Customers not liable for e-frauds, if reported in time

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Onus Now On Banks To Make Good Losses

Concerned over the rise in complaints about unauthorized electronic transactions, the Reserve Bank of India has introduced a policy of `zero liability’ for customers in third-party frauds if they are reported within three days. This means banks will have to make good the losses suffered by customers.In cases where the victim notifies the fraud between 4 and 7 days after coming to know about it, the customer’s liability will be capped at Rs 5,000.

In a draft notification issued on Thursday , the RBI said that if a bank employee is responsible for the fraud, the customer must get his money back irrespective of whether it is reported in time or not.

The three-day time limit for reporting a fraud will start from the day the customer receives an intimation about the transaction from the bank. This can be either by way or an SMS, email or statement. This directive puts the onus on the bank to notify the customer of the transaction as soon as possible. The proposed rules will apply to all electronic transactions, including payments made remotely using net banking or cards and payments made in shops using cards or mobile wallets.

If a customer has shared his password or other payment credentials, he will be responsible for any transaction that takes place until the time he informs the bank of his indiscretion. Once he informs the bank, the bank will be liable for any loss that takes place subsequently .

Banks have been told that all complaints have to be resolved within 90 days from the date of reporting and to ensure that customer does not bear any interest cost or late payment fee in credit cards. If there is a reversal of a debit card fraud or net banking fraud, banks have to make good the loss of interest income.

The proposed norms place much more responsibility on the banks than in the past.Existing norms require banks to compensate customer only up to a limit. Also, this limit is left to the bank based on a board-approved customer relations policy .

To make it possible for the customer to report frauds on time, banks have been asked to provide multiple option in cluding website, SMS, interactive voice response systems, a dedicated toll-free helpline and a reporting option at home branch. Banks have also been asked to put in place systems acknowledging receipt of the complaint.

The tightening of norms comes at a ti me when online and mobile payments are growing at 100% and banks and payment companies are lobby ing with the regulator to relax two-factor authentication for low-value payments.

The RBI has been re sisting any relaxation on the two-factor aut hentication (usually a PIN or a password in addition to the card details) on the grounds that the present dispute resolution mechanism was not very robust. By reducing liability of the customer, RBI expects banks to put more robust systems in place.

 Mayur Shetty, Mumbai:

STOPPED BY A TRAFFIC COP? KNOW THESE 8 RIGHTS

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police

So you know how to drive a car or ride a bike. But do you know your rights when and if you’re stopped by a traffic policeman?

There are different misconceptions about traffic rules and the common man is generally not aware of a lot of things and this is why they don’t understand what to do when stopped by traffic cops.

We got your back.  This article deals with various rights of commuters that will definitely help you in future.

 

1.  Cops cannot take away your driving license without giving you a valid receipt of the same.

2.  Cops cannot tow your vehicle as long as you are sitting in it.

3.  If you are a female or accompanied by a female and you are being stopped after 6pm you can always ask him to come with a female cop.

4.  The cop should have a challan book or the e-challan machine in hand in order to penalize you with a fine.

5.  If you have actually broken the law, and after making sure that the person is indeed a policeman, show your D/L, RC/Insurance to the policeman.

6.  One must know that the Cop must be a uniformed Cop with their name and buckle number clearly shown on their uniform.

7.  There is always a misconception that the traffic cop has the right to confiscate your vehicle keys but that’s not true.

8. If you have violated some law and if you are arrested, you must be informed of your rights immediately when you are arrested.

Click Here for the full details

Parsvnath told to pay monthly penalty for delay in delivery of flats

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 SETTLED IN COURT

In a landmark judgement in favour of consumers, the National Commission has ordered Parsvnath Developers to pay a monthly penalty to allottees for delay in handing over flats in Parsvnath Planet in Lucknow. As per the agreements executed in 2006, the developers were to give possession within 42 months in 2009-10. However, this did not happen. Later, the buyers were told the project would be completed only by 2015! Also, even the partial construction was defective and did not match specifications.

Hence, several separate complaints were filed before the Uttar Pradesh State Commission. In its order dated 25 February 2015, the Commission directed the opposite parties to hand over possession of flats to the complainants in 2015, issue statement of accounts to each complainant and pay 9% interest on amount collected in excess. Aggrieved by the order, the complainants filed separate appeals before the National Commission.

Verdict

The National Commission partly allowed the appeals and modified the State Commission’s order. It directed the opposite parties to pay Rs. 15,000 per month to people who had bought flats up to 175 sq m in area and Rs 20,000 per month to buyers of flats over 175 sq m. The penalty had to be paid from the beginning of the 55thmonth from the date of execution of the flat buyer agreement till delivery of possession.

Point of law

Flat allottees are entitled to compensation from builders for delayed possession.

Courtesy :  CERC

How is Credit Card Interest Calculated?

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There are a number of things a user must know about credit card interest calculation in order to avoid falling into a debt trap!330px-Credit-cards

Knowing the complex rules used for calculation of credit cards is necessary to get an idea of the damage a late payment can do to your financial well-being. In this article, let us understand how banks calculate interest on credit cards.

