Customer education

1. Retail Banking Liability Products and
Related Services 2021
Banking Codes
and
Standards
1

2. Introduction to Customer protection in Banks
• RBI’s initiatives in the field of consumer protection :
• the setting up of a Customer Redressal Cell,
• creation of a Customer Service Department in 2006 which
was recently rechristened as Consumer Education and
Protection Department (CEPD in 2015).
• the setting up of the Banking Codes and Standards Board
of India (BCSBI), for promoting adherence to self-imposed
codes by banks for customer service.
• Introduction of the Banking Ombudsman (BO) scheme in
the year 1995 to strengthen the institutional mechanism
for dispute resolution
• The BO scheme covers grievances against Commercial
Banks, Scheduled Cooperative Banks and Regional Rural
Banks. 2

3. BCSBI -Background and Constitution
• the Banking Codes and Standards Board of India
(BCSBI) was set up
• on the lines of one set up in UK
• as a Society under the Societies Registration Act.
• to oversee the fair practice code evolved by the
Indian banks.
• A Governing Council of the BCSBI looks after its
financial affairs and managerial policies
3

4. Main Aims and Objects
• To plan, develop, promote and publish voluntary
Codes and Standards for banks, for fair treatment to
customers,
• To function as an independent and autonomous
watch dog to ensure that Codes and Standards are
adhered to, in true spirit
• To conduct and undertake research of the Codes
and Standards currently in vogue in and outside
India.
• To enter into agreements with banks on the codes
and standards and to train employees of banks
about the Banking Codes.
• To help people affected by natural calamities.
4

5. Code of Banks' Commitment
• A comprehensive “Bankers' Fair Practice Code”
prepared by an IBA Working group is used as a standard
by BCSBI
• This code would be a covenant between the BCSBI ad
the banks joining as members of the BCSBI
• BCSBI has brought out two codes, viz.,
1. Code of Bank's Commitment to Customers and
2. Code of Bank's Commitment to Micro and Small
Enterprises'
• The detailed codes are available at bank branches and
also on the website of BCSBI
5

6. Bank's Code for Customer Service
• The objectives of the Code are:
1. Promote good and fair practices by setting
minimum standards
2. Increase transparency for a better
understanding of what customers can
reasonably expect
3. Encourage market forces, through competition
to achieve higher operating standards
4. Promote fair and cordial relationship ,between
customers and their bank
5. Foster confidence in the banking system 6

7. The Code applies to
1. All deposit accounts including current, savings,
term, recurring, PPF accounts
2. Pension payments, Remittances and Wire
transfers
3. Government transactions, Demat accounts,
Equity, Bonds
4. Cash exchange, collection of cheques, safe
custody services, locker facility
5. Loans and advances,
6. Forex services, Credit/debit cards
7. Third party products
7

8. IBA Code of Bank's Commitment to Customers
• The IBA had brought out its 'Bankers' Fair Practice'
code in June 2004. All banks adopted it voluntarily.
• The code was essentially a commitment to be fair
and transparent in dealing with customers.
• The IBA had also separately come out with
i. 'Fair Practice Code for Credit Card Operations'
• Ii. 'Model Code for Collection of Dues and
Repossession of Security'
to address specific concerns voiced by customers
about banking practices in these areas.
8

9. Code of Bank's Commitment to Micro and Small
Enterprises
• This code was brought out by BCSBI in May 2008 and
• It sets minimum standards to follow when they are
dealing with Micro and Small Enterprises (MSEs)
• It provides protection to MSEs and explains how
banks are expected to deal with them for their day to
day operations and in times of financial difficulty.
• The code has been revised in 2015.
9

10. Function Of BCSBI
• The main function is to ensure adherence to the Codes
• How does BCSBI monitor the implementation of the
Codes?
• I. By obtaining an Annual Statement of Compliance (ASC)
• 2. By visits to branches to find out the status of ground-
level implementation
• 3. By Studies of complaints received from customers
• 4. By going through orders / awards issued by Banking
Ombudsmen / Appellate Authority to find out whether
there is any system-wide deficiency
• 5. By discussing implementation issues with Principal Code
Compliance Officers of the Member banks .
10

11. Code Compliance Rating
• BCSBI has been carrying out survey of select branches for
verifying implementation
• BCSBI collect information in a structured questionnaire on
implementation of the Code provisions by visiting a
sample of branches and Central Processing Centers (CPCs)
of major
banks both in semi-urban/rural and metro/urban
category.
• Feedback from a few customers is also obtained..
• The data/information so obtained is used for rating the
member banks.
• BCSBI takes the technical assistance of rating agency
CRISIL.
11

