“CUSTOMER GRIEVANCE HANDLING IN BANK”

Bachelor of Commerce
Banking & Insurance
Semester V
(2017-18)

Submitted by
Sayali S Parulekar
Roll No. 17-9065

D.S.P.M’S
K.V.PENDHARKAR COLLEGE
OF
ARTS, SCIENCE AND COMMERCE
DOMBIVLI (EAST) 421203

1
“CUSTOMER GRIEVANCE HANDLING IN BANK”

Bachelor of Commerce
Banking & Insurance

Semester V
Submitted

In partial Fulfillment of the requirements

For the Award of Degree of Bachelor of
Commerce – Banking & Insurance

By
Sayali Parulekar
Roll No. 17 -9065

D.S.P.M’S
K.V.PENDHARKAR COLLEGE
OF
ARTS, SCIENCE AND COMMERCE
DOMBIVLI (EAST)

2
 CERTIFICATE

I, Prof. Kaustubh Khorwal, here by certify that, Sayali Parulekar of

T.Y.B.COM (BANKING & INSURANCE) of K.V. PENDHARKAR
COLLEGE DOMBIVLI (E) has completed the project on
“CUSTOMER GRIEVANCE HANDLING IN BANK”
for V-Semester of the academic year 2017-18 under my guidance. The

information submitted in this project is true and original to the best of my

knowledge.

PROJECT GUIDE

Prof. Kaustubh Khorwal.

K.V.PENDHARKAR COLLEGE
DOMBIVLI (E)

3
 DECLARATION

I, Sayali Parulekar, the student of B.com BANKING & INSURANCE

Semester V (2017-18) hereby declare that I have completed this project
on “CUSTOMER GRIEVANCE HANDLING IN BANK”.
The information submitted is true and original to the best of my

knowledge.

Sayali Parulekar
Roll No: 17-9065

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 ACKNOWLEDGEMENT

This project would just not have been completed without the valuable contribution
from various people to whom I interested within the course of its completion. I would
first and foremost thank the UNIVERSITY OF MUMBAI for designing such precise
and practical course.
I thank our Principal DR. ANURADHA RANADE who have relied strongly on me
to complete my project and without them this project would have remained just an
idea, and even I would also like to thank our coordinator PROF. MRS. SNEHA
VAIDYA for assisting my project.
I would like to express my indisputable thanks to our library head & staff who
provided me timely essential information in the form of books.
Finally, I wish to thank my friends and my parents and all those people who have
lent me a helping hand in finishing this project whose names are too numerous to
be mentioned here.

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 INDEX

Chapter CONTENTS PAGE.NO

No.
1 INTRODUCTION 6-17
2 CUSTOMER RELATIONSHIP 18-23
MANAGEMENT
3 GRIEVANCE 24-30
4 GRIEVANCE HANDLING IN 31-56
BANK
5 DATA ANALYSIS & INTERPRETATION 57-70
FINDINGS 71

RECOMMENDATIONS 72

CONCLUSION 73

6 BIBLIOGRAPHY
74-75
7 APPENDIX
76

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 Chapter 1
INTRODUCTION
1.1 OVERVIEW OF BANKING INDUSTRY IN INDIA
The major participants of the Indian financial system are the commercial banks, the financial
institutions (FIs), encompassing term-lending institutions, investment institutions, specialized
financial institutions and the state-level development banks, Non-Bank Financial Companies
(NBFCs) and other market intermediaries such as the stock brokers and money-lenders. The
commercial banks and certain variants of NBFCs are among the oldest of the market participants.
The FIs, on the other hand, are relatively new entities in the financial market place.
Bank of Hindustan, set up in 1870, was the earliest Indian Bank. Banking in India on
modern lines started with the establishment of three presidency banks under Presidency Bank's act
1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of Madras. In 1921, all presidency banks
were amalgamated to form the Imperial Bank of India. Imperial bank carried out limited central
banking functions also prior to establishment of RBI. It engaged in all types of commercial banking
business except dealing in foreign exchange.
Reserve Bank of India Act was passed in 1934 & Reserve Bank of India (RBI) was
constituted as an apex bank without major government ownership. Banking Regulations Act was
passed in 1949. This regulation brought Reserve Bank of India under government control. Under
the act, RBI got wide ranging powers for supervision & control of banks. The Act also vested
licensing powers & the authority to conduct inspections in RBI

