Resolving bank service woes
In the modern marketplace, excellence in customer service is the most important tool for any business to flourish. Customer complaints can become the bane or boon of any business, depending on how they are tackled. This holds true for banks as well, given that they are service organisations.
Therefore, in order to protect customers’ rights, Banking Codes and Standards Board of India (BCSBI) formulates and prescribes codes to the banks. Member banks are committed to adhere to these codes and guide customers regarding the same. Unfortunately, according to data from The Annual Report by the Banking Ombudsman 2014-2015, complaints pertaining to nonobservance of fair practice codes amount to the largest, with about 29.2 per cent of total complaints received, followed by card-related complaints (21.3 per cent), pensions (6.8 per cent) and levy of charges without prior notice (6.5 per cent).
However, the relationship between a bank and its customer is one of trust, which is why a robust customer protection framework is indispensible. In its codes, BCSBI has laid down a comprehensive and structured grievance redressal mechanism that safeguards, empowers and protects the customer. However proper education of how customers can best utilise this is lacking, making the entire process counter-productive and more importantly, frustrating.
It is important to know that there is no issue too small or too big to be redressed; it could be something as simple as getting a torn note while performing an ATM transaction to something as significant as being charged excessively on one’s credit card. It is only when customers raise their issues in a constructive manner that they improve the individual banking experience and help enhance the system at large.
MANDATORY DISPLAY REQUIREMENTS
For facilitating the process of registering a complaint, the banking codes mandates that appropriate arrangements for receiving complaints and suggestions should be made by the bank. Every bank at each of its branches must display the following:
The name of the branch official as also contact details of the regional manager/nodal officer
Contact details of the banking ombudsman of the area
The Code of Bank’s Commitment to customers must be given to the customer when he opens an account with the bank. A copy of the code should also be available at the branch, if customer wishes to peruse.
YOUR BANK IS FIRST POINT OF CONTACT
For an effective and efficient grievance redressal system in any organisation, the redress action should be as close to the initial point where the grievance arises. Nearly all banks have a grievance redressal cell, so customers can visit their bank’s branch and meet the officials to resolve the problem or lodge complaint by calling tollfree customer care number or at the bank’s website.
WHAT IF GRIEVANCE IS NOT RESOLVED?
If the grievance was not resolved despite following all the procedures at the branch, one may approach the higher authorities of the bank. RBI has advised all public and private sector banks to appoint a Principal Nodal Officer. Once the complaint is lodged, the bank is expected to respond within 30 days with an appropriate response, or an alternative avenue for problem-resolution.
BANKING OMBUDSMAN FOR GRIEVANCE REDRESSAL
If the bank is unable to address the complaint within a month’s time, the customer can approach the Banking Ombudsman (BO) — a senior official appointed by the RBI to redress customer complaints against deficiency in banking services. The complaint needs to be filed at the office of the ombudsman under whose jurisdiction the bank branch is located. The contact details of BOs are available on RBI’s website and the entire process is free of cost.
However, the Ombudsman can reject a complaint if the customer has not approached the bank for grievance redressal first, or the complaint has been dealt with at any other forum, like a court of law or consumer court.
If the customer is not happy with the settlement offered by the Ombudsman, he can file an appeal with the appellate authority within 30 days of response from the Ombudsman. Alternatively, they can approach consumer redressal forums set up by the government which take up bank-related complaints.