Need for regulatory forum to resolve customer grievances says RBI deputy governor

Moneylife Digital Team 05 February 2011

Dr KC Chakrabarty, deputy governor, RBI, discussed customer related issues in banking services at Moneylife Foundation’s first anniversary function in Mumbai.

“Scams are everywhere. And they will continue to be, because every sector has finance involved. But citizens suffer because of scams, and they need to be empowered, said Sanjay Nirupam, member of Parliament, speaking on the first anniversary of Moneylife Foundation on Saturday. He also released a Position Paper on issues faced by retail investors prepared by Moneylife Foundation.

Dr KC Chakrabarty, deputy governor of the Reserve Bank of India, spoke on customer issues relating to banking and para-banking services. He said, “In this country, 50% people don’t have bank accounts, 90% don’t have access to loans and 98% don’t have access to capital markets. Banks must increase their reach to rural people, and ensure better service.” He also said that there is a need for effective regulatory forum, and there should be a system to resolve the issues. Customers must raise their concerns and demand justice.

Speaking on the problems faced by the customers in banks, he said, “India is a big country, and I agree there are many problems. Unfortunately, banks are not properly equipped, technologically or otherwise, to solve the problems and provide good service. There needs to be a strong movement. But the citizens should also understand that there are certain limitations, many of them are legal.”

Anita Pai, executive vice president, ICICI Bank spoke about the tie-up of her organisation with Moneylife Foundation and its efforts to spread financial literacy. She said, “It is better to have an informed customer than a complaining one. We are definitely in support of financial literacy.”

Ms Sucheta Dalal, managing editor of Moneylife magazine, and trustee, Moneylife Foundation, gave a brief introduction to the Foundation’s activities and elaborated on its objectives. “Producing an unbiased personal finance magazine is not enough. India will have smart savers only if there is a concerted effort to spread financial literacy. Lack of knowledge and understanding about financial markets and financial products is at the root of most investor problems.”

Moneylife Foundation’s first Position Paper, which was on the issues faced by senior citizens, was anchored by former SEBI chairman Dr SA Dave and was sent to the government last month.

Moneylife Foundation was launched by Mr Sanjay Nirupam a year ago, on 6^th February. In one year, it has attracted 4379 members and organised 53 workshops. As Ms Dalal said, the aim is now to take the Foundation’s events all over the country.

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