In 1955, RBI acquired control of the Imperial Bank of India, which was renamed as State Bank of
India. In 1959, SBI took over control of eight private banks floated in the erstwhile princely states,
making them as its 100% subsidiaries.
RBI was empowered in 1960, to force compulsory merger of weak banks with the strong
ones. The total number of banks was thus reduced from 566 in 1951 to 85 in 1969. In July 1969,
government nationalized 14 banks having deposits of Rs.50 crores & above. In 1980, government
acquired 6 more banks with deposits of more than Rs.200 crores. Nationalization of banks was to
make them play the role of catalytic agents for economic growth. The Narsimham Committee

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report suggested wide ranging reforms for the banking sector in 1992 to introduce internationally
accepted banking practices.
The amendment of Banking Regulation Act in 1993 saw the entry of new private sector
banks.
Banking Segment in India functions under the umbrella of Reserve Bank of India - the
regulatory, central bank. This segment broadly consists of:
Commercial; Banks

Co-operative Banks

COMMERCIAL BANKS
The commercial banking structure in India consists of:
 Scheduled Commercial Banks
 Unscheduled Banks
Scheduled commercial Banks constitute those banks which have been included in the
Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks
in this schedule which satisfy the criteria laid down vide section 42 (60 of the Act. Some co-
operative banks are scheduled commercial banks albeit not all co-operative banks are. Being a part
of the second schedule confers some benefits to the bank in terms of access to accommodation by
RBI during the times of liquidity constraints. At the same time, however, this status also subjects
the bank certain conditions and obligation towards the reserve regulations of RBI. This sub sector
can broadly be classified into:

1. Public sector

2. Private sector

3. Foreign banks.

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CO-OPERATIVE BANKS
There are two main categories of the co-operative banks.

(a) Short term lending oriented co-operative Banks - within this category there
are three sub categories of banks viz state co-operative banks, District co-operative
banks and Primary Agricultural co-operative societies.

(b) Long term lending oriented co-operative Banks - within the second category
there are land development banks at three levels state level, district level and village
level.
The co-operative banking structure in India is divided into following main 5
categories:

1. Primary Urban Co-op. Banks

2. Primary Agricultural Credit Societies.
3. District Central Co-op. banks.
4. State Co-op. Banks.
5. Land Development Banks.

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 BANKS IN INDIA

Public Sector Banks Private Sector Banks Foreign Banks

Allahabad Bank Bank of Punjab Ltd. ABN-AMRO Bank N.V

Andhra Bank Centurion Bank Ltd. Abu Dhabi Commercial Bank Ltd
Bank of Baroda Development Credit Bank Ltd. American Express Bank Ltd.
Bank of India HDFC Bank Ltd. BNP Paribas
Bank of Maharashtra ICICI Bank Ltd. Citibank N.A
Canara Bank IndusInd Bank Ltd. DBS Bank Ltd
Central Bank of India Kotak Mahindra Bank Ltd. HSBC Ltd.
Dena Bank UTI Bank Ltd. Standard Chartered Bank
Indian Bank Yes Bank Ltd
Indian Overseas Bank Bank of Rajasthan Ltd.
Oriental Bank of Commerce Dhanalakshmi Bank Ltd.
Punjab and Sind Bank Federal Bank Ltd
Punjab National Bank ING Vysya Bank Ltd.
Syndicate Bank Jammu and Kashmir Bank Ltd.
Union Bank of India Karnataka Bank Ltd
United Bank of India United Western Bank Ltd
IDBI Bank
State Bank of India

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1.2 BANKING CHARACTERISTICS:-

The major characteristics of the Banking Sector are:

1) DEALING IN MONEY:- All banks basically deals with money as they are
financial institute where we links for our moneys exchanges we will either gave or
deposit money in banks or will led/barrow money from banks for our requirement as per
we need.

2) ACCEPTANCE OF MONEY DEPOSITS: -All banks always works for their

consumer satisfaction as a result they accepts money from all their customers in a way
there they also gave an Interest on deposited with the duration passed to money in bank.
Banks deposits money from peoples & after that the protection of money is the
responsibility of banks any misfortune happens to the consumer’s money will be returned
by banks to customer within a given period of time.

