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Banking Ombudsman Complaints profile

Profile of complaints in Banking
Ombudsman & customer services
in banks
I N S T I T U T E O F B U S I N E S S M A N A G E ...
Table of Contents:
1. Acknowledgement………………………………………………………..2
2. Executive summary…………………………………………………..…...3
3. Introduc...
First of all i would like to thank Reserve Bank of India to allow me to be a part
of such a reputed institution, This is...
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Banking Ombudsman Complaints profile

  1. 1. Profile of complaints in Banking Ombudsman & customer services in banks I N S T I T U T E O F B U S I N E S S M A N A G E M E N T ( I . B . M . ) C . S . J . M . K A N P U R U N I V E R S I T Y Under the guidance of: Shri D.C. Hansdah (DGM)RBI Kanpur Submitted by: Nitesh Gupta IBM(C.S.J.M.U.)
  2. 2. 1 Table of Contents: 1. Acknowledgement………………………………………………………..2 2. Executive summary…………………………………………………..…...3 3. Introduction………………………………………………………...….…4 4. Objectives of B.O. …………………………………………………….…..6 5. Receipt of Complaints…………………………………………………….10 6. Complain group wise classification……………………………………...14 7. Nature of complain handled………………………………….………......18 8. Disposal of complaints………………………………………….………...22 9. Award issued…………………………………………...……….………..27 10. Reasons for rejection of complaints…………………………….……......28 11. Complaints per officer…………………………………………..……….30 12. Cost of running the scheme………………………………………..……..32 13. Appeals against the decision of BOs………………………………..…….35 14. Complaints through CPGRAMS……………………………………..…....39 15. Customer service aspects……………………………………………..…..41 16. Deposits accounts……………………………………………………..…..42 17. Remittances……………………………………………………………......47 18. Loans & Advances………………………………………………………....48 19. Issues of customers in rural & semi urban areas…………………………53 20. Technology and customer service………………………………………...54 21. Customer education………………………………………………………60 22. Questionnaire on customer service in banks……………………………..62
  3. 3. 2 First of all i would like to thank Reserve Bank of India to allow me to be a part of such a reputed institution, This is an unforgettable achievement for me to have an opportunity to work on the project title –“ COMPLAIN PROFILE IN BANKING OMBUDSMAN AND CUSTOMER SERVICE IN BANKS ” I am very grateful to Shri Shekhar Bhatnagar, Honourable Regional Director of RBI Kanpur, and special thanks to Shri C. L. Nag (General Manager) who provided me this opportunity. I am highly indebted to Shri D.C. Hansdah (D.G.M.) for their guidance and constant supervision as well as for providing necessary information regarding the project. A special thanks to Shri A. K. Naskar who helped me directly or indirectly in my difficulties. And thanks to Shri Rajeev Kr Tripathi and Mrs. Maya Verma for helping my project & also for their support in completing the project. who have been a constant source of inspiration and encouragement to me. I would like to express my gratitude to respected Mrs. Vinita Saraswat (AM,HRMD) RBI KANPUR (for providing a moral support to me and who helped me a lot of in understanding the visit’s point and the entire staffs of R.B.I.
  4. 4. 3 Banking sector has become the core of almost all the monetary transaction that took place in the Country. In order to provide quick, inexpensive and expedite settlement of customer's complaints, the Reserve Bank introduced Banking Ombudsman Scheme since June 1995 under the provisions of Section 35 of Banking Regulation Act, 1949. The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services. The Banking Ombudsman is appointed by the RBI under the Banking Ombudsman Scheme,1995 for redressing the grievances of members of the public.
  5. 5. 4 INTRODUCTION; In India Banking Ombudsman scheme was introduced in 1995. The scheme was introduced by the Reserve Bank of India to provide expeditious and inexpensive forum to bank customersfor resolution to their complaints relating to deficiency in banking services. The scheme has been brought into force by way of direction issued by the Reserve Bank in term of section 35A of the Banking Regulation act, 1949. Section 35A of the said statue lies down as follows; In the wake of the failure in the efficient services of the banks, The RBI brought a scheme for the prompt, efficient and courteous services and also to protect the rights of the customer. It covers all kinds of banks – PSU Banks, Private Banks, Rural banks and co- operative banks. Even though, it was originally setup in 1995, there were major revisions in 2006 covering transactions related to complaints of ATM cards, debit cards and credit cards, deduction of service charges by banks without prior intimation, unfair practices of banks and non-compliance by
  6. 6. 5 direct sales agents (DSA) of banks for services promised while opening an account etc. It was last amended in Feb, 2009 to cover deficiencies arising out of internet banking too. CHARACTERISTICS OF THE BANKING OMBUDSMAN: 1. The Banking Ombudsman is a quasi judicial authority. It has power to summon both the parties- bank and customer, to facilitate resolution of complaint through mediation. 2. All scheduled commercial banks, regional rural bank and scheduled primary co-operative banks are covered under the scheme. 3. The Banking Ombudsman has power to consider complaints from non- resident Indians having accounts in India in relation to their remittance from abroad, deposits and other bank related matters. 4. The Banking Ombudsman does not charge any fee for resolving customer’s complaints. No complaint can be made before a Banking Ombudsman on the same subject matter for which any proceeding before any court, tribunal or arbitrator or any other forum is pending or a decree or award or a final order, has already been passed by any such competent court, tribunal, arbitrator or forum. The Banking Ombudsman Scheme 2006 has been introduced by Reserve Bank of India with the object of enabling resolution of complaints relating to certain services rendered by banks and to facilitate the satisfaction or settlement of such complaints.
  7. 7. 6 OF BANKING OMBUDSMAN: The scheme is introduced with the object of enabling resolution of complaints relating to certain services rendered by banks and to facilitate the satisfaction or settlement of such complaints. GROUP OF COMPLAINT: When complains are register in banking ombudsman office then at first is categories:  MAINTAINABLE  NON MAINTAINABLE Maintainable and Non Maintainable is categories depending upon the grounds of complain: These are follows:  Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.  Non-payment or delay in payment of inward remittances.  Non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof.  Non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof.
  8. 8. 7  Failure to issue or delay in issue of drafts, pay orders or bankers’ cheques.  Non-adherence to prescribed working hours.  Failure to honour guarantee or letter of credit commitments.  Failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents.  Delays, non-credit of proceeds to parties' accounts, non-payment of deposit or non-observance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings, current or other account maintained with a bank.  Delays in receipt of export proceeds, handling of export bills, collection of bills etc., for exporters provided the said complaints pertain to the bank's operations in India.  Complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank related matters.  Refusal to open deposit accounts without any valid reason for refusal.  Levying of charges without adequate prior notice to the customer.
  9. 9. 8  Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/Debit card operations or credit card operations.  Non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees).  Refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government.  Refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities.  Forced closure of deposit accounts without due notice or without sufficient reason.  Refusal to close or delay in closing the accounts.  Non-adherence to the fair practices code as adopted by the bank.  Any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services. PROCEDURE FOR FILING COMPLAINT :  Any person who has a grievance against a bank on any one or more of the grounds mentioned above, may, himself or through his authorised representative (other than an advocate), make a complaint to the Banking Ombudsman within whose jurisdiction the branch or office of the bank complained against is located.  Complaints arising out of the operations of credit cards, shall be filed before the Banking Ombudsman within whose territorial jurisdiction the billing address of the card holder is located and not the place where the bank concerned or the credit card processing unit is located.
