What changed
RBI observed that some banks are not issuing passbooks to individual savings account holders even when customers request them, instead providing only computer-generated account statements. This circular reiterates the existing instruction from October 4, 2006, and directs banks to strictly adhere to it.
What it means for you
Banks must ensure that every individual savings account holder is offered a passbook facility. If a customer chooses a statement of account instead, banks must provide monthly statements at no cost. This reinforces customer choice and prevents banks from unilaterally replacing passbooks with statements, which could disadvantage less tech-savvy customers.
What you must do
- Review your current passbook issuance process for individual savings accounts and ensure compliance with the 2006 circular.
- Train branch staff to offer passbook facility to every new individual savings account holder and upon request for existing accounts.
- If offering statement of account as an alternative, ensure monthly statements are provided free of charge and only with the customer's explicit choice.
- Audit recent account openings to identify any instances where passbooks were not offered and rectify immediately.
Who it affects
All scheduled commercial banks (excluding Regional Rural Banks), Branch operations teams handling savings account opening, Customer service and compliance departments
Can we charge customers for issuing a passbook or monthly statement?
No. The circular explicitly states that the cost of providing passbooks or statements should not be charged to the customer.
Does this apply to all savings bank accounts, including those opened online?
Yes, the instruction applies to all individual savings bank account holders, regardless of how the account was opened. Banks must offer the passbook facility or, if the customer opts for a statement, provide monthly statements free of charge.
What if a customer prefers only an online statement and does not want a passbook?
That is acceptable as long as the customer has explicitly chosen the statement option. In such cases, banks must still provide monthly statements free of cost.