CUSTOMER COMPLIANT HANDLING AND REDRESSAL

POLICY AND PROCEDURE

(Verssion-1)

(DRAFT)

Customer Service
Department

Bank

Corporate

Centre Addis

Ababa

Issue Date: 29.02.2024

By- DEMESSEW KASSA
EBA 2024

1|Page

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 CUSTOMER RIGHTS,
GRIEVANCE REDRESSAL
AND
COMPENSATION POLICY

We Strive to Create Customer for

Life

2|Page

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 To: All Member Banks

From: Ethiopian Bankers Association

Dear M/S

Following the introduction of Consumer Protection Directive by National Bank of Ethiopia,

member banks are on the process of preparing their Compliant Handling procedure.
As all of you aware of that, because of the dynamic nature of the Banking industry towards in
providing their service to their customer, timely reviewing customer handling and redressing
procedure to excel their customer satisfaction is their priority area. Based on this and the
expected entry of foreign banks in the market comprehensive Customer Handling and
Regressing procedure is required to be part of the international standards. The
Ethiopian Financial Code on the drafting process also considered the Bank and Customer
Relationship in its first Chapter.
In this draft policy document Compliant Redressing policy align with international banking
practice and the new draft financial code included in the document.
This draft policy document forwarded for your Excellency’s consideration in formulating your
bank’s Customer Compliant and Redressing procedure.
The Document organized in four major parts, articles and sub-articles.
These are:

1. CUSTOMER RIGHTS POLICY

2. CUSTOMER GRIEVANCES REDRESSAL POLICY

3. COMPENSATION POLICY

4. COMPENSATION POLICY (BANKING SERVICES)

From the above major policy document number 3 and 4 few of

services type not provided in banks
e.g. Check Clearance outside Addis Ababa, Foreign Exchange Dealing, Materializes and De-
Materialized securities, Bank’s Ombudsman etc.

3|Page

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 INDEX
1 Abbreviations 5

CUSTOMER RIGHTS POLICY - 2024

Para Descripti Page
on No

1 Right to Fair Treatment 6-7

2 Right to Transparency, Fair and Honest Dealing 7-10

3 Right to Suitability 10

4 Right to Privacy 11

5 Right to Grievance Redressal and Compensation 12-13

6 Amendment / Modification of the Policy 13

CUSTOMER GRIEVANCES REDRESSAL

POLICY – 2024
1 Preamble 14

2 Grievances relating to Branch transactions 14-16

3 Escalation matrix for customer complaints 16-17

4 Grievances relating to Technology related transactions 17-19

5 Grievances relating to Sale of third-party products 19

6 Relationship Officer for handling customer grievances 19-20

7 Acknowledgement of Grievances and Redressal: 20

8 Review Mechanism 20-21

9 Enhanced disclosure on complaints 21

10 Pre-empting occurrence of customer grievances & sensitizing 21-22

operating
staff on handling complaints
11 Amendment / Modification of the Policy 22

4|Page

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 12 References of Circular/ Guidelines used for drafting Customer 22-23
Rights and
Grievance Redressal Policy 2024
COMPENSATION POLICY – 2024

Para Description Page

No
1 Preamble 24

2 Objective 24

3 Scope 24-25

4 Recognition of Deficiency and Compensation

4.1) Unauthorized / Erroneous Debit 25-26

4.2) ECS direct debits / other debits to accounts 26-27

4.3) Penal interest payable for delays in credit / return of 27-28

National Electronic Fund Transfer NEFT Real Time Gross
Settlement RTGS etc. transactions
4.4) Issue of ATM / Debit Cards without written consent of 28
customer
4.5) Payment of Cheque after acknowledgement of Stop 28-29
Payment
Instructions / Non-blocking of lost ATM card / UPI Services / INB
Services after acknowledgement of request for its blocking
4.6) Limiting Liability of Customer’s in Unauthorized Electronic 29-34
Banking
Transactions
4.7) Collection of Cheques drawn on Foreign countries 34-36

4.8) Compensation for adverse movement in Exchange Rates 36-38

4.9) Collection of Cheques payable in Ethiopia 38-39

4.10) Compensation for delay in clearance of Local Cheques 39-40

4.11) Compensation for loss of Cheques / Instruments in transit 40

4.11.A) Delayed Collection of Bills Payment of Interest for Delay in 41

Collection 5|Page

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 of Bills

4.12) ATM failure: Compensation to Customer for settlement of 41-44

disputed
ATM transactions / Automated Deposit cum Withdrawal Machine
(ADWM)
4.13) Compensation for delay in Pension Payment 44-45

4.14) Compensation for delay in Issuance of Duplicate IOI 45

4.15) Payment of “at par” Cheques issued by other Banks 45

4.16) Lender’ liability: Commitment to borrower 46

4.17) Compensation for wrongful dishonor of cheques 46-47

4.18) Compensation in case of delay on the part of the Bank to 47-48

upload
Application Supported by Blocked Amount (ASBA)
4.19) Violations by Bank’s Agents 48

4.20) Liability of Bank for any loss/damage to the contents of 48-49

Locker
4.21) Timeline for Payment of Compensation 49

4.22) Authority for Payment and Control Reporting 49-50

5 Automation of Payment of Compensation in CBS 50

6 Customer’s responsibility 50-51

7 Disclaimer clause 51

8 Force Majeure 51

9 Amendment / Modification of the Policy 51

10 References of Circular / Guidelines used for drafting Compensation 51

Policy
NBE if their is

6|Page

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 Abbreviatio
ns

ADWM Automated Deposit cum Withdrawal Machine

ATM Automated Teller Machine

BSBD Basic Savings Bank Deposit

CBS Core Banking Solution

CCR Circle Complaint Resolution
C Centre.
ECS Electronic Clearing System

EEFC A/C Exchange Error’ Foreign Currency Account

FEDAI Foreign Exchange Dealer Association of Ethiopia (with

the hope of liberalization of foreign exchange activity
the association will
establis
h)
FEMD Foreign Exchange Management Directive

INB Internet Banking

IOI Inter Office Instrument

IRC Inward Remittance Cell

IVR Interactive Voice Response

MBS Mobile Banking Services

MSME Micro Small Medium Enterprises

NACH National Automated Clearing House

NECS National Electronic Clearing Service

NEFT National Electronic Fund Transfer

NBE National Bank of

Ethiopia Real Time
RTGS
Gross Settlement
SMS Short Messaging System
7|Page

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 CUSTOMER RIGHTS POLICY
2024

Customer protection is an integral aspect of financial

inclusion. The following comprehensive Customer Rights
Policy based on domestic experience and global best
practices is brought out to enhance such protection.
The Policy enshrines basic rights of the customer of the Banks
regulated by the Financial Code and National Bank of Ethiopia. The policy
covers all the branches and offices of Bank in Ethiopia.It spells
out the rights of the customer and also the responsibilities of the Bank.
The Policy applies to all products and services offered by the Bank or
its agents, whether provided across the counter, over phone, by post,
through interactive electronic devices, on internet or by any other
method.
Wherever number of days is mentioned, the number of days is
considered as “Calendar days”, unless mentioned specifically as “working
1. Right to Fair
days”.
Treatment
Both the customer and the financial services provider have a
right to be treated with courtesy. The customer should not be
unfairly discriminated against on grounds such as gender, age,
religion, caste and physical ability when offeringand delivering
financial products.

In pursuance of the above Right, Bank will -

i) Promote good and fair Banking practices by setting minimum
standards in all dealings with the customer;
ii) Promote a fair and equitable relationship between the Bank and the
customer;
iii) Train Bank staff attending to the customer, adequately and
appropriately;
iv) Ensure that staff member attend to customer and their business
promptly and courteously;
v) reat all customers fairly and not discriminate against any customer
8|Page
on grounds such as gender, age, religion, caste, literacy, economic
status
D r a f t Customer physical
Rights, ability,
Grieva etc.
nce Redressal a n d Bank may, however,
Compensation have
Policy – B special
y De me sse w K .
(2024)
schemes or products which are specifically
 designed for member of a target market group or may use
defensible, commercially acceptable economic rationale for customer
differentiation. Bank may also have schemes or products as part of an
affirmative action, such as, for women or backward classes. Such
schemes / products will not be tantamount to unfair discrimination. The
rationale for such special schemes or terms will be explained by Bank
wherever required.
vi) Ensure that the above principle is applied while offering all products
and services.
vii)Ensure that the products and services offered are in accordance with
relevant laws and regulations;
While it shall be the endeavor of the Bank to provide their customer with
hassle free
services and fair treatment, Bank would expect their customer to behave
courteously and honestly in their dealings with the Bank.
It shall also be the Bank’s endeavor to encourage their customer to
approach the Bank’s internal grievance redressal machinery and
2. Right
approach to Transparency,
alternate Fair and Honest
fora after exhausting all their remedies under Bank’s
Dealing
internal grievance mechanism.
The financial services provider should make every effort to ensure
that the contracts or agreements it frames are transparent,
easily understood by, and well communicated to the common
person. The product’s price, the associated risks, the terms
and conditions that govern use over the product’s life cycle
and the responsibilities of the customer and financial service
provider, should be clearly disclosed. The customer should not
be subject to unfair business or marketing practices, coercive
contractual terms or misleading representations. Over the course
of their relationship, the financial services provider cannot
threaten the customer with physical harm, exert undue influence,
or engage in blatant harassment.

In pursuance of the above Right, the Bank will -

i) Ensure complete transparency so that the customer can have a
9|Page
better understanding of what he or she can reasonably / fairly
D r a f t Customer Rights,
expect from Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
the Bank;
(2024)
ii) Ensure that the Bank’s dealings with the customer rest on ethical
 equity, integrity and transparency;

iii) Provide customer with clear information about its products and
services, terms and conditions, and the interest rates /
service charges in simple and easily understandable
language, and with sufficient information so that the customer
could be reasonably expected to make an appropriate and informed
choice of the product;
iv) Ensure that all terms and conditions are fair and set out the
respective rights, liabilities and obligations clearly and as far as
possible in plain and simple vernacular language.
v) Ensure that most Important Terms and Conditions (MITC) associated
with the
product or service will be clearly brought to the notice of the
customer through Bank’s website, welcome kits and sanction letter as
applicable for the products / services. In general, it will be ensured
that such terms will not inhibit a customer’sfuture choice.
vi) Provide information on interest rates, fees and charges either
on the
Notice Board in the Branches or website or through helplines or help-
desk and where deemed appropriate, the customer will be informed
directly;
vii)Display the tariff Schedule on Bank’s website and a copy of the same
will be made available at every Branch on demand from the
customer. Also, the Bank will display in its Branches, a
notice about the availability of the Tariff Schedule at the
Branch;
viii)Give details, in their Tariff Schedule, of all charges, if any,
applicable to the products and services chosen by the customer;
ix) Inform the customer of any change in the terms and conditions
through a letter
or Statement of Account, SMS or email or on Bank’s
website www.Bank.co. and / or bank. Bank
or as agreed by the customer, at least one month prior to the
revised terms and conditions becoming effective; 10 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024) x) Ensure that such changes of terms and conditions, as stated above,
are made only with prospective effect after giving notice of one
 customer,it will notify the change within 30 days of such change. If
the change is adverseto the customer, prior notice of minimum 30
days will be provided and the customer may be provided options, to
close the account or switch to any other eligible account without
having to pay the revised charge or interest within 60 days of such notice;

xi) Provide information about the penalties levy-able in case of non-

observance / breach of any of the terms and conditions governing
the product / services chosenby the customer;
xii)Display on Bank’s website the Banks’ Policies on Deposits, Cheque
Collection, Grievance Redressal, Compensation and Collection of
Dues and Security Repossession;
xiii)Make every effort to ensure that staff dealing in a particular product is
properly trained to provide relevant information to customer fully,
correctly and honestly;
xiv) Ensure to communicate to the applicant within a reasonable time
period as decided by the Bank about the acceptance / non-
acceptance of applications submitted for availing a product /
service. Such period will be notified in the Bank’s website and also
in the application of the particular product or service;
xv)Communicate unambiguously the information about –
a. discontinuation of particular products,
b. relocation of their offices
c. changes in working hour
d. change in telephone number
e. closure of any office or Branch
With advance notice of at least 30 days through Bank’s website,
notice board at Branches, digital signage systems etc. also affirm that
disclosure of information
is an on-going process through the life-cycle of the product /
relationship and will be diligently followed by them. Ensure to use
all possible channels of
communication, including website, to ensure that information on all
changes is made known to the customer upfront;
11 | P a g e
xvi) Advise the customer at the time of selling the product of the
Draft rights
Customer and Grieva nce Redressal a n d Compensation Policy – B y De me sse w
Rights, K.
(2024)
obligations embedded in law and / or Banking regulation including
 xvii) Ensure that the Bank’s staff member shall, when approached by the
customer for availing a product or service, provide all relevant
information related to the product / service with a view to enable
the customer to make an informed decision;
xviii)Not terminate a customer relationship without giving reasonable or
contractual prior notice to the customer;
xix) Assist the customer in all available ways for managing his / her
account, financial relationship by providing regular inputs in the Bank’s
realms;
xx)Ensure that all marketing and promotional materials are clear and not
misleading, and as far as possible in regional language pertaining to the
region / area also;
xxi) Not threaten the customer with physical harm, exert influence or
engage in behavior that would reasonably be construed as
unwarranted harassment.
Ensure adherence only to the normal appropriate business practices;
xxii) Ensure
Right to that the fees and charges on products / services and its
Suitability
structure
The productsare offered
not unreasonable
should beto the customer. to the needs of the
appropriate
customer and based on an assessment of the customer’s
financial circumstances and understanding.

In pursuance of the above Right, the Bank will -

i) Ensure that it has a Board approved policy for assessing
suitability of products for customer prior to sale of third-party
products;
ii) Endeavour to make sure that the product or service sold or
iii) offered is appropriateto the customer’s needs;
Sell third party products only if it is authorized to do so, after putting
in place a
Board approved policy for marketing and distributing third party
financial products;
iv) Not compel a customer to subscribe to any third-party products as a
quid-pro- quo for any service availed from the Bank; 12 | P a g e
v) Ensure that the products being sold or service being offered,
D r a f t Customer Rights, third
including Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
 partyproducts, are in accordance with extant rules and regulations;
vi) Inform the customer about his responsibility to promptly and
honestly provide all relevant and reasonable information that is
sought by the Bank in order to enablethe Bank to determine the
suitability of the product to the customer.

3. Right to
Privacy
Customer’ personal information should be kept confidential
unless they have offered specific consent to the financial
services provider or such information is required to be provided
under the law or it is provided for a mandated business
purpose (for example, to credit information companies).
The customer should be informed upfront about likely
mandated business purposes. Customers have the right to
protection from all kinds of communications, electronic or
otherwise, which infringe upon their privacy.

In pursuance of the above Right, Bank will –

i) Treat customer's personal information as private and

confidential (even when the customer is no longer Banking with us),
and, as a general rule, not disclose suchinformation to any other
individual / institutions including its subsidiaries / associates, tie-up
institutions etc. for any purpose unless:
a. The customer has authorized such disclosure explicitly in
writing;
b. Disclosure is compelled by law / regulation;
c. Bank has a duty to the public to disclose i.e. in public interest;
d. Bank has to protect its interests through disclosure;
e. It is for a regulatory mandated business purpose such as
disclosure of default to credit information companies or debt
collection agencies;
ii) Ensure that such likely mandated disclosures are communicated
13 | P a g e
immediately after such disclosure to the customer in writing;
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024) iii) Shall not use or share customer’s personal information for marketing
purpose, unless the customer has specifically authorized it;
 4. Shall adhere to Law and regulation on Right to privacy including
Telecom
Commercial Communications Customer Preference 202 (With the
Regulations, 4 new
Ethiopian Financial Law the issue will be Covered) and issued by
Telecom Regulatory Authority of Ethiopia,while communicating with
customer.
Right to Grievance Redressal and
Compensation

The customer has a right to hold the financial services

provider accountable for the products offered and to have a clear
and easy way to have any valid grievance redressed. The
provider should also facilitate redressal of grievancesstemming
from its sale of third-party products. The financial services
provider must communicate its policy for compensating mistakes,
lapses in conduct, as well as non-performance or delays in
performance, whether caused by the provider or otherwise.
The policy must lay out the rights and duties of the customer
when such events occur.
In pursuance of the above Right, Bank will –
i) deal sympathetically and expeditiously with all things that go wrong;
ii) correct mistakes promptly;
iii)cancel any charge that has been applied wrongly
i)and Place
by mistake;The Bank will
in public domain its also –
Customer Grievance Redressal Policy,
including the grievance redressal procedure available for the
customer;
ii) Place in public domain the compensation policy for delays / lapses in
conducting

iii) / settling customer transactions within the stipulated time and in

accordance withthe agreed terms of contract;
Ensure to have a robust and responsive grievance redressal
procedure and
clearly indicate the grievance resolution authority who shall be
approached by the customer;
iv) Make grievance redressal mechanism easily accessible to customer;
v) Advise the customer about how to make a complaint, to whom
such a 14 | P a g e

complaint
D r a f t Customer Rights, is to bence
Grieva made, when ato
Redressal n dexpect a reply and
Compensation what
Policy – B ytoDe
do ifsse
me thew K.
(2024)
customer is not satisfied with the outcome;
 vi) Display name, address and contact details of the Grievance Redressal
Authority
/ Customer Relation Ship Officer on the website. The time limit for
resolution of complaints will also be clearly displayed / accessible on
the website;
vii) Inform the complainant of the option to escalate his complaint to the
Banking Ombudsman if the complaint is not redressed within the pre-
set time;

viii) Place in public domain, information about Banking Ombudsman

Scheme;
ix) Display at customer contact points the name and contact details of
the Banking
Ombudsman under whose jurisdiction the Bank’s Branch falls.
Further, the Bank will -
i) Acknowledge all formal complaints (including complaints lodged
through
electronic means) within three working days and work to resolve it
within a reasonable period, not exceeding 21 days (including the
time for escalation and examination of the complaint by the
highest ranking internal official responsible for grievance redressal).
The 21 days’ period will be reckoned after all the necessary
information sought from the customer is received. However,
complaints relating to Point of Sales (POS) / Card Not Present
(CNP) transactions, Master Card / VISA complaints will be dealt
with, within the periodprescribed, including pre-alteration claims, as
per the guidelines of Master Card
/ VISA / Euro pay / CUP and Ru-Pay.
ii) Provide aggrieved customer with the details of the Banking
Ombudsman
Scheme for resolution of a complaint if the customer is not satisfied
with the resolution of a dispute, or with the outcome of a dispute
handling process.

