RBI looking at bringing in model code of conduct to ensure customer rights

The code of conduct would be framed by BCSBI and IBA and would be implemented the boards of the Banks, says RBI ED

The Reserve Bank of India (RBI) is thinking of a model code of conduct for banks, to ensure customer rights in line with the earlier charter it had framed in this regard.

At a two-day seminar on consumer product safety, U S Paliwal, executive director at RBI, said these rights, including being treated with courtesy, have to be ensured.

“The banks, along with the Banking Codes and Standards Board of India and Indian Banks’ Association, would be preparing a model code on these particular rights and beyond the rights, the boards of these banks would be passing that. We will be monitoring that these rights are being administered in the fashion and the spirit in which they have to be delivered,” he said.

Delay or default does not empower anyone to be non-courteous, he said. Besides a right to fair treatment, the others include a right to transparency, fair and honest dealing, suitability, privacy and a right to grievance redressal and compensation, said Paliwal.

He said three per cent of all complaints came through the banking ombudsman of the 2.4 million during 2013-14. RBI is expecting more complaints related to credit cards in the future.