INSIGHT

Gushing forth
Gujarat State Petronet (GSPL) feels it is possible to address the issue of erratic supplies of liquefied natural gas (LNG) in the country by tying up with multiple sources, ideally overseas. The company management, which is keen to develop the LNG market in the country discussed its , growth plans and various forward and backward integration plans in an analyst meet recently . Within days of announcing a sourcing tie-up with Russian Gazprom for supply of 2.5 million metric tonne per annum (mmtpa) LNG, GSPL announced plans to construct a greenfield LNG terminal at Mundra through a 50:50 joint venture with the Adani group. The 5 mmtpa port, built at a cost of `4,000 crore, will be commissioned in mid2015.

12 You can complain about your bank to the ombudsman

PERSONAL FINANCE
MUMBAI | TUESDAY, JUNE 7, 2011
www.dnaindia.com | epaper.dnaindia.com

But first file complaint with bank; the ombudsman can refuse your complaint if you move it without first having approached the bank
Balwant Jain
Considering the spurt in number of customers complaints in personal finance shows on various TV channels, it is enough proof that many customers are victims of banking services in India. Even on a show where I, in the capacity of expert, handle viewers queries, there are a number of queries that pertain to how to get the grievance against the banks redressed. So what should such customers do? Where should they go? What is the redressal mechanism? This article intends to cover these and many such questions for the benefit of all such customers. If you have a complaint against a bank, be it a nationalised bank, private bank or cooperative bank, you can get it redressed. Read on to know how. lous grounds or the subject/ grievance is beyond its scope. Also, if the subject matter has already been decided by any other forum like consumer court of any other court of law, your application is liable to be rejected. As the banking ombudsman is entitled to give his award on the complaints where the monetary value does not exceed `10 lakh, it can refuse to accept the complaint if the value of the loss or damage claimed in the complaint is more than `10 lakh. with the bank or remittances made by him from abroad or for any other services dissatisfactorily rendered to him in general. You can also file a complaint in case of breach of any promise made by the bank either in a contract or as contained in banks code of commitment to customer.

What is the process followed by the banking ombudsman?

The banking ombudsman will try to bring both the parties to a settlement on the issue within a month. If the settlement amongst the parties is reached, the ombudsman will pass the order accordingly Such an order confirming the set. tlement is binding on both the parties. However, if it is not able to bring the parties to a settlement, it will pass an award after providing both the parties to present their case before him. After receiving the award from the banking ombudsman, the complainant and the bank both have two choices. Either you can accept the award in full or you can file an appeal against the order before the appellate authority within 30 days from receipt of the order from the award of the ombudsman. The appellate authority in this case is deputy governor of the RBI. In addition to the appeal before the deputy governor of the RBI, you can take recourse to any other legal forum available to you like consumer forum or court of law in India of proper jurisdiction. I hope you got the answers to your questions in case you are looking for redressal of your complaint against any bank. The writer is CFO, ApnaPaisa.com, a price comparison engine for loans, insurance and investments. He can be reached at balwant.jain@apnapaisa.com.

What can be the subject matter of the complaint?

The complaints with the banking ombudsman can be filed on varied issues. However, broadly stated these include issues pertaining to inordinate delays in providing the services, or refusal to provide any service, or in respect of charges recovered by the bank which are in contravention of the directives issued by the Reserve Bank of India (RBI). The delay will include delay on the part of bank in crediting cheques for collection or any proceeds to your account or inordinate delay in providing any service. The refusal part will include bank refusing to either open an account or to close an account. You can also file complaint for failure of the bank to follow the directives issued by the RBI in respect of interest payable on deposits or charges/interest chargeable on the loans or services provided by the bank in contravention of the RBI directives. This may also include contravention of directives issued by the RBI for ATM card and debit card. Many a times banks refuse to accept tax payments on some pretext or other. You can approach banking ombudsman for such refusal also. Even an NRI can file a complaint before the banking ombudsman with regard to his deposit accounts

Who to approach for redressal of banking-related grievances?