12. Code Compliance Rating
• The methodology for rating the member banks is to convert the
data and customer responses in to numerical score assigning
different weight age out of 100 to the parameters.
• The parameters for rating along with the weightage are as
under:
• i. Information Dissemination (25),
• ii. Transparency (30),
• iii. Customer Centricity (20),
• iv. Grievance Redressal (I 5) and
v. Customer Feedback (10).
• Scoring Scale Out of 100 Rating
• 85 and above High
• 70 to less than 85 Above Average
• 60 to less than 70 Average
• Below 60 Below Average 12

13. SrNo Rating Number of Banks surveyed
2014 2015
I High 14 30% 5 11%
2 Above average 23 49% 25 53 %
3 Average 10 21 % 17 36%
4 Below average 0 0% 0 0%
Total 47 100% 47 100%
Code Compliance Rating
The comparative position of rating for 2014 and 2015 is given below.
13

14. Applicability of codes to banks
• Banks register themselves with BCSBI as members
and have the Codes adopted by their respective
boards
• binding them to monitoring by BCSBI as far as
implementation of the codes is concerned.
• The banks would also be required to make necessary
changes in certain policy and procedural aspects
around their products and services.
14

15. • With the adoption of 'Code of Bank's Commitment to
Customers' by BCSBI member banks, the following
voluntary codes of IBA would not be applicable to
them:
• (a) Bankers' Fair Practice Code - w.e.f. June 2004
• (b) Fair Practice Code for Credit Card Operations
• (c) Model Code for Collection of Dues and Repossession
of Security
• Whether a particular bank is a member or not can be
ascertained by a customer from his bank.
• The information is also available on the website of the
BCSBI 15

16. Codes vs. RBI instructions to banks
• The Codes do not replace or supersede regulatory or
supervisory instructions of the Reserve Bank of lndia
• (RBI) and member banks will comply with such
instructions/directions issued by RBI from time to
time.
• Provisions of the Codes may set higher standards
than what is indicated in the regulatory instructions
and
• Such higher standards will prevail as the Codes
represent best practices voluntarily agreed to by
banks as their commitment to customers.
16

17. Key commitments under the codes
• To act fairly and reasonably in all their dealings
with target customers.
• To help customers to understand how bank's
financial products and services work.
• To help customers use their account or service.
• To deal quickly and sympathetically with things
that go wrong.
• To treat all personal information of the customers
as private and confidential.
• To publicize the Code.
• To adopt and practice a non-discrimination policy.
17

18. • Information-transparency under the codes
• The member banks to provide clear information
and maintain transparency regarding interest
rates, tariff schedules and terms and conditions
and any changes in these.
• Banks to provide clear information about key
features of services and products as also on the
rights and responsibility of customers.
• Banks to register 'Do not call' service on account
opening
18

19. • Grievance Redressal
• Every member bank to have a help desk/helpline at the
branch
• Have a code compliance officer at each controlling office
• Display, name , contact number and adress of the code
compliance officer and Banking Ombudsman at the
branch
• The customer to adopt the below sequence for redressal:
• 1. Help desk of the branch/bank.
• 2. Code Compliance Officer
• 3. Banking ombudsman.
19

20. Position of customers of non-member banks
• Individual complaints from customers are required
to be dealt with by the Banking Ombudsman or the
Customer Service Department of the Reserve Bank
of India.
• BCSBI monitors only member bank's compliance
with its commitments, by ensuring that the bank
has the appropriate system and procedures in
place, at all its branches, for rendering customer
service as committed to by the banks
• and that these are effectively in operation.
20

21. Obligation on the customers
• The codes brought out by BCSBI do not put any
obligation on the part of the customers.
• Acceptance of the Codes is a voluntary initiative by a
bank and is also a unilateral commitment by the bank to
its individual customers and MSEs to deal with them in
a transparent and fair manner in its day to day
operations.
• It goes beyond the conventional contractual framework
wherein one party's performance is contingent upon
the other party's performance /commitments.
• The Codes set out the banks obligations to its
customers which, when seen from the viewpoint of the
customer, form his Charter of Right vis-a-vis his bank.
21

22. • CUSTOMER GRIEVANCES HANDLING MECHANISM
• Time Norms for Complaints
• All complaints / communication must be
acknowledged immediately but in any case within
10 days by sending interim reply, if final reply is not
possible to be sent with 10 days.
• All complaints should be recorded in a complaint
register.
• VIP complaints should be resolved
• within 15 days in case of reference from PMO,
• within 3 weeks in case of communication from
Ministers/MPs.
22