In addition, the Bank will clearly spell out, at the time of establishing a
15 | P a g e
customer relationship, the liability for losses, as well as the rights and
responsibilities
D r a f t Customer of all nce
Rights, Grieva parties, in the
Redressal a nevent of products
d Compensation not –performing
Policy B y De me sseas
w K.
(2024)
per specifications or things going wrong. However, the Bank will not be
 The Bank reserves the right to amend / modify this Policy, as and when
deemed fit and proper, at its sole discretion. The Bank shall arrange to
review the Policy at annual intervals. "
******************************
CUSTOMER GRIEVANCES REDRESSAL POLICY -
2024
1. Bank’s policy on customer grievances redressal
cover all the branches and offices of Bank in Ethiopia and is based on
the following principle:

‘The customer is the focus of the Bank’s products, services

and people. The Bank’s business growth depends entirely on
the satisfaction of customer with what the Bank offer them.
A suitable mechanism must therefore exist for receiving
and redressing customer grievances courteously, promptly
andsatisfactorily. Any mistake made by the Bank should be
apologized and rectified immediately. The details of
grievances redressal mechanism must be in the domain of
public knowledge’.

The above principle is incorporated in the Bank’s policy of grievances

redressal.

Wherever number of days is mentioned, the number of days is

considered as “Calendar
2. Grievances relatingdays”, unless mentioned specifically as “working
to Branch
transactions:
days”.
i. In case of any difficulty in transactions, the customer may approach
the Service Manager at the Branch or the Customer Relations
Executive or the Branch
Manager, who will ensure that the customer’ Banking needs are
attended to. However, if this does not happen, customer may
demand the complaint book, which will be available in all Branches
with the Branch Manager / Customer Service Manager, and lodge a
written complaint. A copy of the complaint shall be returned to the
customer with an acknowledgement of receipt. The Branch shall make
efforts to ensure that the redressal of the complaint takes
place expeditiously and in any case within a maximum period
16 | P a g of
e
three weeks. If, for any reason, the Branch is unable to redress the
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
grievance within three weeks,
 the customer will be informed of the reasons and the action taken
for early redressal. The complaint entered in the complaint book will
be entered in CRM- CMS (Complaint Management System)application
by the Branch within the next working day and complaint number will
be conveyed to customer by SMS on the registered mobile number /
on registered email address automatically by CRM- CMS application.”
The customer can provide their feedback on their satisfaction level
about the complaint resolution byeither visiting our website or by
calling our Toll-Free number.
ii. In case the customer is unable to visit the Branch, he may lodge his
complaint through other channels viz. Contact Centre toll free
number or through SMS
Unhappy channel by sending SMS ‘UNHAPPY’ to the designated number.
The
customer shall be given a unique complaint number, which can be
used for tracking the status of their complaint. The Customer can
also send their complaints through email to the designated e-mail Id
or lodge their grievance online on the Bank’s web site (www.
Bank.com or bank. Bank) under the link ‘Customer Care’ or
on pre-login page of online
Bank.com / (Bank’s Internet Banking platform). Complaints lodged on
these channels are forwarded to the Branches /offices/ Circle
Complaint Resolution Centers (CCRC) through web-based system
Complaints by calling our toll-free number or through
for redressal as above. The complainant can also get the status of
website www.Bank.com underlink Customer care.
redressal of his complaint directly from the Contact Centre by calling
iii. In case of difficulty with the Branch, or unsatisfactory reply in
or by sending SMS to the designated number. The Customer can
respect of complaint lodged with the Branch / other channels, the
send his / her feedback on closed
customer can approach the District Manager [Regional Business office
(DNBO)] / Assistant Vice President (B&O)
/ Vice President (Network) of the District/Local Head Office under
whose administrative control the Branch functions. The contact
particular of the officials
can be obtained from the Branch or from the helpline number at the
concerned Local Head Office. The customer can also write
17 |to
P a the
ge
Customer Service
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
 Department at the concerned District/Local Office. The helpline
number and addresses are placed on the website. The RBO / AO / LHO
concerned, will enter the details of the complaint in CRM-CMS for
resolution.
iv. Customer shall be provided with one or more channels – web-based
or paper- based complaint form, IVR, Mobile Application, Call
Centre, SMS, through
branches or offices etc, for lodging disputes and grievances. In
addition to the above channels, in case of mobile phone-based
systems like Unified Payments
Interface (UPI), third party app provide Birr (TPAPs) shall also provide
customer

with a facility to lodge disputes and grievances through the same

mobile app used for making payments, which shall be integrated with
Online Dispute Resolution (ODR) System. A web-based Complaint
Form has been made available on the Bank’s website for customer to
register their grievances online. On completing the particular and
submitting the form, the customer will be given a unique ticket number
which will enable him to follow up on his grievance with the Branch /
LocalHead Office or the Corporate Centre.

v. Instead of lodging a complaint in web-based complaint form if a

customer sends an
Escalation email for
matrix to the designated e-mail id., a complaint
customer
willcomplaints
be lodged under the appropriate category and a ticket number
will be sent for subsequent tracking of the status of complaint by the
Within the overall maximum period of three weeks within which a
complainant by SMS on the registered mobile number / email on
complaint needs to be redressed, there will be a prescribed escalation
registered email address.
matrix for redressal of the complaints at different levels in the
organization. The matrix prescribes the time periodto be escalated to
higher authorities for unresolved complaints/grievances not redressed to
customer’ satisfaction. The escalation matrix for customer complaints is
given below:

18 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 Sl. Lodging/ Day of Days available for
No. Escalation/ lodging/ redressal (Within the
Auto Escalation Escalatio maximum
of complaints
n three weeks)
1 Circle Complaints 1st Day 10 days
Resolution
Centre (CCRC)
2 Local Head Office 11th Day 5 days
3 Corporate Centre 16th Day 6 days

The complaint lodged by a customer is first assigned to the / CRM for

redressal. If the complaint is not redressed within 10 days, it is escalated
to District (Local )Head Office on the 11th day of first lodging of the
complaint. If the complaint is not redressed within the next 5 days (15
days from day 1), it is escalated to Corporate Centre. The complaint will
invariably have to be redressed within a maximum period of 21 days /
three weeks. The Customer can approach the Banking Ombudsman in
case his grievance is not redressed within 30 days of lodging the
complaint as per extant guidelines.
3. Grievances relating to Technology related
transactions
i) Keeping in view the growing trend and increased significance of
Digital Banking products (like ATMs, POS, E-commerce, Internet
Banking, Mobile Banking, UPI, etc.), and newer interfaces of customer
engagements, the Bank has introduced exclusive mechanisms for
redressal of grievances arising from use of these channels.
Assistance for such alternate channels and digital banking products are
available on Toll free helpline number. Customer may also lodge /
post his grievance online on the Bank’s web site (www.Bank.com in or
Bank) under the link ‘Customer Care’ or on pre-
login page of
online Bank.com / X-tweeter or Face book
(Bank’s Internet Banking platform).
ii) In respect of Digital banking / Electronic banking transactions done
19 | P a g e
by the customer, they may lodge their service requests /query /
D r a f t Customer Rights, Grieva
complaints etc. bynce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
 contacting their home Branch or sending e-mail to the designated e-
mail ids for redressal of their issues / complaints. In case the customer
is not satisfied with thehandling of his complaint, he may contact the
Vice President (Network) of the District (Local) HO or the Customer
Service Department at LHO / Corporate Centre. The contactdetails
are available on the Bank’s website.
iii) However, for notifying the Bank of any unauthorized electronic
banking transactions in their account(s) customer are required to
immediately report the unauthorized transaction on our dedicated toll-
free (helpline) number. A separate link has also been provided in
bank’s website for the purpose of reporting of unauthorized
electronic transactions and the same may also be made use of.
Further, they may also notify unauthorized electronic banking
transactions by forwarding transaction SMS to the dedicated number
from registered mobile

number or by forwarding
iv) Unauthorized transaction
Transactions email Banking
in Electronic to the dedicated email
Channels:
address
In case offrom registeredtransactions
unauthorized email address or contact
in electronic their channels,
banking home branch
the
during working
following will behour.
therights and obligations of the customer:
a. For availing electronic banking facilities, customer must
mandatorily register their mobile number for SMS alerts and
wherever available, email address for email alerts. Bank may not
offer the facility of electronic banking, other than ATM cash
withdrawals, to customers who do not register mobile number
with the Bank.
b. Customer should notify the Bank of any unauthorized electronic
banking transaction at the earliest after the occurrence of such
transaction. The
longer the time taken to notify the Bank, the higher will be the
risk of loss to customer as per Bank’s Compensation Policy
placed on our web site
www.Bank.com and Bank.
c. To facilitate this, Bank will provide 24*7 accesses to
customer through
20 | P a g e
multiple channels such as website, SMS on dedicated number,
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024) email on dedicated email address, dedicated toll-free
number for reporting unauthorized transactions, and
 workinghour etc.

d. Bank shall provide a direct link for lodging such complaints, with
specific option to report unauthorized electronic transactions
on home page of website.
e. Bank shall send, wherever mobile number / email address is
registered,
advices / alerts of electronic banking transactions by means of
SMS and / or e-mail containing a mechanism to enable the
customer to instantly notifyobjections, if any, in cases of
unauthorized transactions.

f. On receipt of complaint of unauthorized transaction

from the customer, Bankwill take immediate steps to prevent
further unauthorized transactions using the concerned channel
by blocking the respective channel immediately.
g. As soon as the complaint is lodged, an SMS / email acknowledgement
will be sent
immediately along with the registered complaint number, provided the
customer has registered his / her correct mobile number / email address
with the Bank.

h. Bank shall ensure that a complaint is resolved and

customer liability, if any, is determined within 90 days.
i. Bank will take necessary measures for creating
customer awareness
through different modes of communications like SMS, Email,
Social Media etc.
4. Grievances
j. relatingAto SaleApproved
Board of third-party
Compensation Policy forms part of
products:
If customer
the find violation
‘Customer of their
Rights, rights mentioned
Grievance Redressal above in Customer
and Compensation
Rights Policy relating
Policy will betoplaced
selling in
of the
third-party
Bank’s products
website, to them,
which they
will may
govern,
lodge a among
complaint
other in the the
things, Complaint Management
compensation payable System under
to customer in
appropriate category
case or else they
of unauthorized can opt
electronic for other
banking channels as
transactions mentioned
also.
above for lodging their grievances. The escalation matrix will be same as
21 | P a g e
for other categories of complaints
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
 5. Relationship Officer for handling customer
grievances:
i) The Principal Relationship Officer at Bank, Corporate
Centre, Addis Ababa for customer grievances redressal is the Vice
President (Customer Service), Customer Service Department. The
Principal Relationship Officer is responsible for implementation and
monitoring of customer grievances redressal in the entire Bank.
Aggrieved customer can write quoting their complaint number to the
Principal Relationship Officer regarding their grievances.

