The objective of this policy is to establish a system whereby the Bank compensates the customer for any financial loss he/she might incur due to deficiency in service on the part of the Bank or any act of omission or commission directly attributable to the Bank subject to the terms prescribed under Paragraphs on 'Award of Compensation' and 'Force Majeure' at the end.

• The Policy is based on principles of transparency and fairness in the treatment of our customers.
• The Policy prescribes compensation only for financial losses which customers have incurred due to deficiency in the services offered by the Bank which can be measured directly and limited to compensation specified for respective service as given below. As such, the commitments under this Policy are without prejudices to any of the rights the Bank has/will have in defending its position before any forum duly constituted to adjudicate the banker-customer disputes.
• The policy covers areas relating to:



a. Erroneous debiting of account


b. Debits towards service charges


c. Payment of cheques after acknowledgement of stop payment instructions


d. Payment of interest to customers for delayed collection of instruments


e. Collection instruments lost in transit


f. Funds transfers using NEFT/RTGS


g. Foreign exchange services


h. Failure to execute standing instructions

• If the Bank has raised an erroneous direct debit to an account, the entry shall be reversed immediately on being informed of the erroneous debit after verifying the transaction.
• In the event, the erroneous debit has resulted in a financial loss to the customer by way of reduction in the minimum balance applicable for payment of interest on Savings Bank deposit or payment of additional interest to the Bank in a loan account, the Bank shall compensate the customer to the extent of such interest loss.
• Erroneous transactions reported by customers in respect of Credit Card operations which require reference to a merchant establishment will be handled as per the rules laid down by the Card Association. Where a third bank is involved, compensation would be subject to availability of information from the other bank.

• In case of any fraud, if the Bank is convinced that an irregularity/fraud has been committed by its staff towards any constituent, it will at once acknowledge its liability and pay the just claim.
• In cases where the Bank is at fault, it will compensate the customer without demur.
• In cases where neither the Bank nor the customer is at fault, but the fault lies elsewhere in the system, the Bank will compensate the customers upto a limit of 25% of the loss incurred by the customer subject to a ceiling of Rs 25,000/-. This will, however, not preclude a higher compensation being paid outside of this policy, depending on the merits of the case.

• In the event any charge is levied in violation of the arrangement, the Bank will reverse the same when pointed out by the customer subject to verification of the agreed terms and conditions.
• Where it is established that the Bank had issued and activated a Credit Card without the written consent of the recipient, the Bank would reverse the charges immediately.

In case a cheque has been paid, after stop payment instruction is acknowledged by the Bank, the transaction shall be reversed within 2 working days of the customer intimating the transaction to the concerned branch. Interest, if eligible, shall also be paid.

• In case of outstation cheques and other instruments sent for collection to centres within the country, the following time schedule shall be adhered to for realisation by branches:



a. For local cheques the time lines for local clearing will apply.


b. For outstation cheques there will be the following two categories of time lines:-


i. Cheques drawn on Axis Bank centers other than in the North Eastern states to be credited within 7 working days.


ii. Cheques drawn on Axis Bank centres in the North Eastern states to be credited within 10 working days.


For non-Axis Bank centres, the Bank shall ensure collections on a 'Best effort' basis as it will have to depend on the correspondent/drawee banks for this purpose. Accordingly, an outer limit of 21 working days has been provided for the purpose of collection from these centres.
• In case there is delay in realisation beyond the time lines mentioned above, the Bank will pay compensation at the Savings Bank rate of interest for any delay beyond the stipulated period for collection on the amount of the instrument.


• There shall be no distinction between instruments drawn on the Bank's own branches or on other banks for the purpose of payment of interest on delayed collection.