  10. 10. 9  The complaint shall be made in writing duly signed by the complainant or his authorized representative and shall as far as possible be in the form and shall contain such particulars as specify in the Scheme.  The complainant shall file along with the complaint, copies of the documents, if any, which he proposes to rely upon and also a declaration that the complaint is maintainable as per clause 9(3) of the Scheme..  A complaint can also be made through electronic means.  The complainant shall before making a complaint to the Banking Ombudsman, make a written representation to the bank.  The complaint can be filed if the bank has rejected the complaint or the complainant had not received any reply within a period of one month after the bank received his representation or if the complainant is not satisfied with the reply given to him by the bank.  The complaint to the Banking Ombudsman is to be made not later than one year after the complainant has received the reply of the bank to his representation or, where no reply is received, not later than one year and one month after the date of the representation to the bank.  The complaint should not be in respect of the same subject matter which was settled or dealt with on merits by the Banking Ombudsman in any previous proceedings whether or not received from the same complainant or along with one or more complainants or one or more of the parties concerned with the subject matter.  The complaint should not pertain to the same subject matter, for which any proceedings before any court, tribunal or arbitrator or any other forum is pending or a decree or Award or order has been passed by any such court, tribunal, arbitrator or forum.  The complaint should not be frivolous or vexatious in nature.
  11. 11. 10  The complaint should be made before the expiry of the period of limitation prescribed under the Indian Limitation Act, 1963 for such claims. Receipt of Complaints : Fifteen OBOs covering 29 States and 7 Union Territories, handle the complaints received from bank customers on deficiency in banking services under the various grounds of complaints specified in the BOS. During the year 2012-13, OBOs received 70541 complaints. Comparative position of complaints received during the last three years in given in table. Number of complaints received by the OBOs 2010-11 2011-12 2012-13 No. of OBOs 15 15 15 Complaints received during the year 71274 72889 70541
  12. 12. 11 During the year 2011-12 there was an increase of 2% in the number of complaints received over the previous year, whereas in 2012-13 there was a decline of 3% in receipt of complaints compared to previous year. OBO-wise receipt of complaints : OBO-wise position of complaints received during the last three years is given. OBO-wise receipt of complaints OBO No. of complaints received during % change in 2012- 13 over 2011-12 % to total complaints 2010-11 2011-12 2012-13 Ahmadabad 5190 4590 4838 5.40 6.86 Bangalore 3470 3486 3318 -4.82 4.70 Bhopal 5210 5953 4920 -17.35 6.97 Bhubaneswar 1124 1826 1523 -16.59 2.16
  13. 13. 12 Chandigarh 3559 3521 3094 -12.13 4.39 Chennai 7668 6614 7255 9.69 10.28 Guwahati 584 708 807 13.98 1.14 Hyderabad 5012 5167 4303 -16.72 6.10 Jaipur 3512 4209 4099 -2.61 5.81 Kanpur 8319 9633 9012 -6.45 12.78 Kolkata 5192 4838 4388 -9.30 6.22 Mumbai 7566 7905 8607 8.88 12.20 New Delhi 10508 9180 9444 2.88 13.39 Patna 2283 2718 2785 2.47 3.95 Thiruvananthapuram 2077 2541 2148 -15.47 3.05 Total 71274 72889 70541 -3% OBO New Delhi, Kanpur, Mumbai & Chennai were the four OBOs which received more than five thousand complaints against banks. These four OBOs accounted for almost 50% of the complaints received by all OBOs.
  14. 14. 13 OBO Ahmadabad, Chennai, Guwahati, Mumbai, New Delhi and Patna recorded increase in complaints received whereas OBO Bangalore, Bhopal, Bhubaneswar, Chandigarh, Hyderabad, Jaipur, Kanpur, Kolkata and Thiruvananthapuram recorded a decline in receipt of complaints over the previous year.On an average, each OBO received 4702 complaints during the year. Receipt of complaints Mode-wise : OBOs receive complaints through diverse modes such as online, e-mails, Fax, couriers, registered / ordinary posts, hand delivery. Comparative position of complaints received through different modes during the last three years is indicated in. Receipt of complaints Mode-wise Mode No. of Complaints received during 2010-11 2011-12 2012-13 Email 9736 9499 11381 (14%) (13%) (16%) On line 9265 10026 8160 (13%) (14%) (12%) Post/Fax/Courier 52273 53364 51000 (73%) (73%) (72%) Total 71274 72889 70541
  15. 15. 14 Post/Fax/Courier continued to remain a popular mode of lodging complaints with OBOs with 72% of total complaints received through this mode. Electronic mode was preferred by 28% of the complainants. As compared to last year, there was a marginal increase of 1% in complaints received through electronic mode. Complainant group-wise classification : Continuing with the past trend, majority of the complaints received during the year were from individuals. Break-up of complaints received from various segments of society is given in table.