3) PAYMENT AND WITHDRAWS MONEY: - A person who has deposit their

money into bank can able to withdraw it at any time of instance. A customer can also able
to easy payment & withdraw their money with the facilities of ATM, DRAFTS, MONEY
ORDERS, and CHEQUES etc.

4) INDIVIDUAL OR COMPANIES: - Bank can be of any type it can be a company

or firm or also a person which are involved in the business of money. This is also how
banks are defined.

5) VARIOUS BRANCHES: - A bank can also have multiple branches for the facility
of their customers as every person cannot be able to go to the main branch of the Bank so
banks further grows their own branches so that they can reach to each n every person.

6) FUNCTION INCREASING RAPIDLY: - BANKS always believe in

developing of facilities for the customers so that they always increase their functions for
working like developing latest ATM machines for the transactions of money and also net
banking by which will be able to buy & sell any item from the sitting in our comfort
zone.

7) BUSINESS IN BANKING SECTOR:-BANKS do the business of money

without any subsidiary business. There only responsibility is to satisfy their customers.
This is also how banks define as they do the business of money interchanging from 1
hand to other.

8) IDENTIFICATION: - Each bank has a unique name but having BANK name as
common in all. Which identifies the banks existence. People deals with different banks
having different names but bank word in common in all of them.

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 9) FACILITIES OF ADVANCE MONEY: - BANKS ALSO LED/GAVE money
to the people in a form of LOAN with minimum amount of interest. People which are not
able to full fill their requirements at an instance of time which required a large amount of
money at that time banks lend money to them so that they full fill their requirements and
returns back in small installment which are known as EMIs.

1.3 INTRODUCTION TO E-BANKING:

Electronic banking is one of the truly widespread avatars of e-commerce all over the world.
Various authors define e-banking differently and the definitions giving the meaning and features
of e-banking are as follows:
1. e-banking is a combination of electronic technology and banking.
2. e-banking is a process by which a customer performs banking transactions electronically
without visiting a brick-and-mortar institution.
3. e-banking denotes the provision of banking and related services through extensive use of
information technology without direct recourse to the bank by the customer.

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1.4 NEED FOR E-BANKING:
One has to approach a bank branch in person to withdraw cash or deposit a cheque or request a
statement of accounts.
In internet banking, any inquiry or transaction is processed online without any reference to the
branch (anywhere banking) at any time. Providing internet banking is increasingly becoming a
“need to have” than a “nice to have” service.
The net banking, thus, is more of a norm rather than an exception in many developed countries
due to the fact that it is the cheapest way of providing banking services. Banks have traditionally
been in the forefront of harnessing technology to improve the efficiency of their products and
services. They have, over a long time, been using electronic and telecommunication networks for
delivering a wide range of value added products and services.
The delivery channels include direct dial – up connections, private networks, public networks
etc., and the devices include telephone, personal computers, the Automated Teller Machines
(ATM) etc.
With the popularity of PCs and the easy access to the internet and World Wide Web (WWW),
internet is increasingly used by banks as a channel for receiving instructions and delivering their
products and services to their customers.
This form of 5 banking is generally referred to as Internet Banking, although the range of
products and services offered by different banks vary widely both in their content and
sophistication

Customer Perception
Customer perception is an important components of our relationship with our customers.
Customer’s satisfaction is a mental state which results from the customer’s comparison of
expectations prior to a purchase with performance perceptions after a purchase. A customer may
make such comparison for each part of an offer called “Domain- specific satisfaction” or the
offer in total called “global satisfaction”. Moreover, this mental state, which we view as a
cognitive judgment, is conceived of as falling somewhere on a bipolar continuum bounded at the
lower end by a low level of satisfaction where expectations exceed performance perceptions
and at the higher end by a high level of satisfaction where performance exceed expectations.

13
Customer Perception on Service.
These characteristics of service also make service unique and different from goods as described
below:-
1) Intangibility: - Unlike manufactured goods that are tangible, a service is intangible.
The products from service are purely a performance. The consumer cannot see, taste,
smell, hear, feel or touch the product before it purchased.
2) Heterogeneity: - A service is difficult to produce consistently and exactly over time.
Service performance varies from producer to producer, from customer to customer, and
from time to time. This characteristic of service makes it difficult to standardize the
quality of the service.
3) Inseparability: - In service industries, usually the producer performs the service at the
time the consumption of the service takes place. Therefore, it is difficult for the producer
to hide mistakes or quality shortfalls of the service. In comparison the goods producers,
have a buffer between productions and customer’s consumption.
4) Perishability: - Unlike manufactured goods, services cannot be stored for later
consumption. This makes it impossible to have a quality check before the producers send
it to the customers. The service providers then only one path, to provide service right the
first and every time.
5) Non- returnable: - A service is not returnable, unlike products. On the other hand, in
many services, customers may be fully refunded if the service is not satisfactory.

