Reserve Bank of India (RBI) report has instructions for banks to improve the customer service. Even if it means that they have to reserve more capital to achieve it. RBI has been very specific about equitable distribution of the benefits of the teaser rate loans among new as well as the old home loan customers. Discrimination of rates between old and new customers in the same risk category is unacceptable by RBI.
The deputy governor said: “Banks should establish a basic standard of non-discriminatory pricing. This is based on the premise that ‘new’ customers cannot get preferential treatment over the ‘old’ customers if in the same risk category.” This is all because banks are offering cheap home loans to lure new customers while the old customers have to still pay higher rates.
The central bank introduced the Banking Ombudsman Scheme in 1995 to provide quick and inexpensive forum to bank customers for resolution of their complaints relating to deficiency in banking services. Bank ombudsmen received 69,117 complaints in 2008-09, (which is 44% more than 2007-08) out of which 9,433 complaints are still pending.
Even the credit card complaints have risen 74% in the financial year 2009. The report even said that RBI has issued general directions to all banks to protect customers. This is issued in interest of new applicants as well as the existing customers so they won’t have to approach their respective banks.
Out of 17,648 complaints 26% were pertaining to credit cards, that is, 74% increment since last year. But point to be noted is the user base of credit cards or number of credit card users has increased from 137.17 million to 170.03 million which is increase of 24%. RBI did ensure that increase in card usage meant need for better service an transparency at the time of sales by the banks.
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