You can approach a banking ombudsman of your area where the banks branch is situated. The list of banking ombudsman can be obtained from the link (http://www.rbi.org.in /scripts/bs_viewcontent.aspx?Id=164). Presently, as per the information available, there are 15 banking ombudsman centres across the country. In case you have any complaint with regard to the credit card, the complaint can be filed with the office of banking ombudsman, which covers the billing address of the credit card company . cerned bank, you can file the complaint even without waiting for 30 days period. However, make sure that you file your complaint before the banking ombudsman within one year from the receipt of any response from the bank against your written complaint. In case you have not received any response from the bank concerned, the complaint has to be filed before the banking ombudsman within one year and one month from the day you filed a written complaint with the concerned bank. complaint in plain language without conforming to any format. No fee is payable for filing the complaint. You should ensure that you mention your name and address along with the details of the bank and branch against which you have the grievance. You also need to provide a brief explanatory factual statement of your complaint along with the nature of loss suffered by you.

Can the banking ombudsman refuse to consider your complaint?

The banking ombudsman can refuse to consider your complaint if the same has been filed beyond the time limit stated above. It can also refuse to entertain your complaint if you have approached it without first having approached the bank concerned. Besides, your application can be refused if it is filed on frivo-

When can you file the complaint?

Before lodging your complaint against any bank to banking ombudsman, you are required to file the complaint with the bank in question in writing and wait for at least thirty days. In case your request is rejected by the bank or you do not get a satisfactory reply from the con-

What is the process of filing the complaint?

The complaint can be done either through the email ID given in the above mentioned link or can be sent through regular post. Though there is a format of the complaint, but you can file your

The company is also planning a 3 mmtpa floating storage and regassification unit at Pipavav. This would require much lesser capital than the Mundra port and will be commissioned much faster. As for its current business, the companys Gujarat network will increase its transport volumes from the current level of 35-36 million metric standard cubic metres per day (mmscmd) to 45 mmscmd in the next 2-3 years. It will also increase capacity at Dahej from 10 mmtpa to 13 mmtpa by mid-2013. GSPL still has some room left in Shells Hazira terminal, which is currently operating at 2.5 mmtpa against an estimated capacity of 4 mmtpa. Further, it has recently filed new tariffs for its existing network with the regulator at higher-thanexisting rates, which were based on a 12% internal rate of return method. The company generates average revenues in the vicinity of `850/thousand cubic metres. GSPL has recently been awarded three new pipelines by the Petroleum & Natural Gas Regulatory Board. Of these, Mallavaram-Bhilwara pipeline will be set at a capital expenditure of `6,500 crore with a levelised tariff of `1.2/scm with a capacity of 52 mmscmd. The other bigger line is the Mehsana-Bhatinda pipeline, which will be set up in three years at a cost of `4,500 crore on a levelised tariff of `1.3/scm and a capacity of 42 mmscmd. The company expects to earn a higher IRR of 15% on equity for both the pipelines. The company is thus expected to grow multi-fold over the next 35years and has planned its growth well to meet the demand going forward. Shishir Asthana (a_shishir@dnaindia.net)