The address and contact particular of Relationship Officer are

available on the Bank’s website as also with the Help lines
functioning at Local Head Offices across the country.
ii) The Relationship officer for grievance redressal at Local Head Offices
shall be the respective Vice President (Network) and grievances will
be handled by the Customer Service Department under his
control. The Network Relationship Officer shall monitor the
implementation of the Bank’s grievances redressal mechanism in
Branches of his Network. There will be a Vice President (Customer
Service & Ops) & an AVP (Customer Service) in each District (Local)
HO for
coordinating with all the networks and Corporate Centre. They shall
bring the deficiencies, if any, tothe attention of the Chief Vice
President (District or LHO) for rectification. The Network
Relationship Officer shall also ensure implementation of policies
and instruction relating to the Bank’s Codes of Commitments to
6. Acknowledgement of Grievances
customer and instructions and service issued by the NBE,
on customer
Redressal:
i) other Regulatory
The Branch Agencies.
, RBO, LHO or the Corporate Centre as the case may be
can lodge, will acknowledge the grievance within three (3) working
days of receipt and initiate action to have the grievance resolved
within a maximum period of three weeks from the date of receipt. The
customer will also be kept informed of the action taken, the reasons
for delay if any, in redressal and the progress in redressal of
grievance. Complaint in CMS can be lodged at any level from Branch to
CorporateCentre. 22 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 ii) Complaints received by e-mail shall be acknowledged by email to
the extent possible. The follow up action taken in respect of such
complaints shall be advised to customer by email / SMS. However, in
cases of complaints of serious nature and delays in redressal etc., a
iii) paper trail will necessarily be created.
In case the customer is unhappy with the redressal provided by the Bank
or his grievance has not been redressed within one month of the date
of the complaint,
he can also approach the Banking Ombudsman concerned for
redressal. The customer will be given the necessary guidance in this
regard by the Branches /
7. Review
Mechanism
District (Local) HOs. The contact details of the Banking Ombudsman
Apart from random review of serious types of complaints by the Top
of the respective Region shall be displayed at each Branch.
Management, our Bank has different committees at Corporate Centre level
for review of grievances and grievance redressal mechanism of the
Bank. At Circle level, similar review mechanism is in place at all the
Local Head Offices. Based on NBE benchmarks, half yearly self- appraisal
of Customer Service along with review of complaints is also placed
before the Board of Director of the Bank.
8. Internal Ombudsman (Review
mechanism)
One or more Internal Ombudsmen (I.O.) will be appointed by the Bank
who will review the negative closures of complaints and will be guided
by the provisions contained in the Internal Ombudsman Scheme, of
NBE. The Scheme is available on our website www.Bank.com.

9. Enhanced disclosure on
complaints:
The Bank shall make the disclosures on complaints in the Annual
Reports as mandated by NBE. These disclosures are intended to provide
to the customer and member of public, greater insight into the volume
and nature of complaints received from customer and the complaints
received from the Offices of Banking Ombudsmen, as also the quality and
turnaround time of redress.

23 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 10. Pre-empting occurrence of customer grievances &
sensitizing
operatingstaff on handling
complaints
Customer grievances provide valuable feedback on quality of service at
Branches and whether the initiatives taken by the Bank in technology
and re-engineering of business processes are having the desired
impact on business growth and improved customer satisfaction. The
Bank also understands the importance of sensitizing staff to handle
customer transactions / requests with courtesy, empathy and promptness.
All Branches shall form a Customer Service Committee with
representation of officer, clerical staff and subordinate staff as
well as customer (including Senior Citizen Customer) as laid
down in this regard. The Committee shall hold a meeting on 15th of
every month (on previous working day in case 15th is a holiday) and
deliberate on all issues relating to customer service at the Branch and take
suitable action as decided by the Committee for improvement of customer
service at the Branch. Customer Relations Programs shall be organized at
all Branches at least once every quarter on 25th of Feb, 25th May, 25th Aug
and 25th Nov (on previous working day in case of a holiday) where staff
and customer meet and interact freely on service- related issues. While
these shall be structured meets, the customer will also be free to meet
the Branch Manager / other official at Administrative Offices at all
levels to discuss their grievances. Customer’ Day shall be observed on
the 10th and 20th of every month. Designated Top functionaries at
Regional Business Office, Administrative office, Local Head Office and
Corporate Centre shall make themselves available for a minimum of two
hour (3.00 PM to 5.00 PM) on the 10th and 20th (the following working day
in case 10th or 20th falls on a holiday) of every month for customer to
attend to their grievances and listen to their suggestions. The Bank shall
also conduct training programs regularly for staff on customer service
and minimizing customer grievances. Further, all staff training
programs of duration exceeding 3 days, will have a session dedicated for
sensitizing the staff and imparting soft skills required for handling irate
customer. The Bank shall also, conduct customer satisfaction 24surveys
|Page

periodically
D r a f t Customer to Grieva
Rights, understand customer’
nce Redressal a n dperceptions of Policy Bank’s
Compensation service
– B y De me sse w K .
(2024)
and to identify priority areas for improvement of customer satisfaction.
 Amendment / Modification of the
Policy:

The Bank reserves the right to amend / modify this Policy, as and when
deemed fitand proper, at its sole discretion. The Bank shall arrange to
review the Policy at annual intervals.

Note: A copy of this policy is available in our official website

www.Bank.com. And bank. Bank under
link “customer care”.

References of Circular/ Guidelines used for

drafting CustomerRights and Grievance Redressal
Policy 2024
1. NBE Circular letter

2. “Charter of Customer Rights” for banks formulated in Polic

Bimonthly Statement by Bank’s etc. y

3. BC Bank Code of Bank’s Commitment

to Customer
4. 7. NBE Notification on Online Dispute Resolution

5. 8. NBE Notification on Strengthening of Grievance Redress

Mechanism
Banks in
.

*************************************************************************
******

25 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 COMPENSATION POLICY (BANKING SERVICES) -
2024

1. Preamble:

Technological progress in Payment and Settlement Systems and

qualitative changes in operational Systems and Processes undertaken by
various player in the market, have improved efficiencies for providing
better service to the user of the system. It has been the endeavor of
the Bank to offer services to its customer with best possible utilization
of its technology infrastructure. Migration of all branches to Core Banking
Solution (CBS) platform is a great leap in this direction. National Bank of
Ethiopia has also been issuing various instructions / guidelines, from
time to time. The recent instructions / guidelines include instructions on
Harmonization of Turn Around Time and customer compensation for
failed transactions using authorized Payment Systems (Notification dated
). With a view to improving the
level of Customer Service available to customer of the Bank, the
2.
Compensation
Objective: Policy for the Bank has been formulated.
The objective of the " Bank Compensation Policy for
Banking Services”,hereinafter called as the Policy, is to establish a system
whereby the Bank compensates the customer for the loss or
inconvenience due to deficiency in service on the part of the Bank or any
act of omission or commission, directly attributable to the Bank.

3.
Scope:
a) The Policy will be applicable for all banking services to the
customer of the Bank and cover all branches / offices of
Bank in Ethiopia.
b) The Policy is based on principles of transparency and fairness in the
treatment of customer. It is designed to cover deficiency in
service in areas relating to unauthorized / erroneous debit,
non-execution / delayed execution of debit / credit NEFT / RTGS /
transactions including Unauthorized Electronic Banking
26 | P a g e
Transactions, issuance of ATM / Debit Cards without written
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024) consent of
 customer, Payment of Cheque after acknowledgement of Stop
Payment Instructions / Non-blocking of lost ATM card / UPI
services / INB services after acknowledgement of request for its
blocking, delay in collection of local
/ outstation cheques and cheques drawn on Foreign countries,
adverse movement in Exchange Rates, loss of cheques /
instruments in transit, delay in settlement of disputed ATM
transactions and other electronic /digital transactions,
transactions on Automated Deposit cum Withdrawal Machine,
delay in pension payment, delay in issuance of duplicate IOI, delay
in release of securities after payment of all dues, etc. as specified in
the Policy.

c) Grant of compensation under this Policy is without prejudice to

the Bank's rights in defending its position before any Court of Law,
Tribunal or any other forum duly constituted to adjudicate Banker
Customer disputes and does not constitute admission of liability or
any other issue, of any nature whatsoever, for the purposes of
Adjudicatory Proceedings.
4. Recognition of Deficiency and
Compensation:
d) Wherever number of days is mentioned, the number of days is
Unauthorized
4.1 considered as / Erroneous
“Calendar days”, unless mentioned
Debit:
specifically as “working days”.
a) If the Bank has raised an unauthorized / erroneous debit to an
account, the entry shall be reversed with value dated credit to
deposit / overdraft / loan account immediately on being
detected / informed, after due verification.

