If you think your bank has been unfair in selling you an unsuitable product or has compromised with your privacy by sharing your personal information with a third party without your consent, you have the right to complain as a bank customer. Recently, the Reserve Bank of India, released a charter of customer rights specifying the five basic rights of a bank costumer. The charter clearly specifies the responsibility of a financial service provider (FSP) against a customer. Financial service providers include scheduled commercial banks, regional rural banks and urban co-operative banks. They are bound by this charter and the customer has the right to approach the customer services division of the apex bank if the bank violates any of the following rights.
- Right of fair treatment
The basic idea behind this right is that both the customer and the service provider have the right to be treated fairly. There shouldn’t be any discrimination on the basis of caste, gender, age or physical disability with any of the customers. However, this doesn’t mean that the financial service provider can’t have scheme specifically designed for a specific set of customers.
- Right of transparency, fair and honest dealing
It is the responsibility of the financial service provider (FSP) to make the customer understand the price of the product (interest rates), the inherent risk involved in the product, the various terms and conditions. The FSP should disclose everything before entering into any agreement or contract. The most important terms and conditions associated with the product or service should be clearly brought to the notice of the customer. Also, the language of the contract should be simple so that it is easier for the customer to comprehend and understand. Also, it is the responsibility of the FSP to convey any change in terms and conditions within 30 days of such change and if the changes are adverse for the customer a prior notice of 30 days should be given to the customer and options should be given to the customer.
If the FSP fails to deliver any of these promises, you have the right to report this. You have the right to complain against any threats whether verbal or physical, coercive behavior or harassment in any manner. So, you have the right to fair and honest services from the FSP.
- Right to suitability
This right has been brought to protect the customers from being the victim of mis-selling. It is the responsibility of the FSP to offer a product that is as per the needs and requirements of the customer. The FSP should ensure that the staff sells a product after analyzing the financial situation and circumstances of the customer. As a customer you have the right to say no to the third party product sold as quid-pro-quo by the FSP for any of the services availed.
- Right to privacy
You have the right that all your personal information is kept confidential with the banks except from where you have specifically allowed the bank to provide it for a particular purpose (providing it to credit bureaus) or if such information is required under any kind of law.The customer should be communicated in writing about the mandated disclosures. The bank can’t share personal information for marketing purposes unless the customer specifically authorizes the bank.
- Right to Grievance Redress and Compensation
You have the right to hold a FSP accountable for any product or services offered and have a right to easy and simple grievance redress system. The FSP must place its customer grievance redressal mechanism public domain. As a customer you should first file an official complaint with the FSP, if it is not addressed you have the right to go the banking ombudsman, appointed by the Reserve Bank of India. You can file a complaint online on RBI’s website.
Now you know your rights as a banking customer, so if you face any difficulty in dealing with your bank, make full use of these rights to ensure that you get the best services.