It pays to digitise your valuable documents

Yogini Joglekar MUMBAI
Malini Shetty 42, is an efficient , home maker. She manages home as well as finances, as her husband works round the clock and hardly gets time to do banking and financial transactions. She kept all the important documents along with her jewellery in the bank locker. But, the problem came on one Friday morning when she needed a document for her sons admission. Being a consecutive public holiday, the bank wouldnt open until Monday and the admission couldnt wait for another day It was on . that day when her friend advised , her to keep the documents with a record management company where they safeguard as well as digitise documents of an individual, SMEs (small medium enterprises) and corporates. They produce it at your doorstep as and when required. Sunil Mahajan, co-founder and CEO of Kleeto, a record management company, said, The group is working with the objective of safe storage and quick retrieval of documents. Such services can save the rental cost of prime office space for storing these records and will make the retrieval of the information very quick. This concept also contributes to the save paper ideology . of trips, you will have to renew your package accordingly Cus. tomers request to pick up documents is honoured within 48 hours. Documents are secretly coded, scanned and packed into three layers (paper bag, water proof plastic bag and a box). Boxes are stored at a very secure facility equipped with CCTV cameras and security who monitor the facility 24x7, added Mahajan. One can store originals as well as photocopies at the facility The reason why one should . store valuable documents is to protect them from fire, termite, moisture and theft. After signing up, the company will give you a login ID and password in case you want to view your originals online. These documents are scanned by professional scanners (assuring that even the person who scans cannot have a look at it). Under one login ID, friends and familys documents can also be stored. The company has its presence in all metro cities but the warehouse where they safeguard the documents is in Manesar, Gurgaon. When asked about the security of the warehouse he said, The warehouse is fire-safe and is centrally secured with candid cameras placed all over the facility. In case the document is lost, irrespective of it being an original or a photocopy a reim, bursement of Rs100 is given to the customer. The reimbursement amount is standard and we may scale it up if customers express the same. The documents are highly secured because even the scanners do not look into the documents. All the scanning activity is done under tight supervision and without the knowledge of the contents of the documents. The information is visible only to the customer and nobody from Kleeto has access to it. Internet communication is also secure through SSL (secure sockets layer) connections. He further added, These services will relieve HR (human resource) personnels from the headache of storing and managing company documents and relieve small businesses from pains related to storage and management of all kinds of documents in paper and digital form. Its different from keeping the documents in a bank locker because the size of the bank locker is comparatively smaller and their charges range anywhere between `2,000 and `4,000. In addition, banks dont offer the facility to use the locker on holidays and nor do they have access to view documents online anytime.

Theres no tax benefit on a pure plot loan

Harsh Roongta
I want to buy a plot for `8 lakh. What percent of the property value will I get as loan? In that case, will there be any tax benefit if I do not start construction immediately?
Normally lenders do not finance more , than 60 to 65% of the total cost of the plot; hence the balance 35 to 40% has to come from your own sources. However, there is no tax benefit available on a pure plot loan. But some benefits may be available in future, depending on when you complete the construction of the property, besides it will also depend on whether property is for self residence or renting out. Banks are normally much more restrictive for plot loans and it is available only to non-agricultural plots bought from statutory authorities or approved developers. Also, these are more expensive and available for shorter tenure.

Established in December 2010, the company currently has 1700 individual customers and 10 corporate clients. By the end of this year Kleeto aims to have at least 10,000 individual customers and more than 100 corporates. A person can keep documents like appointment letter, car papers, birth certificate, bank statements, credit card/cash receipt and statements, degree certificates, horoscopes, Form 16, FD (fixed deposits), driving licence, ITR form, loan documents, medical reports, phone bills, insurance policies, passport, petrol bills, PAN card, voter card, property (purchase and sell) papers, utility bills, war-

ranty cards and many more. If an individual wants to keep some documents with this company all he has to do is sign up , for one of their packages mentioned on their website www.kleeto.in. Services are offered on annual subscription fee for physical and digital storage of records. The fee ranges from `200-2,000 (inclusive of service tax) per year. If a customer subscibes to the Kleeto base package, he can store up to 100 physical documents, upload 500 digital documents. Under this package, the company will also offer 12 free trips to customers home/office to pick up and drop documents. If you overshoot the number

What is the difference between health plans from life insurance companies and health insurance (mediclaim) from general insurance companies?
Most of the policies offered by life insurance companies provide lump sum benefit for their health insurance plans. These plans will pay you a fixed amount that is laid down in the schedule when you buy the policy; whereas general insurance companies will reimburse YOUR your claim for your health insurance plan. The policies serve different purposes. The reimbursement policies (popularly known as mediclaim policy) are must and in addition you should also consider buying the lump sum benefit plans provided by the life insurance companies.