b) Further, if the customer has suffered any financial loss incidental

to return of a cheque or not carrying out of direct debit
instructions due to insufficiency of balance on account of the
unauthorized / erroneous debit, Bank will compensate the
customer to the extent of such financial loss in
addition to / an
unauthorized amount debited
Erroneously equivalent
amounttoat interest
applicablecalculated
Savings
Bank rate,
on the 27 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 minimumBirr.100/-, besides refunding the cheque return charges.

c) In case verification of the entry reported to be unauthorized /

erroneous by the customer does not involve a third party, the
Bank shall arrange to complete the process of verification
within a maximum period of 7 working days from the date
of reporting of erroneous debit. If it involves a third party or
where verification is to be done at overseas centers, the
Bank shall complete the verification process within a
maximum period of one month from the date of reporting
of unauthorized / erroneous transaction by the customer.

d) In case any amount has been debited to the account of a

customer on account of fraudulent transaction(s) and
the Bank is at fault, the amount will be restored to the
affected customer account without delay / demur, once
the fraud is established, with due verification.

e) If a fraud, in the account of a customer, has been

committed by a memberof staff, and has been so established,
Bank will not only restore the amount,it will also pay
compensation @ 1% above the applicable interest rate in respect
of deposit / overdraft / loan account, for the period, on the
amount involved.
2. ECS / Direct debits / NACH / Other debits to accounts:
a) The Bank undertakes to carry out, within the prescribed time,
direct debit
/ ECS (Electronic Clearing System) / NACH debit instructions of
customer. In the event of non-compliance / delayed compliance
of instructions by theBank to meet such commitments, the
customer will be compensated to theextent of any financial loss
the customer may incur on account of delay in carrying out the
instruction / failure to carry out the instruction.

b) Such compensation will, in addition to an amount equivalent

to the interest calculated on the amount to be debited28for
| P athe
ge

delayed
D r a f t Customer Rights, period
Grieva at
nce Redressal applicable SavingsPolicy
a n d Compensation Bank– B yrate, with
De me sse w K.
(2024)
minimum of Birr. 100/-, subject to a maximum of
 charge as per the schedule of charges notified by the Bank. In
the event theBank levies any charge in violation of the
arrangement or inadvertently, theBank will reversed the charges,
subject to scrutiny of agreed terms and conditions, and
compensate the customer with a sum equal to the charges
reversed.
4.3 Penal interest payable for delays in credit / return of NEFT /
NECS / ECS
/ RTGS
transactions:
In terms of the NEFT / NECS / ECS Procedural Guidelines of NBE, as
also the relevant circular / instructions issued by NBE from time to
time, the Bank will afford credit to beneficiary accounts or return
transactions (uncredited for whatever reason) to the originating /
sponsor Bank within the prescribed timeline. Any delays in doing
so will attract the following penal provisions:

1. NECS / ECS-Credit:
In case of delayed credit by the destination bank, the destination
bank would
be liable to pay penal interest (at the prevailing NBE LAF Repo rate
plus two percent) from the due date of credit till the date of actual
credit. Such penal interest should be credited to the Destination
Account Holder’s account even ifno claim is lodged to the effect by
the Destination Account Holder.

2. NEFT:
If the NEFT transaction is not credited or returned within two
hour after
batch settlement, then the Bank is liable to pay penal interest to
the affected customerat the current NBE LAF Repo Rate plus two
percent for the period of delay / till the date of credit or refund, as
the case may be. Such credit is afforded to the customer’s
account without waiting for a specific claim to be lodged by the
customer in this regard.
If it is not possible to afford credit to the account of the beneficiary
for any reason, destination banks are required to return
29 | P athe
ge
transaction (to the originating branch) within two hour of
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024) completion of the batch in which the transaction was processed.
 stipulate that if a destination Bank branch is not in a position to
credit a particular transaction for reasons like "Account Closed /
transferred"; "No such Accounts"; "Account description does not
tally"; etc., it should report the same and forward it to the
Service Branch / Main Branch on the same settlement day.
4.3.3RTG
S
If it is not possible to credit the funds to the beneficiary customer’s
account forany reason, the funds received by the RTGS member
bank will be returned to the originating bank within one hour of
receipt of the payment at the Payment Interface (PI) or before the
end of the RTGS Business day, whichever is earlier. Once the money
is received back by the remitting bank, the original debit entryin the
customer's account needs to be revered.
In case of any delay in returning the failed payment, the originating
customer is eligible to receive compensation at current repo rate

4.4 plus 2%.

Issue of ATM / Debit Cards without written consent of
customer:
Bank shall not dispatch a card to a customer unsolicited, except in
the case where the card is a replacement for a card already held
by the customer. If done, the said ATM / Debit card will be taken
back by the Bank and cancelled. The Bank would not only reverse
the charges, if levied, immediately but also pay compensation to
the customer @ Birr. 100/- (Birr One Hundred only).

4.5 Payment of Cheque after acknowledgement of Stop Payment

Instructions
/ Non-blocking of lost ATM Card – UPI Services – INB Services
after
acknowledgement of request for its
blocking:

4.5.1 The instruction for Stop Payment of cheque / blocking of

lost ATM card / Non-Disabling of UPI Services - INB Services
will be accepted at any Branch / through Contact Centre
(Stop Payment instructions from authenticated Phone
Banking user. Disabling of INB Services in case of
reporting unauthorized transactions) / Internet Banking
(alternate channel). 30 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 4.5.2 In case a cheque has been paid after acknowledgement of
its stop payment instruction / ATM Card has not been
blocked / UPI services
/ INB Services has not been disabled in the requested account
after
such a request has been acknowledged by the Bank, the Bank
shall reverse the debit on account of stopped cheque /
blocked ATM card
Bank, and also compensate the Birr.100/
/ UPI transaction – INB Transaction with value dated
customer with -. credit within
4.5.3 However, no compensation will be paid if cheque has
two working days of the customer intimating the
been paid / ATM Card transaction / UPI-INB transaction
transaction to the
has occurred prior to acknowledgment of instructions for
stop payment of cheque / blocking of lost ATM Card / UPI
-INB Services.
4.6 Limiting Liability of Customer in Unauthorised
Electronic
Bankingtransactions:

The systems and procedures in the Bank have been designed to make
customer feel safe about carrying out Electronic Banking Transactions.
On receipt of report of an unauthorized transaction from the
customer, Bank to take immediate stepsto prevent further
unauthorized transactions in the account.
4.6.1 Reporting of Unauthorized Transactions by customer to
Banks:

a) Customer will mandatorily register for SMS alerts and

wherever available register for e-mail alerts, for
electronic banking transactions. The SMS alerts shall
mandatorily be sent to the customer, while email alerts
may be sent, wherever registered.
b) The customer will be advised to notify the Bank of any
unauthorized
electronic banking transaction at the earliest after the
occurrence ofsuch transaction, and informed that the
longer the time taken to notify the Bank, the higher will
be the risk of loss to the Bank / customer. To 31
facilitate
|Page
this, the Bank will provide customer with
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024) 24x7 access through multiple channels (at a minimum, via
website,
 phone banking, SMS, e-mail, IVR, a dedicated toll-free
helpline, reporting to home branch, etc.) for
reporting unauthorized transactions that have taken
place and / or loss or theft of paymentinstrument such
as card, etc.

c) The Bank will also enable customer to instantly respond by

"Reply" to the SMS and e-mail alerts and the customer will
not be required to search for a web page or an e-mail
address to notify the objection,if any.

d) Further, a direct link for lodging the complaints, with

specific option to report unauthorized electronic
transactions shall be provided by the Bank on
home page of the website https://www.bank. or
Bank.com.

e) The loss / fraud reporting system shall also ensure that

immediate response (including auto response) is sent
to the customer acknowledging the complaint along with
the registered complaint number.

f) The communication systems used by the Bank to send

alerts and receive their responses there to will record the
time and date of the message sent and receipt of
customer’s response, if any, to the Bank. This shall be
important in determining the extent of a customer’s
liability.

g) The Bank will not offer facility of electronic transactions,

other than ATM cash withdrawals, to customer who does
not provide mobile number to the Bank.

h) On receipt of report of an unauthorized transaction

32 | P a g e
from the customer, the Bank will take immediate steps
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024) to prevent further unauthorized transactions in the
account.
 4.6.2 Limited Liability of a
Customer:

a) Zero Liability of a Customer:

A customer’s entitlement to zero liability shall arise where the
unauthorized transactions occur in the following events:

(i) Contributory fraud / negligence/ deficiency on the part of

the Bank (irrespective of whether or not the transaction is reported
by the customer).

(ii) Third party breach where the deficiency lies neither with the
Bank nor with the customer but lies elsewhere in the system, and
the customer notifies the Bank within three working days of
receiving the communication from the Bank (by SMS alert, email or
b)
letter) regarding Limited Liabilitytransaction.
the unauthorized of a
Customer:

A customer shall be liable for the loss occurring due to

unauthorized transactions in the following cases:

(i) In cases where the loss is due to negligence by a customer,

such as where he has shared the payment credentials, the
customer will bear the entire loss until he reports the unauthorized
transaction to the Bank. Any loss occurring after the reporting of
the unauthorized transaction shall be borne bythe Bank.

(ii) In cases where the responsibility for the Unauthorized

Electronic Banking Transaction lies neither with the Bank nor with
the Customer but lies elsewhere in the system and when there is a
delay (of four to seven working days after receiving the
communication from the Bank) on the part of the Customer in
notifying the Bank of such a transaction, the per transaction
liability of the Customer shall be limited to the transaction
value or the amountmentioned in Table 1, whichever is lower.

