An RBI-appointed panel has put forward a series of customer-centric initiatives for banks in a recent report. The Committee for Review of Customer Service Standards in RBI Regulated Entities (REs) recommended several measures aimed at enhancing customer experience and convenience.
One of the key recommendations is the online settlement of claims by heirs of deceased account holders. This initiative would streamline the process for transferring funds and assets to the rightful beneficiaries, reducing administrative hurdles during an already challenging time.
The panel also proposed greater flexibility for pensioners in submitting life certificates. Pensioners should have the option to submit life certificates at any branch of the bank where they hold their pension account. Furthermore, they should be allowed to choose the month in which they submit the certificate, preventing overcrowding in a particular month and providing convenience to pensioners.
Another significant suggestion is the establishment of a centralized KYC database. This database would enable banks and other financial institutions to access customer information more efficiently, reducing the need for repetitive KYC procedures. It would enhance customer convenience while ensuring compliance with regulatory requirements.
The committee emphasized that the operations of accounts should not be halted during periodic KYC updates. This recommendation aims to prevent unnecessary disruption in banking services for customers and maintain uninterrupted access to their funds.
To address concerns related to loan accounts, the panel proposed a time limit for returning property documents to borrowers after the closure of the loan account. Failure to comply with this timeframe would result in penalties imposed on the lender. In cases where property documents are lost, the RE should assist customers in obtaining certified registered copies at their own cost. Additionally, the committee suggested appropriate compensation for the time and effort taken to arrange alternate copies of the documents.
The report also highlighted the need for a nuanced approach to risk categorization of customers. It suggested that certain customers, such as salary earners with consistent inflows and outflows aligned with their profile, should not automatically be categorized as high risk. This approach acknowledges that high net worth individuals and students can also be considered low-risk customers.
The panel further recommended mandatory soft skills training for customer-facing staff and officers. This training would help reduce instances of misbehavior and ensure a more professional and customer-friendly approach.
Overall, the committee’s recommendations encompass regulatory, conduct, and technological aspects to strengthen customer service in RBI-regulated entities, including banks, NBFCs, small finance banks, cooperative banks, and payment banks. These initiatives, if implemented, have the potential to significantly improve the banking experience for customers and enhance transparency and efficiency within the sector.