Measuring Customer Perception in the Banking Industry

Banking operations are becoming increasingly customer dictated. The demand for ‘banking
super malls’ offering one-stop integrated financial services is well on the rise. The ability of
banks to offer clients access to several markets for different classes of financial instruments
has become a valuable competitive edge. Convergence in the industry to cater to the changing
demographic expectations is now than evident. Banc- assurance and other forms of cross
selling and strategic alliances will soon alter the business dynamics of banks and fuel the
process of consolidation for increased scope of business and revenue. The thrust on farm
sector, health sector and services offer several investment linkages. In short, the domestic
economy is an increasing pie which offers extensive economies of scale that only large banks
will be in a position to tap. With the phenomenal increase in the country’s population and the
increased demand for banking services; speed, service quality and customer satisfaction are
going to be key differentiators for each bank’s future success. Thus it is imperative for banks
to get useful feedback on their actual response time and customer service quality aspects of
retail banking, which in turn will help them take positive steps to maintain a competitive edge.

The working of the customer’s mind is a mystery which is difficult to solve and understanding
the nuances of what perception the customer has to attain satisfaction is, a challenging task.
This exercise in the context of the banking industry will give us an insight into the parameters
of customer satisfaction and their measurement. This vital information will help us to build
satisfaction amongst the customers and customer loyalty in the long run which is an integral
part of any business. The customer’s requirements must be translated and quantified into
measurable targets. The customer’s requirements must be translated and quantified into
measurable targets. This provides an easy way to monitor improvements, and deciding upon
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the attributes that need to be concentrated on in order to improve customer satisfaction. We
can recognize where we need to make changes to create improvements and determine if these
changes, after implemented, have led to increased customer satisfaction.

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 BANKING INDUSTRY
Banking in India, in the modern sense, originated in the last decades of the 18th century.
Among the first banks were the Bank of Hindostan, which was established in 1770 and
liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.

The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It
originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of
Bengal. This was one of the three banks funded by a presidency government, the other two
were the Bank of Bombay and the Bank of Madras. The three banks were merged in 1921 to
form the Imperial Bank of India, which upon India's independence, became the State Bank of
India in 1955. For many years the presidency banks had acted as quasi-central banks, as did
their successors, until the Reserve Bank of India was established in 1935, under the Reserve
Bank of India Act, 1934.

In 1960, the State Banks of India was given control of eight state-associated banks under the
State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate
banks. In 1969 the Indian government nationalized 14 major private banks. In 1980, 6 more
private banks were nationalized. These nationalized banks are the majority of lenders in
the Indian economy. They dominate the banking sector because of their large size and
widespread networks.

The Indian banking sector is broadly classified into scheduled banks and non-scheduled
banks. The scheduled banks are those included under the 2nd Schedule of the Reserve Bank
of India Act, 1934. The scheduled banks are further classified into: nationalized banks; State
Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other
Indian private sector banks. The term commercial banks refers to both scheduled and non-
scheduled commercial banks regulated under the Banking Regulation Act, 1949.

Generally banking in India is fairly mature in terms of supply, product range and reach-even
though reach in rural India and to the poor still remains a challenge. The government has
developed initiatives to address this through the State Bank of India expanding its branch
network and through the National Bank for Agriculture and Rural Development
(NBARD) with facilities like microfinance.

16
History of Banking Sector in India:

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and
well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market and liquidity risk studies suggest that Indian banks are
generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. The central bank granted in-principle approval to 11
payments banks and 10 small finance banks in FY 2015-16. RBI’s new measures may go a long
way in helping the restructuring of the domestic banking industry.

Market Size:

The Indian banking system consists of 26 public sector banks, 25 private sector banks, 43 foreign
banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural cooperative
banks, in addition to cooperative credit institutions. Public-sector banks control nearly 80 percent
of the market, thereby leaving comparatively much smaller shares for its private peers. Banks are
also encouraging their customers to manage their finances using mobile phones.

