days of the change. Changes from time to time will be notified as per our policy / practice.
   
   
6. Interest on Savings Accounts : At the time of opening a Savings Account, we will inform the customer, the rate of interest paid on the Savings Account (presently, regulated by the Reserve Bank of India), the method of calculating interest and the periodicity at which it is applied.

1. we will make available any charges applicable to products and services applicable at the time a customer signs up for the same.
   
   
2. A customer can also inquire about charges that are applicable to his / her Account at
   
   
   • Branch counters
   • Calling our Customer Contact Center
   • Our website
     
     
3. If we increase any charges or introduce a new charge, we will notify customers at least a month before the revised / new charges are levied. However in case of changes due to regulatory requirements we may not be able to give one month's notice.
   
   
4. We will communicate (to customers) charges for any service or product before providing the same.
   
   
5. We will provide charges for any service or product whenever the customer requests for the same.
   
   
6. We will provide details of any charges that are levied for using ATMs.

TERMS AND CONDITIONS

1. When a customer enrols / accepts a product or service for the first time, we will provide the customer with the Rules and Regulations that are relevant to the product / service.
   
   
2. All Terms and Conditions will be fair and will set the customer's rights and responsibilities clearly and in plain language. We will use legal or technical language only where necessary.
   
   
• Changes in Terms and Conditions
  
  
3. At the time of customer sign up, we will inform the customer how s/he will be notified about changes to terms and conditions.
   
   
4. We will provide customers with a 15 day notice before changing any terms and conditions.
   
   
5. If the changes in terms and conditions are to the customer's disadvantage, the customer may close his / her Account within 30 days from the date of the notice without paying any additional charges for doing so.

We will ensure that all advertising and promotional material is clear, fair, reasonable and not misleading.

At the time of account opening, we will seek the specific consent of the customer for giving his / her name and details such as address to any other entity in our group or third party for marketing purposes.

We will provide our customers with a full range of financial products the customer is eligible for. Some of these products / services will be our own; some others maybe the products of the group or companies with which we have tie-up arrangements. We will inform the customer of these group companies / companies with which we have entered into a business arrangement and if the customer so desires, we will direct the staff / agents of the company for marketing their products / services.

ACCOUNT OPERATIONS Statements

1. We will provide our account holders statements at regular intervals to help the customer manage his / her accounts and check account entries. The eligibility for receiving statements and the periodicity will be determined by the type of account and will be as per our policy.
   
   
2. In case an account holder requires statement at a frequency greater than the frequency defined by the product and our policy, we will make the statement available to the customer at a greater frequency but may charge for the service.
   
   
3. An account holder can view last few transactions in his / her account through an ATM or through the Internet Banking facility provided by us.

Clearing Cycle / Collection Services

1. Time Frame for Collection of Local Cheques
   
   
   1. Subject to any exigencies, the Bank shall endeavour to collect the local cheques strictly in accordance with the regulatory and clearinghouse norms applicable to each centre.
      
      
2. Time Frame for Collection of Outstation Cheques
   
   
   1. All efforts including multi city access will be used to the best extent possible for giving faster credit to the customer account for outstation cheques.
      
      
   2. Subject to any exigencies and keeping in view limited availability of own branches, the Bank shall endeavour to collect the outstation cheques within a maximum period not exceeding 30 working days from the date of lodgement.
      
      
   3. Within the overall limit of 30 working days, it would be endeavoured to collect the cheques drawn on metro centres as well as centres where the Bank has its own branches within 6 working days at the outer limits.
      
      
3. Immediate Credit of Local and Cheques
   
   
   1. On a discretionary basis, for accounts that are maintained satisfactorily we will give immediate credit (and allow the customer to draw funds) for outstation cheques / instruments lodged by customers. Immediate credit will be subject to Service Charges announced by us from time to time.
      
      
   2. This facility is discretionary and should not be taken as an on-going facility.
      
      
   3. In the event of the cheque being returned unpaid, the bank shall recover interest in conformity with the applicable interest rate directive of Reserve Bank of India for the period the bank is out of funds.
      
      
   4. Individual depositors desirous of availing facility may approach their base branch and carry out the necessary formalities for availing of the same.
      
      
4. Interest Payment for Delayed Collection
   
   
   1. Except under circumstances beyond the control of the bank, for delay in collection of cheques for which immediate credit is not afforded, bank shall pay simple interest for the delayed period beyond 30 working days, at the Savings Account rate for the period of delay.
      