23. • Customer Service Committee of Bank's Board of
Directors
• Bank to have a Committee of Board of directors
with experts and representatives of customers.
• The role of such committee is the Deposit Policy
formulation and issues concerning Customer
Service.
• Standing Committee on Customer Service
• It serves as the micro level executive committee
while the Customer Service Committee of the
Board would oversee and review / modify the
initiatives.
• Thus the two Committees would be mutually
reinforcing with one feeding into the other.
23

24. • Branch Level Committees
• The branch level committee is to submit quarterly
report giving inputs / suggestions to the Standing
Committee on Customer Service,
• enabling it to examine them and provide relevant
feedback to the Customer Service Committee of the
Board for necessary policy / procedural action of staff.
• In addition customers including senior citizens will be
members.
• Committee Meetings at the Branch
• The Committee may meet at least once a month to
study complaints / suggestions, cases of delay,
difficulties faced reported by customers / members of
the Committee and evolve ways and means of
improving customer service. 24

25. • Disclosure of Complaint by Banks
• Bank should disclose the brief details regarding
the number of complaints along with their final
results.
• Where the complaints are redressed within the
next working day, banks need include the same in
the statement of complaints.
• Where the complaints are not redressed within
one month the concerned branch / controlling
office should forward a copy the same to the
concerned Nodal Officer under the Banking
Ombudsman Scheme.
25

26. Time norms to be displayed at branches – may vary from bank to bank
Sr. No. Service Time Norms Revised
1 Cash payment -
Through Universal Teller 07 Minutes - Through Cashier 15 Minutes
2 Receipt of Cash -
Through Universal Teller 07 Minutes - Through Cashier 10 Minutes
3 For issuance of FDR 25 Minutes
4 For issuance of DD 25 Minutes
5 Payment of DDs 10 Minutes
6 Payment of FDRs 15 Minutes
7 Opening of an account - 35 Minutes
8 Retirement of Bills 25 Minutes
9 Updating of Passbooks 10 Minutes
10Statement of accounts Within 07 days
11Collection of cheques
1) Our own Bank’s Cheques Same day
2) Local /Outstation CBS cheques of other banks 3 days
3) Outstation non-CBS cheques of other banks 7 days to 14 days 26

27. Customer Rights Policy /Citizens’ charter
• 1) Introduction:
• IBA vide its letter dated 5th February, 2015 advised the
banks to have a Board approved Customer Rights Policy
to be formulated as per the Model Customer Rights Policy
approved by RBI vide its letter dated 27th January, 2015.
• The Policy enshrines basic rights of the customers of the
banks regulated by the RBI.
• It spells out the rights of the customer and the
responsibilities of the bank.
• The Policy applies to all products and services offered by
the bank or its agents, whether provided across the
counter, over phone, by post, through interactive
electronic devices, on internet or by any other method.
27

28. • Details of Customer Rights:
• I. Right to Fair Treatment
• Both the customer and the Bank have a right to be treated
with courtesy.
• The customer should not be unfairly discriminated against
on the grounds such as gender, age, religion, caste and
physical ability
• In pursuance of the above Right, bank will:
• i. Promote good and fair banking practices by setting
minimum standards in all dealings with the customers.
• ii. Promote a fair and equitable relationship between the
bank and the customer.
• iii. Train bank staff attending to the customers, adequately
and appropriately.
• iv. Ensure that staff members attend to customers and
their business promptly and courteously.
28

29. • II. Right to Transparency, Fair and Honest Dealing
• to ensure that the contracts or agreements are
transparent, easily understood by and well
communicated to, the common person.
• The product's price, the associated risks, the terms
and conditions that govern use over the product's life
cycle and the responsibilities of the customer and
the Bank, will be clearly disclosed.
• The customer will not be subject to unfair business
or marketing practices, coercive contractual terms or
misleading representations.
• Over the course of their relationship, the Bank will
not threaten the customer with physical harm, exert
undue influence, or engage in blatant harassment.
29

30. • III. Right to Suitability
• The products offered will be appropriate to the needs
of the customer and based on an assessment of the
customer’s financial circumstances and understanding.
• In pursuance of the above Right, the bank will:
• i. Ensure that it has a Board approved policy for
assessing suitability of products prior to sale.
• ii. To ensure that the product or service is appropriate
to the customer's needs and not inappropriate to the
customer’s financial standing and understanding based
on the assessment made by it.
• Such assessment will be appropriately documented in
its records. 30

31. • iii. Sell third party products only if it is authorized to do so,
after putting in place a Board approved policy and are in
accordance with extant rules and regulations.
• iv. Not compel a customer to subscribe to any third party
products as a quid-pro-quo for any service availed from the
bank.
• v. Inform the customer about his responsibility to promptly
and honestly provide all relevant and reasonable
information sought by bank to enable them to determine
the suitability of the product to the customer.
31

32. • IV. Right to Privacy
• Customers’ personal information will be kept
confidential unless they have offered specific
consent to the Bank or
• such information is required to be provided under
the law or
• it is provided for a mandated business purpose (for
example, to credit information companies).
• The customer should be informed upfront about
likely mandated business purposes.
• Customers have the right to protection from all
kinds of communications, electronic or otherwise,
which infringe upon their privacy.
32

33. • V. Right to Grievance Redress and Compensation
• The customer has a right to hold the Bank
accountable for the products offered and
• to have a clear and easy way to have any valid
grievances redressed.
• The Bank will also facilitate redress of grievances
stemming from its sale of third party products.
• The Bank will communicate its policy for
compensating mistakes, lapses in conduct, as well
as non-performance or delays in performance,
whether caused by the Bank or otherwise.
33

34. •The policy will lay out the rights and duties of the
customer when such events occur.
•In pursuance of the above Right, bank will:
•i. Deal sympathetically and expeditiously with all
things that go wrong.
•ii. Correct mistakes promptly.
•iii. Cancel any charge that has been applied
wrongly and by mistake
•iv. Compensate the customer for any direct
financial loss that might have been incurred by
the customer due to its lapses. 34

35. • Citizen's Charter
• The Citizen’s Charter covers important information about our
products, facilities and services.
• Norms regarding time taken for banking transactions, policy on
customer information, and process of redressal of grievances.
• Types Of Deposit Accounts
• Account Opening & Operation Of Deposit Accounts
• Nomination Facility
• Interest Payments
• Minor's Account
• Account Of Illiterate / Blind Person
• Addition Or Deletion Of Name/S Of Joint A/C Holders
• Customer Information
• Secrecy Of Customer's Accounts
• Premature Withdrawal Of Term Deposit
• Renewal Of Overdue Term Deposits
35

36. • Advances Against Deposits,
• Deceased Deposit Accounts
• Insurance Cover For Deposits
• Stop Payment Facility,
• Dormant Accounts Standing Instructions
• Direct Debit , Safe Deposit Lockers
• Redressal Of Complaints And Grievances
• Policy And Procedure On Cheque Collection And Immediate
Credit Of Outstation Cheques
• Service Charges Exchange Of Soiled / Mutilated Notes
• ATM Card / Debit Card Hot Listing, Pension Accounts
• Basic Savings Bank Deposit Account
• Foreign Exchange Services
• Time Norms For Various Banking Transactions
• Cheque Collection Policy Customer Protection Policy
• ​​​​​​​​​​​​​​Grievance Redressal Policy
36

37. Major functions of CEPD
• Administering the Banking Ombudsman Scheme;
and
• Acting as a nodal department for BCSBI.
• RBI will be implementing the recommendations of
an in-house committee for integrating 3 existing
Ombudsman schemes – into one scheme.
1) Banking Ombudsman Scheme, 2006;
2) Ombudsman Scheme for NBFCs, 2018; and
3) Ombudsman Scheme for Digital Transactions, 2019
37

38. Dissolution of BCSBI-2020
• To enhance consumer protection, RBI has since set up
1) CEPD (Consumer Education and Protection
Department),
2) Issued the Charter of Customer Rights (CoCR), and
3) Strengthened the Ombudsman mechanism
• “It was, accordingly ,decided to dissolve BCSBI, which is
now in an advanced stage of completing its dissolution
process.
• CEPD, now acts as the single nodal point for receipt and
disposal of all external complaints on deficiency of
services provided by the RBI and RBI regulated entities
like banks.
38

39. • BANKING OMBUDSMAN SCHEME, 2006
• RBI notified the Banking Ombudsman Scheme 2006, in
partial modification of its Banking Ombudsman Scheme
2002
• to enlarge the extent and scope of the authority and
functions of the Ombudsman, uls 35A of Banking Regulation
Act, 1949.
• The scheme covers all Commercial Banks, Regional Rural
Banks and Scheduled Primary Co-operative Banks.
• Objective
• To facilitate resolution of complaints through conciliation
and mediation between bank and customer OR
• By passing an Award.
39

40. • Ombudsman
• Level: CGM/GM of RBI (not exceeding 3 years at a time).
• The cost is borne by RBI.
• Who can file a complaint:
• A person himself / his authorizes representative (other
than an advocate), on
paper OR through electronic media (eMail) OR forwarded
by RBI or Central Govt.
• Jurisdiction
• For Credit card, the jurisdiction is with reference to
Ombudsman having jurisdiction over the billing address
of the card holder.
• For other accounts, it is as per location of the branch.
40

