Banks’ customer service ratings to be made public from next year

Banks should get their act together on customer services as the Banking Codes Standards Board of India (BCSBI) will put their performance ratings on this account in the public domain from next year.

BCSBI is rating banks on customer services on five parameters — information dissemination, transparency, customer-centricity, grievance redressal system and customer feedback — said its Chairman AC Mahajan at the annual conference of Principal Code Compliance Officers.

Of the 48 banks rated for customer service, only five received high ratings; 25 were rated above average; 17 average; and one below average.

The ratings have been shared with the banks. The ratings were given based on a survey conducted by BCSBI across 69 cities, involving 3,000 branches and 6,000 customers.

The ratings will be put in the public domain next year. However, banks cannot use these ratings to solicit business.

BCSBI was set up in 2007 by the Reserve Bank of India to ensure that the common consumer of financial services from the banking industry gets what he/she has been promised.

The Board functions as an independent and autonomous body. Membership of BCSBI is voluntary and open to scheduled banks.

Mahajan said awareness about the Code of Bank’s Commitment to Customers was poor among bank staff and customers. The Code of Bank’s Commitment to Customers is a Code of Customer Rights, which sets minimum standards of banking practices that member banks have to follow when they deal with individual customers.

The Code provides protection to customers and explains the manner in which banks are expected to deal with customers in their day-to-day operations.

The BCSBI Chairman said banks are spending more time and money on advertising their products and services, but don’t invest time in publicising the Code.

Pointing out that bank branches hardly hold monthly customer service committee meetings, Mahajan said: “The customer belongs to you. It’s in your own interest to ensure that such meetings are held.”

BCSBI’s survey has found that though the RBI has permitted bank branches to put through remittance (up to ₹50,000) of non-customers, they are reluctant to do so despite the remitter furnishing relevant identification documents.

Further, branches are also not forthcoming in opening basic savings bank deposit accounts under the simplified “know-your-customer” norms, the survey said.