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 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.)

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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

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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.

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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.

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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

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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.

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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.

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 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.

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 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.

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 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.

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 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

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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

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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.

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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

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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.

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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%)

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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%)

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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

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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

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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

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(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

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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.

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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

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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%

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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%

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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

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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

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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

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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.

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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%)

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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.

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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

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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-

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.

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

35
Kanpur 3443
Kolkata 5388
Mumbai 3804
New Delhi 3479
Patna 5706
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.

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

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

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

39
Guwahati 6
Hyderabad 40
Jaipur 27
Kanpur 43
Kolkata 26
Mumbai 40
New Delhi 70
Patna 13
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.

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

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

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.

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.

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.

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

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

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-

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

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.

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

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.

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.

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.

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

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

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

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.

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

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).

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.

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.

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

63
6- Are you aware of banking
ombudsman scheme.
YES – NO
7- From where you got and know of
it.
TV – RADIO – OTHER SOURCES

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.

65
[Q2]Easy available of loose pay in slip , withdrawal slip , challans.
BANKS V.GOOD GOOD AVG POOR
SBI 0 6 0 4
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.

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
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.

67
[Q4] Space available for sitting/writing/waiting.
BANKS V.GOOD GOOD AVG. POOR
SBI 5 4 1
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.

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

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.

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.

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.

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/

73
https://www.pnbindia.in/
http://www.hdfcbank.com/
http://www.unionbankofindia.co.in/
https://www.allahabadbank.in/
https://www.axisbank.co.in/

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