41. • Conditions for moving to Ombudsman
• Bank rejected the complaint OR no reply was received
within one month OR the complainant is not satisfied
with the reply;
• Period > one year has not lapsed after receipt of bank
reply'
• The complaint is not for issues already settled/dealt
with Ombudsman OR for which proceedings before
court, tribunal or arbitrator or any other forum is
pending OR a decree/Award/ order has been passed;
• The complaint is within limitation period under Indian
Limitation Act
41

42. •Rejection of Complaint by Ombudsman
• Frivolous, vexatious, malafide: Or without sufficient
cause; OR
• Not pursued by the complainant with diligence; OR
• There is no loss or inconvenience caused to the
complainant; OR
• It is beyond the pecuniary jurisdiction of
Ombudsman.
• Customer can appeal against grounds of rejection to
Appellate Authority with 30 days of receipt of
communication regarding rejection.
42

43. • Cost involved in filing complaints
• No fee for filing and resolving customers’ complaints.
• Limit on the amount of compensation in an Award
• Compensation for any loss suffered by the complainant is
limited to the amount arising directly out of the act or omission
of the bank or ₹ 20 lakhs (₹ Two Million), whichever is lower.
• Compensation claim for mental agony and harassment
• The Banking Ombudsman may award compensation not
exceeding ₹ 1 lakh (₹ One Hundred Thousand) .
• The Banking Ombudsman will take into account the loss of the
complainant's time, expenses incurred by the complainant,
harassment and mental anguish suffered by the complainant
while passing such award.
43

44. • Process of redressal of grievance
• By sending copy of the complaint by Ombudsman
to the bank, endeavor shall be made for a
settlement by agreement through conciliation or
mediation.
• The proceedings shall be summary in nature.
• Award by the Ombudsman
• Where a complaint could not be settled by
agreement within one month from the date of
receipt of the complaint, Ombudsman may pass
an Award or reject the complaint, on the basis of
evidence, the principles of banking law and
practice and RBI directions and guidelines. 44

45. • (i) Effect of award:
• Award shall be binding on a bank only if the
complainant sends acceptance, within 30 days
from the date of receipt of the Award.
• (ii) Implementation:
• Customer is to send acceptance of the award
within 30 days of date of receipt of the award.
• Bank is to implement the award within one
month from the date of receipt of the
acceptance from the complainant and intimate
compliance to the Banking Ombudsman.
45

46. •Appeal
• The customer can file an appeal to Appellate Authority
(Dr. Governor RBI) within 30 days of date of receipt of
Award (which could be extended by 30 days by
Appellate Authority).
• The appeal by banks should be filed with sanction of
the CMD/ED/CEO.
• For banks 30 days period for filling appeal begins from
date of receipt of customer's acceptance.
• The Appellate Authority may dismiss/allow the appeal;
OR set aside the Award; OR remand the matter to
Ombudsman for fresh disposal OR modify the Award
or pass any order as it may deem fit.
46

47. • Non-implementation of Awards
• Banks are to ensure that the Award are implemented
immediately.
• Banks are to place all the awards before the Customer
Service Committee to enable them to address issues of
systemic deficiencies existing in banks, if any, brought out
by the awards.
• Further, banks are to place all the awards remaining un
implemented for more than 3 months, before the
Customer Service Committee
• to enable the Committee to report to the bank’s board
such delays in implementation without valid reason and
for initiating necessary remedial action.
• Disclosure:
• Banks to disclose the information in its balance-sheets for
non-implementation of the award.
47

48. Further recourse available if one rejects the Banking
Ombudsman’s decision?
• Any person aggrieved by an Award issued or the
decision of the Banking Ombudsman rejecting the
complaint can approach the Appellate Authority.
• The Appellate Authority is vested with a Deputy
Governor of the RBI.
• Other recourse and/or remedies available to him/her
as per the law can also be explored.
• The bank also has the option to file an appeal before
the Appellate Authority under the Scheme.
48

49. •Ombudsman Scheme for Digital
Transactions, 2019 by RBI
• It is an expeditious and cost-free apex level
mechanism for resolution of complaints regarding
digital transactions undertaken by customers of
the System Participants as defined in the Scheme.
• The Ombudsman is a senior official appointed by
RBI
• As on date, 21 Ombudsman for Digital
Transactions have been appointed with their
offices located mostly in state capitals.
49

