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Moneylife Foundation holds workshop on banking services

Moneylife Foundation holds workshop on banking services

Mumbai 15 May 2010: Moneylife Foundation on Saturday held an interactive workshop on Banking Services, attended by a packed audience. Speaking on the occasion, Kaza Sudhakar, chief general manager, customer services department, Reserve Bank of India (RBI) said, “The Banking Ombudsman is only for catering to customers’ grievances, its entire intent is to see to it that banks try to resolve issues with customers in a speedy manner. But still, we find that many customers are fearful of approaching bank branches. We would advise the customers to get back to the concerned banks quickly.”

Mr Sudhakar talked at length about the rights and responsibilities of a consumer of banking services. He highlighted the numerous ways in which bank customers can be harassed and at the same time explained how their grievances can be redressed through the Banking Ombudsman (BO). He also outlined that customers need to be more careful and diligent while entering into any transactions. “I have come across several cases where customers put their signatures blindly on loan documents without thinking twice and then face severe difficulties. It is always advisable to look closely at the documents before jumping into any loan transaction. It is entirely a question of the customer’s ability to understand and gauge the risk.”

During his discussion, Mr Sudhakar highlighted common complaints dealt with by the BO. These pertain to ATM transactions, credit card issues, loss of housing loan documents, KYC procedures, loans against shares, etc. In one particular case of delayed pension payments, Mr Sudhakar explained how repeated complaints against State Bank of India (SBI) from one customer drove the RBI to issue a circular across the banking system, directing banks to make good the payments immediately, along with penal interest to the customers. This resulted in benefits to 65 lakh customers in the country.

Also present for the workshop was Mr OP Agarwal, Banking Ombudsman (BO), Maharashtra and Goa. Mr Agarwal advised customers on how to approach the BO with complaints and the procedure for the same. “Almost any area of banks’ service can be questioned in the BO. We are ready to help customers and get their issues resolved. You have to make sure that your complaint includes basic details like your name, the bank’s name, account details, etc. Keep the complaint brief and to the point. Also mention what exactly you expect from the bank in terms of compensation or services, etc.” He specified that the BO does not entertain personal hearings except in extreme cases or difficulties.

He also directed customers to be reasonable in their expectations from the BO and to give them a reasonable timeframe to get a response from the bank concerned. He asked customers not to confuse the role of the BO with that of the regulator, RBI.

The workshop was organised with a view to expose the users of banking services to the various facets of dealing with banks and to make them aware of their rights as customers. The event saw active participation from several members of the banking fraternity, with representation from some of the top public sector, private and foreign banks in India, including Bank of India, Citibank, Kotak Mahindra Bank, HSBC and HDFC Bank.

The audience had a healthy interaction with the two experts, with customers discussing and bringing to light various issues they had faced while dealing with banks.

Pictures of the event

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COMMENTS

Amandeep Singh

7 years ago

I think these workshops are a really practical and nice way to teach people about finance in India... where financial literacy rate is very low... I have written about these workshops on my blog...

http://www.equitipz.com/2010/05/how-to-be-safe-and-smart-with-your-money-a-free-workshop-by-moneylife-foundation.html

Navin

7 years ago

HI Team MoneyLife, I was there at the workshop.I wanted to write separately to you on it, btu then I see that you have already posted an article on how the workshop went. I am impressed!!
I did pose a question on why RBI should not levy punitive penalties to the banks to reduce the barrage of customer complaints which are reaching the ombudsman at RBI. For every complaint which comes to RBI, probably there are thousands more which do not.
When I say punitive damages, I dont mean that you enrich the complaining customer, even though that also might not be a bad objective!!
Regulators around the world levy hefty damages from those they regulate for not adhering to the regulations. In India, howsoever big the crime might be, the regulators hesitate to levy punitive damages/penalties to deter the offenders from repeating the mistakes. I remember vaguely that even for the demat scam, RBI had levied some fines to the colluding banks and it was funny how meagre those amounts were. Considering that almost all the banks earn the net profits in crores, why they should be mollycoddled by RBI when it comes to customer service beats me!!
I believe RBI has lost its focus - it claims that the FII money flowing in is not a cause of concern, it doesnt seem to believe that the property prices are manipulated, it doesnt know what can be done to curb the black money component of the economy, it probably allows SBI to decide what the banking industry and regulator should be doing, at other places its too intrusive and too transactional, it seems to be hell bent on protecting banks bad books (consider the number of changes it keeps making to give relief on provisioning norms, what more it seems to be over assertive now that the entire world thinks RBI did a great job by not opening the Indian economy as much as it could have - design or accident, its anyone's guess!!

I must congratulate the MoneyLife team on all the work they are doing to promote financial literacy. Their joining hands with Disha, an ICICI bank initiative, seems to be a step in the right direction. I still believe that the team at MoneyLife can connect to trhe masses far better and faster by doing a TV show. It can be a very interesting one definitely, as long as we know that all the concerned would be objective and would not end up using it as a tool to promote self!!

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