“Customer loyalty is something that cannot be taken for granted anymore. Customers go out shopping for banking services and are ready to leave a bank if the services provided are not upto their expectations. Hence best customer service is the order of the day,” said Reserve Bank of India Deputy Governor V Leeladhar.
Addressing the gathering after opening the 1001st branch of Vijaya Bank on Monday, Mr Leeladhar said that customer service is the major issue that is discussed by the banks world wide and accordingly in this direction, Reserve Bank of India too has taken initiatives to promote and encourage better customer services in the banking sector.
He informed that the institutional machinery within the banks in the area of customer service is required to be comprised of Customer Service Committee of the Board, including experts and representatives of customers as invitees to enable the bank to formulate policies and assess the compliance thereof internally, and also to play a pro-active role with regard to complaints, grievances resolved by thee banking Ombudsman.
Apart from this a Standing Committee on Customer Services could be formed, which would be a focal point for customer service in the banks and would periodically review the policies and procedures and working of the bank’s own grievance redressal machinery.
Speaking on some of the other customer oriented measures of the RBI, he said that RBI has advised the banks to invariably offer pass-book facility to all its savings bank account holders as in recent times some of the so called ‘sophisticated banks’ have not been giving pass books. They have been sending only the bank statements, which are irregular and the cost of which are borne by the customers.
Apart from this, some international banks emphasis on a minimum balance of about Rs 10,000, failing which huge penalties are imposed.
“This trend of charging penalty for not maintaining a minimum balance in India will lead to exclusion of huge chunk of eligible people outside the banking umbrella,” he added and said that to solve this No Frill Accounts were introduced.
He called upon the Indian Banking system itself not to be contented by merely providing the routine customer service to its patrons. He said that banks must strive to deliver a high degree of customer satisfaction and even customer delight by far exceeding the customers’ expectations from the banking system.
Vijaya Bank Chairman and Managing Director Prakash P Mallya giving a detail on the journey of Vijaya Bank which was started in Mangalore 77 years ago, stated that today with the opening of 1001st branch, it has crossed a business turn over of Rs 71,750 crore with close to 12,000 employees. Senior litterateur Kayyara Kinhanna Rai, a loyal customer of the bank, spoke about his connection with the bank.