50. • the Ombudsman for Digital Transactions shall receive
and consider complaints against System Participants
• System Participant’ means any person other than a bank
participating in a payment system excluding a ‘System
Provider’
• Banks act as operators or participant in a payment
system.
• Banks are participants in
• (i) payment systems operated by RBI viz., RTGS and NEFT,
• (ii) systems operated by CCIL and NPCI, and
• (iii) in Card schemes.
• The directions are, therefore, applicable to all banks
operating in India. 50

51. • The RBI is targeting to roll out the Integrated
Ombudsman Scheme in 2021
• There are at present 3 dedicated ombudsman schemes
e.g.
1) Consumer Grievance Redressal in Banks,
2) OB for NBFCs
3) OB for Digital transactions,
• It has been decided to integrate the 3 Ombudsman
schemes and adopt ‘One Nation One Ombudsman’
approach
• to make the process of redress of grievances easier
• by enabling the customers of the banks, NBFCs and
Non-bank issuers of Prepaid Payment Instruments to
register their complaints under the integrated scheme,
with one centralized reference point,
•
51

52. • The RBI has also operationalized Complaint
Management System (CMS) portal as one stop
solution for alternate dispute resolution of
customer complaints not resolved satisfactorily by
the regulated entities.
• It is fully funded by the RBI and virtually covers all
banking transactions related grievances except
their business decisions like sanctioning of credit
etc.
52

53. •END OF THE SESSION
53

54. 54

55. 55

56. • 2) Details of Customer Rights:
• I. Right to Fair Treatment
• Both the customer and the Bank have a right to be treated
with courtesy.
• The customer should not be unfairly discriminated against
on grounds such as gender, age, religion, caste and
physical ability
• In pursuance of the above Right, bank will:
• i. Promote good and fair banking practices by setting
minimum standards in all dealings with the customers.
• ii. Promote a fair and equitable relationship between the
bank and the customer.
• iii. Train bank staff attending to the customers, adequately
and appropriately.
• iv. Ensure that staff members attend to customers and
their business promptly and courteously.
56

57. • v. Treat all customers fairly and not discriminate against
any customer on grounds such as gender, age, religion,
caste, literacy, economic status physical ability, etc..
• Bank may, however, have special schemes or products
which are specifically designed for members of a target
market group or may use defensible, commercially
acceptable economic rationale for customer
differentiation.
• Bank may also have schemes or products as part of an
affirmative action such as for women or backward
classes.
• Such schemes / products will not tantamount to unfair
discrimination.
• The rationale for such special schemes or terms will be
explained by bank wherever required.
57

58. • vi. Ensure that the above principle is applied while
offering all products and services.
• vii. Ensure that the products and services offered are
in accordance with relevant laws and regulations.
• While it shall be the endeavour of the bank to provide
their customers with hassle free and fair treatment,
bank would expect their customers to behave
courteously and honestly in their dealings with the
bank.
• It shall also be the bank’s endeavour to encourage
their customers to approach the bank’s internal
grievance redressal machinery and approach alternate
fora after exhausting all their remedies under bank’s
internal grievance mechanism. 58

59. • II. Right to Transparency, Fair and Honest Dealing
• Bank will make every effort to ensure that the contracts or
agreements it frames are transparent, easily understood by and
well communicated to, the common person.
• The product's price, the associated risks, the terms and conditions
that govern use over the product's life cycle and the
responsibilities of the customer and the Bank, will be clearly
disclosed.
• The customer will not be subject to unfair business or marketing
practices, coercive contractual terms or misleading
representations.
• Over the course of their relationship, the Bank will not threaten
the customer with physical harm, exert undue influence, or engage
in blatant harassment.
59

60. • In pursuance of the above Right, the bank will:
• i. Ensure complete transparency so that the customer can have
a better understanding of what he or she can reasonably / fairly
expect from the bank.
• ii. Ensure that the bank’s dealings with the customer rest on
ethical principles of equity, integrity and transparency.
• iii. Provide customers with clear information about its products
and services, terms and conditions, and the interest rates /
service charges in simple and easily understandable language,
and with sufficient information so that the customer could be
reasonably expected to make an appropriate and informed
choice of product.
60

61. • iv. Ensure that all terms and conditions are fair and set out the respective
rights, liabilities and obligations clearly and as far as possible in plain and
simple language;
• v) Make known the key risks associated with the product as well as any
features that may especially disadvantage the customer to him/her.
• Most Important Terms and Conditions(MITC) associated with the product
or service will be clearly brought to the notice of the customer while
offering the product. In general, it will be ensured that such terms will not
inhibit a customer’s future choice.
• vi. Provide information on interest rates, fees and charges either on the
Notice Board in the branches or website or through help-lines or help-
desk and where appropriate the customer will be informed directly.
• vii. Display the tariff schedule on the website and a copy of it will be
made available at every branch for customer’s perusal. Also will display in
its branches a notice about the availability of the Tariff Schedule at the
branch.
• viii. Give details, in their Tariff Schedule, of all charges, if any, applicable
to the products and services chosen by customer. 61

