Mumbai, Aug. 22: The Reserve Bank of India (RBI) today unveiled a five-point draft charter on the rights of consumers using the services of financial service providers such as banks.
The “Charter of Customer Rights”, based on global best practices of consumer protection, spells out the rights of customers and the responsibilities of the financial service providers. It contains five basic points related to fair treatment, transparency, fair and honest dealing, right to suitability, right to privacy and right to grievance redress and compensation.
According to the draft charter announced today, entities regulated by the RBI (such as banks and non-banking finance companies) will have to ensure that agreements entered with customers are not only clear but should also be well communicated and written in such a way that they are easily understood by the common man.
While the products should be suitable to the needs of the customers, individuals can hold the financial services provider accountable for any lapses in the products offered.
The RBI will frame the necessary guidelines after it receives comments on the draft charter from various sections of society.
The Reserve Bank today said it would conduct more frequent term repo auctions to make borrowing more flexible to meet liquidity needs. From September 5, it will conduct 14-day term repo operations four times a fortnight.