Customer Compensation Policy


This policy outlines the approach of Qatar National Bank, SAQ to customer compensation in certain situations where for some reason beyond our control or inadvertently, we are unable to meet the service levels committed by us in our dealings with our customer.

This Compensation policy of the bank is therefore, designed to cover areas relating to unauthorized debiting of account, payment of interest to customers for delayed collection of cheques/instruments, payment of cheques after acknowledgement of stop payment instructions, remittances within India, foreign exchange services, lending, etc. The policy is based on principles of transparency and fairness in the treatment of customers


The objective of the policy, namely “Customer Compensation Policy (Banking Services)” (hereinafter called the ‘Policy’), is to establish a system whereby Qatar National Bank, SAQ (hereinafter called the ‘Bank’) compensates the customer for any financial loss he/she might incur due to deficiency in service on the part of the Bank or any act of omission or commission, directly attributable to the Bank.

It is reiterated that the policy covers only compensation for financial losses which customers might incur due to deficiency in the services offered by the Bank which can be measured directly and as such the commitments under this policy are without prejudice to any right the bank will have in defending its position before any Court of Law, Tribunal or forum duly constituted to adjudicate banker-customer disputes.

This Policy does not cover and is not applicable in respect of claims made by customers on account of opportunity losses or damages or claims pertaining to reputation loss.


The policy covers the Bank’s approach to compensation in the following types of transactions:

A. Unauthorised / Erroneous Debits

B. Errors in the processing of Direct Debits / Electronic Payments (RTGS/NEFT)/ Other Debits To Accounts

C. Erroneous Payment of Cheques after Acknowledgement of Stop Payment Instructions

D. Compensation for Delayed Collection of Instruments within India

E. Compensation for Delayed Collection of Instruments Outside India (Foreign Cheques on Collection)

F. Cheques Lost in Transit / in Clearing Process or at Paying Banks’ Branch

G. Compensation To Depositors for fraudulent transactions.



If the bank has raised an unauthorized/erroneous direct debit to an account, the entry will be reversed immediately upon detection and validation. In the event the unauthorized/erroneous debit has resulted in a financial loss for the customer by way of reduction in the minimum balance applicable for payment of interest on savings bank deposit or payment of additional interest to the bank in a loan account, the bank will compensate the customer to the extent of such loss.

Further, if the customer has suffered any financial loss incidental to return of a cheque or failure of direct debit instructions due to insufficiency of balance on account of the unauthorized/erroneous debit, the Bank will compensate the customer to the extent of such financial losses, including the cheque return charges, provided however that the Bank shall not be liable to reimburse any indirect loss, damage or loss of profit that may be suffered by the customer.

The Customer should approach the Bank within a maximum period of 3 months from the date of the erroneous debit.

In case verification of the entry reported to be 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. In case, the verification involves a third party, the bank shall complete the verification process within a maximum period of 1 month from the date of reporting of erroneous transaction by the customer.

The Bank reserves the right to debit the account of the customer for reversing the amounts in case a wrong credit is posted to a customer’s account without payment of any compensation.



The Bank will undertake to carry out Direct Debit / Standing instructions of customers on time. In the event the Bank fails to meet such commitments, the customer will be compensated to the extent of the banking charges that he may have to face from another Bank due to the delayed credit. This policy will cover charges levied only on the account that the credit was to go into, and not for any other issues thereof.

Electronic payments such as RTGS/NEFT will be governed by the applicable Terms and Conditions communicated to the customer. The Bank will compensate the customers for delay directly attributable to the Bank in affording credits of inward remittances like NEFT, RTGS or by any other means, received on behalf of the customers. The compensation would be restricted to direct and actual financial loss in terms of interest or penalties levied due to reduction in the minimum balance applicable for payment of interest on savings bank deposit or penalties charged for non-maintenance of minimum balance due.



In case a cheque has been paid after Stop Payment instruction is acknowledged by the Bank, the Bank shall investigate the matter carefully and help the customer in getting back the payment. In case the customer is not able to recover the amount from the payee bank, the Bank will reverse the transaction and give value-dated credit to protect the interest of the customer. Such debits will be reversed within 2 working days of the customer intimating the transaction to the bank.



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 mentioned in the Bank’s ‘Cheque Collection Policy’. Such interest shall be paid without any demand from customers in all types of accounts.