62. • ix. Inform the customer of any change in the terms and
conditions through a letter or Statement of Account, SMS
or email as agreed by the customer at least one month
prior to the revised terms and conditions becoming
effective.
• x. Ensure that such changes are made only with prospective
effect after giving notice of one month.
• If the bank will make any change without giving such notice
which is favourable to the customer, it will notify the
change within 30 days of such change.
• If the change is adverse to the customer, prior notice of
minimum 30 days will be provided and the customer may
be provided options, to close the account or switch to any
other eligible account without having to pay the revised
charge or interest within 60 days of such notice.
62

63. • xi. Provide information about the penalties leviable in case of
non-observance / breach of any of the terms and conditions
governing the product / services chosen by the customer.
• xii. Make every effort to ensure that staff dealing in a particular
product is properly trained to provide relevant information to
customers fully, correctly and honestly.
• xiii. Ensure to communicate to the applicant within a reasonable
time period as decided by the bank about the acceptance / non-
acceptance of applications submitted for availing a product /
service and convey in writing the reasons for not accepting /
declining the application.
• Such period will be notified in the bank’s website and also in the
application of the particular product or service.
• xiv. Communicate unambiguously the information about:
• a. Discontinuation of particular products,
• b. Relocation of their offices
• c. Changes in working hours
• d. Change in telephone numbers
63

64. • e. Closure of any office or branch with advance notice of at least 30
days.
• Affirms that disclosure of information is an on-going process through
the life-cycle of the product / relationship and will be diligently followed
by them.
• Ensure to use all possible channels of communication, including
website, to ensure that information on all changes is made known to
the customer upfront;
• xv. Advise the customer at the time of selling the product of the rights
and obligations embedded in law and/or banking regulation including
the need to report any critical incidents that the customer suspect,
discover or encounter.
• xvi. The bank’s staff members will, when approached by the customer
for availing a product or service, provide all relevant information related
to the product / service and also provide direction to informational
resources on similar products available in the market with a view to
enable the customer to make an informed decision. 64

65. • xvii. Not terminate a customer relationship without giving
reasonable or contractual prior notice to the customer.
• xviii. Assist the customer in all available ways for managing
his/her account, financial relationship by providing regular
inputs in the bank’s realms such as account
statements/passbooks, alerts, timely information about the
product’s performance, term deposits maturity etc.
• xix. Ensure that all marketing and promotional material is
clear and not misleading.
• xx. Not threaten the customer with physical harm, exert
influence or engage in behaviour that would reasonably be
construed as unwarranted harassment. Ensure adherence
only to the normal appropriate business practices.
• xxi. Ensure that the fees and charges on products/services and
its structure are not unreasonable to the customer.
65

66. • III. Right to Suitability
• The products offered will be appropriate to the needs of the customer and based
on an assessment of the customer’s financial circumstances and understanding.
• In pursuance of the above Right, the bank will:
• i. Ensure that it has a Board approved policy for assessing suitability of products
for customers prior to sale.
• ii. Endeavour to make sure that the product or service sold or offered is
appropriate to the customer's needs and not inappropriate to the customer’s
financial standing and understanding based on the assessment made by it. Such
assessment will be appropriately documented in its records.
• iii. Sell third party products only if it is authorized to do so, after putting in place a
Board approved policy for marketing and distributing third party financial
products.
• iv. Not compel a customer to subscribe to any third party products as a quid-pro-
quo forany service availed from the bank.
• v. Ensure that the products being sold or service being offered, including third
partyproducts, are in accordance with extant rules and regulations.
• vi. Inform the customer about his responsibility to promptly and honestly provide
allrelevant and reasonable information that is sought by bank to enable them to
determinethe suitability of the product to the customer.
66

67. • IV. Right to Privacy
• Customers’ personal information will be kept confidential unless they
have offered specific consent to the Bank or such information is
required to be provided under the law or it is provided for a
mandated business purpose (for example, to credit information
companies).
• The customer should be informed upfront about likely mandated
business purposes.
• Customers have the right to protection from all kinds of
communications, electronic or otherwise, which infringe upon their
privacy.
• In pursuance of the above Right, bank will:
• i. Treat customer's personal information as private and confidential
(even when the customer is no longer banking with us), and, as a
general rule, not disclose such information to any other
individual/institutions including it’s subsidiaries / associateship,
institutions etc. for any purpose unless: 67