      
   2. In case of delay in collection of cheques on cash credit or overdraft accounts, the interest for the delayed period shall be paid at the rate of interest charged on the relative cash credit or overdraft account.
      
      
   3. Subject to the above, where the delay in collection is found to be on account of delay on the part of collecting bank through whom outstation cheque is collected, especially when the bank has no branch at that centre, the matter will be taken up with the relative bank, under advice to the customer, for payment of interest for the delayed period.
      
      
5. Collection Services - Cheques / Instruments Lost in Transit / Clearing Process or At Paying Bank's Branch
   
   
   1. While we will take all precautions to ensure timely collection of cheques / instruments deposited with us, in the eventuality of a cheque / instrument being lost in transit or in the clearing process or at the paying bank, we will immediately inform the same to the accountholder. The account holder will be advised to inform the drawer to stop payment of the instrument; the account holder will be asked to take adequate precautions so that other cheques issued by him / her are not dishonoured due to non-credit of the amount of the lost instrument.
      
      
   2. The onus of lost instruments lies with us as the collecting Bank and not the account holder.
      
      
   3. We will reimburse the account holder reasonable expenses incurred for obtaining the duplicate instrument and interest at the Savings Account rate where the reason for obtaining duplicate instrument is reasonable and beyond the control of the account holder.
      
      
   4. If the cheque / instrument have been lost at the paying bank, the amount reimbursed to the customer for the loss of the cheque / instrument will be recovered from the paying bank.

Cash Transactions

1. We will make all attempts to ensure the correctness of cash dispensed at our counters; the customer is advised to count and ensure correctness before leaving the cash counter.
   
   
2. We are committed to fulfilling the conditions of the RBI's Clean Note Policy; customers are requested to help us fulfil the norms set by the policy by depositing unstapled / unstitched notes and not writing anything on the face of the note.

1. We will act on any mandate given by account holders for Direct Debits (e.g. ECS) and other Standing Instructions

Cheques Issued

1. We will maintain copies or originals of cheques paid from accounts for such periods as required by law.
   
   
2. In case of a dispute about a cheque paid from an account, we will provide a copy of the cheque (or the cheque) as evidence; provided the same is requested within a reasonable period after the entry has been made on the customer's account.
   
   
3. We will guide customers on dealing with unpaid cheques and stale cheques.

Accounts Operated /Services Rendered As Agents of Government and RBI

1. If we open an account on behalf of the Government / RBI, we will inform customer on the operational guidelines for the same.

Foreign Exchange Services Offered Through Authorized Branches

1. We will provide details of the service, exchange rates and charges that apply to foreign exchange transactions which the customer is about to carry out. If the same is not available / possible, we will inform the customer on how the charges will be worked out.
   
   
2. If a customer wishes to transfer amounts abroad, we will guide the customer through this and provide
   
   
   • A description of the services we offer and how the same maybe used
   • The time required for the remittance to reach and reasons for any possible delays
   • The exchange rate applied when converting to foreign currency
   • Details of any commission or charges that have to be paid.
     
     
3. If any remittance is to be received by a customer from abroad, we will provide the account holder the break up of the original amount received and the charges levied (if any).
   
   
4. We will guide our customers through regulatory requirements / conditions relating to foreign exchange as and when required.

Protecting Accounts

1. We will guide our account holders on ways and means to protect accounts. More details on account protection are available in Section 11 of this Code.
   
   
2. In case a customer reports that his / her cheque book or ATM / Debit Card has been lost or stolen or someone else knows the customer's PIN or other security information, we will take immediate steps to prevent the same from being misused on receipt of information as provided for in our Terms and Conditions.

1. We will send cards to only those customers who request for one or as a replacement to a card already held.
   
   
2. We will provide more details of Debit Card / ATM transactions that an account holder is unable to recognise that appears on an account statement.
   
   
3. We will despatch PIN separately from the card; the PIN will not be revealed to anyone else.
   
   
4. We will guide account holders through the process of changing / choosing their own PIN. This will make it easier for the account holder to remember the PIN.

PROTECTION

Confidentiality

1. We will treat all personal account information as private and confidential - this will apply even after a customer discontinues his / her accounts with us.
   
