Says Angrish Shukla, a student, who alleges the bank fraudulently invested his savings in a policy of higher value. Insiders say it's a common trick of private banks to meet sales' targets
Says Angrish Shukla, a student, who alleges the bank fraudulently invested his savings in a policy of higher value. Insiders say it's a common trick of private banks to meet sales' targets
For Angrish Shukla, a second year MBA student at IMT, Ghaziabad, the amount of Rs 90,000 he had saved from his job at a BPO was the key to further studies. He planned to invest the sum for a year, after which he wanted to withdraw it to fund his education. However, Shukla's plans were busted by a private bank.
Now, the student not only faces the risk of losing his entire savings but also holds an investment policy for which he has to pay Rs 90,000 annually for the next 10 years!
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"I went to HDFC's Malviya Nagar branch to procure a cheque book against my savings bank account and to invest Rs 90,000 that I had saved after working with a BPO. My annual salary was Rs 2.4 lakh and I saved around a lakh. The bank executive, who attended to me, offered an interesting investment policy for a year and asked me to sign some documents. He noted down other details like my address and phone number on a blank sheet and asked me to leave," said Shukla.
The fraud
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Where is my money? Angrish Shukla alleges HDFC Bank's Malviya Nagar branch cheated him |
"It's impossible for me to pay such a high annual premium for 10 years. I wanted to invest the money for my higher studies. Now I am clueless about where to arrange funds for my studies," said Shukla.
Meanwhile, according to the policy, if the holder (Shukla) fails to pay the premium next year, it may acquire a surrender value, to be determined by the bank at its sole discretion. However, if the holder pays the premium for a continuous period of three years, the policy will acquire a guaranteed minimum surrender value, which will be calculated in accordance with the bank's provision.
Bank at fault?
Interestingly, Shukla alleges when he got in touch with the bank to cancel his investment plan, the bank refused to do so. In a reply to a complaint filed by Shukla, the bank said: "On conducting a detailed investigation on this matter, we have concluded that all features and details of this plan were explained to him at the time of taking the policy. Hence, we are unable to treat it as a mistake."
The bank further said, "In case the holder is not agreeable to any of the provisions stated in the policy and the details in the proposal form, there is an option of returning the policy to us stating the reasons thereof, within 15 days from the date of receipt of the policy. As the bank has not received the request for cancellation of the policy within this free-look period, we will be unable to process a refund of premium paid towards this policy."
Shukla alleges despite writing several times to the bank to return his policy, the bank refused to do so. Shukla alleged he had also requested a change of address but that too has not been done.
'A common trick'
Insiders from the banking sector say this is a common trick private banks follow to meet monthly financial
targets.
"This is a common practice especially during the end of a month when the pressure to meet sales' targets is tremendous. However, giving the address of the bank for customer's correspondence is something new," said a relationship manager at a private bank, wishing anonymity.
The Other Side
When MiD DAY contacted the Malviya Nagar branch manager of HDFC bank, Hemant Sahni, he said, "We are not supposed to reveal any information about our clients. However, I have provided him (Angrish Shukla) with numbers and email ID of the concerned person with whom he can lodge a complaint."
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