R. Charu Latha
RBI released a Charter of Customer Rights on 3rd December 2014. It consists of principles for protection of bank customers and enunciates the ‘five’ basic rights available to them.
Right to Fair Treatment: This right prohibits banks from discriminating against customers on grounds of gender, age, religion, caste and physical ability while offering and delivering financial products and services.
Right to Transparency, Honest and Fair dealing: This right requires the banks to make sure that the contracts or agreements framed by it are in a simplified and transparent manner which could be understood by a common man. The banks should also not subject its customers to unfair business practices, coercive contracts or misleading representations.
Right to Suitability: This right prevents the selling of inappropriate financial products to the customers. It directs the banks to sell only that product which would be beneficial for the customer. The interest of the customers has to be kept in mind.
Right to Privacy: This right protects the personal information of the customers by keeping it confidential. Bankers are allowed to disclose only that information as required under law.
Right to Grievance Redressal and Compensation: This is a right available to bank customers which provides support by way of a grievance redressal mechanism, when banks fail to adhere to basic norms which need to be followed by it. The banks will be held responsible for its own products, as well as that of third parties like insurance companies and fund houses.
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