Banks can revalidate an expired demand draft

I had applied for a credit card from a bank with which I have a savings account, but they have rejected my application. What are the occasions when an application for credit card can get cancelled by the bank?
Before granting credit cards or for that matter, any credit facilities, banks normally obtain a credit report of the applicant from a credit bureau. An adverse credit report  could be the probable reason for your bank’s refusal to give you credit card. There may be other reason for your bank to refuse you the credit card like not fitting into the income criteria for grant of a credit card. You are entitled to get the reason for rejection of your application. Ask for a formal rejection letter and if the bank refuses, then you can and complain to the banking ombudsman. Also, you should get a copy of your own credit report from Cibil using this link: http://www.cibil. com/accesscredit.htm to download the form.

Will I be taxed if I link a post office monthly scheme with my savings account?
The interest earned on post office monthly scheme is taxable in the hand of the recipient. It does not make any difference as to whether you withdraw the interest in cash or get it credited to your saving account.

I have a demand draft in my name issued by a bank. I do not have an account in the bank. The validity of the draft has expired. Can I encash the draft now? If yes, what is the procedure?
You will have to approach the bank which had issued the draft and request them to either revalidate the draft or issue you a new draft.  In case you wish to cancel it, the bank may then issue a banker’s cheque in your favour for the draft amount. You will need the demand draft request form that was originally submitted to the bank for the issue of the demand draft.

I took a floating-rate home loan of Rs 3.25 lakh. When the rates reduced, I contacted my banker for a reduction. They informed me that rates were instead increasing. They increased the rate of interest by 2% and charged some audit fees in my loan account. What can I do legally?
Please read the loan agreement carefully to see the
terms of the loan as regards the interest and other charges. If the interest and charges charged are in line with the agreement, I think you can not do anything about it. If the charge seems unjustified, register a complaint on the bank’s official website. If
you do not get a response/ satisfactory response within
2-3 weeks, you may approach the banking ombudsman. For the details, log on to www.bankingombudsman.rbi.org.in. Your best bet of course is to shift your loan to another lender. However, given the small size of your loan, other lenders may not be very keen to take over the loan.

The writer is CEO, Apnapaisa.com a price comparison engine for loans, insurance and investments. You can reach him at
hrdna@apnapaisa.com