The Reserve Bank’s approach to customer service focusses on protection of customers’ rights, enhancing the quality of customer service, spreading awareness and strengthening the grievance redressal mechanism in banks and also in the Reserve Bank.


  • The Reserve Bank’s initiatives in the field of consumer protection include the setting up of a Customer Redressal Cell, creation of a Customer Service Department in 2006 which was recently rechristened as Consumer Education and Protection Department. Further, the setting up of the Banking Codes and Standards Board of India (BCSBI), an autonomous body for promoting adherence to self-imposed codes by banks for committed customer service.
  • In order to strengthen the institutional mechanism for dispute resolution, the Reserve Bank in the year 1995 introduced the Banking Ombudsman (BO) scheme. The BO is an Alternate Dispute Redressal mechanism for resolution of disputes between a bank and its customers. There are 20 Banking Ombudsman offices in the country at present. The scheme covers grievances of the customers against Commercial Banks, Scheduled Primary Cooperative Banks and Regional Rural Banks. In 2006, the Reserve Bank revised the BO scheme. Under the revised scheme, the BO and the staff in the offices of the BO are drawn from the serving employees of the Reserve Bank. The new scheme is fully funded by the Reserve Bank and virtually covers all banking transactions related grievances except their business decisions like sanctioning of credit etc.

Some Initiatives

Way Forward

The Charter of Customer Rights outlines overarching principles of customer rights based on global best practices. The five rights for bank customers according to this Charter are:

  • Right to Fair Treatment
  • Right to Transparency, Fair and Honest Dealing
  • Right to Suitability
  • Right to Privacy
  • Right to Grievances Redress and Compensation