RBI and GoI taking steps for Improving Customer Services in Public Sector Banks

Public Sector Banks accounted for nearly two third of the customer complaints received during last financial year. A total number of 72,889 complaints were received in the offices of the Banking Ombudsmen spread across the country against the Scheduled Commercial Banks during the period from June, 2011 to July, 2012, out of which 48,180 were against the Public Sector Banks (PSBs). With increasing consumer literacy and initiatives of banks to put in appropriate systems of grievance redressal and updation of technology, it has been found that out of total complaints received in 2011-12, 25% and 21%, respectively, relates to failures to meet commitments/BCSBI codes/non observance of fair practices code and ATM/Debit/Credit card related issues.

A number of steps have been taken by the RBI and the Government to resolve the complaints of customers, expeditiously, generally, within 30 days, by putting in place a robust grievance redressal system including resolution of grievances received through the Centralised Public Grievance Redressal and Monitoring System (CPGRAMS) in all PSBs.

The Banking Ombudsmen Scheme, 2006 (BOS) of the Reserve Bank of India (RBI) is providing expeditious and inexpensive forum to bank customers for resolution of their complaints relating to deficiencies in banking services provided by the commercial banks. This Scheme is operated region-wise through the offices of 15 Banking Ombudsmen covering the entire country.

Banks are also required to follow the Banking Codes and Standards Board of India (BCSBI)™s Code of Banking Commitments to Customers and Code of Commitment to Micro and Small Enterprises.

In order to improve customer service in banks, majority of recommendations of the Damodaran Committee have been implemented by the banks. A Working Group has also been constituted by the Reserve Bank of India to review and update the BO Scheme and also the changes in services and product delivery strategies of banks. Incognito visits by RBI Officers are conducted to bank branches to make independent assessment of the level of customer service provided by the Banks.

This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Rajya Sabha today.


Tags: BankCommercial bankIndiaMinister of State for FinanceRajya SabharbiReserve Bank of IndiaRun batted in

profile image

About Shantanu


eMinds Legal Consulting Pvt. Ltd. is a Consulting Firm in India specialzing in Corporate Laws, Compliances, Secretarial, FEMA, Indirect Taxation, Cyber Laws & Contracts. The Firm comprises of a team of professionals of Company Secretaries, Lawyers and Chartered Accountants with an in-depth subject matter knowledge and participative industry experience of over 15 years.

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates