What changed
RBI, after consulting IBA, mandates banks to provide a written acknowledgment when customers submit Form 15G/15H. This addresses complaints of TDS being wrongly deducted due to misplaced forms or poor tracking.
What it means for you
Banks must implement a system to issue acknowledgments for Form 15G/15H submissions, reducing customer grievances and legal risks. This builds accountability and protects depositors from inconvenience caused by bank errors.
What you must do
- Issue a formal acknowledgment (e.g., stamped receipt or system-generated slip) to customers upon receiving Form 15G/15H.
- Train branch staff on the new acknowledgment procedure and ensure compliance across all branches.
- Review and strengthen internal tracking mechanisms for Form 15G/15H to prevent misplacement.
- Update customer-facing communication to inform depositors about the acknowledgment process.
Who it affects
All scheduled commercial banks (excluding RRBs), Branch operations staff handling TDS and form submissions, Depositors submitting Form 15G/15H
What is the purpose of this RBI directive?
To prevent wrongful TDS deductions by ensuring banks acknowledge receipt of Form 15G/15H, thereby creating accountability and reducing customer complaints.
Does this apply to all banks?
Yes, it applies to all scheduled commercial banks except Regional Rural Banks (RRBs).
What should banks do if they already have a tracking system?
They must still provide a formal acknowledgment to customers at the time of form submission, as per the new requirement.