Govt. banks must boost monitoring, training systems’

Govt. banks must boost monitoring, training systems’

News:

1. Reserve Bank of India issues regulatory instructions to banks on various matters, including customer service.

Important facts:

2.Banking codes and standard board of India (BCSBI) was set up in 2006.

3.Accordingly, BCSBI had evolved two codes:

• The Code of Bank’s commitment to customers
• The Code of banks commitment to micro and small enterprises.

4.Banking codes are different from norms:

• The codes are a voluntarily declared commitment, as a self regulation, of member-banks to their customers explaining how they will deal with their customers.
• The codes complement regulatory guidelines.
• They do not replace or supersede regulatory guidelines.

5.Building awareness among customers become primary motive because:

• The code explain how banks will deal with their customers in their day-to-day operations.
• For better implementation of code it is necessary that both customers  and service providers need to be aware of it
• BCSBI is making efforts to create and enhance awareness about codes among the customers.

6.Code for senior citizens:

• There is no separate code for senior citizen.
• But, the Code of Bank’s Commitment to Customers contains a dedicated section for senior citizen and differently-abled customers of banks.
• The focus of provisions covered under this section is on ease of availing banking services in a rightful manner.
• This contains a specific reference to commitments of member-banks to senior citizens.

7.Areas that particularly need improvement for better banking standards delivery to customers:

• There is a need for strengthening awareness about relevant code commitments and their importance among the staff at bank branches.
• The banks, particularly public sector banks, need to strengthen their monitoring and training systems coupled with an element of accountability.