The Hindu Business Line : Bank customers get their rights

Bank customers will soon know what services to expect from their branches and whom to approach in case of any grievance. The Code of Bank's Commitment to Customers, released by Dr. Y.V. Reddy, RBI Governor, on Saturday, provides protection to individual customers and explains how banks are expected to deal with customers in their day-to-day operations.

The code was formulated by the Banking Codes and Standard Board of India (BCSBI) and the Indian Banks' Association.

The code contains details of the information a bank would give before a person becomes its customer and the information a person would get after he becomes a customer of a bank. It is a document that lays down the rights of a bank customer, which can be enforced against the bank. The code also provides for compensation, the customer can get if the bank defaults.

The Reserve Bank of India set up the BCSBI as an autonomous body in February to focus on customer service. RBI also set up a new customer service department tobe headed by an officer of the level of Chief General Manager. It would give information relating to customer service and act as a nodal department for BCSBI.

Through this code, the banks also commit to keep their customers informed about the changes in tariff schedule.

It also covers the activities of direct selling agents whose services banks avail themselves of to market their products and also covers third party products sold through bank branches.

Ms K.J. Udeshi, Chairperson of the BCSBI said, "The code provides that customers do not have to tell banks not to call them. Banks should call only if customers authorise them. In the account opening form itself, banks will have to ask customers if they can call them or not."

Banks would voluntarily adopt this as their code. The BSCBI would keep a watch on each bank's adherence to this code, she said.

Ms Udeshi said, "If banks do not voluntarily adopt the code, then we will publicise their names. This public censure is enough to ensure compliance of the code."

More Stories on : Banking | Customer Relationship Management | Consumerism

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ICAI for bar on bonus issues from revaluation reserves

WTO talks collapse in Geneva

`Inflation within target'

Draft policy aims to bring down drug prices

RBI Governor calls for separate code for lending to SMEs

Bank customers get their rights

Rs 3,750-cr relief for six Vidarbha districts

Bill on new company law likely in winter session

Why the WTO talks failed

Call to regulate global investments

The beautiful game for others is manna for him

Focus on market share: SBI chief