33 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 Table 1
Maximum Liability of a Customer under above
paragraph
4.6.2.b (ii)

Type of Account Maximum

liability (₹)
• BSBD Accounts 5,000

 All other SB accounts

 Pre-paid Payment Instruments and Gift Cards
 Current / Cash Credit / Overdraft
Accounts of MSMEs
 Current Accounts/Cash Credit/ 10,000

Overdraft Accounts of Individuals

with annual average
balance (during 365 days preceding the
incidence of fraud)/ limit up to Birr.250
thousand
 Credit cards with limit up to Birr.5 0,000.00
 All other Current / Cash Credit / 25,000
OverdraftAccounts
 Credit cards with limit above Birr50,0000.00
4.6.3 Overall liability of the customer in third party breaches, as
detailed in paragraph 4.6.2.a (ii) and paragraph 4.6.2.b (ii)
above, where the deficiency lies neither with the Bank nor
with the customer but lies elsewhere in the system, is
summarized in the Table 2:

34 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 Table 2
Summary of Customer’s
Liability

Time taken to report

thefraudule Customer’s liability ( ₹)
nt transaction
from
the date of
receiving the
communication
Within 3 working days Zero liability

Within 4 to 7 working days The transaction value or the

amount mentioned in
Table 1,
whichever is lower
TheBeyond
number7 working days
of working Full liability.
days mentioned in Table 2 shall be counted
as per the working schedule of the Home Branch of the customer
excluding the date of receiving the communication.

Further, if the delay in reporting is beyond seven working days, the

customer liability shall be full. For such inordinate delays (beyond
seven working days) the Customer shall bear the full liability / loss
and the Bank will not bear any loss or liability. However, the
Bank may extend its support (by issuing required certificates /
statements free of cost) to the Customer, if specifically requested
by the Customer, without incurring any liability in any manner, for
his efforts forrecovering the lost amount from the miscreants.
4.6.4. Reversal Timeline for Zero Liability / Limited Liability of
customer

On being notified by the customer, the Bank will credit (shadow

reversal) the amount involved in the unauthorized electronic
transaction to the customer’s
account within 10 working days from the date 35of| Psuch
age
notification by
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
 the customer. The credit shall be value dated to be as of the
date of the unauthorized transaction.

4.6.5. Burden of
Proof
The burden of proving customer liability in case of unauthorized
electronic banking transactions shall lie on the bank.

4.6.6 Further, Bank will ensure

that:
a) a complaint is resolved and liability of the customer, if any,
established within 90 days from the date of receipt of the
complaint, and the customer is compensated as per provisions
of paragraphs 4.6.2 to 4.6.4 above.
b) where it is unable to resolve the complaint, or determine the
customer liability, if any, within 90 days, the compensation as
prescribed in paragraphs
4.6.2 to
4.6.4 Is paid to the customer: and
c) In case of debit card / Bank account, the customer does not
suffer loss ofinterest.
7. Collection of Cheques drawn on Foreign countries:

1. The Bank will not compensate the customer for delays in collection of
cheques drawn on banks in foreign countries as the Bank would
not be able to ensure timely credit from overseas banks. It is the
Bank’s experience that time 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
tocountry.

4.7.2. The Bank has a network of branches, linked branches and Global
Link Services (GLS) Department. GLS uses services of different
Correspondent Banks with large volumes, robust systems, suitable
technology back up and country specific strengths to provide
efficient service. Different Correspondent Banks are able 36to| Poffer
age

varied
D r a f t Customer customized
Rights, Grieva nce products
Redressal to the
and Bank for risk
Compensation reduction,
Policy quicker
– B y De me sse w K .
(2024)
collection, improved reconciliation etc.
 4.7.3. Time Frame for credit of proceeds of Foreign Currency
Cheques:
The time for credit of proceeds of Foreign Currency Cheques to the
customer’s account will be 10 days from the date of clear credit to
NOSTRO account, including cooling period. However, it will not be
exceeding 45 days from the date of deposit of cheques / instruments,
except for the cheques / instruments in US Dollar (USD) for 10000/- &
above, where it will be 10 days from credit to NOSTRO account.
i. Delay in collection of cheques payable at foreign centers will
be construed if the customer’s account is not credited within 10
days i.e. after taking into account the prescribed cooling
period for that currency, with the correspondent,from the date
of clear credit.
ii. For the sake of uniformity and clarity, the date of Clear Credit is
defined as the date on which clear funds are available in Bank’s
NOSTRO Account after
an actual or notional cooling period – for actual credit to customer’
account as per Bank’s agreement with the concerned
Correspondent Bank. Wherever
there is no specific agreement on the cooling period, or the funds
are directly collected from a paying bank, the Clear Credit Date will
be after observing a
cooling period, as per the discretion of the Bank, for that specific
currency / country / clearing system, from the date of actual
credit to Bank’s Nostro
Date of NOSTRO A/C credit 01.08.2023
Account.
Addcompensation
The 15 days cooling
onperiod
account of16.08.2023
delay in collection of instruments
inToforeign
be paidcurrency
within 10 days
will be paid in26.08.2023 (No delay)
Ethiopian Rupee, as detailed
Delayed interest payment, if proceeds are not credited within
below:
26.08.2023.
a) At Savings Bank rate from the date of clear credit to NOSTRO
The date of delay will be counted from the date NOSTRO a/c
Account till the date of payment if the period of delay is beyond
credited to
prescribed collection period. For example:

37 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 the date of credit to the account (excluding credit date) i.e.
payment after26th Aug., will entitle payment of interest from 1st
Aug., 2023 till the date of
payment up to 45 days from 26th Aug., 2023.

b) In case of abnormal delay, i.e. delay exceeding 45 days, interest

will be paid at term deposit rate applicable for the period and for
delays beyond 90 days, 2% above the applicable term deposit rate.

In the above example delay exceeding 45 days (beyond 26/08/23) will be, if
not
paid till 10th Oct., 2023.

Delay/ Abnormal delay Delayed interest @

>45 days to 90 days TDR rate.

>90 days 2 % above TDR rate.

c) In the event of the proceeds of cheque under collection being

required to be credited to an overdraft / loan account of
the customer, interest will be paid at the rate applicable to the
loan account, if the delay is less than 45 days. For
abnormal delays, i.e. beyond 45 days, interest will be paid at the
rate of 2 % above the applicable interest rate to the loan account.
d) Such interest shall be payable with a minimum of Birr. 25/-.
e) Compensation as detailed above shall be paid without any formal
demand from customer.
f) No separate compensation is payable by the Bank on account of
movement in the value of the respective currencies.

8. Compensation for adverse movement in exchange rates:

1. FEDAI Rules – 7.1 Edition effective from 1st July, provide for
compensation for delayed collection of export bills, for delayed
payment of outward remittances etc.
38 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 a) On the assumption that the customer has complied with FEMA
guidelines and Bank's requirements, the following
Compensation guidelines are prescribed:

Payment to Exporter:

In case of delay beyond the date when the Forex amount is due
for credit, compensation is payable for adverse movement of
exchange rate. The compensation will be decided as follows:

(i) In case the rate ruling on the date of payment is better for the
customer compared to the rate that was ruling on the day the
amount was due for credit, no compensation needs to be paid.
(ii) In case the rate ruling on the date of payment is adverse for the
customer compared to the rate that was ruling on the day the
amount was due for credit, compensation shall be
determined as 50 % of the difference betweenthe two
rates.

Note: If the exporter has expressed willingness to keep part of the

proceeds in EEFC A/c, no compensation would be payable for
b) Payment of foreign inward
the amount not converted.
remittances:
All remittances up to USD 5000/- or equivalent meant for retail
customer (i.e. individuals) are to be converted at the prevailing
Card Rates and credited to their respective account immediately.
However, for the convenience of the customer, the facility may be
extended up to USD 10,000 or equivalent. Since Inward Remittance
Cell (IRC) at Global Market Unit (GMU) Addis Ababa will put through
conversion transactions up to USD 10,000 or equivalent and as per
FEDAI guidelines customer consent is required for remittances
above USD 5000 equivalent, there may be occasions where the
customer might require the remittances proceeds in Foreign
Currency (FC). In such cases, IRC will facilitate re-conversion at
level rate within 07 days from the date of transaction(s) as
and when requested by the Branch on behalf of customer.
39 | P a g e
Compensation would be payable:
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
 (i) If the remittance is not converted within 10 days of
receipt of remittanceadvice from abroad and

(ii) There is an adverse movement of exchange rate between

the date of payment and the last due date.

(i) The quantum of compensation would be determined as 50

% of the difference between the rates ruling on those dates (i.e.
on the due date of payment and the date of conversion).