   
2. We will not reveal transaction details to any other entity including within the group other than the following exceptional cases
   
   
   • If we have to provide the information by law
   • If there is a duty to the public to reveal this information
   • If our interest requires us to provide this information (e.g. fraud prevention). We will not use this reason for giving information about customers or accounts to anyone else (including group companies) for marketing purposes.
   • If we have taken the account holder's permission (for instance at the time of account opening) to provide such information to our group / associate / entities or companies for providing other services or products
   • Where the account holder asks us to reveal such information to our group / associate / entities or companies for providing other services or products.
     
     
3. For protecting the customer's interest and our interest, we may install CCTVs where we deem fit.

This section is meant as a guide for our customers to help prevent their accounts from being misused.

Communication Links

1. Customers are required to inform us as soon as possible when there is a change in
   
   
• Name
• Address
• Phone number (including cellular phone numbers)
• E mail address

Checking the Account

2.  We advise all account holders to check account statements regularly. If there is an entry which seems incorrect, the same should be bought to our notice immediately to enable us to sort the same out.
3. If we require investigating an account, the accountholder is requested to cooperate with us and the police and any other authority (where there is a requirement to involve them).

Some Precautions

4. To help prevent frauds and prevent against misuse; account holders are advised that care should be taken by the account holder in handling and storing chequebooks, cards, PINs and other security information that we may communicate from time to time
   
   
5. We advise all account holders to follow the guidelines given below :
   
   
   • Blank cheque leaves should not be kept signed
   • Cards, PINs, passwords, other security information should not be used by anyone but the account holder
   • PINs should be selected carefully at the time of changing a PIN
   • Account holders should learn the PIN, password or any other security information communicated by us and immediately destroy the notice containing the same.
   • PINs, passwords and security information should never be written down,
   • Account holders should take reasonable steps to keep card safe and in their personal custody and PINs, passwords and other security information confidential. The account holder should not store the PIN and Card together.
   • Card receipts should be kept safely and disposed off carefully.
   • Account details, passwords and other security information should not be divulged to anyone else unless the account holder knows who the person seeking such information is and why the information is required.
     
     

Some Precautions While Using Internet Banking Facilities

6. The Internet Banking site should be visited directly or through an authorised Payment Gateway and not through a link from another site. The domain name displayed should be verified to avoid spoof websites.
   
   
7. We will never send an email asking customers for their PINs and passwords - customers are advised to ignore any such emails they may receive from any source.
   
   
8. Internet Banking should not be accessed from cyber cafes.
   
   
9. We advise all account holders using the Internet Banking facility to keep their PCs updated with the latest anti-virus software and virus definitions. As an added security measure customers should install a suitable firewall.

Loss of Chequebook or Card or PIN Known to Someone Else

10. Customers are advised to immediately inform us in case of loss of chequebook or card - the quickest way to do is by calling our Customer Contact Centre
    
    
11. In case an account holder discovers that his / her PIN or other security information is known by someone else, the customer should immediately
    
    
    • Change the PIN by accessing the respective service / channel (ATM, Internet Banking, etc.) OR
    • Contact us to regenerate the PIN - the quickest way to do so would be to call the Customer Contact Centre.

Cancelling Payment

12. An account holder may cancel a payment or series of payments authorised by the account holder (cheque issued but not yet paid, direct debit) as follows :
    
    
    • Stop Payment of a Cheque or Cancellation of a Standing Instruction is possible by giving us a request in writing, through Internet Banking or by calling the Customer Contact Centre.
    • Direct Debit maybe cancelled by giving us or the originator the instruction in writing - account holders are advised to do both. (The request for cancellation of payment should be given with enough notice to allow us time to act on the cancellation request).
      
      

Liability of Losses

13. If an account holder acts fraudulently or without reasonable care and this causes a loss to the account holder, we will not be liable for the loss (this includes the precautions as defined in this Code).
    
    
14. An account holder's liability to any misuse on his / her Debit or Credit Card is limited to what is indicated by us at the time of issuing the card; unless the account holder acts fraudulently or without reasonable care.

LOANS AND ADVANCES

1. Before lending money, granting or increasing an overdraft, credit card or any other borrowing, we will assess the ability of the customer (borrower) to repay.
   
   
2. Before granting or increasing an overdraft, we will inform the customer if the same is repayable on demand on otherwise.
   