  16. 16. 15 Complainant group-wise classification Complainant Group Complaints Received 2010-11 2011-12 2012-13 Individual 63064 66279 65808 (89%) (91%) (93%) Individual- Business 2739 2635 2245 (4%) (4%) (3%) Proprietorship/Partnership 306 253 227 (0.5%) (0.3%) (0.3%) Limited Company 901 690 628 (1%) (1%) (1%) Trust 224 150 213 (0.3%) (0.2%) (0.3%) Association 667 461 325 (0.9%) (0.6%) (0.6%) Government Department 523 521 390 (0.7%) (0.7%) (0.5%) PSU 120 80 222 (0.1%) (0.1%) (0.6%) Others 2730 1820 483 (4%) (2%) (0.7%)
  17. 17. 16 TOTAL 71274 72889 70541 (*Figures in bracket indicate %age to total complaints of respective years.) Bank group-wise classification Bank Group No of Complaints Received During 2010-11 2011-12 2012-13 Nationalized Banks 20417 22326 21609 (29%) (31%) (31%)
  18. 18. 17 Bank group-wise classification : Bank-group-wise classification of complaints received by OBOs is indicated in the table and graphical presentation thereof is shown in table. SBI & Associates 22307 25848 23134 (31%) (35%) (33%) Private Sector Banks 17122 15090 15653 (24%) (21%) (22%) Foreign Banks 7081 5068 4859 (10%) (7%) (7%) RRBs/ Scheduled Primary Urban Co-op. Banks 1130 1439 1489 (2%) (2%) (2%) Others 3217 3118 3797 (4%) (4%) (5%) Total 71274 72889 70541
  19. 19. 18 It may be seen that the highest number of complaints (33%) were received against SBI group followed by other nationalized banks (31%), Private Sector banks (22%) and foreign banks (7%). Compared to last years, there was a fall of 2% in complaints against SBI & Associates, whereas, complaints against Private Sector banks increased by 1%. The detailed bank-wise (Scheduled Commercial banks) and complaint category-wise break-up of complaints received in the year 2012 - 13 is given in. Nature of Complaints Handled : There are 27 grounds of complaints against deficiency in banking services specified under Clause 8 of BOS 2006 for which complaints can be lodged
  20. 20. 19 with the OBO. Complaints received under these grounds are broadly categorized into major heads indicated in the below. Category-wise distribution of complaints Complaint Category No of complaints received 2010-11 2011-12 2012-13 Deposit accounts 1727 8713 3913 (2%) (12%) (6%) Remittances 4216 3928 2664 (6%) (5%) (4%) Card Related (ATM/ Debit / Credit Card) 17116 14492 17867 (24%) (21%) (25%) Loans and advances 4564 6016 5996 (6%) (8%) (9%) Levy of Charges without prior notice 4149 3806 3817 (6%) (5%) (5%) Pension Payments 5927 5944 5740 (8%) (8%) (8%) Failure to meet commitments /Non observance of fair practices code/BCSBI Codes 16,302 18365 18130 (23%) (25%) (26%) DSAs and recovery agents 1722 459 351 (2%) (1%) (0.8%) Notes and coins 146 165 56
  21. 21. 20 (0.2%) (0.2) (0.2%) Others 7201 7327 8635 (10%) (10%) (12%) Out of Subject 8204 3674 3372 (11%) (5%) (5%) Total 71,274 72889 70541 (Figures in bracket indicate %age to total complaints of respective years.) Complaints pertaining to failure to meet commitments / non observance of fair practices code / BCSBI Codes were a major ground of complaint with 18130 complaints constituting 26% of the complaints received. There was a decline of 1% in complaints received on this ground over the previous year. A large volume of complaints on this ground indicates lack of awareness about
  22. 22. 21 these Codes among bank staff as also the customers. Banks need to devote special attention to this aspect and provide ongoing training to their staff on the Codes. With 25% of the total complaints received, Card related complaints was the second largest ground of complaint recording increase of 23% over these complaints received during the last year. Out of total 17867 card complaints 10123 complaints were pertaining to ATM/Debit Cards. Broadly, the reasons for these card-related complaints are; issue of unsolicited cards, sale of unsolicited insurance policies and recovery of premium, charging of annual fee in spite of being offered as 'free' card, authorization of loans over phone, wrong billing, settlement offers conveyed telephonically, non-settlement of insurance claims after the demise of the card holder, excessive charges, wrong debits to account, non-dispensation/short dispensation of cash from ATM, skimming of cards. Loans and Advances, pension payments, deposit accounts, levy of charges without prior notice were other major source of complaints. In Loans and Advances, complaints were mainly related to non-sanction/delay in sanction of educational loans, charging of excessive rate of interest, non-return of Registration Certificate in case of vehicle loans, non-issuance of No-Due Certificate, non-return of title deeds of properties pledged, wrong reporting to CIBIL, etc.
  23. 23. 22 Complaints related to pension though remained static at 8% over last three years, still this is a major area of grievance. These complaints were mainly regarding delayed payments, errors in calculations, difficulties in switching over to family pension. Non-maintenance of minimum Average Quarterly Balance (AQB) in savings and current accounts, renewal charges, processing fees and pre-payment penalties in loan accounts, cheque collection charges were some of the reasons for complaints pertaining to levy of charges without prior notice. Disposal of Complaints : Below indicate a comparative position of disposal of complaints by OBOs. During the year 2012-13, OBOs handled 75183 complaints. This, comprised of 4642 complaints brought forward from the previous year and 70541 fresh complaints received during the year under review. Of these, 69704 complaints (93%) were disposed of during the year 2012-13. Comparative position of disposal of complaints by OBOs Number of complaints Year 2010-11 2011-12 2012-13 Received during the year 71274 72889 70541 Brought forward from previous year 5364 4618 4642 Handled during the year 76,638 77507 75183
  24. 24. 23 Disposed of during the year 72,020 72865 69704 Rate of Disposal (%) 94% 94% 93% Carried forward to the next year 4618 4642 5479 BO office wise position of complaints disposed during the year 2012-13 is indicated below: BO office wise position of complaints disposed during 2012-13: OBO Complaints pending at the beginning of the Year Complaints Received during the Year Complai nts handled Complai nts Disposed Pending at the end of the year Rate of Disposal (%) Ahmedabad 64 4838 4902 4830 72 99% Bangalore 86 3318 3404 3307 97 97% Bhopal 397 4920 5317 5034 283 95%
  25. 25. 24 Classification of complaints- Maintainable / Non Maintainable : The complaints which do not pertain to grounds of complaint specified in the BOS and those complaints where procedure for filing the complaint laid down in the BOS is not followed are classified as non-maintainable. Table indicates classification of complaints disposed by all the OBOs during the last three years. Of the 69704 complaints disposed during the year 2012- 13, 56% complaints were maintainable. Bhubaneswar 40 1523 1563 1495 68 96% Chandigarh 273 3094 3367 2994 373 89% Chennai 419 7255 7674 7021 653 91% Guwahati 26 807 833 751 82 90% Hyderabad 377 4303 4680 4112 568 88% Jaipur 127 4099 4226 4146 80 98% Kanpur 539 9012 9551 8780 771 92% Kolkata 710 4388 5098 4633 465 91% Mumbai 676 8607 9283 8628 655 93% New Delhi 660 9444 10104 9013 1091 89% Patna 102 2785 2887 2790 97 97% Thiruvanantha puram 146 2148 2294 2170 124 95% Total 4642 70541 75183 69704 5479 93%
  26. 26. 25 Classification of complaints disposed Maintainable / Non-maintainable 2010-11 2011-12 2012-13 Complaints Disposed 72021 72885 69704 Maintainable 35499 37455 39400 (49%) (51%) (56%) Non-maintainable 36522 35430 30304 (51%) (49%) (44%) Over last three years, percentage of maintainable complaints has increased gradually from 49% in 2010-11 to 56% in 2012-13. This indicates increasing awareness about the applicability of the BOS among bank customers. Mode of disposal of maintainable complaints : Thrust of the BOS is redress of grievance by reconciliation and mediation. Where both the parties do not come to settlement despite BO’s mediation, the
  27. 27. 26 BO resorts to passing an Award. below indicate the mode of disposal of Maintainable complaints. Mode of disposal of maintainable complaints Disposal of Maintainable Complaints 2010-11 2011-12 2012-13 By Mutual Settlement 21269 20092 19883 (60%) (54%) (50%) Disposal by Award 278 327 312 (1%) (1%) (1%) Maintainable Complaints rejected/withdrawn 13952 16946 19205 (39%) (45%) (49%) Total maintainable complaints disposed 35499 37365 39400
  28. 28. 27 Of the total maintainable complaints, 50% complaints were resolved by mutual settlement. Awards were passed in 1% of the cases, whereas 49% of the complaints were rejected/withdrawn (118). Maintainable complaints are rejected on account of reasons such as out of pecuniary jurisdiction of the BO, requiring consideration of elaborate documentary and oral evidence and the proceedings before the Banking Ombudsman are not appropriate for adjudication of such complaint, without sufficient cause, no loss or damage or inconvenience caused to the complainant. Concerted efforts to increase awareness about these issues are being made by the OBOs to reduce the proportion of complaints getting rejected. Awards Issued: During the year BOs issued 312 Awards. OBO-wise position of Awards issued during the year 2012-13 is indicated in Table. BO office wise position of Awards issued during the year 2012-13: OBO Awards Issued Ahmedabad 4 Bangalore 0 Bhopal 0 Bhubaneswar 4 Chandigarh 0 Chennai 2
  29. 29. 28 Guwahati 6 Hyderabad 63 Jaipur 69 Kanpur 87 Kolkata 33 Mumbai 22 New Delhi 18 Patna 2 Thiruvananthapuram 2 Total 312 Non-Maintainable complaints : Non-maintainable complaints include first Resort complaints, subject matter of the complaint outside the scheme, complaints outside the BO jurisdiction, complaints against entities other than banks, time-barred, pending in Courts/other foram, frivolous complaints etc. In all such cases the complainant is advised about the reason for his complaint being not processed under the BOS. During the year 2012-13, 44% of the complaints received were non- maintainable. However, over the last three years, this percentage has come down from 51% to 44%. Reasons for rejection of complaints: Below indicates the number of complaints rejected for various reasons.