How banks calculate interest

Every bank has to disclose the method of charging interest in its Most Important Terms and Conditions (MITC) document. The MITC document forms part of the welcome kit that you get on the issue of a new credit card and must also be available on the bank’s website. The calculation of interest depends on the type of transaction. And speaking of transactions, there are broadly two types as follows:

  1. Cash advances, i.e. cash withdrawals from the ATM using your credit card
  2. Regular payments such as paying bills, online purchases, using card at merchant outlets, etc.

Related: How to come out of credit card debt

As far as cash advances are concerned, there is a clear and unambiguous rule that many debt settlement companies will remind you of, that interest will be charged as per the stated interest rate from the date of withdrawal to the payment of the outstanding amount.

However, as regards regular payments, it is slightly more complex. As per the rule, if you do not make the total payment due as on the payment due date, the free credit period shall be ignored and interest shall be charged right from the date of purchase for all payments made during that bill cycle as well as those made after the bill cycle till the full outstanding payment on the card is cleared. And since the interest rate on credit cards is anywhere between 15 – 40%, this precisely is the reason why a small default or late payment can balloon in to a large debt in a small span of time.

Understanding Credit Card Interest Calculation through an Example

Following example can help understand the calculation of interest in case of a credit card:

Transaction Amount
Purchase on September 10, 2015 10,000
Total Amount Due on Statement dated September 15, 2015 10,000
Minimum Amount Due on Statement dated September 15, 2015 500
Payment made on Due Date i.e. October 3, 2015 0
Purchase on October 7, 2015 1,000
Payment on October 10, 2015 5,000
Interest calculation @ 40.80% p.a. on Statement dated October 15, 2015 will be as follows:  
1) Interest on 10,000 for 30 days (from September 10 to October 9) 335.34
2) Interest on 5,000 for 6 days (from October 10 to October 15) 33.53
3) Interest on 1,000 for 9 days (from October 7 to October 15) 10.06
Total interest in the Statement dated October 15, 2015 (A) = (a) (b) (c) 378.93
Late Payment Charge (B) 500
Service Tax @15% (C) = 0.15 * (A B) 131.83
Principal Outstanding (D) 6,000
Total due as per Statement dated October 15, 2015 (A) (B) (C) (D) 7,010.76

Conclusion

While a credit card is a great boon in the form of free credit period and reward points, one should not forget the implications of using it irresponsibly. Rules on interest calculation in case of credit cards are extremely complex and highly skewed against the consumer. A user must formalise himself of the rules to prevent a debt trap like situation.

If you have been given a corporate credit card, it’s essential you exercise even more caution. To ensure you don’t break any rules, here are some Corporate Credit Cards- Dos and Don’ts.

Disclaimer: This is general advice. Please refer to your bank’s MITC document for detailed guidance.

https://www.tomorrowmakers.com/articles/financial-planning/how-is-credit-card-interest-calculated-

Disaster Management at MCGM – Mumbai

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CaptureThe MCGM (Municipal Corporation of Greater Mumbai) has created a Greater Mumbai Disaster Management Authority (GMDMA) which is doing wonderful work for the last several years.

Please visit their website at http://dm.mcgm.gov.in/ for resources on the following :

  1. Live Updates on weather, rainfall, high-tides, diversion of traffic, rail schedules
  2. Complete List – Ward-wise – on whom to contact in an emergency (including phone nos., mobile nos., email ids, etc.)
  3. Training Programs on Disaster Preparedness and First Responders
  4. Standard Operating Procedure Manual
  5. Mock Drill procedure
  6. And many more resources

They also have a mobile app – Disaster Management MCGM – https://goo.gl/omklFo which gives live updates on your mobile

Very useful resources by MCGM for unforeseen circumstances

Just Do It!

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This Residential Community Saved a Lake, Recharged Groundwater and Is Planting 1000 Trees Every Year

Here is how a residential community in Bangalore, Akshaya Nagara, has created an enviable living environment for its residents.

Akshaya Nagara is a rather unassuming residential layout in Bangalore. It did not even fall under the Bengaluru metropolitan civic body, BBMP, until recently. This means it did not receive any of the public facilities like water supply, sewage drain pipes or garbage collection service that other residential areas receive. Even today, Akshaya Nagara is not a beneficiary of the centralised Cauvery water supply and is solely dependent on bore wells.

However, the residents of Akshaya Nagara decided not to lament about these issues or wait for the authorities to solve their problems. They took it upon themselves to find sustainable solutions and create an enviable living environment for themselves.

It was over a decade ago that the ground work for the development of Akshaya Nagara began. The layout had a rare blessing – a lake. But it could not really be called a blessing then. Although the lake has historical relevance from the times of Begur royalty and is located at the heart of the layout, it was filthy because all the sewage water from the layout used to flow into it. It was also a spot for open defecation. In fact, the stench, filth and overgrown weeds made the lake and its surroundings so unbearable that it was on the verge of being abandoned. But the scenario was totally reversed by the dedicated work of the residents of Akshaya Nagara.

In 2004, a retired bank official named Ramesh Kumar began mobilising interest among the residents about the need to save the lake and the surrounding environment.

