A

PRESENTATION
ON
BANK ACCOUNTS, BANKER CUSTOMER
RELATIONSHIP
CUSTOMER SERVICE IN BANKS

SAMARTH INSTITUTE OF MANAGEMENT

Submitted To : Asst. Prof. Dipen Shah

Submitted By:
Jennifer Macwan (Roll No. 01)
Jitesh Kanani (Roll No. 03)
Harshil Patel (Roll No. 32)
Ankit Patel (Roll No. 38)
Sweta Patel (Roll No. 41)
CUSTOMER
SERVICE
IN
BANKS
CUSTOMER SERVICE GUIDELINES

 Banks are in the business of marketing their services.

 The bank has to anticipate the needs of customers and provide

suitable services besides maintaining good standard of service

 Satisfaction of its customers

Efforts at Macro Level

 The appointment of Talwar Committee in 1976 by the

Government of India was the first effort in this directions;
 The committee submitted its report in 1977,
 1986 was declared as “Year of Consumer” and since then banks
have become very conscious of the need for improving customer
service.
 Setting up of consumer/consumer forum at district, state and
national level in 1986.
 Another committee was constituted under the chairmanship of M.
N. Goiparia which submitted its report in 1991.
 The concept of signing MOU by banks’ with RBI was another step
in this direction, followed by the appointment of Bank
Ombudsman in 1995.
GOIPORIA COMMITTEE

Goiporia committee was constituted under the chairmanship

of M.N. Goipori.a which submitted his report in 1991 and
gave 97 recommendations. Important among these are:
1. Employees’ working hours should commence 15 minutes
before business hours in metropolitan and urban areas.

2. May extend business hours except cash upto one hour before
close of working hour.
3. Provide “May I help you” counters.

4. Tellers should pay cash upto Rs. 5000 and non cash
transaction upto Rs. 10000
 Cont…

5. More facilities in respect of acceptance of cash, mutilated and

soiled notes should be given and notes/ coins counting
machines may be introduced and currency notes be packed in
paper seal band.

6. Nomination should provided unless customer does not want it.

7. All customers who enter inside the banks hall before close of
business hours should be attended.

8. Change in interest rate by banks branches should be affected

on the basis of press reports.
 Cont…

9. Single window concept for issuance of drafts up to Rs. 5000

should be introduced.

10. Facility of instant credit of outstation instruments should be

available for instruments up to Rs. 5000 instead.

11. Delay on collection of outstation instruments be

compensated by allowing interest at the rate of 2% above
SB rate.

12. Value dating of mail orders and telegraphic transfers should

be started.
Cont…

13. Clearing houses at centres with 10 or more banks should be

opened.

14. Decision on credit proposals in consortium accounts should be

conveyed within 45 days.

15. Before launching any scheme, the government may consult the
RBI to make it compatible for easy implementation.

16. More centres for creation of mortgage should be notified.

17. Training programmes should be in line with customer orientation.

Cont…

18. Quality circles should be encouraged.

19. New procedures should be adopted and obsolete ones should be

discarded.

20. Special attention should be given to Complaint areas.

21. Infrastructural facilities at branches should be upgraded

22. The manpower should be redeployed with emphasis on rural areas.

Majority of these recommendations have already been implemented by

banks.
IMPLEMENTATION OF VARIOUS
MEASURES BY BANKS
1. Opening and closing of bank counters in time and prompt
commencement of customer service

2. May I help you counter?

3. Nomination facility

4. Updation of passbook

5. Immediate Credit of Outstation cheques

6. Collection of Outstation cheques up to Rs. 10000 for 4

Metropolitan Centres with MICR cheque clearing system
Cont…
7. Collection of Outstation cheques up to Rs. 10000 for State
Capital Centres and other centres for more than 100 bank
offices

8. Collection of local cheques

9. Proper receipt for the instruments tendered for

clearance/collection and Cash Receipts

10. Payment of interest for delays in collection of outstation

cheques

11. Rate of interest to be applied on delays collections

Cont…

12. Prompt issuance of drafts/cash orders

13. Value Dating of Telegraphic Transfers

14. Settlement of claim cases

15. Time Norms

16. Customer service committee

17. Premium saving/current Customers

 RBI INSTRUCTION ON CUSTOMER
SERVICE
 With effect from January 1, 2006, the Reserve Bank has put
in place a revised Banking Ombudsman Scheme for
redressal of grievances of banking customer

 The scope of the scheme has been enlarged to cover customer

complaint

 RBI has also set up in independent Banking Codes and

Standards Boards of India in February 2006.

 Banks have been advised to fix reasonable service charges in

line with the average cost of providing these services.
 Cont…

 The RBI has made it obligatory for banks to display and

update, in their office branches, as also, on their websites,
the details of various service charges in a format approval by
the RBI.