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Road Ahead:

The Indian economy is on the brink of a major transformation, with several policy initiatives set
to be implemented shortly. Positive business sentiments, improved consumer confidence and
more controlled inflation are likely to prop-up the country’s the economic growth. Enhanced
spending on infrastructure, speedy implementation of projects and continuation of reforms are
expected to provide further impetus to growth. All these factors suggest that India’s banking
sector is also poised for robust growth as the rapidly growing business would turn to banks for
their credit needs.

Also, the advancements in technology have brought the mobile and internet banking services to
the fore. The banking sector is laying greater emphasis on providing improved services to their
clients and also upgrading their technology infrastructure, in order to enhance the customer’s
overall experience as well as give banks a competitive edge.
Many banks, including HDFC, ICICI and AXIS are exploring the option to launch contact-less
credit and debit cards in the market shortly. The cards, which use near field communication
(NFC) mechanism, will allow customers to transact without having to insert or swipe.

Exchange Rate Used: 1 INR =0.0152488USD as on October 3rd, 2017

18
 Chapter 2
CRM
Customer relationship management (CRM) is an approach to managing a company's interaction
with current and potential customers. It uses data analysis about customers' history with a
company and to improve business relationships with customers, specifically focusing
on customer retention and ultimately driving sales growth.

One important aspect of the CRM approach is the systems of CRM that compile data from a
range of different communication channels, including a company's website, telephone, email,
live chat, marketing materials, and more recently, social media. Through the CRM approach and
the systems used to facilitate it, businesses learn more about their target audiences and how to
best cater to their needs. However, adopting the CRM approach may also occasionally lead to
favoritism within an audience of consumers, resulting in dissatisfaction among customers and
defeating the purpose of CRM

CRM IN BANKS:

A well-planned CRM strategy will increase any company’s likelihood of success in meeting
marketing, sales and customer experience objectives. However, if you’re a financial services
firm, here are a few special considerations to take into account when implementing a CRM.
Today, in the banking and financial services industry, the customer is empowered with choice.
Brand loyalty is rare and likely linked to a mortgage, loan or some other contractual obligation.
It’s common for many customers to maintain financial services relationships with more than one
bank or financial service company. Financial services, like other business sectors, must consider
performance enhancement initiatives that drive customer retention and lead conversion to their
brand and services. Performance is fueled by relevant and accessible information that can be
quickly acted upon from systems that provide and support excellent customer service with the
ability to track, measure and analyze customer interactions. This describes what CRM systems
are today.

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Benefits of CRM for Banking:
A CRM system is a sound business strategy for banks to help create brand value and identify and
understand their customers’ needs by providing targeted, timely and relevant information that
can add value to their customers. CRM systems provide tools that can segment, and deliver the
right service, at the right time, by acting on dynamic customer information. This allows the
ability to track and build strong relationships with profitable customers and identify specific
products and services that can benefit customers. Outcomes of all activities can be tracked and
measured; CRM dashboards acting as business decision support systems are the perfect place to
present measurements and outcomes.
Customer Relationship Management concept is tendency of banking sector to establish and
maintain long-term relationships with customers in order to provide value for customers and
banks. This concept allows bank to identify, segment, communicate and build long-term
relationships with customers on individual basis. In today's business environment, banks have
aim to identify customers and to adjust offer to meet customer`s needs, in order to maximize
profits. Using modern technologies, Customer Relationship Management is becoming a method
to maintain existing structure and development of high quality customer base. It involves
development of marketing strategy through a better understanding of the entire customer base,
understanding needs and attitudes of customers, as well as more efficient consideration of
profitability and added value that each customer have for the bank. The aim of research,
presented in this paper, is to assess to benefits of introducing Customer Relationship
Management concept in banking sector, by defining strategies, adjustment of organizational
structure, culture and internal processes with help of modern technology. The paper presents
methods of measuring success of Customer Relationship Management concept and problems
which banks have when implementing a new business philosophy.

Benefits of CRM concept is reflected through increasing revenues and profitability, reducing
costs and organizational changes in banking sector.