   
3. If we are required to reject an application for a loan, overdraft, credit card or any other borrowing the main reason/s for rejection will be conveyed in writing within a reasonable period of time to all the applicants irrespective of the amount of loan sought.

FURTHER ASSISTANCE

Complaints / Grievances and Feedback / Suggestions - Internal Procedures

1. We will guide customers who wish to lodge a complaint and also provide guidance on what to do in case the customer is unhappy with the outcome. Our staff will assist with any questions.
   
   
2. A written or e-mail acknowledgement will be sent to customers by us as soon as possible on receipt of a complaint. Though all attempts will be made to do so immediately, we will ensure that an acknowledgement will reach within 2 weeks.
   
   
3. After examining the matter, we will send a response as soon as possible (and in any case within eight weeks); we will also guide a customer on how to take the complaint further if the customer is not satisfied.

Banking Ombudsman Service and Other Avenues for Redressal

1. If within 60 days of lodging a complaint with us, a satisfactory response is not received from us, the customer may pursue other avenues for redressal of grievances. The Banking Ombudsman appointed by the Reserve Bank of India under Banking Ombudsman Scheme 2002 maybe approached. Details of Banking Ombudsman are available in the Branch. Our staff will guide customers with the procedure in this regard.

Feedback and Suggestions

1. We request our customers to provide feedback on our service to help improve services.

MONITORING

1. We have a "Nodal Officer" to ensure compliance of the Code. Our internal auditing procedures make sure we meet the Code.
   
   
2. The Nodal Officer will co-operate with the Standing Committee setup at the Indian Banks' Association to monitor the "Bankers' Fair Practice Code".

MORE INFORMATION ABOUT THE CODE

1. Any queries about the "Bankers' Fair Practice Code" on which this Code is based maybe
   addressed to
   
   

Indian Banks' Association
Stadium House, Block II & III
Veer Nariman Road, Mumbai 400 020
Tel No : 022 2284 4999
Fax : 022 2283 5638
Email : ibastadium@vsnl.net
Website : www.iba.org.in

2. A copy of the "Bankers' Fair Practice Code" on which this Code is based is available on the website of the Indian Banks' Association.
   
   
3. The code will be available on our website and copies will be made available on request.

Code for Banking Practice

Indian Banks' Association (IBA) introduced a formal system of self-discipline in the Indian Banking Industry in the year 1973, by recommending a ceiling rate of interest on inter-bank borrowings in call money market. In the year 1977, the Ground Rules and Code of Ethics (GRACE) were evolved. In a highly regulated environment, GRACE served its purpose for the last over 20 years, in bringing about a standard of ethical behaviour among Member Banks in certain focal areas of interest to the banking public. GRACE also served as a tool defining the boundaries for interpretation of the directives of the Regulatory Authority in key areas. However, the framework of GRACE was predominantly suited to a fully regulated environment.

The environment has undergone transformation following liberalisation and in the context of financial sector reforms. It was, therefore, felt that there was a need for comprehensively revising GRACE.

Keeping the above need in view, the IBA Committee to Monitor Code of Ethics (CMCE) set up a working group drawing members from the CMCE itself to revise the GRACE. The Working Group drafted a code for banking practice for uniform adoption by the banks. The draft code for banking practice was circulated among Member Banks for their comments. The final draft after incorporating suggestions from Member Banks and our legal consultant was approved by the IBA Managing Committee. The Code was then forwarded to the Reserve Bank of India (RBI) for its concurrence. RBI advised that the IBA Code for Banking Practice is in order for uniform adoption by the Member Banks.

Status of the IBA Code for Banking Practice

Indian Banks' Association (IBA) Code for Banking Practice (hereinafter referred to as the IBA Code/the Code) is issued by the Indian Banks' Association (hereinafter referred to as the Association) which has the concurrence of the Reserve Bank of India.

This is a non-statutory Code issued on a voluntary basis. It is to be observed by the Member Banks in dealing with their personal customers (hereinafter referred to as customers). It covers specifically banking services such as current accounts, savings and other deposit accounts, advances (loans and overdrafts). However, principles of the Code will apply to overall relationship between the Member Banks themselves and their customers.

