MUMBAI: Customers may soon get an indication of how their banks rank in terms of customer service with the Banking Codes and Standards Board of India (BCSBI) planning to rank banks based on their level of compliance to their commitment to customers.
BCSBI, a Reserve Bank of India (RBI) initiative, plans to rank banks based on their adherence to banking codes — a list of minimum commitment to customers. In terms of the RBI mandate, at the time of opening a bank account, every customer will receive a set of banking codes from the bank.
These codes, which are prescribed by BCSBI, give the customer an idea of the minimum level of service he can expect from the bank. The central bank has described the codes as a charter of rights for the common person. If a bank does not stick to its minimum standard of commitments, customers can take it up with the regulator or ombudsman.
BCSBI, a Reserve Bank of India (RBI) initiative, plans to rank banks based on their adherence to banking codes — a list of minimum commitment to customers. In terms of the RBI mandate, at the time of opening a bank account, every customer will receive a set of banking codes from the bank.
These codes, which are prescribed by BCSBI, give the customer an idea of the minimum level of service he can expect from the bank. The central bank has described the codes as a charter of rights for the common person. If a bank does not stick to its minimum standard of commitments, customers can take it up with the regulator or ombudsman.
When
contacted, A C Mahajan, chairman, BCSBI, said that besides prescribing
the codes, the BCSBI actually conducts branch visits to assess the
implementation of codes by the banks.
"We started with 1,000 bank branches two years ago and this year, we have visited over 3,000 branches. We are also looking at coming out with rankings for banks in respect of their level of compliance with the codes," said Mahajan.
Besides ranking banks, the BCSBI is also rewriting its list of codes to address customer issues that have arisen in recent years. The new codes may require banks to spell out their minimum commitments to customers in respect of addressing internet frauds, cyber security and opening of small accounts. Mahajan said that the banking codes are subject to periodic revisions and the BCSBI had received a number of suggestions, including those based on banking developments in recent years. The board's governing council would take up the suggestions in its meeting this month.
Given that the objective of the BCSBI is to promote transparency, the board is looking at getting banks to make disclosures to customers of the services available in a branch. One possibility is that banks may be asked to put up boards in branches which state that customers can open basic 'small accounts' without a minimum balance or address proof requirement and that customers would be entitled to a free debit card.
Although the board does not have statutory powers, the RBI has ensured that banks adhere to its regulation through moral suasion and urging banks to become BCSBI members. As a result, over 99% of all banking is covered by the board. The banks that are not members are largely single-branch foreign banks.
"We started with 1,000 bank branches two years ago and this year, we have visited over 3,000 branches. We are also looking at coming out with rankings for banks in respect of their level of compliance with the codes," said Mahajan.
Besides ranking banks, the BCSBI is also rewriting its list of codes to address customer issues that have arisen in recent years. The new codes may require banks to spell out their minimum commitments to customers in respect of addressing internet frauds, cyber security and opening of small accounts. Mahajan said that the banking codes are subject to periodic revisions and the BCSBI had received a number of suggestions, including those based on banking developments in recent years. The board's governing council would take up the suggestions in its meeting this month.
Given that the objective of the BCSBI is to promote transparency, the board is looking at getting banks to make disclosures to customers of the services available in a branch. One possibility is that banks may be asked to put up boards in branches which state that customers can open basic 'small accounts' without a minimum balance or address proof requirement and that customers would be entitled to a free debit card.
Although the board does not have statutory powers, the RBI has ensured that banks adhere to its regulation through moral suasion and urging banks to become BCSBI members. As a result, over 99% of all banking is covered by the board. The banks that are not members are largely single-branch foreign banks.
PRASHANT SHARMA
PGDM-I
SOURCE: TOI
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