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Adoption of CRM concept in the banking sector requires jointly effort on three areas:
OPERATIONAL, ANALYTICAL AND ORGANIZATIONAL:
Operational CRM provides a unique source of information about customers. It deals with
creation of information and supports sales, marketing and customer service.
Analytical CRM is carried out through collection, processing and systematization of data in order
to obtain information relevant to Customer Relationship Management. Organizational CRM
requires cooperation between marketing functions and infrastructure in order to optimize
activities aimed at customers, to create value for the bank and the customer through usage of
multiple channels of communication. This CRM is responsible for establishing customer
interaction through appropriate channel of communication. CRM success in bank depends on
quality of their integration.

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INTEGRATION BETWEEN OPERATIONAL, ANALYTICAL AND
ORGANISATIONAL CRM.

In order to optimize processes in banks and satisfy customer needs, integration between
analytical, operational and organizational CRM is essential. Banks in Europe, Asia and North
America have developed a modern approach to customer through existence of operational,
analytical and organizational CRM.
CRM strategies, organizational structures and cultures, employees and top management,
communication channels as well as information technology can positively and negatively affect
acceptance and success of CRM concept. There is cause-effect relationship between mentioned
factors, since establishment of proper CRM strategy, its acceptance in organization and by
employees, selection of right CRM technology and its integration with channels of
communication are the key factors of a successful CRM concept.
First step in process of developing CRM concept is clear definition of business, as well as
objectives and reasons why bank performs its activities. Bank should analyze characteristics of
business environment and development of media and distribution channels. Also, bank should
build adequate technological infrastructure which will support implementation of CRM strategy.
Well-defined business strategy will help bank to establish marketing strategy that connects and
coordinates internal competence with external challenges (decision making for Customer
Relationship Management, building relationships with customers, analyzing attitudes and
behaviors of customers, customer segmentation, etc.). As the key principle of CRM concept is
personalization, bank defines a strategy that will enhance and improve quality of customer
relationships. CRM is a business strategy which is based on principles of Relationship
Marketing. Relationship Marketing has aim to attract, retain and build long-term partnerships
and relationships with selected customer segments in order to create higher value for customers
and the bank. CRM strategy involves: Analysis and collection of information related to
adequacy of existing strategies, internal environment, individual business processes, employees
knowledge and indirect business environment. Development of CRM strategy, which includes
definition of strategic objectives and adequate definition of CRM strategies. Implementation of
CRM strategy that includes planning, implementation of all business communication
techniques, and control activities which are necessary for achievement of defined objectives of
building and improving relationships with customers. CRM strategy is based on customer
strategy, customer-interaction strategy, brand strategy and value-creation strategy. Before
implementing CRM concept, bank should establish a customer strategy that defines a way to
attract new customer and to maintain relationships with existing customers. Customer strategy
involves grouping customers on various grounds (gender, age, occupation, marital status, needs,
shopping habits, etc.). Based on analysis of characteristics and behavior of customers, bank,
through a strategy of customer relationships, defined ways (channels of communication) and
frequency of interaction with customers. Interaction of with customers depends on brand
strategy. Bank should define brand strategy as what it wants to be and how to act to achieve that
identity. Based on defined ways of maintaining relationships with existing and ways of acquiring
new customers, as well as defined channels of communication, and brand strategy bank is ready
to define indicators values that CRM concept creates for customers and the bank, through a value

22
creation strategy. Well-defined value-creation strategy offers superior value to individual
customers and at the same time maximizes profitability from each relationship.

Benefits of CRM to Customer

1. Improved informational organization
2. CRM for enhanced communication
3. CRM improves your customer service
4. Automation of everyday tasks
5. Greater efficiency for multiple teams
6. Improved analytical data and reporting
The Key to Giving Customers What They Want Lies in Understanding Them, And A CRM
System Does Just That.

23
The Challenges CRM Solves

 In a recent CRM project with a financial services company, a CRM was implemented as
the front end to their information systems. Like many major financial services firms, this
company has unique and separate lines of business that complement each other,
and allows the company to provide their customers with a full range of financial and
related services. In this situation, CRM information acts as the master record with other
integrated information systems being used to process data and provide relevant and
timely information to the CRM system for customer facing activities such as marketing,
sales and customer support. There are 3 challenges that a CRM can help banks and
financial services companies solve:
 Evolving Customer Profiles – customers are not loyal to specific banks and their
circumstances are dynamic
 Connecting the Dots – customer profiles, customer service and marketing initiatives can
be combined to identify opportunities and drive up conversion rates
 Responding Appropriately – create, assign and track action items, measure outcomes