... and a new green math can scupper projs too

Continued from Page 11

MONEY

On the retrospective effect, Ramesh cited the example of a hydel power producer. This 400-mw project is being taken up on the river Alaknanda. The initial approvals were given for a minimum flow of three cubic metres per second (cumecs). However, after the cumulative assessment, considering the likely impact on the environment, the minimum flow was increased to 15 cumecs. The project developer is complying with it now, he said. We are seriously considering taking on the responsibility of carrying out the environment impact assessment in eco-sensitive areas. We are the view that it should not be done by the project proponent if the project is coming up in an eco-sensitive area. Such assessments should be done by us, he said. Similarly, the Centre is also in an advanced stage of completing the assessment on the coastline due to the setting up of new ports. We are using satellite-based

data for assessing the impact. We have completed the exercise for Gujarat, Orissa and Pondicherry . The assessment for Andhra Pradesh, West Bengal, Kerala, Tamil Nadu, Karnataka and Goa would be completed by August this year, he said. Based on the data, the government would divide the coastal areas into high, medium and low erosion zones. We will put a ban on all projects in the high erosion zones. That was the basis for shooting down the projects of Posco and Adani in Mundra, he said.

For the St, 25 bps hike is a given

Continued from Page 11

I am planning to renovate the flat that is in my fathers name. Can I apply for a home loan along with him as coborrower and get tax benefit for it?
You can get a renovation loan based on your income, but your father will have to join you as a borrower as he is the owner of the property. You will not be able to get tax benefit on the loan, as you are not a co-owner to the said property .

In the beginning, the end...

Continued from Page 11

Under these norms, there is a liquidity disincentive as conversion wont be allowed if the IDRs are liquid. As a result, global companies could shy away from issuing IDRs in India. So the StanChart IDR may well be the first and last IDR issue from India, said Thunuguntla. As such the IDRs were not treat-

ed on a par - called pari passu in Street lingo with equity shares in India, which had kept many of investors away . Insurance companies are also not allowed to invest in IDRs. Plus there is a tax issue. But the issues related to tax treatment have been there and known before by investors, said Sabharwal.

The rate hike has been factored in by the market, so there wont be much of an impact. We are expecting to see GDP growth at 7.7% for the current fiscal, said Indraneel Pan, chief economist with Kotak Mahindra Bank. The central bank has made it clear earlier that it is willing to sacrifice short-term growth to curb inflation and had thus taken a more hawkish stance in the monetary policy announced in May . Sujan Hajra, chief economist at Anand Rathi, believes, rather than stop at a 25 bps hike, the central bank will go for a further hike of 50 bps this fiscal before settling into a considerable period of no rate hikes. But Sengupta said the apex bank will go for an early pause in its rate hikes if growth falls below the 7.5% mark and other macroeconomic factors show signs of moderation. The Centre may also persuade public sector banks to hold their lending rates for now, especially given that loan demand has slackened seasonally, he said.

I am 4 months pregnant. I have heard of maternity insurance. Can I avail it at this stage?
Irrespective of the status on reimbursement of expenses relating to pregnancy you should buy medical insurance , policy for yourself. In any case, please be sure that the baby is covered by a mediclaim plan right from his/her birth. Please note that any cost arising out of pregnancy will not be covered under a mediclaim plan that you buy now. Pregnancy- and childbirth-related costs are a part of permanent exclusions in most of health insurance policies available in India. Very few policies allow such expenditure up to a small amount and that too after a waiting period of many years. If you or your husband is covered under group health plan from company then it is possible that you can get reimbursement for medical bills for pregnancy, since group mediclaim policies cover such expenditure up to a certain amount without any waiting period. The writer is CEO, Apna Paisa, a price & features comparison engine for loans, insurance and investments. He can be reached at hrdna@apnapaisa.com.