RBI’s Customer Service Quarterly Meetings

18th June, 2015

TO ALL THE MEMBERS

RBI’s Customer Service Quarterly Meetings

RBI’s  Master Circular on Customer Service in Banks  provides for an institutional framework for customer service whereby Banks are required to constitute a Customer Service Committee of the Board and include experts and representatives of customers as invitees which inter-alia  involves examination/review of the Awards being issued by Banking Ombudsman in respect of complaints relating to provision of banking services and address issues of systemic deficiencies existing in banks brought out by the Awards;  Besides banks are also required to set up Standing Committee to review the practice and procedures prevalent in the bank and take necessary corrective action on an ongoing basis and such a  committee would act as a bridge between the various departments of the bank and the Board / Customer Service Committee of the Board. Banks are further required to establish Customer Service Committee at branch level to encourage a formal channel of communication between the customers and the bank at the branch level. Besides these, each bank is expected to have a nodal department/official for customer service at H.O. and each Controlling Office with whom customers with grievances can approach at first instance and with whom the Banking Ombudsman and RBI can liaise. In addition to the above, supporting institutions such as :Banking Codes and Standards Boards of India  which sets minimum standards of banking practices member banks have to follow while they deal with individual customers. It provides protection to customers and explains how banks are expected to deal with customers in their day-to-day operations.

In pursuance of these objectives, RBI organizes a quarterly customer meeting which is to be held shortly for which members are requested send their suggestions/ problems, if any with respect to the following :

• Impact of policy hikes on interest rate regime and export credit
• Your bankers responsivness to reduction in key rates(CRR/ repo / reverse repo) and its impact on export credit.
• Pre and Post Shipment Credit-issues /availability and procedures
• Review of system of Collaterals & Guarantees
• Services, delegation of powers by the banks
• Impact of hedging / derivatives / forward contracts on profit margins
• Reduction in Spread Rate
• Transparency in Credit Rating System
• Reduction in decision making layers by proper delegation
• Penal Rate of Interest
• Flexible/Separate Financing Norms for SSIs/SMEs Sector, Export Sector and Infrastructure Sector
• Non implementation or partial implementation of RBI circulars / guidelines by bankers 
• Other issues related to : availability/working capital problems, appraisal procedures fol lowed by banks for new  start-ups/term loans, provisioning norms, impact of Basel III, NPA and rehabilitation & recent debt restructuring packages including SDR, re-financing issues, other issues related to securitization / new priority sector lending norms, etc.

Since FIEO is coordinating the Meeting, members are requested to kindly send their responses latest by 23^rd June, 2015 to FIEO at : priyasafaya@fieo.org; akshaydeep@fieo.org. with a CC to the Council.

V. ANIL KUMAR
EXECUTIVE DIRECTOR