The following are examples of how CRM capabilities help banks and financial service
companies provide excellent customer value, retention, as well as prospect/lead management and
conversion.
Integration with Other Banking Systems
Integrating a CRM with other banking systems is a complex task. Luckily, this is fully supported
by a variety of robust and mature tools that provide standardized tools and methodologies. Scribe
Software is very CRM aware and provides the platform and tools to build custom, embedded
integration experiences for SaaS, cloud, premise or hybrid scenarios. Scribe provides native
support for a variety of CRM products such as Salesforce, Microsoft Dynamics CRM,
ExactTarget, Marketo, SilverPop, Oracle and SAP. Today, CRM’s are quickly becoming the hub
of customer data focusing on the dynamic customer profile, enhanced marketing, integration
capabilities, and measurement. Banks and financial service companies can increase customer
engagement and conversions from a well-aligned CRM system.

24
 Chapter 3
GRIEVANCE
A consumer complaint is a report from a consumer providing documentation about a problem
with a product or service. Consumer complaints typically represent an escalation in the
complaint process, as consumers file them with a third party to register a grievance with a
company that fails to resolve a complaint internally. Organizations like the Better Business
Bureau and Federal Trade Commission both accept consumer complaints and assist people
with customer service issues, as do government representatives like attorneys general.

Agencies that accept consumer complaint filings usually ask people to use an internal form, or to
draft a letter that follows very specific guidelines. Consumers need to provide names and contact
information for themselves as well as the company, and describe the complaint in detail.
Representatives of the agency will review the document, determine if they can take any action,
and advise the consumer about the next step.

Consumers often manage to resolve problems with products and services by persistently
complaining to the offending company. They may need to document any steps they took to solve
the problem if they file formal complaints, making it a good idea to take notes on all contacts
with the company. If this is not successful, the customer can file a formal consumer complaint.
This will enter the records kept about the company, and enough complaints can trigger an
investigation, a downgrade in a company's rating, and other penalties.

Causes for consumer complaint filings vary. People may have issues with returns and
repairs, warranties, unauthorized disclosures of information, or violations of consumer
protection laws like do-not-call lists. If an agency receives a complaint and cannot do anything
with it, it needs to provide information to the consumer about why it reached a given conclusion,
so consumers can appeal or refile. Resolutions can include refunds, issuing compensation or
Replacement products, or negotiating a meeting between a consumer and company
representatives so the consumer can air a grievance.
Before filing a consumer complaint, it is a good idea to read the guidelines carefully to make
sure an organization or agency is an appropriate choice. It is also important to make sure that the
complaint meets the guidelines; leaving off contact information or failing to document the
complaint properly can result in a time delay as the agency seeks more information to be able to
better aid the consumer. Consumers should keep copies of their complaints and any
correspondence with consumer rights organizations or agencies for future reference.

25
CAUSES OF GRIEVANCE

Executive Summary

The Disputes Redressal Agencies (District Forums, State Commissions and National
Commission) under the Consumer Protection Act, 1986 adjudicate upon the complaints of
consumers relating to defaults in products and deficiency in service. `Service’ as defined in
the Act includes the provision of facilities in connection with banking.

The decisions of the State Commissions, the National Commission, and the Supreme Court (as
the final authority), on different aspects of banking and other services offered by banks have
been reported in various law journals. A short compilation of the decisions from 1995 to 2005
has been made with a view to giving a brief account of the principles laid down in these cases.
Each case is given separately along with the citation for enabling access to the full text of the
case, whenever necessary.

The principles laid down by the various decisions of the Consumer Commissions and the
Supreme Court and included in the compilation can be summarized as under:

i. Failure /Delay in repaying deposits

Withholding of the amount due on a fixed deposit after its maturity, amounts to deficiency in
service. Delayed payment of term deposits on maturity also amounts to deficiency in service.
The principle applies to cases of inordinate delay in payment of proceeds of premature
encashment of deposits as well.

ii. Payment and Collection of Cheques/Drafts

Wrongful dishonor of cheques due to the negligence or mistake on the part of the bank has been
held to amount deficiency in service. Dishonor of DDs due to the lapse or omission on the part of
the officials of the bank like non-affixation of signatures, failure to mention code number etc.
have also been held to be amounting to deficiency in service.

iii. Loans and Advances

Refusal to grant loans

Matters concerning the eligibility of parties to any credit assistance, viability of the project and
continuation of the credit facilities or the operation of the account by any party, are within the
discretion of the financial institution/bank depending upon various factors like financial
discipline and past history of borrower and his ability to pay the loan, if such discretion is
exercised bonafide. Even though the bank has the right to refuse or grant loan, causing undue
delay in releasing the installments of the sanctioned loan might be held to amount to deficiency
in service.

