Bank customer needs to follow due process in resolving grievances faster, says DG Kale

Akshay Naik 19 April 2018

Life

“A consumer cannot directly approach Banking Ombudsman appointed by the Reserve Bank of India (RBI). She has to first file a complaint with her particular Bank's Nodal Officer and then follow the process up the chain to resolve her grievance,” says DG Kale, a retired senior officer from the central Bank.

Mr Kale, who retired as General Manager in the Customer Services Department at the RBI, delivered a special talk to a packed audience at Moneylife Foundation, on the topic “What You Need To Know About The Many Bank Charges You Pay”.

Mr Kale, who has several year’s experience in handling customer grievances, including handling complaint filing system with the Banking Ombudsman, says, “The bank consumer first need to approach nodal officer and then follow it up with a Chief Customer Services Officer – CCSO. If unsatisfied, a consumer could also appeal to the RBI's Ombudsman against the resolution offered by the nodal officer within the allotted time of 30 days.”

The talk was filled with real life easy to understand examples to make the average consumer understand the reasons behind their complaints/grievances. He stressed that due to the rise in the number of accounts and consumers in Banking today, there was also a consequent rise in the number of grievances filed. It is for this reason, RBI had issued a master circular advising major banks to have internal ombudsmen who would address a particular issue before it being brought up to the RBI's Ombudsman. However, as the average consumer is not well versed in the process involved of resolving a complaint, she ends up being caught in a loop of unsatisfactory customer service.

Mr Kale also talked about the variety of services and products that were offered by the banks, and the confusion that it creates for the average consumer. He was very clear that it is the consumer's responsibility to make sure that the service provided by the bank was entirely what they required and not what they were being sold. Essentially, the consumer should be financially literate or suffer the consequences of having to pay for something they do not actually require. According to Mr Kale, this is the starting point of a grievance – where there mis-selling or mis-information from the banker.

In the Q&A session after his talk, Mr Kale elaborated on the proper and efficient way of redressing grievance.

When asked about such a grievance redressal system for co-operative banks, he said that while a CCSO was only provided for scheduled banks, one can also address their complaints to Department of Co-operative Bank Supervision (DCBS).

An attendee at the seminar asked whether the banks were obliged to publish contact information of the Banking Ombudsman (CCSO) for the benefit of the consumer. Mr Kale was not able to confirm of such an obligation, but did say that the Banking Ombudsman would if required to intervene in the complaint process and provide any recommendation for a resolution.

Mr Kale also stated that there were very few banks in India that have an internal Ombudsman available to resolve grievances of the consumer at the moment. He stressed that if the proper process to address a grievance had not been followed, RBI would not even consider the complaint if asked to mediate by the consumer.

His vast experience in the customer services department provided to be a great asset for the attendees who left the seminar with knowledge about the relationship between a consumer and banker especially as it relates to grievances or complaints.

Comments

User

Ashok Senniappan

7 years ago

If my memory servers correct Mr. D.G Kale joined RBI as Grade B a very up right officer way back in 1980/81 a Sainik school product and happened to inspect many PS Banks He was and very blunt in his remarks so also his reports . He had knowledge great about Credit and had the banks taken his reports seriously many banks wouldnt have been the mess we see today . Truly a very good part on Money life to have such resourceful person on to address the gathering.

Narender Grover

7 years ago

Insightful indeed but if someone faces Mis-selling rather fraudulently means to lure customers from Insurance co like Hdfc life through SMC Brokers, in that case what options the insured has. For grievance addressal a complaint is lodged with co officials but to no avail. 2 months have already passed. More painful is the fact instead bringing the culprit to books, the company has the names, the consumer is asked to prove her innocence. Sorry state of affairs. Looking for an audience first with responsible official from the co & a way out.