  30. 30. 29 Table 13 - Reasons for rejection of complaints Reasons 2010-11 2011-12 2011-12 First resort complaints 16755 14352 8660 (23.51%) (19.69%) (12.28%) Time barred complaints 874 778 683 (1.23%) (1.07%) (0.97%) Complaints dealt earlier 2633 2771 2634 (3.69%) (3.80%) (3.73%) Complaints pending in other foram 886 705 955 (1.24%) (0.97%) (1.35%) Frivolous complaints 99 32 31 (0.14%) (0.04%) (0.04%) Incomplete address, beyond pecuniary jurisdiction, pertaining to other institutions/ departments, miscellaneous unrelated complaints, etc 5162 3144 3039 (7.24%) (4.31%) (4.31%) Complaints without sufficient cause 5447 5268 4705 (7.64%) (7.23%) (6.67%) Not pursued by the complainants 219 62 55 (0.31%) (0.09%) (0.08%) Complicated requiring elaborate evidence 4441 4328 5340 (6.23%) (5.94%) (7.57%) No loss to the complainants 254 43 44 (0.36%) (0.06%) (0.06) Complaints Not on Grounds of Complaints (Clause 8 or sub-clause (3) of clause 9 of the Scheme 10866 17867 19217 (15.25%) (24.51%) (27.24%)
  31. 31. 30 Outside territorial limits of BO 2838 3026 4028 (3.98%) (4.15%) (5.71%) Total Rejected Complaints (Maintainable & Non-maintainable) 50474 52376 49391 Total Complaints Received 71274 72889 70541 (Figures in bracket indicate %age to total complaints received of respective years.) Complaints per officer : Table and chart below indicate complaints 'per officer' in respective OBOs.
  32. 32. 31 Complaints per officer Office 2010-11 2011-12 2012-13 No. of comp laints recei ved No. of officers No. of comp laints per office r No. of comp laints recei ved No. of offic ers No. of compl aints per officer No. of complai nts received No. of offi cers No. of complaints per officer Ahmedabad 5190 13 399 4624 11 420 4838 13 372 Bangalore 3470 12 289 3562 12 297 3318 13 255 Bhopal 5210 9 579 5874 9 653 4920 9 547 Bhubanesw ar 1124 5 224 1819 5 364 1523 4 381 Chandigarh 3559 10 356 3534 10 353 3094 6 516 Chennai 7668 15 511 6458 13 497 7255 14 518 Guwahati 584 5 117 722 4 181 807 3 269 Hyderabad 5012 14 358 5107 11 464 4303 6 717 Jaipur 3512 11 319 4444 7 635 4099 12 342 Kanpur 8319 17 489 9713 17 571 9012 17 530 Kolkata 5192 15 346 4606 15 307 4388 17 258 Mumbai 7566 14 540 7650 14 546 8607 15 574 New Delhi 1050 8 17 618 9583 22 436 9444 17 556 Patna 2283 4 570 2718 4 680 2785 4 696
  33. 33. 32 Thiruvanan thapuram 2077 6 346 2471 6 412 2148 7 307 All India 7127 4 167 427 7288 9 160 454 70541 157 449 On an average each officer in the OBOs received 449 complaints this year. Cost of Running the Scheme : Total expenditure incurred for running the BOS is fully borne by the RBI. The cost includes the revenue expenditure and capital expenditure incurred on administration of the BOS. The revenue expenditure includes establishment items like salary and allowances of the staff attached to OBOs and non-
  34. 34. 33 establishment items such as rent, taxes, insurance, law charges, postage and telegram charges, printing and stationery expenses, publicity expenses, depreciation and other miscellaneous items. The capital expenditure items include furniture, electrical installations, computers/related equipment, telecommunication equipment and motor vehicle. Cost of handling complaints at OBOs 2010-11 2011-12 2012-13 Total Cost (Rs Millions) 261 281 315 Complaints Received 72021 72889 70541 Average Cost of handling a Complaint (in Rs.) 3619 3858 4468 During the last three years the aggregate cost of running the BOS has increased from Rs. 261 millions in 2010-11 to Rs. 315 millions in 2012-13. Average cost of handling a complaint has increased from Rs. 3619 to Rs. 4468 per complaint during this period.
  35. 35. 34 BO Office wise 'Per-Complaint Cost’ for the year 2012-13 is given in OBO wise 'Per-Complaint Cost’ for the year 2012-13 OBO Per Complaint Cost Ahmedabad 5140 Bangalore 5907 Bhopal 3555 Bhubaneswar 7551 Chandigarh 4056 Chennai 3534 Guwahati 19327 Hyderabad 3463 Jaipur 5727
  36. 36. 35 Kanpur 3443 Kolkata 5388 Mumbai 3804 New Delhi 3479 Patna 5706 Thiruvananthapuram 6251 Average Per Complaint Cost 4468 Appeals against the Decisions of the BOs : The complainants as well as banks have the option of appeal against the decision of the BO for cases closed under certain clauses of the BOS 2006. All such appeals are classified as maintainable appeals as per the enabling provisions of clause 14 of the BOS 2006. The Deputy Governor in charge of the department of RBI administering the Scheme (Customer Service Department) is the Appellate Authority. The secretarial assistance to the Appellate Authority is provided by the Customer Service Department of the RBI. The department also receives representations against decisions of the BOs, that are not appealable as per the extant provisions of the BOS 2006. These representations are also processed in the department. Below indicate the consolidated data of appeals/representations.