Interest for delayed collection shall be paid at the following rates:

a) No interest for the period of delay within 15 days from date of deposit.

b) Where the delay is beyond 15 days interest will be paid at the rate applicable to for term deposit for the respective period.


The Bank will give interest for delayed collection proceeds only for instruments sent for collection within India.

The rate applicable would be the rate of interest prevailing on the date of the deposit of cheque. Delay would be calculated from the date of expiry of turnaround time indicated in the table on timeframe for collection of local/outstation instruments to the actual date of realisation of the cheque.



The Bank would not compensate the customer for delays in collection of cheques designated in foreign currencies sent to foreign countries as the Bank would not be able to ensure timely credit from overseas Banks. The 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 to country.

However, the bank will compensate the customer for undue delays in affording credit once proceeds are credited to the Nostro Account of the bank with its correspondent. The compensation in such cases will be restricted to the extent of eligible Savings Bank Interest Rate, period of which shall be calculated from the date of credit in the Nostro account to the actual date credit has been applied in the customer’s account.

The foreign exchange rate on the date of credit in our Nostro Account shall be the basis for calculation of interest irrespective of the rate prevailing on the date of claim / calculation / settlement.



a) In the event a cheque or an instrument accepted for collection is lost in transit or in the clearing process, the Bank shall immediately on coming to know of the loss, bring the same to the notice of the Customer so that the Customer can inform the drawer to record stop payment and also take care that cheques, if any, issued by him are not dishonoured due to the non-credit of the amount of lost cheque. The bank will provide assistance to the customer to obtain a duplicate instrument from the drawer of the cheque.

This would be applicable only to instruments drawn in INR payable within India.

b) If the cheque/instrument has been lost at the paying bank's branch, the collecting branch will have a right to recover the amount, including charges / interest expenses reimbursed to the customer for the loss of the cheque/instrument from the paying banker.



In the event of reversal of erroneous debits arising on fraudulent or other transactions, the bank shall compensate the depositors, as detailed below:

i) In case of any fraud, if the Bank is convinced that an irregularity/fraud has been committed by our staff towards any constituent, the Bank will pay the just claim after investigate the matter and take all steps for mitigating the losses.

ii) In cases where the bank is at fault, the Bank will compensate the customer without any demur

iii)iii) However, , the proposal for restoration of the fraudulent amount/ compensation amount, would be considered by the Bank on a case to case basis.



a. The compensation shall be paid by replicating the effect obtained through back-valuation of the affected transaction and the amount of compensation, in any case, shall be limited to the financial loss of the customer arising out of amount in the books of the Bank only..

b. The compensation as per this Policy is payable to a customer only in those cases where any act of omission or commission is directly attributable to the Bank.

c. The award of compensation shall be made only on well recognised legal principles governing quantification of damages or compensation on proof of actual loss suffered.

d. No claim would be considered, under any circumstance, based on qualitative aspects like reputation damages, loss of image in the society, loss of business, loss of income, etc in cases where the loss can not be measured directly.

e. The amount of compensation is restricted to the actual financial loss of the customer arising out of the amount in the books of the Bank only and in any case, to the maximum limits prescribed for the various services given above.



In the event of the receipt of any complaint from the customer that the bank’s representative /coutier or DSA has engaged in any improper conduct or acted in violation of the Code of Bank’s Commitment to Customers which the bank had adopted voluntarily ,the bank is committed to investigate the matter and endeavour to communicate the findings to the customer within 7 working days from the date of receipt of complaints and wherever justified, compensate the customer for financial loss,if any,as contemplated under this policy.




The bank has adopted the principles of lenders of liability. In terms of the guidelines for lenders liability, and the Code of Bank’s Commitment to customers adopted by the bank, the bank would return to the borrowers all the securities /documents/title deeds to mortgaged property within 15 days of repayment of all dues agreed to or contracted. The bank will compensate the borrower for monitory loss suffered, if any due to delay in return of the same. In the event of loss of the title deeds to mortgage property at the hands of the banks the compensation will cover out of pocket expenses for obtaining duplicate documents plus a lumsum amount as decided by the bank.



The bank shall not be liable to compensate customers for delayed credit if some unforeseen event (including but not limited to civil commotion, sabotage, lockout, strike or other labour disturbances, accident, fires, natural disasters or other “Acts of God”, war, damage to the bank’s facilities or of its correspondent bank(s), absence of the usual means of communication or all types of transportation, etc) beyond the control of the bank which prevents it from performing its obligations within the specified service delivery parameters.

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