RD 4 Mar 2019
Dated: - 01-03-2019 To, Kotak Mahindra Bank Limited CIN: L65110MH1985PLC038137 27BKC, C - 27, G-Block, Bandra-Kurla Complex, Bandra East, Mumbai – 400051, India Tel No.: +91 22 61660000, Fax No.: +91 22 67132403 Website: www.kotak.com Sub: - Fraud & Malpractices by Kotak Mahindra Bank Limited Ref: - CRN No. 187805870, 193890217 & 193890206 Dear Sir/Madam, In regards to the below complaints we would like to update you that we opened our savings bank account with Kotak Mahindra Bank, Ground Floor, Mayur Garden, G S Road, Guwahati, Assam – 781005, India only upon getting assurance that we would be offered a Kotak Mahindra Bank Family Savings Account (Silk - The Savings Programme for Women) where we would only be required to maintain minimum balance of Rs. 10,000/- (In Words:- Ten Thousand Only) in one of the primary savings bank account only. It is very same shameful fact that we are getting mail and SMS to maintain a minimum balance of Rs. 10,000/- and are being told that the family accounts were opened under edge category with AMB requirement of Rs. 10,000/- and no promo code for family accounts was given which are duly signed by the customer (us). Bank Charges still have not been reversed for my connected family account bearing Account No. 9312381593 & 9312381586 and still Bank Charges are being levied in spite of having maintaining sufficient balance in my main account no. 0511731141. Kotak Mahindra Bank Limited has been found negligent in rendering services and have not complied with RBI Guidelines and Rules in regards to levy of Minimum Balance Charges. It also has been found guilty of misselling its banking products and services and making false assurance and claims to sell its products and services to the customers. We would like to inform you your Kotak Mahindra Bank officials are misleading customers for opening accounts, making false claims, for fulfilling own financial gains at the cost of the customers. It seems that customers everywhere are paying a hefty price for their blind trust in companies with strong brand images. Kotak Mahindra Bank officials are taking undue advantage of the brand name to influence the customers and makes a strong pitch in favor of the Kotak Mahindra Bank Products to the customers. Kotak bank is a fraud, is doing clear injustice with the customers. We the customers are depositing our hard earned money in banks to keep it safe and bank itself is eating away our money. Hats off to banks like Kotak in India, poor Indian laws and poor common man of India. Let us remind you of the IBA Code for Banking Practice:- “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.” Kotak Mahindra Bank Officials are fooling, cheating, misleading customers by giving false claims in regards to opening savings accounts so as to fulfil own targets and gains at the cost of the customers as evidenced from our case and many cases like us. If someone makes a misleading or false statement about a product, it tantamounts to mis-selling, as do omitting or concealing material facts and associated risks about an investment product. We visited branches of several banks, including PSU outfits, foreign banks and new generation private banks. However, the modus operandi has not changed. Bank officials still try to mislead people into buying products they don’t need. Bank Officials does so because banks set stiff sales targets for relationship managers, forcing them to push products that fetch higher commissions instead of products and services that suit the customer’s needs. Most of the mis-selling happens at foreign banks and new generation private sector banks. The relationship managers are trained to stonewall any question from the customer. In one case, one customer wanted to invest Rs 5 lakh in a fixed deposit in a foreign bank, the salesperson started pushing FDs from NBFCs. “The interest rates offered by these deposits are much higher than what our bank offers,” she said. What about the risk, I asked. Without batting an eyelid she said the FDs she was offering were from ‘reputed’ NBFCs and there was little chance of default. This comes right after the IL&FS fiasco. Banks were found pushing sub-optimal, or risky products—most common was the push for Ulips—as a substitute to not just FDs but to the Senior Citizens’ Savings Scheme (SCSS), term insurance and gold bonds. Even granting bank lockers was subject to preconditions—investing in FDs, opening a savings bank account, buying insurance. We Would Never Recommend Kotak Mahindra Bank To Anyone.