RBI Committee for Review of Customer Service Standards

RBI Committee for Review of Customer Service Standards

Subject: Economy

Section: Monetary policy and Banking

RBI’s Committee for Review of Customer Service Standards has made several recommendations:

• Regulatory:
  • Creating a centralised database of KYC documents
  • Consolidating customer service regulations for all regulated entities.
  • Making the Charter of Customer Rights enforceable and extending it to NBFCs
  • Evaluate the reasonableness of charges levied by Regulated Entitites (REs) for the services offered.
  • Developing and publishing a ‘Customer Service and Protection Index’
  • RBI may ask Indian Banks’ Association (IBA) to create a fund to directly compensate banks’ internal ombudsmen to avoid conflicts of interest.
• Grievance Redressal:
  • Creating a Common portal for lodging and tracking
  • Strengthening banks’ grievance redressal mechanisms.
• Deposit safeguarding:
  • Extending the Deposit Insurance and Credit Guarantee Scheme to PPIs (prepaid payment instruments), as money in PPI wallets is in the nature of deposits and PPI issuers are also regulated by the RBI.
  • Examine whether Deposit Insurance and Credit Guarantee Corporation (DICGC) cover can be extended to bank PPIs and later to non-bank PPIs.
  • Mandating compulsory nomination in deposit accounts.
  • Making settlement of deceased claims online, defining a timeline for claims settlement beyond which higher interest may be applicable
• Other Measures:
  • Proposed that UPI transactions be kept outside the stipulated limits on debit savings account transactions
  • Use of digi-lockers be encouraged
  • Setting up a dedicated telephone helpline number be provided for senior citizens and differently-abled customers,
  • Standardisation of the ATM interface
  • Using Customer Relationship Management (CRM) technology to collect customer-related information
  • Banks take measures for fraud prevention.