The recommendations set out in the Code are supplementary to and do not supplant any relevant legislation, codes, guidelines or rules applicable to Member Banks under the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, the Negotiable Instruments Act, 1881, the Banking Companies Acquisition and Transfer of Undertakings Act, 1970 and 1980 or any other law in force in India governing the Banking Law and Practice.

The Association expects its respective Member Banks to comply with the Code in letter and spirit and observance/compliance thereof shall be monitored by a Committee to be constituted at the Association.

The Code becomes effective from 1st September, 1999 and would also be subject to review/revision from time to time; at least once in every three years.

Objectives

The Code is intended -

• To promote good banking practices by setting out the minimum standards which Member Banks will follow in their dealings with customers;
  
  
• To foster customer confidence in the banking system;
  
  
• To inculcate self-discipline amongst Member Banks with a view to promoting healthy competition and ethical practices in respect of banking services.

Useful Definitions

• "Prizes etc." means any prize' lottery' lucky dip' prize draw, gift, benefit either in cash or in kind, attached to, linked with or flowing from any deposits/advances schemes.
  
  
• "Term Deposits" or "Fixed Deposits" are deposits where the depositor makes a lump sum deposit at one time for a fixed term and receives payment thereof on maturity; the interest on the deposit is payable at simple rate either periodically or at maturity
  
  
• "Recurring Deposits" or "Cumulative Deposits" are deposits where the input is in equal monthly installments and the output, on maturity, is in one lump sum
  
  
• "Special Recurring Deposits" are deposits accepted in quarterly/half-yearly/yearly installments from the institutional/corporate investors for their special needs such as sinking/amortisation funds or from individuals for any of their special needs
  
  
• "Annuity Deposits" are deposits where the input is either in installments or in lump sum and the output is in installments
  
  
• "Permanent Income Plan" or "Perennial Pension Plan" is a scheme under which deposits are accepted in lump sum or in installments for a specific period, on completion on which, interest at applicable rate on the corpus built is paid monthly (discounted) or quarterly (actual), as per terms of contract.
  
  
• "Reinvestment Deposits" and "Cash Certificates" are deposits which are accepted in lump sum for a fixed period, on maturity of which the principal plus interest compounded at quarterly intervals are repaid to the depositor as a lump sum

IBA Code for Banking Practice

1. Observance

Member Banks of the Indian Banks' Association (the Association) agree to observe and abide by the following Ground Rules:

Member Banks shall not give prizes, gifts, donations, etc., or any direct or indirect benefits in the purchase price or in respect of any other transactions relating to securities, bonds, etc., as consideration or with a view to getting or retaining a deposit and or advance account. Promotional schemes duly approved by the Boards of respective banks may, however, be launched within the regulatory framework of the Reserve Bank of India. However, it may be customary to distribute gifts (cost of such gift article should not exceed Rs.250/- per piece) at the time of Diwali or New Year to the valued customers. Bank's policy in this regard be approved by the Board

2. Association with Chit Funds/Speculative Ventures

Member Banks shall not associate themselves with chit fund companies, which conduct lottery, gift schemes, etc., or any other speculative ventures. Member Banks shall also not encourage or lend their names to promote speculative ventures of any nature. However, it would be in order for banks to open current accounts, fixed deposits, etc. of such companies in the banks' normal course of business

3. Deposit Receipts

When Member Banks issue deposit receipts against cheques/drafts/pay-orders drawn on local banks, the banks may pay interest on such deposits from the date on which the relative instrument gets credited/adjusted in the bank's account at the clearing house (RBI, SBI, etc.).

4. Savings Bank Accounts

Member Banks shall not open savings bank accounts in the name of the institutions which have been listed out in the Annexure to this Code and also as amended from time to time

5. Introduction of Accounts

All deposit accounts, whether savings, current or term deposits, shall be properly introduced

6. Printing of Customer's Logo, etc. on Cheque Leaves

Member Banks shall not print or allow the customers to print any logo, advertisement, etc., on the cheque leaves. However, this prohibition need not be extended to dividend/ interest warrants or refund orders in view of their limited circulation.