• The Bank would observe the following policy in case of cheques lost in transit:


a. In respect of cheques lost in transit or in the clearing process or at the paying bank's branch, the branch should immediately bring the same to the notice of the accountholder so that the accountholder can inform the drawer to record 'stop payment' and can also take care that other cheques issued by him are not dishonoured due to non-credit of the amount of the lost cheques/instruments.


b. The branch will reimburse the accountholder with related expenses for obtaining duplicate instruments and also pay interest for reasonable delays occurred in obtaining the same.


c. If the cheque/instrument has been lost at the paying bank's branch, the collecting branch will have a right to recover the amount reimbursed to the customer for the loss of the cheque/instrument from the paying banker.


d. The Bank will compensate the account holder in respect of instruments lost in transit in the following way:-


i. In case intimation regarding loss of instrument is conveyed to the customer after the time limit stipulated for collection for various centres, interest will be paid for the period exceeding the stipulated collection period at the savings bank rate of interest.


ii. In addition, the Bank will pay interest on the amount of the cheque for a further period of 15 days at savings bank rate to provide for likely further delay in obtaining duplicate cheque/instrument and collection thereof.


iii. The Bank would also compensate the customer for any reasonable charges he/she incurs in getting duplicate cheque/instrument upon production of receipt, in the event the instrument is to be obtained from a Bank/institution who would charge a fee for issue of duplicate instrument.


• In the event a cheque or an instrument accepted for collection is lost-in-transit or in the clearing process or at the paying bank's branch (after it has been handed over to the bank for collection by the customer), the Bank shall, immediately on coming to know the loss, bring the same to the notice of the account holder so that he/she can inform the drawer to record stop payment and also take care that cheques, if any, issued by him/her are not dishonoured due to non-credit of the amount of lost cheques/instruments. The bank would provide a certificate to evidence the loss of instrument to enable the customer to obtain a duplicate from the drawer.

The rate of compensation in case of delays in crediting the remittance proceeds received through NEFT/RTGS beyond one day after receipt of the message at our gateway shall be at the prevailing Repo Rate.

• It is the Bank's experience that the time norms for collection of instruments drawn on banks in foreign countries differ from country to country and even within a country, from place to place. The time norms for return of instruments cleared provisionally also vary from country to country. Therefore, no compensation shall be paid for any delay in collection of cheques designated in foreign currencies and sent to foreign countries.
• The Bank will compensate the customer for undue delays in affording credit once proceeds are credited to the Nostro Account of the Bank with its correspondent with full particulars. The compensation in such cases shall be restricted to the extent of eligible interest at Savings Bank rate which shall be calculated for the period after 30 days from the date our Nostro account with the Correspondent bank has been credited.
• The foreign exchange rate on the date of credit to our Nostro account shall be the basis for calculation of interest irrespective of the rate prevailing on the date of claim/calculation/ settlement.

In case of any failure to execute Standing Instructions (and if it is directly attributable to the Bank), the Bank shall compensate the customer to the extent of the financial loss not exceeding Rs.100 per occasion subject to providing proper supporting documents for having incurred the loss. In addition, service charges, if any, recovered for execution of the Standing Instruction shall also be refunded.

• The compensation as per this Policy is payable to a customer only in those cases where any act of omission or commission is directly attributable to the Bank.
• No claim could be considered based on qualitative aspects like reputation damages, loss of image in the society, loss of business, loss of income etc.
• The amount of compensation is restricted to the financial loss of the customer arising out of the amount in the books of the Bank only and in any case, to the maximum limits prescribed for various services given above.
• The amount of compensation is restricted to the financial loss of the customer arising out of the amount in the books of the Bank only and in any case, to the maximum limits prescribed for various services given above.
• Wherever applicable, the compensation shall be paid by replicating the effect obtained through back-valuation of the affected transaction.
• In case of compensation payable against deficiency in the service provided by an agency nominated by the Bank, the compensation shall be the same as prescribed above.

The Bank shall not be liable to compensate customers for delayed credit, if some unforeseen event (including but not limited to civil commotion, sabotage, accident, fire, natural disasters or other "Acts of God", war, damage to the bank's facilities or of its correspondent bank(s), absence of the usual means of communication or all types of transportation, etc.) beyond the control of the Bank which may prevent it from performing its obligations within the specified service delivery parameters.