Easier banking

THE recommendations of an expert panel set up by the Reserve Bank of India (RBI) are a much-needed booster dose to improve customer service in the banking sector, non-banking financial companies and other regulated institutions. Penal action has been proposed against entities failing to meet the standards, and rewards for those making systemic upgrades. Online settlement of claims by heirs of deceased account holders and flexibility for submission of life certificates by pensioners are among the slew of customer-centric initiatives listed in the report. Besides a centralised know-your-customer (KYC) database, it suggests that operations of accounts should not be stopped pending periodic KYC updates. A time limit has been sought for the return of property documents after the closure of the loan account, failing which a penalty should be imposed on the lender.

A key concern highlighted is the lack of enforcement action. The panel wants empowerment of the RBI ombudsmen to direct the regulated entities to review complaints, undertake corrective action and ensure compliance. The delay by call centres in resolving complaints and the templated responses are common grievances. A dedicated interactive voice response system flow has been suggested, along with an automated call-back feature when a call is dropped midway. The focus, the panel says, has to be on clear communication between the executives and customers, including in regional languages. Mandatory training in soft skills for the staff interacting with customers has been recommended.

Central banking regulators around the world emphasise the development of a ‘treating customers fairly’ framework. The report calls for making the Charter of Customer Rights enforceable after updating it, along with developing a customer service and protection index. The window for public feedback is open till July 7. It’s an opportunity to give informed inputs.