7. Collection of Term Deposit Receipt on Maturity

The Term Deposit Receipt (TDR) received for collection from another bank shall not be renewed by the TDR issuing bank and delivered to the customer directly. The TDR issuing bank shall either pay to the collecting bank or else, the instrument shall be returned, if the issuing bank has any valid reasons not to pay

8. Renewal of Overdue Domestic Term Deposit

Renewal of overdue domestic term deposit (from maturity date of overdue deposit) shall be for a period extending upto at least 15 days beyond the actual date of renewal. If the renewed overdue domestic deposit is tendered for premature foreclosure/encashment before completion of minimum 15 days from the actual date of the renewal, no interest be paid for the overdue period even if the total overdue period from the date of maturity of the old deposit receipt exceeds 15 days.

9. Payment of Interest on Term Deposit Maturing on Holidays

If the noted due date of a term deposit falls on a holiday, Sunday, non-business working day, interest be paid for such intervening day(s), at the originally contracted rate, till the succeeding working day

10. Maturity Value Certificate (MVC)

Member Banks shall not issue Maturity Value Certificates (MVCs) under any circumstances to any person who approach bank branches with offer to procure substantial rupee deposits.

11. Negative Publicity

Member Banks shall not make publicity of adverse/weak position of other banks, in order to wean away the customers of the affected banks.

12. Interest Payment

• The statements with regard to the rate of interest, method of interest calculation, etc. in any publicity literature, advertisement and other forms of publicity on deposit scheme/s of banks shall be precise and intelligible
  
  
• Member Banks may follow the Master Charts relating to payment of interest on deposits prepared by the Association from time to time for fixing maturity values; for payment of monthly income, annuities, etc

13. General Conventions for Domestic Deposits

• Member Banks may not accept any deposits for a period longer than 10 years. However, banks may accept deposits for periods exceeding 10 years in terms of orders of competent courts or in the case of minors where interests of minors are involved, provided banks are convinced that it is necessary to do so. Individual banks may decide in this matter based on asset liability management policies being followed.
  
  
• Interest on deposits for fixed term may be paid, credited, transferred or reinvested with frequency not less than the quarterly rests. However, payment of monthly interest may be allowed, if required, by discounting the quarterly interest accrued (refer to the Association's Master Charts).
  
  
• Interest on deposits where the terminal period (month/quarter/half year etc., as the case may be) is incomplete shall be paid on maturity
  
  
• On deposits repayable in less than three months or where the terminal quarter is incomplete, interest would be paid for the actual number of days on the basis of 365 days in a year
  
  
• Where the interest is paid at discounted value on monthly basis during the currency of the deposits:
  
  If the terminal quarter or half years consists of one month (e.g. deposit is for 37 months), interest therefore (i.e. for 37th month) shall be paid at actuals (i.e. one third of quarterly or one-sixth of half-yearly interest).
  
  
• Where the terminal incomplete quarter or half year consists of (i) one month and over, but less than two months (ii) two months, and (iii) two months and over but less than three months, interest shall be paid as under:
  
  
• for one month and over but less than two months (e.g. deposit for 37 months and 15 days); or
  
  
• two months (e.g. deposit of 38 months) - At discounted value for the first month (i.e. 37th month) and at actuals for the terminal incomplete month (i.e. 15 days) or second month (i.e. 38th month), as the case may be; (iii) for two months and over but less than three months (e.g. deposit for 62 months and 15 days) - At discounted value for first and second months (i.e. 61st and 62nd month) and at actuals for the terminal incomplete month (i.e. 15 days).
  

15. Terms of Acceptance of Deposits

• Member Banks shall not issue an incomplete term deposit receipt which does not clearly mention the amount actually deposited, period for which the deposit is placed/accepted and the rate of interest payable as also periodical rest at which interest is payable
  
  
• In case of Reinvestment Plan Deposit, Recurring Deposit and Cash Certificate in addition to the particulars stated in the above para, banks shall also mention the maturity value and periodical rest at which the interest shall be compounded

16. Overdraft in Savings Bank Account

No overdraft limit on a regular basis be permitted in saving bank account.

17. Monitoring

The Committee constituted by the Association to ensure the observance/compliance of the Code by the banks shall be empowered to investigate and follow up the cases of violation of the Code by Member Banks that may be brought to its notice.