  37. 37. 36 Position of appeals / representations Particulars No. of Appeals/ representations 2010-11 2011-12 2012-13 Brought forward from previous year 34 0 13 Received from complainants 93 314 338 Received from banks 40 37 22 Total received during the year 133 351 360 Handled during the year 167 351 373 Disposed during the year 167 338 357 Pending at the end of the year Break Up Of Disposal 0 13 16 (4%) (4%) Remanded to the BO by AA 9 0 5 (5%) (1%) Withdrawn / settled 32 1 9 (19%) (0%) (3%) Rejected by AA 71 327 337 (43%) (97%) (94%) Allowed by AA 55 10 6 (33%) (3%) (2%) Disposed during the year 167 338 357
  38. 38. 37 (100%) (96%) (96%) Pending at the end of the year 0 13 16 (4%) (4%) Pending for less than 1 month 0 2 - Pending for I month – 2 months 0 3 - Pending for Two- three months 0 3 5 Pending for More than 3 months 0 5 11 During the year 360 appeals/representations were received out of which, fifty two were maintainable as per the provisions of clause 14 of the BOS and 308 were representations pertaining to complaints closed under the non- appellable clauses of the Scheme. Position of disposal of maintainable appeals during the year 2012-13 is as under: No of maintainable appeals received during 2012-13 52 Appeals by customers 30 Appeals by banks 22 Disposed during the year 36 In favour of customers: 18 18 In favour of banks: 18 18 Pending at the end of the year 16
  39. 39. 38 Out of thirty six appeals disposed during the year, in five cases BO's decision was set aside. All the 321 representations arising out of complaints closed under non-appealable clauses of the Scheme were disposed during the year. The OBO wise position of appeals/representations for the year 2012-13 is given in the OBO wise position of appeals/representations received during the year 2012-13 OBO Appeals/representations received (2012-13) Ahmedabad 14 Bangalore 14 Bhopal 13 Bhubaneswar 16 Chandigarh 6 Chennai 22
  40. 40. 39 Guwahati 6 Hyderabad 40 Jaipur 27 Kanpur 43 Kolkata 26 Mumbai 40 New Delhi 70 Patna 13 Thiruvananthapuram 10 Total 360 Complaints received through Centralized Public Grievance Redress and Monitoring System (CPGRAMS) : CPGRAMS is a web based application developed by the Department of Administrative Reforms and Public Grievances of Government of India for receipt of complaints from public. Customer Service Department is the Nodal Office for RBI for this portal. 15 OBOs are sub-ordinate offices which receive complaints forwarded by the Government of India through this portal.
  41. 41. 40 Position of Complaints received through CPGRAMS (2012-13) OBO Complaints received Complaints Disposed Pending Ahmedabad 92 92 0 Bangalore 106 105 1 Bhopal 100 99 1 Bhubaneswar 42 42 0 Chandigarh 126 124 2 Chennai 161 149 12 Guwahati 11 10 1 Hyderabad 112 110 2 Jaipur 99 99 0 Kanpur 227 224 3 Kolkata 123 121 2 Mumbai 547 477 70 New Delhi 372 364 8 Patna 35 33 2 Thiruvananthapuram 47 46 1 Total 2200 2095 105
  42. 42. 41 CUSTOMER SERVICE ASPECTS The aspect of customer service is embedded in all the banking transactions and the feedback received by the Committee from various stakeholders was pertaining to various subjects covering the entire spectrum of banking. It is, therefore, important that every approach to customer care or related aspects must be judiciously weighed for its pros and cons. The Committee, in its interaction with the various stakeholders (during the formal or informal meetings), found that the mandatory RBI Guidelines related to customer service and the voluntary Codes of Commitment of BCSBI were not followed in letter and spirit. In short, the necessary / minimum degree of customer focus was absent to label banks as customer centric organisations. In this report, the same are presented under the following eight major groups: i. Deposit Accounts ii. Loans and Advances iii. Remittances and other Facilities iv. Special Customers v. Institutional Arrangements vi. Customer Education vii. Comprehensive Banking Regulation viii. Other Aspects
  43. 43. 42 DEPOSIT ACCOUNTS Bundling of products - Product proliferation and an emphasis on incremental growth in fee-based income have prompted many banks to develop and market a bundle of products as one package, not necessarily in a homogenous way. The pricing of products and services in a bundling approach may not necessarily serve the best interest of the customers who need only basic banking services. The Committee felt that there was no principle of reasonableness in sale / delivery of such a bundled product to all customers. The same was like selling a single flower, or a bunch of flowers or may be a bouquet at the same price / way, irrespective of customer’s needs. Pass Book / Statement of Accounts - The Committee had observed the following aspects regarding the issuance of the passbooks or statement of accounts:  It has been observed that the Pass Book / Statement of Accounts did not indicate the account number, name, address and ID of the customer, MICR Code, IFSC Code, Toll free Customer Care number, Banking Ombudsman contact details etc.  Only some banks had implemented the process of sending digitally signed e-mail statements to the customers.
  44. 44. 43  Some customers had also complained that the passbook printing was not appropriate as the contents were not readable with inappropriate font size and undefined acronyms used.  The name of the payee as well as instrument number in case of debit entries and the name of payee bank / drawer of instrument as well as instrument number in case of credit entries were also not provided by the banks in the pass books / statement of accounts. Inoperative Accounts - Interactions with customers revealed that the customers have to face a lot of difficulties due to accounts being frozen by banks unilaterally as inoperative without prior intimation or attempts to contact the account holder. The extant guidelines of RBI in this regard are quite clear and banks need to ensure strict compliance to these. Before marking the account as inoperative, banks must intimate the account holder by SMS and send a mail. Minimum Balance - The Committee came across many complaints about penal charges deducted without intimation by banks for non-maintenance of minimum balance in the account. The Committee is of the view that banks should inform the customer immediately on the balance in the account breaching minimum balance and the applicable penal charges for not maintaining the balance by SMS/e-mail/letter.
  45. 45. 44 Basic Savings Bank Account - Currently, most of the payments under various Government programmes like MGNREGS are being gradually routed through the bank accounts. The same had made it necessary that the general public have an access to a basic savings bank account. However, the Committee observed that restrictions like non-availability of a cheque book under ‘No Frills Account’ are acting as impediments. Further, the Committee felt that the same has impacted the customers from both the sides as the Government had made account opening mandatory in some of the payments. Uniform Account Opening Forms - Customer relocation is a situation very common these days and this necessitates opening of accounts with multiple banks at different locations. The procedure followed by the banks and the formats for opening of accounts differ from bank to bank. Absence of a common format / document would cause avoidable inconvenience to the customer. Uniform Know Your Customer (KYC) Norms - The customers complained that KYC compliance norms were not uniform across all banks and the customers had also highlighted that for an existing customer also, KYC documents were sought when opening fresh Term Deposit accounts. Customers also felt the need for common KYC documentation that would serve them across banks.