68. • a. The customer has authorized such disclosure explicitly in
writing
• b. Disclosure is compelled by law / regulation
• c. Bank has a duty to the public to disclose i.e. in public interest
• d. Bank has to protect its interests through disclosure
• e. It is for a regulatory mandated business purpose such as
disclosure of default to credit information companies or debt
collection agencies.
• ii. Ensure such likely mandated disclosures be communicated
immediately to the customer in writing.
• iii. Will not use or share customer’s personal information for
marketing purpose, unless the customer has specifically
authorized it.
• Will adhere to Telecom Commercial Communications Customer
Preference Regulations,2010 (National Customer Preference
Registry) issued by Telecom Regulatory Authority of India, while
communicating with customers.
68

69. • V. Right to Grievance Redress and Compensation
• The customer has a right to hold the Bank accountable
for the products offered and to have a clear and easy
way to have any valid grievances redressed.
• The Bank will also facilitate redress of grievances
stemming from its sale of third party products. The
Bank will communicate its policy for compensating
mistakes, lapses in conduct, as well as non-
performance or delays in performance, whether
caused by the Bank or otherwise.
69

70. • The policy will lay out the rights and duties of the
customer when such events occur.
• In pursuance of the above Right, bank will:
• i. Deal sympathetically and expeditiously with all
things that go wrong.
• ii. Correct mistakes promptly.
• iii. Cancel any charge that has been applied wrongly
and by mistake
• iv. Compensate the customer for any direct financial
loss that might have been incurred by the customer
due to its lapses.
70

71. • The bank will also:
• i. Place in public domain its Customer Grievance Redressal
Policy, including the grievance redressal procedure available for
the customer.
• ii. Place in public domain the compensation policy for delays /
lapses in conducting /settling customer transactions within the
stipulated time and in accordance with the agreed terms of
contract.
• iii. Ensure to have a robust and responsive grievance redressal
procedure and clearly indicate the grievance resolution
authority who shall be approached by the customer.
• iv. Make grievance redressal mechanism easily accessible to
customers.
71

72. • v. Advise the customer about how to make a complaint, to
whom such a complaint is to bemade, when to expect a reply
and what to do if the customer is not satisfied with the
outcome.
• vi. Display name, address and contact details of the Grievance
Redressal Authority / Nodal Officer. The time limit for
resolution of complaints will be clearly displayed / accessible
at all service delivery locations.
• vii. Inform the complainant of the option to escalate his
complaint to the Banking Ombudsman if the complaint is not
redressed within the pre-set time.
• viii. Place in public domain information about Banking
Ombudsman Scheme.
• ix. Display at customer contact points the name and contact
details of the Banking Ombudsman under whose jurisdiction
the bank’s branch falls.
72

73. • Further, the bank will:
• i. Acknowledge all formal complaints (including complaints lodged through
electronic means) within three working days and work to resolve it within a
reasonable period, not exceeding 30 days (including the time for escalation
and examination of the complaint by the highest ranking internal official
responsible for grievance redressal).
• The 30 day period will be reckoned after all the necessary information sought
from the customer is received.
• ii. Provide aggrieved customers with the details of the Banking Ombudsman
Scheme for resolution of a complaint if the customer is not satisfied with the
resolution of a dispute, or with the outcome of a dispute handling process.
• iii. In addition, the bank will a) clearly spell out, at the time of establishing a
customer relationship, the liability for losses, as well as the rights and
responsibilities of all parties,
• in the event of products not performing as per specifications or things going
wrong.
• However, the bank will not be liable for any losses caused by extraneous
circumstances that are beyond its reasonable control (such as market changes,
performance of the product due to market variables, etc.). b) Ensure the
customer is refunded without delay and demur, if it cannot show beyond
reasonable doubt to the customer on any disputed transaction (along with
interest/charges). 73

74. • Citizen's Charter
• The Citizen’s Charter covers important information about our products,
facilities and services.
• Norms regarding time taken for banking transactions, policy on customer
information, and process of redressal of grievances.
1) Types Of Deposit Accounts
2) Account Opening & Operation Of Deposit Accounts
3) Nomination Facility
4) Interest Payments
5) Minor's Account
6) Account Of Illiterate / Blind Person
7) Addition Or Deletion Of Name/S Of Joint A/C Holders
8) Customer Information
9) Secrecy Of Customer's Accounts
10) Premature Withdrawal Of Term Deposit
11) Renewal Of Overdue Term Deposits
74

75. 75