 The credit card guidelines, it has become mandatory for the

banks to maintain a Do Not Call Regisry containing the
phone numbers of customers as well as non-customers who
have informed the banks that they do not wish to receive
unsolicited calls/sms for marketing of its credit card product.
 Cont…

 Public sectors banks have put in place several measures

which would lead to better facilities

 The RBI has issued instructions to all scheduled commercial

banks on implementation of core banking solutions and has
advised that the pace of internal computerization of bank
branches and their interconnectivity, providing for core
banking solutions or centralized database access clustered
solutions need to be expedited.
CONSUMER PROTECTION ACT 2002

Enacted during 1986 and implemented April 15,1987.

The major provisions of the amended Act are as under:

 Consumer
 Scope
 Procedure
 limitation
 Jurisdiction
 Disposal Time
 Available Reliefs
 Penalty
 Appeals
 CUSTOMER COMPLAINTS

 Dealing with customer complaints

 Ultimate business requirement – attracting, serving and retaining
customers
 Resolving complaints and problems quickly is one of the most
important elements to ensure continued customer loyalty and
repeat business.
 Handling customer complaints is probably one of the toughest
tasks of anyone providing a product/service in a competitive
market.
 Customer complaints can not be ignored.
 They are must be handled promptly with the right solutions
otherwise, the customer will go elsewhere.
 Cont…

 Complaints can Arise from a Number of Sources

o Product and service errors and defects

o Poor communication with the end user

o People, system, and procedure

GUIDELINES TO TOTAL CUSTOMER
SATISFACTION
 Listen to customer and develop an appreciation for the
nature, magnitude, and potential impact of the complaint

 Agree that the customer has a valid complaint and apologize

on behalf of the organization for any inconvenience.

 Investigate the complaint thoroughly by asking the right

question.

 Get the facts, listen carefully to all those who might, help
provide a solution.
 Cont..

 If possible, offer an immediate resolution of the problem or

information the customer of the steps necessary to resolve
the complaint.

 If immediate resolution is not possible of the problem, get

back to the customer promptly when the problem has been
solved.
CUSTOMER SERVICE NOMINATION
FACILITY
 Enactment
 Banking Regulation Act was amended in 1984 and section
45ZA to 45ZF were added to the Act for providing nomination
facility in banks

 Scope
 Provide nomination facility for deposit accounts, safety custody
of articles and safe deposit lockers
 Section 45ZA and 45ZB deal with the provisions for
nomination deposit accounts section 45ZC and 45ZD for safe
custody and Sections 45ZE and 45ZF for safe deposit lockers
 Banks can not provide nomination facility in respect of Jewel
Loans, cash Credit Account or any such account other then the
three mentioned above
 Cont…

 Nomination facility for Deposit Accounts

 What type of accounts?
 Who can be nominated as nominee?
 How to Nominate?
 Cancellation and Variation of Nomination
 Renewal of Deposit Account
 Change in the style of the Account
 Payment to Nominee
 Legal Position on payment to Nominee
 Miscellaneous
 Cont…

 Nomination Facility For Articles Kept In Safe Custody

 For single name of individual , Safe Custody in Joint Names
are not eligible for nomination
 Where a minor delivers the goods for safe custody, the
nomination will be made by his lawful guardian.
 Only one individual can be appointed as nominee.
 The nomination and cancellation will be made by sing
prescribed forms.
 Separate nomination form should be obtained for each
lodgment
 All other terms and conditions of nomination in safe custody
account are same applicable to deposit accounts
 Cont…

 Nomination Facility In Safe Deposit Locker Accounts

 Number of nominees
 Delivery of locker content in case of joint accounts
 Preparation of an inventory of contents of the locker
Questions ?
THANK
YOU
3. The banker is responsible to the customer for embezzlement /
fraud committed by its employee as the principal is responsible for
the wrongful acts of agent provided the fraud is committed in
course of employer’s business within the scope of authority of the
employee express or implied.

4.An instrument with forged signature is no mandate at all and hence

bank cannot debit its customer’s account in such A cases.

5.While giving standing instructions the customer undertake to

maintain sufficient balance in the account. If an si is not carried out
on specified date due to insufficient fund the bank should inform
customer and discontinue the if si. Even deposit is subsequently
received in the account si should not be carried out unless the
customer so instructs specifically otherwise the bank will be liable
for damage if due to carrying out the si subsequently A cheque is
dishonored due to insufficiency of fund.
 (b) code of civil / criminal procedure :-
 The code of civil procedure empowers a civil
court to oissue summon to any person to
priduce document and/or to apper aswitness.
 When a summon is issued bank has to comply
with it. In term of section 91(1) of code of
criminal procedure act 1973