Akshaya Nagara Kere11

Ramesh Kumar speaking to the residents of Akshaya Nagara

The first aim was to stop all sewage from getting dumped into the lake. Since Akshaya Nagara was not part of BBMP, it was not eligible for any funds from the civic body. The residents decided to build the sewage drains by themselves. Every house contributed towards the fund and the job was begun. The local MLA could not help but notice the dedication of these residents and decided to help them with the funds.

The newly laid pipes helped ensure there was no more sewage flow from Akshaya Nagara layout into the lake.

Akshaya Nagara Kere

Akshaya Nagara Lake

After this big achievement, the residents went on to the next pressing issue – water supply. The layout’s water supply depends entirely on bore wells. Ramesh Kumar and his team were convinced that the underground water reserves need to be replenished constantly. They started building storm water drains to channelise the water into the lake. They also dug up over 60 rain water pits near the layout, specially layered using charcoal and sand, so that the rain water percolated into the ground.

Most of the buildings in the layout practise rain water harvesting. “We save every drop of water in Akshaya Nagara and ensure that our bore wells are recharged. Even during this peak summer, none of our bore wells failed us,” says Ramesh Kumar.

Over the last decade, the population of Akshaya Nagara increased and maintaining the lake became difficult. The lake again attracted weeds, debris, garbage and, of course, open defecation.

Last year, a few youngsters saw a lone old man clearing a dirty patch of land near the Akshaya Nagara lake. It was Ramesh Kumar. Curious as to what he was doing and why, they started to talk to him. He told them, “I want to save this lake.” The youngsters were so inspired by his dedication that they decided to start efforts anew to revive the water body.

They formed a team of volunteers and named it ‘Akshaya Nagara Kere Sutta Mutta’, meaning, ‘Akshaya Nagara Lake and its surroundings’.

Volunteers of Akshaya Nagara Kere Sutta Mutta

Ramesh Kumar with the volunteers of Akshaya Nagara Kere Sutta Mutta

Volunteers from the layout got together every week. They cleaned the lake, de-weeded it and fenced it.

Akshaya Nagara Kere5

Volunteers de-weeding the lake

They levelled the land around the lake to make a beautiful walking path. They said no to concrete blocks for the path and decided to keep the natural mud trail. They planted saplings all along the lakeside and installed benches for people to sit on. As a result of their hard work, the area has been completely transformed.

Today, over 400 people walk and jog around Akshaya Nagara lake every day! A yoga class is held on the lakeside.

Akshaya Nagara Kere7

Over the last 12 years, the residents have been planting trees in Akshaya Nagara. The tree-to-person ratio in Akshaya Nagara is 1:1 – one tree for every resident, while the Karnataka state tree-to-person ratio is 1:6.

The volunteers planted 1000 trees in the last one year. They have committed to planting another 1000 trees every year in the area around Akshaya Nagara.

Akshaya Nagara Kere4

Every week, the residents of this layout devote their time and efforts to maintaining the Akshaya Nagara lake. But they are not stopping at this – they have started working to save the next lake in the vicinity, Yelenahalli lake!

Catch up with the activities of Akshaya Nagara Kere Sutta Mutta on their Facebook Page

Like this story? Have something to share? Email: contact@thebetterindia.com, or join us on Facebook and Twitter (@thebetterindia). To get positive news on WhatsApp, just send ‘Start’ to 090 2900 3600 via WhatsApp.

http://www.thebetterindia.com/61311/akshaya-nagara-bangalore-save-lake-recharge-groundwater-plant-trees/

DIY guide to RTI

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RTI logo - GavelHere is the link to a Handy Do It Yourself (DIY) guide to RTI. You have various formats, including RTI in local languages, Standard RTI and appeal forms, rules, GRs, Guidelines, Articles by Shailesh Gandhi and other resources.

Must read for RTI activists and great help for the common man who wants RTI to improve Society and his own administration

Click Here for the great resources, painstakingly compiled and owned by G R Vora

Who can file an FIR

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Who can lodge an F.I.R ?
1) Complainant who is an aggrieved person or some body on his behalf.

2) By any person who is aware of the offence (a) as an eye witness and (b) as an hearsay account.

3) Provided the person in possession of the hearsay is required to subscribe his signautre to it and mention the source of his information so that it does not amount to irresponsible rumour. The rule of law is, if general law is broken any person has a right to complain whether he has suffered an injury or not.
(a) By the accused himself.
(b) By the SHO on his own knowledge or information even when a cognizable offence is committed in view of a officer incharge he can register a case himself and is not bound to take down in writing any information. Under the order of Magistrate uls 156 (3) Criminal Procedure code, when a complaint is forwarded to officer incharge without taking cognizance. If information is only hear say, then SHO should register case only if person in posses- sion of hearsay subscribes his signature to it and mentions the source of his information so that it does not amount to irresponsible rumour. The information must be definite, not vague, authentic, not baseless, gossip or rumour, clearly making out a cognizable case.

4) The information is only by a medical certificate or doctor’s ruqqa about arrival of the injured, then he (SHO) should enter it in daily diary and go to hospital for recording detailed statement of injured.

 

For more FAQs on F I R – Click Here