Member Banks shall not violate any of the Ground Rules merely because some other Member Bank/s has/have violated. They shall, instead, instruct their branch managers or any other officials that on their coming across any case of violation by other banks, they shall bring the same to the notice of their head office, which will take up the matter with the Association. For this purpose, every Member Bank shall nominate a designated officer who shall liaise between the bank's branches and the Association in the matter. The Association shall consider the complaint on violations received from the designated officer of the complainant bank. Member Banks shall give immediate effect to the suggestions given by the Committee in respect of any matter related to violation of this Code

Annexure Prohibition against Opening of Savings Bank Accounts in the Name of Certain Bodies/Organisations (Vide paragraph 9.13 Manual of Instructions (June 1998); Department of Banking Operations and Development, Reserve Bank of India)

1. Savings deposit account cannot be opened by banks in the name of:

• a) Government departments
• b) Bodies depending upon budgetary allocations for performance of their functions.
• c) Municipal Corporations or Municipal Committees
• d) Panchayat Samitis
• e) State Housing Boards.
• f) Water and Sewerage/Drainage Boards.
• g) State Text Book Publishing Corporations
• h) Societies.
• i) Metropolitan Development Authority.
• j) State/District Level Housing Co-op. Societies, etc.
• k) Any trading, business or professional concern (e.g. firms of Chartered Accountants, Lawyers, etc.) whether such concern is a proprietary or a partnership firm or a company or an association.
• l) Political Party.

2. The above prohibition will not apply in the case of the following organisations/agencies:

• a) Primary Co-operative Credit Society which is being financed by the bank
• b) Khadi and Village Industries Boards.
• c) Agriculture Produce Market Committees
• d) Societies registered under Societies Registration Act, 1860 or any other corresponding law in force in State or a Union Territory
• e) Companies governed by the Companies Act, 1956 which have been licensed by the Central Government under Section 25 of the said Act, or under the corresponding provision in the Indian Companies Act, 1913 and permitted not to add to their names the word "Limited" or the words "Private Limited".
• f) Institutions other than those mentioned in clause (i) above and whose entire income is exempt from payment of income tax under Income-Tax Act, 1961.
• g) Government departments/bodies/agencies in respect of grants/subsidies released for implementation of various programmes/schemes sponsored by Central Government subject to production of an authorisation from the respective Government departments to open savings bank account.
• h) Development of Women and Children in Rural Areas (DWCRA).
• i) Self-help Groups (SHGs) registered or unregistered, which are engaged in promoting savings habits among their members.
• j) Farmers' Clubs - Vikas Volunteer Vahini VVV.

 

Model Code of Conduct for the Direct Selling Agents (DSAs)

(APPLICABLE TO TELEMARKETERS & FIELD SALES PERSONNEL)

1. Preamble

Model Code of Conduct for the Direct Selling Agents (DSAs) is non-statutory code issued by Indian Banks' Association, a voluntary association of Banks in India for adoption and implementation by DSAs while operating as Agents of Banks and Financial Institutions.

2. Applicability

Upon adoption and inclusion as part of agreement between Kotak Mahindra Bank and the DSA, this code will apply to all persons involved in marketing and distribution of any loan or other financial product of the Bank. The Direct Selling Agent (DSA) and its Tele-Marketing Executives (TMEs) & field sales personnel, namely, Business Development Executives (BDEs) must agree to abide by this code prior to undertaking any direct marketing operation on behalf of the bank. Any TME/BDE found to be violating this code may be blacklisted and such action taken be reported to the bank from time to time by the DSA. Failure to comply with this requirement may result in permanent termination of business of the Direct Selling Agent (DSA) with Bank and may even lead to permanent blacklisting by the industry.

A declaration to be obtained from TMEs and BDEs by the DSAs before assigning them their duties is annexed to this Code.

3. Tele-calling a Prospect (a prospective customer)

A prospect is to be contacted for sourcing a bank product or a bank related product only under the following circumstances:

• When prospect has expressed a desire to acquire a product through the bank's internet site/call centre/Branch or through the Relationship Manager at the bank or has been referred to by another prospect/customer or is an existing customer of the bank who has given consent for accepting calls on other products of the bank.
  
• When the prospect's name/telephone no/address is available & has been taken from one of the lists/directories/databases approved by the Direct Selling Agent (DSA) Manager/Team leader, after taking his/her consent. The TME should not call a person whose name/number is flagged in any "do no disturb" list made available to him/her.

4. When you may contact a prospect on telephone

Telephonic contact must normally be limited between 0930 Hrs and 1900 Hrs. However, it may be ensured that a prospect is contacted only when the call is not expected to inconvenience him/her.