4.9. Collection of cheques payable in

Ethiopia
4.9.1. Payment of Interest for delayed Collection of Outstation
Cheques:
As part of the Compensation Policy of the Bank, the Bank will pay
interest to its customer on the amount of collection instruments in
case there is delay in giving credit beyond the time period
specified in Bank’s Cheque collection policy, which is as under:

Branches
BANK of
Branches other Banks

a) Collections between Metropolitan: 6 days 7 days

Centers/ Major ‘A’ Class Cities
(Addis Ababa,
Mekelle, Baherdar,
Diredawa, Hawassa &
Adama,
etc)
b) Collections between places at 8 days 10 days
(a):
above and State Capitals
(other thanthe above) and
Area I Cities,
i.e. Jidija, Gonder, Dessie,
Jimma, Lekemet, Arba-minch
40 | P a g e
etc.
D r a f t Customer Rights, Grieva
c) Collections nce Redressal
between all other:a n d Compensation
10 days Policy
14– Bdays
y De me sse w K .
(2024)
 Centre
s

41 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 Interest for delayed collection shall be paid at the
following rates:
a) For collection of Cheques drawn on Bank,
Saving Bank rate for
the period of delay beyond 6 / 8 days 4.9.1 (a) & (b) and 10 days
for 4.9.1 (c), (interest will be payable) from 7th/ 9th day
for the centers (a)& (b)
and 11th day for the center (c).

b) Saving Bank rate for the period of delay beyond 7 / 10 / 14

days, as the casemay be, in collection of outstation
cheques drawn on other banks, i.e. [the interest will be payable]
from 8th /11th / 15th day.

c) Where the period of delay is beyond 14 days, interest will be

paid at the rateapplicable for term deposit for the corresponding
period or Saving Bank rate,whichever is higher.

d) In case of extraordinary delay, i.e. delays exceeding 90 days,

interest will be paid at the rate of 2% above the
corresponding Term Deposit rate.

e) In the event of the proceeds of cheque under collection to be

credited to an overdraft / loan account of the customer, interest
will be paid at the rate applicable to the loan account. For
extraordinary delays, i.e. delays exceeding 90 days, interest
4.10. Compensation for
will be paid at delay
the rate in
of clearance
2% above of
theLocal
rate applicable to the
Cheques:
loan account.

1. Chequesasdeposited
4.9.2.Interest in the
above shall be branch,
payablebefore
with athespecified
minimum of cut-off line
Birr.25/-.
will
Suchbeinterest
sent for clearance
shall on same
be paid without day,
any for which
demand the clearance
from customer in all
period
types ofwill be T+1
accounts. working days. Cheques deposited after the
cut-offtime will be sent for clearing on next day, for which clearance
period will be T+2working days.

2. The compensation to the customer is payable in case of delay in

clearance of local cheques beyond above stipulated
period in all types of accounts at Savings Bank interest rate.
42 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 4.10.3.Bank shall also permit usage of the shadow credit afforded to the
customer’ account immediately after closure of relative return
clearing and withdrawal may be allowed on the day of affording
shadow credit or maximum within an hour of the commencement of
business on the next working day, subject to usual safeguards.

4.11. Compensation for loss of Cheques / Instruments in

transit

a) In the event a cheque or an instrument accepted for

collection is lost in transit or in clearing process or lost by the
Service Provider ( in case of CMP), the Bank shall
immediately, on coming to know of the loss of instrument,
bring the same to the notice of the account holder so that the
account holder can inform the drawer to record stop payment
and also take care that cheques, if any, issued by him
/her are not dishonored due to non-credit of the amount
of the lost cheque/ instrument. The Bank would provide all
assistance to the customer to obtain a duplicate instrument
from the drawer of the cheque.
b) In case intimation regarding loss of instrument is conveyed
to the
customer beyond the time limit stipulated for collection, as
per the Cheque Collection Policy of the Bank, (7 / 10 / 14
days as the case may be) interest will be paid for the
period beyond the stipulated collection period at the rates
specified in para 4.9.2 above for cheques payable in Ethiopia
and at rates specified at Para 4.7 above in regard to cheques
payable abroad.
c) Bank will pay interest on the amount of the cheque for a
further period
of 15 days at Savings Bank rate to provide for possible further
delay in obtaining duplicate cheque /instrument and collection
thereof.
d) The Bank would also compensate the customer for any
43 | P a g e
reasonable charges which he / she incur in getting duplicate
D r a f t Customer Rights, Grieva
cheque / nce Redressalupon
instrument a n d Compensation
production Policy – B y De me
of receipt, in sse
thew K.
(2024)
event the instrument is to be obtained from a Bank /
 4.11. Delayed Collection of Bills: Payment of
A interest for
Delay incollection of
Bills:
The lodger’s bank should pay interest to the lodger for the delayed
period in respect of collection of bills at the rate of 2% p.a. above
the rate of interest payable on balances of Savings Bank accounts.
The delayed period should be reckoned after making allowance for
normal transit period based upon a time frame of 2 days each for
(i). Dispatch of bills; (ii) Presentation of bills of drawee
(iii) Remittance of proceeds to the lodger’s bank (iv) Crediting the
proceeds to drawer’s account.

4.12. ATM Failure: Compensation to customer for settlement of

disputed
ATMtransactions / Automated Deposit cum Withdrawal
Machine
(ADWM)
:

4.12.1 A ‘failed transaction’ is a transaction which has not been fully

completed due to any reason not attributable to the
Customer such as failure in communicationlinks, non-availability
of cash in an ATM, time-out of sessions, etc. Failed transactions
shall also include the credits which could not be effected to the
beneficiary account on account of lack of full information or lack of
proper information and delay in initiating a reversal transaction. As
per NBE instructions will be issued, if an ATM transactionis failed or
not complete due to any reason not attributable to the
customer such as failure in communication links, non-availability
of cash in an ATM, time- out of sessions, etc. it should be pro-
actively revered / auto-revered in customer account within a
maximum of T + 5 days (where T is the day of transaction and refer
to the calendar date). Accordingly, failure to re-credit the
customer’s account within T+5 days, the bank should pay
compensation @ Birr.100/- per day of delay beyond T + 5 days,
without waiting for a complaint or claim from the customer.

44 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 Compensation will be applicable for
as following:
Description of Incident Compensation payable
ATM including Micro ATMs ₹ 100/- per day of delay beyond T + 5
Customer’s days,
account debited but to the credit of the account
holder.
cash not dispensed.

Card Transaction ₹ 100/- per day of delay beyond T + 1

day.
Card to card transfer Card
account
debited but the beneficiary
card account not credited.

Point of Sale (PoS) (Card ₹ 100/- per day of delay beyond T + 5

Present) days.
including Cash at PoS
Account debited but
confirmation not received at
merchant location i.e., charge-
slip not generated.

Card Not Present (CNP) (e-

commerce) Account debited
but confirmation not received
at merchant’s system.

4.12.2 In case of dispute in regard to delayed credit to the customer’s

account from Automated Deposit cum Withdrawal Machine (ADWM),
the Bank will pay the interest at the applicable rate of the
customer’s deposit / overdraft / loan account for the delayed
period, after due verification. However, in case of any dispute
related to genuineness of the currency deposited in the ADWM, it
will not be covered under Bank’s compensation policy.
4.12.3 Technical failure: Compensation to customer
for
Mobile Banking / Internet Banking (MBS / INB) /
Mobile
wallets andOther Digital
Products: 45 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 In case of dispute with regard to unsuccessful transactions in MBS / UPI / INBdue to
technical fault / error, in addition to auto reversal of such entries by the System
compensation will be paid as per table:

Description of Incident Compensation payable

Immediate Payment System ₹ 100/- per day of delay beyond T

(IMPS) +1
days, to the credit of the
Account debited but the
account holder.
beneficiary account is not
credited.
Unified Payments Interface ₹ 100/- per day of delay beyond T
(UPI) +1
day.
Account debited but the
beneficiary account is not
credited (transfer of funds).
Account debited but ₹ 100/- per day of delay beyond T
transaction +5
confirmation not received at days.
merchant location (payment
tomerchant).
Mobile or other Enabled ₹ 100/- per day of delay beyond T
Payment +5
System(including Agent Pay) days.

a. Account Debited but

transaction confirmation not
received at Merchant
location.
b. Account Debited, but
beneficiary account not
credited.
Mobile Payment Bridge ₹ 100/- per day of delay beyond T
+1
System(MPBS)
days.
Delay in crediting beneficiary’s
46 | P a g e
account
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
 National Automated Clearing ₹ 100/- per day of delay beyond T
+1
House(NACH)
days.
a. Delay in crediting
beneficiary’s account or
reversal of amount.
b. Account debited despite
revocation of debit mandate
with the Bank by
the customer
Prepaid Payment The Transaction will ride on UPI,
Instruments (PPIs) Card
– Cards or Wallets. Network, IMPS etc, as the case
may
Off-us transactions. be. The compensation rule
of respective system shall
apply.
Prepaid Payment ₹ 100/- per day of delay beyond T
Instruments (PPIs) +1
– Cards or Wallets. days.

On us transaction:

a. Beneficiary’s PPI not

credited.
b. PPI debited, but
transaction
4.13 Compensation for Delay in Pension
confirmation
Payment: not
received at Merchant
1. As per PA instructions, pension (normal pension) of Central /
location
State Govt. pensioner should be credited to their
account on any of the last four working days of each
month, except the pension for Jun every year which will be
credited on the first working day of July.

2. As regards disbursing revised pension / arrear, pensioner

should get the revised pension /arrear on the last day of the
succeeding month, after the month in which the concerned
Government announces the revision and date for implementation.
47 | P a g e
In other words, each Agency Bank is getting
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
 adequate reaction time ranging from 30 to 60 days to obtain the revised
parameter fromthe respective Government department and implement
the same in time.

3. The concerned pensioner should be compensated for delay

beyond the due date (last date of the succeeding month
subsequent to the month of issue of order by the concerned
Government/Privet penssion Department) at the rate of 8% (fixed
rate)on the revised pension / area Birr for the delay period. This
compensation shall be credited to the pensioner’s account
automatically without any claim from the pensioner in respect of
all delayed pension payments made since year.

4. In case of very complicated pension cases requiring

reference back to the respective Government/private / Department,
the due date would commence from the date of obteination of
4.14. Compensation for delay in Issuance of Duplicate IOI
(Interfinal clarification from the Government concerned.
OfficeInstrument
):
Duplicate IOI will be issued within 7 working days from the date of
receipt of such request from the purchaser thereof. For delay
beyond the above stipulated period, interest at the rate
applicable for Fixed Deposit of corresponding period will
be paid for the delay beyond 7 days as compensation to the
customer.
4.15. Payment of “at par” Cheques issued by other
Banks

1. Bank will not pay any compensation, to the cheque holder, for
dishonor of "at par" cheques issued by other banks, in the
absence of adequate funds in the account on which cheques are
issued even though the amount of the cheque may have been paid
to the Bank, which had issued the "at par" cheque.

