RBI Governor for highest priority to customer service
By Chairmen and Managing Di | 13 Mar 2004
Chairmen and Managing Directors of all public sector banks and chief executives of some select private Indian and foreign banks were present at the meeting. Smt. K.J. Udeshi, Deputy Governor, Smt. S. Gopinath, Smt. Usha Thorat, Shri A.V. Sardesai, Executive Directors and other senior officials of the Reserve Bank of India were also present.
The Governor informed the banks that the Reserve Bank has appointed a Standing Advisory Committee under Shri S S Tarapore, former Deputy Governor of the Reserve Bank, to advise the central bank on auditing of its procedures and practices with a view to making them simpler from the viewpoint of enabling banks to render better customer service. The Reserve Bank had advised banks to set up ad-hoc committees on similar lines at their level to look into their own procedures and practices. The Governor urged banks to ensure that the ad hoc committees set up in banks also keep in mind the objectives of customer service of international standard and reduction of transaction costs.
The
Governor pointed out that the Reserve Bank was considering
the suggestion of appointing relationship managers in
banks on a pilot basis to deal with any queries and to
coordinate with the Reserve Bank and others. It was also
considering developing a mailbox concept to store the
clarifications given by the Reserve Bank to individual
banks so that other banks could also access those clarifications.
The
Governor further urged banks to evolve their loans and
investment policies with more initiative and on an interactive
basis so that there was transparency, particularly in
the area of interest rates. Interest rates charged by
banks to their borrowers should be based on individual
credit risk assessment rather than deal
with them on a category-wise basis. "The Reserve
Bank could move out of prescription if banks have transparent
loan and investment policies," he stated.