  46. 46. 45 No Frills Accounts - The present guidelines for opening of No Frills accounts need to be further simplified to enable rapid financial inclusion. The poorer sections of people, migrants etc., with whom the Committee interacted in different places in the country desired a simple account which can be opened with a self attested photograph and address proof. This account may be upgraded to a basic account if the customer fulfills KYC requirements. Linking Terms and Conditions of various Products to CBS - The Committee had come across several cases of Senior Citizen Deposits or HUF/PPF accounts being opened and interest not being paid after the closure of the scheme. The Committee felt that without timely prior intimation of discontinuance of the existing Scheme, the customer cannot be denied interest in such cases. Term Deposits - A perusal of maturities offered by the various banks revealed a confusing trend with some banks offering deposits for maturities of 390, 499, 510 and various numbers of days, making it difficult for the customers to compare rationally the actual rates of interest offered and also understand the logic of such offerings. As financial product offerings are based on cost of funds, asset and liability management, risk etc., the offerings need to be objective and transparent. And, the customers should have the confidence created by a close regulatory oversight on such issues
  47. 47. 46 Service Charges - The Committee had observed the following on the issue of service charges:  Charges for Basic Service - Reserve Bank of India had identified 27 basic banking services and advised banks to ensure that these are made available to the users at reasonable prices/charges. However, the aspect of defining what was reasonable was not defined and was left to banks’ discretion or interpretation  Charges on Non-Home Branch Transactions - The Committee has observed a general discontent among all the strata of customers about charges levied by banks for getting certain services at non-home branches like pass-book updation, cash deposits etc. Customers feel that under CBS environment, these charges are not justified.  Ledger Folio Charges - It was a normal practice in a ledger based environment to charge ledger folio charges as manual work was involved in transcribing information from one ledger folio to another. It is common knowledge that in CBS environment, ledgers and their folios are not present and hence, the customers find levy of this charge in a CBS environment as illogical. TDS Certificates - The customer complaints also revealed that the certificates issued towards tax deducted at source were not complete in all respects. TDS remittance details such as BSR Code, Acknowledgement Number, Challan
  48. 48. 47 Number and date were not available in the certificate. Similarly, aspects such as interest details in respect of Sweep In / Sweep Out Accounts, Term Deposit Account number for which interest was paid were also not available. The customers resented the practice of banks asking for fresh Form 15 H for each fresh fixed deposit. REMITTANCES Small Remittances - Students in particular are required to make frequent payments of small amounts related to fees for various competitive examinations or their college fees and all such fees are generally made through Demand Drafts (DD). Students who do not have bank accounts face difficulty in obtaining drafts for these purposes. The same applies to any customer who do not have a bank account. Further, the customer has to pay heavy DD charges for a DD of a very small amount, which the Committee felt as not fair on the part of the banks. Prepaid Instruments - The Committee’s interaction with various stakeholders across the board has revealed that the present ceiling on withdrawals permitted against the stored value of the prepaid instruments issued by banks is proving to be an obstacle in spreading usage of these instruments. Availability of prepaid instruments of higher value would find favors with frequent travellers / tourists. The banks may be permitted to issue all-
  49. 49. 48 purposestored value prepaid cards with a maximum withdrawal limit of ` 50,000/- per day. Automatic Cheque Deposit Facility - Though the cheque drop box facility offers convenience for the banks (besides cost saving), the banks do not consider the advantages derived using the process whenever there is a dispute with the customer. There is a clear demand for providing automated receipt so that disputes can be addressed. LOANS AND ADVANCES Time Schedule for disposing of Loan Application:  The Committee came across complaints about undue long time taken by banks in disposing of loan applications. Banks should inform upfront the time schedule for disposal of loan applications to the borrower and take responsibility for not disposing of the loan application within that time-limit.  The Committee has observed that the delay in getting small loans from banks was diverting poor people to non-banking / micro finance institutions and / or private money lenders, especially in rural areas. Price and Non-price terms for Loans - Customers have mentioned that banks were not following the RBI Guidelines on pricing and non-pricing terms of
  50. 50. 49 loans. The customers opined that supervision has not effectively complemented regulation to ensure compliance with guidelines on issues which have been deregulated. The Committee reviewed the various guidelines including those on risk management systems in banks, guidance note on credit risk management, guidelines on reasonableness of bank charges etc. and felt that while Regulation has prescribed several checks and balances, the compliance of the same has not been ensured through Supervision, resulting in several anomalies in the market place giving rise to customer grievances. Reporting to Credit Information Bureau - The Committee came across a number of complaints of wrong reporting by banks to Credit Information Bureau. The Committee observed that this is a very serious issue having implication on the credit rating of the borrower. Further, customers also complained that the banks should ensure that any representation from the customer in this matter is processed expeditiously. Home Loan issues - Foreclosure charges levied by banks on prepayment of home loans are resented upon by home loan borrowers across the board. Banks are also found to be hesitant in passing on the benefits of lower interest rates to the existing borrowers in a falling interest rate scenario.
  51. 51. 50 Across the country, bank home loan customers who have floating interest rate loans have expressed unhappiness over the discrimination in interest rates offered to the new customers. Several complaints have also been received by the Banking Ombudsman offices. The Banking Ombudsmen have given awards directing the banks to give benefit of lower interest rates to existing customers of such loans. The issue has been discussed with the various stakeholders, but the Committee sees merit in the feeling of the customers that the point of entry should not matter when retail loans are taken on a floating rate basis and when the entire class of customers for a particular loan are of the same characteristic and are treated at the same risk level. Regulation is also silent on issues such as teaser rate loans, festival loans and several such promotion schemes. Educational Loans - International experience in this regard especially in USA and other western countries shows that educational loans are extended by Government or Government bodies. In India, the renewed push given to the educational loan disbursement by banks has benefitted innumerable students to pursue higher studies. Switch Over to Base Rate - Many borrowers across the country complained that they were not offered a switch over to the base rate on their floating interest rate home loan. Customers desired that the bank should explain the benefits or otherwise of switching over to Base Rate so that an informed
  52. 52. 51 decision can be taken by them. Reserve Bank of India has issued guidelines advising banks to allow switch over to Base Rate if desired by the borrower without charging any fee on mutually agreed terms. The Committee’s interaction has revealed that most of the borrowers were not aware of this Circular. Banks may bring this Circular to the notice of all the borrowers and explain to them the benefits of switching over to the Base Rate. SPECIAL CUSTOMERS Issues of Senior Citizens including Pensioners - The customers felt that there was no prioritised service to senior citizens, physically handicapped persons by effective crowd / people management available at all branches. Visits to rural branches have shown that pensioners sometimes have to go back and come again from faraway places. A few suggestions given by the customers are:  Provision of SMS alert service about balance in the account at periodic intervals and about due dates for submission of important documents.  Facility of accepting life certificate from pensioners at any branch of a bank and maintain it in a centralised database.  Automatic updation of the customer to the senior citizen category based on date of birth.
  53. 53. 52 Issues of Pensioners - Pensioners also complained that while sanctioning personal loans, different banks are taking different longevity of the life of a pensioner for calculating the loan amount. Pensioners felt that there should be uniformity among the banks as to the age of consideration of the longevity for calculating loan amount for the pensioner. In addition, following suggestions were received or the issues highlighted :  Reverse Mortgage Scheme, which could be a steady source of income for pensioners/senior citizens, was not being implemented / adequately popularised by banks.  It may not always be possible for a pensioner to submit the annual life certificate at the home branch. Pensioners desired that the said certificate should be received at any branch and updated in the CBS.  The data relating to individual pensioners, the monthly certificates etc., that pensioners would desire are not available in a secure domain for immediate retrieval and usage. Functioning of Centralized Pension Processing Centers - Most of the Pensioners’ Associations complained that Centralized Pension Processing Centers were not functioning smoothly and were causing delays in disbursement of pension.
