RBI panel raises alarm on poor customer care

Proposes penalties for non-compliant entities, rewards for performers

- Shayan Ghosh 

A committee appointed by the Reserve Bank of India (RBI) has issued recommendations to improve customer service standard at banks, non-banking financial companies, and other regulated institutions. According to its proposals, penal action should be taken against entities if they fail to meet the standards, while those making systemic upgrades must be incentivised.

The committee, chaired by former deputy governor B.P. Kanungo, was established in May 2022 to assess the state of customer care services, evaluate the adequacy of existing regulations, and propose measures for improvement. It submitted a report on 24 April, and the findings were published on Monday.

key concern highlighted by the committee was the lack of enforcement action against regulated entities failing to meet customer service requirements, despite a comprehensive regulatory framework.