Calls earlier or later than the prescribed time period may be placed only under the following conditions:

• When the prospect has expressly authorized TME/BDE to do so either in writing or orally.

5. Can the prospect's interest be discussed with anybody else?

DSA should respect a prospect's privacy. The prospect's interest may normally be discussed only with the prospect and any other individual/family member such as prospect's accountant/secretary/spouse, authorized by the prospect.

6. Leaving messages and contacting persons other than the prospect.

Calls must first be placed to the prospect. In the even the prospect is not available; a message may be left for him/her. The aim of the message should be to get the prospect to return the call or to check for a convenient time to call again. Ordinarily, such messages may be restricted to:

"Please leave a message that (Name of officer) representing Kotak Mahindra Bank called and requested to call back at (phone number)".

As a general rule, the message must indicate:

• That the purpose of the call is regarding selling or distributing a bank product of Bank

7. No misleading statements/misrepresentations permitted

TME/BDE should not -

• Mislead the prospect on any service/product offered.
• Mislead the prospect about their business or organization's name, or falsely represent themselves.
• Make any false/unauthorized commitment on behalf of Bank for any facility/service.

8. Telemarketing etiquettes

• PRE CALL
  No calls prior to 0930 Hrs or post 1900 Hrs unless specifically requested.
• No serial dialing
  No calling on lists unless list is cleared by team leader
  
  
• DURING CALL
  
• Identify yourself, your company and your principal
• Request permission to proceed.
• If denied permission, apologize and politely disconnect.
• State reason for your call
• Always offer to call back on landline, if call is made to a cell number
• Never interrupt or argue
• To the extent possible, talk in the language which is most comfortable to the prospect
• Keep the conversation limited to business matters
• Check for understanding of "Most Important Terms and Conditions661
• " by the customer if he plans to buy the product
• Reconfirm next call or next visit details
• Provide your telephone no, your supervisor's name or your bank officer contact details if asked for by the customer.
• Thank the customer for his/her time
  
  
• POST CALL
• Customers who have expressed their lack of interest for the offering should not be called for the next 3 months with the same offer
• Provide feedback to the bank on customers who have expressed their desire to be flagged "Do Not Disturb"
• Never call or entertain calls from customers regarding products already sold.
  Advise them to contact the Customer Service Staff of the bank.

9. Gifts or bribes

TME/BDE's must not accept gifts from prospects or bribes of any kind. Any TME/BDE offered a bribe or payment of any kind by a customer must report the offer to his/her management.

10. Precautions to be taken on visits/contacts

BDE should

• Respect personal space - maintain adequate distance from the prospect.
• Not enter the prospect's residence/office against his/her wishes:
• Not visit in large numbers - i.e. not more than one BDE and one supervisor, if required.
• Respect the prospect's privacy.
• If the prospect is not present and only family members/office persons are present at the time of the visit, he/she should end the visit with a request for the prospect to call back.
• Provide his/her telephone number, supervisor's name or the concerned bank officer's contact details, if asked for by the customer.
• Limit discussions with the prospect to the business - Maintain a professional distance.

11. Other important aspects - Appearance & Dress Code

BDE's must be appropriately dressed - For men this means

• Well ironed trousers;
• Well ironed shirt, shirt sleeves preferably buttoned down.

For women this means

• Well ironed formal attire (Saree, Suit etc.);
• Well groomed appearance.

Jeans and/or T Shirt, open sandals are not considered appropriate.

12. Handling of letters & other communication

Any communication sent to the prospect should be only in the mode and format approved by the Bank.

Declaration - Cum - Undertaking

To be obtained by the DSA from TMEs/BDEs employed by them
________________________
________________________
________________________
________________________

Re: Code of Conduct

Dear Sir,

I am working in you company as a __________. My job profile, inter-alia, includes offering, explaining, sourcing, and assisting documentation of products and linked services to prospects of Kotak Mahindra Bank.

In the discharge of my duties, I am obligated to follow the Code of Conduct attached to this document.

I confirm that I have read and understood and agree to abide by the Code of Conduct. I further confirm that the trainer mentioned below has explained the contents in full to me.

In case of any violation, non-adherence to the said Code, you shall be entitled to take such action against me as you may deem appropriate.

Signed on this _______________ day of _________20____

Signature _______________ Name _________Agency____

Signature of Trainer _______________ Name _________Company____