  54. 54. 53 Issues of Customers in Rural and Semi Urban Areas - Currency Exchange Facilities - Customers have complained of lack of exchange facilities and also the quality of notes in circulation in rural areas. Short supply of coins in rural areas was also felt. Customers desired currency notes which are more durable with a longer life so that their quality does not suffer when they reach the rural areas. Branch Timings -  The observation was that branches in these areas were not functioning at a time convenient to the customers i.e., morning hours and late evening hours and work only on the mandatory timings applicable for all banks. The same may not benefit such customers as they would be away at work.  In pockets of Bihar and UP, the general indication of the complainants was that some of the bank branches were not opening at the scheduled time (working hours) nor were they operating for the full hours. Issues of Small and Retail Segments - The other issues concerning the small and retail segments pertain to signature verification charges, frequent visits to the branch to get the pass book updated and printed, title deed / documents not being returned to the customer after repayment of loan, portions of original documents being lost / misplaced.
  55. 55. 54 TECHNOLOGY AND CUSTOMER SERVICE INTERNET BANKING  There should be a secure total protection policy / zero-liability against loss for any customer induced transaction utilising technology through ATMs/ PoS/Online banking etc.A customer should not be made to be out of funds when any loss is suffered on account of Net/ATM banking transactions. Banks have to necessarily ensure that all internet banking is made failsafe by putting in place robust and dynamic fraud detection and prevention systems.The banks must ensure that the customers have the confidence in the systems that are being offered to them.  Banks should create customer access to banking for withdrawal of cash and for transactions by creating a chain of human ATM network of business correspondents of banks which will help enhance banking access all over the country. Compensation  The international best practices regarding Cash not delivered at ATMs, withdrawal through cloned cards, Credit card debits not authorised by customers, Internet banking frauds etc.  Further, the banks should facilitate early reporting of the above, by prescribing appropriate rules that will allow/ provide a temporary credit
  56. 56. 55 which refunds the full amount pending detailed investigation. The reporting timelines can also be linked with an amount which would act as the maximum customer liability ATM / DEBIT CARD TRANSACTIONS:  Issue of Photo Based Cards - To avoid identity issues, all credit and debit cards (including Chip cards) should be Photo Cards with the scanned signatures laminated on the Card. Banks should also include the address of the Cardholder in the laminated portion to serve as a tool for KYC compliance for any other bank product. When UID is introduced, the Cards issued thereafter should include the UID number also.  Unique ID for Every ATM - Every ATM should have a unique ID for reference. This would facilitate easy identification of the ATM when redressing the grievance. The ATM ID should appear on the transaction slip and also on the bank statement.  Blocking of ATM Card - If an ATM card has been misused by another person, on receipt of SMS about use of the Card, the customer should be able to immediately send return SMS to block the Card (if he observes misuse) with a single word like ‘BLOCK’ to prevent further withdrawals (the SMS is being received from the mobile number registered with the bank). It is observed that considerable time is lost in locating the
  57. 57. 56 numbers of accounts, phone numbers etc., which gives the fraudsters more time to commit fraud.  Further, in case of a lost Card, hot listing should be allowed online / over phone. However, a fresh debit card should not be issued online / over phone by banks.  Chip Based Card (EMV) - Banks should in a phased manner switch over to the use of Chip based card (EMV) instead of the current magnetic strip based ones, in order to prevent skimming and damage / erosion of data due to wear and tear and misuse. This would accordingly entail necessary changes at all the front end machines like ATMs/PoS etc.  As the switch over to Chip based card would happen over a period of time, till the switch over is complete, the Chip Cards should, as at present, have a magnetic strip to enable transactions in the ATMs which have not switched over to Chip Cards.  Merchant Discount/ Fee for Debit Cards – To encourage acceptance of debit cards by the Merchant Establishments and thereby support electronic payments, Card service providers and banks should follow a differential merchant fee policy in favor of debit cards which will over a period of time reduce the dependence on cash for payments.  Biometric ATM Cards - Illiterate customers and senior citizens generally find it difficult to remember ATM PIN. Banks may issue Biometric ATM cards to senior citizens and illiterate customers who are not at ease
  58. 58. 57 while using ordinary ATM cards. The necessary hardware changes at the front end devices may be made accordingly. Camera Placement in ATMs - ATM cameras should be so placed as to take a clear picture of the person doing the ATM operations and the lighting inside the ATM booth should facilitate the same. An additional small camera should take a snapshot of the customer picking up the money from the bin so as to assist customers when cash disbursement does not take place. Whenever a complaint on ATM withdrawal is received, the bank should ensure to preserve the CCTV recordings till the grievance is fully redressed. PIN Based Authorization - For debit / credit card transactions at the PoS, instead of signature based authorization, PIN based authorization should be made mandatory without any looping. There should be a phased withdrawal of non-pin based PoS machines.  Two-Factor Authentication for Internet Banking and Debit card transactions at PoS should be introduced. This will provide one additional layer of security.  Additional Factors like Grids etc. should not be printed on the back of the Card but given separately so that a photocopy of the card does not give away all the information required for making an online payment.
  59. 59. 58 Mobile Banking - Tiered security for different parameters: Transaction Value, Destination of transaction (two level authorization for non-routine destinations), security based on hand-sets, frequency of payments should be introduced.  All grievances of mobile banking should be addressed by the banks only, without referring the customer to the service providers. The agreements of the banks with the telecom service providers should incorporate suitable provisions to address mobile banking grievances.  Mobile banking coupled with digitization of records can revolutionize everyday life for the vast majority. Economically weaker section shall be brought into the banking system by combining No Frills Account / Micro Finance / Government subsidies and payments.  At present, there is better penetration of post office and mobile telephony in rural areas. In immediate future, post offices accounts should be linked with modern communication networks which can act as a platform for interoperability of service providers like banks / MFIs, Mobile Network Operators and Mobile Application Providers. Over the Limit Charges - The facility of ‘Over the limit’ for Credit card customers and that of simple overdraft for ATM card holders may be given on choice, the extent of ‘Over the limit/Overdraft’ may be informed to the
  60. 60. 59 customer in advance and the charges for the same should not exceed the actual excess drawn. - Fix individual transaction limits for debit/credit card use. - Debar or fix limits for purchase of electronic or jewellery items - Manipulate the limits for add on cards - Activate/deactivate use of card internationally. - Limit the use of card to any particular state or a defined area. The above processes should be similar to electronic locking of STD or ISD facilities in telephone system and akin to international roaming in cell-phones. SMS / E-MAIL ALERTS  Free SMS / e-mail alerts should be sent for every transaction such as date of maturity of deposit, ECS credit received, credit of pension, credit / receipt of money through RTGS etc.  SMS alert to be sent for all cheques returned irrespective of the amount or amount fixed at account level.  Account Statement in PDF format should be sent by e-mail, if customer requests so (password encrypted document).
