RBI to set up committee to review customer service standards in banks, NBFCs and payment operators
The RBI in its Development and Regulatory Policy Statement released on 8th April 2022 said:
RBI has gradually taken a number of steps, including establishing an elaborate regulatory framework on customer service and internal complaint resolution in regulated entities (RE) as well as establishing the ombudsman framework as early as 1995, to ensure comprehensive customer protection. of its RE. Regulatory instructions are given to the REs based on the conditions prevailing in the financial system, the findings of the monitoring of conduct, the analysis of the complaints received and the recommendations received from the various committees created for this purpose. Important committees set up by RBI on Customer Service over the years include (i) Talwar Committee on Customer Service (1975), (ii) Goiporia Committee (1990), (iii) Tarapore on Procedures and Performance Audit of Public Services (CPPAPS, 2004) and (iv) Damodaran Committee on Customer Service (2010).
The financial landscape is undergoing a revolutionary transformation resulting from the increase in bank customers, the advent of digital products, technology platforms and service providers, as well as increasing volumes of digital transactions resulting from innovations in payment systems. payment. Accordingly, it is proposed to establish a committee to review and review the state of customer service in RE and the adequacy of customer service regulation and suggest measures to improve it. .
The significant increase in digital transactions in recent years with the phenomenal growth of UPI and digital wallets has also given rise to new problems that customers are facing while performing these transactions. The RBI’s previous efforts to improve customer service also included numerous measures related to digital transactions that established the repayment schedule for failed digital transactions and the payment of penalties to customers for delays. The new committee will assess the effectiveness of previous measures and propose a mechanism to resolve other problems encountered by consumers.