Karnataka - Mangalore   

Raise level of customer satisfaction, banks told

MILESTONE: V. Leeladhar, Deputy Governor, Reserve Bank of India (centre), Prakash P. Mallya, chairman and managing director, Vijaya Bank (left), and Kayyara Kinhanna Rai, writer, at the inaugural function of the new branch of the bank in Mangalore on Monday.

MANGALORE: With the aim of ensuring “customer is indeed the king”, the Reserve Bank of India (RBI) has suggested setting up of institutional arrangement that would provide for effective checks and balances within the banks and enable them to maintain highest standards of customer service. Banks should not be satisfied with providing routine service to customer, but strive to provide a higher degree of satisfaction to the customer.

Spelling out the RBI’s initiatives in customer service after inaugurating the branch No. 1001 of Vijaya Bank on Bhavanthi street here on Monday, its Deputy Governor Vittaldas Leeladhar said: “Notwithstanding the broader institutional infrastructure put in place for improving the quality of customer service, there has to be an institutional machinery within the banks in the area of customer service.” This, he broadly categorised into four tiers.

A customer services committee of the board, a standing committee on customer services, a nodal department/ official, and a branch-level customer service committee, when put in place, would help provide better customer service. The RBI had created an in-house customer service department and several independent agencies such as the Banking Ombudsman and Banking Code and Standards Board of India, he said.

Referring to other customer-oriented measures of the RBI, he said: “We have issued directions to banks on clean note policy and acceptance of coins and notes from people. Banks cannot force depositors to sign a declaration that dispatch of cheque books by courier is at their risk. Banks must provide passbooks to customers wherever sought or ensure monthly periodicity while sending statement of accounts.”

On minimum balance requirement, he said banks should inform customers upfront about the requirement and charges to be levied if such balances were not maintained. Banks should formulate and disclose their policy for affording immediate credit, time frame for collection and interest payment for delayed collection, he said.

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