  61. 61. 60 CUSTOMER EDUCATION  (i) Special efforts are required to educate the customers in the use of technology in banking. Banks should make use of Print media, Television, All India Radio for this purpose. Short training programmes at the branch level can also be arranged for the customers.  (ii) Banks should ensure full transparency to the customer in levying of various fees/ service charges and penalties.  (iii) Banks should establish a proper Customer Grievance / Assistance Centre which works in an integrated manner across channels like – branches, call centres, IVR, internet and mobile. The personnel in the Call centres who receive the grievances should be empowered to make decisions.  (iv) Use of various technology channels for customer education and gathering suggestion for improving service should be made.  (v) All banks should implement a relevant Customer Relationship Management system to capture and track customer issues and complaints.  (vi) Branches should be provided with dedicated phones / computers with internet connection so that customers can avail themselves of the facilities such as Call Centre, Internet Banking and Phone Banking at the branch itself.
  62. 62. 61  (vii) For imparting customer education participation from all the concerned players is necessary. In this regard, Lead banks should involve customer associations, consumer organisations in revisiting/ evolving strategy for imparting customer education.  (viii) Call Center - IBA should consider a toll free Common Call Center number (like Dial 100) for all banks. A customer would ring that number and thereafter get diverted to the bank concerned.
  63. 63. 62 Questionnaire on customer service in banks 1- Visibility of sign board and cleanliness at the entrance . V.GOOD- GOOD- AVG. – POOR 2- Easy availability of loose pay in slip, withdrawal slip, challans etc. V.GOOD- GOOD- AVG. –POOR 3- Availability of service of staff member a. For any enquiry b. listening to your problem c. guidelines for various deposits scheme and their advantages. V.GOOD- GOOD- AVG. –POOR 4- Space available for sitting/waiting/writing. V.GOOD- GOOD- AVG. –POOR 5- Is the notice of banking ombudsman 2006 displayed in banking premises. YES – NO
  64. 64. 63 6- Are you aware of banking ombudsman scheme. YES – NO 7- From where you got and know of it. TV – RADIO – OTHER SOURCES
  65. 65. 64 ANALYSIS OF QUESTIONNAIRE [Q1] Visibility of sign board and cleanliness at the entrance . BANKS V.GOOD GOOD AVG. POOR SBI 0 0 8 2 ALLAHABAD BANK 1 5 4 0 BANK OF BARODA 0 7 3 0 BANK OF INDIA 1 6 2 1 HDFC BANK 9 1 0 0 ICICI BANK 10 10 0 0 AXIS BANK 8 2 0 0 UNION BANK 0 4 6 0 PNB 2 8 0 0 It shows that visibility of sign board and cleanliness at the entrance is best in case of ICICI bank. Poor rating is given to only two banks: SBI and BOI and their poor rating percentage is 20% and 10% respectively.
  66. 66. 65 [Q2]Easy available of loose pay in slip , withdrawal slip , challans. BANKS V.GOOD GOOD AVG POOR SBI 0 6 0 4 ALLAHABAD BANK 0 2 7 1 BANK OF BARODA 0 2 8 0 BANK OF INDIA 0 0 10 0 HDFC BANK 7 2 1 0 ICICI BANK 8 2 0 0 AXIS BANK 7 3 0 0 UNION BANK 0 6 3 1 PNB 0 9 1 0 Best available of loose pay in slip , withdrawal slip are seen in case of icici bank. Poor rating is seen in case of SBI ALLAHABAD BANK and UNION BANK. Maximum bank shows good rating. Improvements needs all poor banks.
  67. 67. 66 [Q3]Availability of service of staff member ,For any enquiry , listening to your problem, guidelines for various deposits scheme and their advantages. BANKS V.GOOD GOOD AVG POOR SBI 0 0 3 7 ALLAHABAD BANK 0 0 8 2 BANK OF BARODA 0 3 4 3 BANK OF INDIA 0 2 5 3 HDFC BANK 4 5 1 0 ICICI BANK 2 5 3 2 AXIS BANK 1 9 0 0 UNION BANK 0 0 4 6 PNB 0 0 6 4 Best availability of service staff member for any enquiry is seen in AXIS BANK. Maximum banks shows avg rating. Maximum poor rating is seen in case of SBI and Union bank.
  68. 68. 67 [Q4] Space available for sitting/writing/waiting. BANKS V.GOOD GOOD AVG. POOR SBI 5 4 1 ALLAHABAD BANK 1 9 0 0 BANK OF BARODA 3 5 2 0 BANK OF INDIA 0 6 2 2 HDFC BANK 10 0 0 0 ICICI BANK 9 1 0 0 AXIS BANK 8 2 0 0 UNION BANK 0 4 5 1 PNB 8 2 0 0 Best space available for sitting ,waiting ,writing among all banks is HDFC BANK Poor rating is seen in three banks SBI BOI and UNION BANK. Maximum banks shows good rating. Average rating is seen in six banks.
  69. 69. 68 [Q5] Is the notice of banking ombudsman 2006 displayed in banking premises. YES NO SBI ALLAHABAD BANK BOB BOI HDFC ICICI AXIS UNION BANK PNB
  70. 70. 69 [Q6] Are you aware of banking ombudsman scheme 2006? BANKS YES NO SBI 7 3 ALLAHABAD BANK 5 5 BOB 4 6 BOI 8 2 PNB 9 1 UNION 10 0 HDFC 5 5 ICICI 3 7 AXIS BANK 1 9 Out of 10 customer in each bank excellent response is seen in case of UNION BANK poor response of customer is seen in AXIS BANK , ICICI, HDFC and BOB.
  71. 71. 70 [Q7] From where you got to know of banking ombudsman scheme? BANKS TV RADIO OTHER SOURCE SBI 0 9 1 ALLAHABAD BANK 1 8 1 BOB 1 9 0 BOI 1 9 0 PNB 1 9 0 UNION 0 9 1 HDFC 0 6 4 ICICI 0 7 3 AXIS BANK 3 5 2 Maximum customer knew about banking ombudsman scheme through radio.
  72. 72. 71 CONCLUSION Through the Banking Ombudsman scheme was introduced in the year 1995, with a view to do away with the banking customer complaints, the scheme was amended in subsequent years of 2002 and 2006. But the bank do not seen to have adopted the norms for their efficient functioning, that is the reason behind the increasing consumer cases against the bank which are governed under the scheme. Nearly 82%and 75% population of Uttarakhand and UP respectively is literate.
  73. 73. 72 BIBLIOGRAPHY BOOKS Gopal Krishna Murthi G customer service in India : Hyderabad: 2007 Petrika B. Seybold. Customer revolution . London:1999 Robert Gordman Armin Brott. The Must Have Customer. USA: Missouri, 2006 REFERENCE Annual report RBI, BO office u.p. and uttarakhand: 2010-11, 2011-12, 2012- 13. Annual Report , Reserve bank of India, central office Mumbai : 2012-13 Banking Ombudsman Scheme RBI 2006. Complaint Tracking System (CTS), BO office Kanpur: RBI WEBSITE: http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=159 http://www.rbi.org.in/ http://www.icicibank.com/
  74. 74. 73 https://www.pnbindia.in/ http://www.hdfcbank.com/ http://www.unionbankofindia.co.in/ https://www.allahabadbank.in/ https://www.axisbank.co.in/
  75. 75. 74