2. NBE instructions stipulate that banks will not honor cheques

drawn on current accounts maintained by other banks with it, unless
arrangements are made for funding cheques issued. Issuing bank
shall be responsible to compensate the cheque holder for non-
48 | P a g e
payment of cheques in the absence of adequate funding
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
 arrangement.

4.16. Lender’ liability: Commitments to borrower:

The Bank has adopted the principles of “Lender’ liability”. In
terms of guidelines for “lender’ liability” and the “Code of
Bank’s commitment to
customer” adopted by the Bank, the Bank would return to the
borrower all the securities / documents / title deeds of the
mortgaged property within 15
days of repayment of all dues agreed to or contracted, subject to
any other right
/ lien / claim by the Bank till the relevant claim is settled / paid. If
any right to set off is to be exercised for any other claim, Bank
shall give due notice
with full particular about the other claims and retain the
securities /
documents / title to mortgaged property till the relevant claim is
settled / paid. In the event of loss of title deeds to mortgaged
property at the hands of the Banks, the compensation will cover out
of pocket expenses for obtaining duplicate documents on actual
basis subject to a ceiling of Birr.5000/- plus a lump sum amount, as
decided by the Bank in the following manner:

“The Bank would pay the compensation for delay in return of

4.17 Compensation for wrongful dishonour of cheques /
ECS / securities
SI: / documents / title deeds of the mortgaged property
In case of complaints received from the customer for wrongful
beyond 15 days of repayment of all dues agreed to or contracted,
dishonor of cheques / ECS / the Bank shall take appropriate
subject to above conditions, @ Birr.100/- per day (maximum
steps to investigate the reason for such lapses and shall
Birr.5000/-) to the borrower”.
communicate to the customer within 7 working days from the date
of receipt of complaint. Otherwise, the Bank may compensate
the customer suitably for financial loss as decided by the Bank
with minimum of Birr.100/- per day for the period of delay,
subject to a maximumof
4.17. Compensation Birr.
payable to the 1,000/-, wherever
customer justified.of non-
on account
1 compliance
/ non-updating of customer instructions (for example non-
updating
of mobile number / mode of operation / signature of
customer etc) 49 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 In such cases, the Bank shall take appropriate steps to investigate the
reason for such lapses and shall communicate to the customer within
7 working days from the date of receipt of complaint. Otherwise, the
Bank may compensate the customer suitably for financial loss as
decided by the Bank with minimum of Birr.100/- per day for the period
of delay, subject to a maximum of Birr. 1,000/-, wherever justified.

4.18 Compensation in case of delay on the part of the Bank

to upload
ApplicationSupported by Blocked Amount
(ASBA):
1. The following operational / technology issues may result in delay or
failure on the part of the Bank to upload ASBA applications. This is
an illustrative list and not exhaustive.

a) Bank’s INB portal is down.

b) Bid data accepted for customer data entry but not captured /
retained in Bank’sSystem.
c) Omission of lien marking in the account but bid in the exchange site.
d) Lien marked in the account but bid data not uploaded by
Bank in the exchangesite.
e) ASBA application received, acknowledgement given to applicant,
but bid not uploaded in the exchange site.
f) Bid amount & quantity and Application amount & quantity differ
due to data entry error by Bank’s staff.
g) Lien marked in the wrong account.

2. The proposed formula for calculation of minimum fair

compensation is as follows:

Compensation = (Listing price*- Issue Price) * (No. of

shares that would have been allotted if bid was
successful) * (Probability of allotment of shares determined
on the basis of allotment)
(*Listing price shall be taken as the highest of the opening price on
the day of listing across the recognized Stock Exchanges.) 50 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 It is also proposed that in case of issues which are subscribed
between 90 - 100%, i.e. non-oversubscribed issues, the applicants
would be compensated for the shares which they would have been

No allotted.
compensation would be payable to the applicant in
case the
listing price is below the issue price.

Registrar to an Issue and Shares Transfer Agents (RTAs) shall share

the basis of allotment file, if sought by the Bank, so that the Bank
shall have access to the allotment ratio for the purpose of arriving
at the compensation.

Any applicant whose application has not been considered for

allotment, due to failure on the part of the Bank shall have the
option to seek redressal of the same within three months of the
listing date. On receipt of such application/s, Bank would be
required to resolve the same within 15 days, failing which it would
have to pay interest at the rate of 15% per annum for any
Violations
4.19 delay by Bank’s
beyondthe said period of 15 days.
. Agents

In the event of receipt of any complaint about any improper act /

conduct on the part of agent, in violation of the Code of the
Bank’s commitment to customer which the Bank has adopted
voluntarily, the Bank shall take appropriate steps to investigate
and redress the complaint and endeavor to communicate to the
customer within 7 working days from the date of receipt of
complaint and, where justified, may compensate the customer
suitably for financial loss as decided by the Bank. Also, necessary
steps will be taken, if required as per Bank’s decision, to prevent
recurrence of similar complaints.

4.20 Liability of Bank for any loss/damage to the contents

of Locker (effectivefrom 01.03.2024)

The Bank will take all steps for the safety and security of the premises
in which the safe deposit vaults are housed. It has
51 | P athe
ge
responsibility to ensure that incidents like fire, theft / burglary /
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024) robbery, dacoity, building collapse do
 not occur in the bank's premises due to shortcomings, negligence
and by any act of omission / commission. In instances where loss
of contents of locker are due to incidents mentioned above or
attributable to fraud committed by its employee(s), the Bank's
liability shall be for an amount equivalent to onehundred times
the prevailing annual rent of the safe deposit locker.
4.21 Timeline for payment of
compensation

The amount of compensation for deficiencies in various categories

of Banking

Services as mentioned in this Policy will be paid to the customer

within 15 (fifteen) days after the deficiency is acknowledged.
4.22 Authority for payment and control
reporting
The amount of compensation paid at the branch shall require
post facto approval by the Controller of the Branch who shall in
turn put up Control Reportto his Controller.

5. Automation of payment of compensation

in CBS:

IT-CBS Development department has developed the necessary

functionality related to automation of payment of
compensation for the following deficiencies in CBS and rolled
out the same since . Detailed operational guidelines in regard
to payment of compensation to the customer on account of
deficiencies in the services have been circulated by way of e-
Circular No.: :

a) Un authorized / erroneous debit.

b) ECS direct debits / other debits to accounts
c) Issue of ATM / Debit cards without written consent of customer.
d) Payment of cheques after acknowledgement of stop payment
instruction atHome Branch.
e) Compensation for delayed collection of export bills / payment of
foreign inward remittances etc., adverse movement of forex
52 | P a g e
rates and also payment of
D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .
(2024)
 interest for delay in payment to the exporter on export bill sent for
collection and realized by authorized dealer.

f) Delay in credit / return of NEFT / NECS / ECS transaction Collection of

cheque drawn on Foreign countries
g) Cheque, lost in Bank’s custody, payable in Ethiopia
h) Cheque, lost in Bank’s custody, payable in foreign countries
i) Disputed ATM transactions
j) Delay in credit of pension
k) Delay in issuance of duplicate IOI.
l) Lender’ liability, delay in return of securities documents

6. Customer’
Responsibility:

1. Bank will not be responsible for the loss to the customer due to
customer’s carelessness in keeping the Cheque book, passbook,
cards, PIN or other security information and not following “Do’s
and Don’ts” issued by the Bank, until the Bank has been notified
by the customer.

2. The Bank will not be responsible for the loss to the customer if the
customer acts fraudulently and / or acts without reasonable care
which has resulted in loss to him / her. Bank will also not be
responsible for the losses arising out of misuse of lost
PIN, compromise of passwords or confidential information, until the
time the Bank has been notified of such loss/compromise and the
Bank has taken steps to prevent its misuse.
7. Disclaimer
clause:
Notwithstanding anything contained here in above, the Bank shall not
pay any compensation in the following cases: -
a) Any alleged deficiency in regard to loans and advances activities of
the Bank.

b) Dishonor of at par payment agreement with other banks, due to

non-funding and security compliance. 53 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)
 c) In case of delay on account of non-functioning of business due
to factor beyond the control of the bank the period covered by
such events shall be omitted for calculation of delay etc.

d) Where the issues are sub-jurdiction and pending before

Courts, Ombudsman,actress, Government and matter put on
hold due to stay.

8. Force Majeure:
The Bank shall not be liable to compensate customer under this
Policy if some unforeseen event including but not limited to civil
commotion, sabotage, lockout, strike or other labor disturbances,
accident, fire, natural disaster, pandemic or other “Acts of God",
war, damage to the Bank's or its correspondent bank(s)
systems, communication channels etc. beyond the control of the
Bank, prevents it from performing its obligations within the
specified service delivery parameter.
9. Amendment / Modification of the
Policy:

The Bank reserves the right to amend/modify this Policy, as and when
deemed fit and proper, at its sole discretion. The Bank shall arrange
to review the Policy at annual intervals.

********************

References of Circular / Guidelines used for drafting

Compensation Policy2021.

1. Model Compensation Policy of IBA.

4. NBE FAQ on NEFT System updated as on.
5. NBE FAQ on RTGS system updated as on
6. NBE revised instructions on Safe Deposit Locker / Safe Custody
Article Facility provided by the banks

54 | P a g e

D r a f t Customer Rights, Grieva nce Redressal a n d Compensation Policy – B y De me sse w K .

(2024)