26
Interest

Charging interest at a rate higher than the rate stipulated in the loan agreement would also
amount to deficiency in service. Interest cannot be claimed in a consumer case under section 34
of the Code of Civil Procedure as these provisions are not applicable .However, based on the
underlying principles of justice, equity and good conscience, the Forums and Commissions can
grant appropriate interest in each case. Although banks cannot give interest exceeding that
prescribed by the Reserve Bank, they have a duty to inform the depositor about this , the failure
of which, would amount to deficiency in service.

iv. Security for loans

Non-return of documents

Bank are liable for deficiency in service in cases where they fail to return the security documents
even after repayment of the whole loan.

Insurance of security

Banks are not bound to insure the security taken for a loan unless the loan agreement provides
for insurance and as such, failure to insure does not amount to deficiency in service. Further,
merely because the owner of a vehicle has given the cheque for insurance premium to the bank
along with monthly installment of loan taken for purchase of the vehicle, liability arising out of
an accident to third parties cannot be shifted to the bank.

v. Lien

Banks have a right to exercise lien under section 171 of the Indian Contract Act against the dues
from constituents/customers. However, the banks cannot exercise lien over the personal account
of a customer on the ground that money was due to the bank in another account where he acts in
a different capacity, if there is no agreement to that effect.

vi. Bank Guarantee

The failure of a bank to honor bank guarantee is a deficiency in service. However, in cases where
a demand was made not in accordance with the conditions of the guarantee and therefore, the
guarantee was not honored, it would not amount to deficiency in service.

vii. Locker

A bank is liable for loss of articles kept in the locker with the bank. The bank cannot contract out
of its responsibilities in relation to a locker by describing the agreement as that between a
landlord and a tenant. When locker was found emptied and contents lost, the banks have been
held liable for deficiency in service. However, in some such cases, the disputes were left open to
be decided by the Civil Court after taking detailed evidence.

27
viii. Security in bank’s premises

A bank is responsible for deficiency in service for lack of security in its premises and loss caused
to customers accordingly. This is on the ground that ensuring the safety of the money to be
deposited and/or withdrawn inside the bank premises is implicitly a part of the service rendered
by a bank to a customer.

ix. Consumer Forum- Jurisdiction and Procedure

A consumer complaint may not be entertained by the Consumer Forums when the matter is sub-
judice before a competent Civil Court.

A person who acts as surety for another and does not hire/avail service from the bank, is not a
consumer of the bank and therefore his complaint may not be entertained.

x. Voluminous Evidence- Complicated Questions of Law and Fact

In cases involving complex questions of facts and interpretation of laws and rights and
obligations of parties under various Statutes, the complainants have to seek redressal of their
grievances before Civil Courts not the Consumer Forum. Similar is the case when elaborate
evidence is required to be taken.

xi. Limitation

A bank may exercise lien under section 171 of Contract Act even where the debt is barred by
limitation.

A consumer can initiate proceeding against a banker for non-release of securities even after the
expiry of the period of limitation. This is based on the principle that the banker holds any goods
as security from a customer as trustee and the security is not intended to be transferred to him,
nor can he acquire any title to it, except on the basis of legal proceedings.

xii. Other Banking Services

Operation of Account

The stoppage of operation of account of a partnership firm on account of an arbitration award

and the subsequent legal opinions obtained by the bank would not amount to deficiency in
service.

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Closing of account

Closing of account without the instructions of the account holder would amount to deficiency in
service.

Refusal of Cheque book

The refusal to provide cheque book facility to a customer on the ground of not maintaining the
minimum balance in his account may not amount to deficiency in service.

Service charges

An increase in charges levied by a bank for its services does not fall within the provisions of the
Consumer Protection Act. A bank may levy charges for issuance of MICR cheques, so long as it
is not against the directives of the Reserve Bank. This cannot be termed `unilateral’ and taking
the consent of each customer does not arise.

Rendering of account

A demand for rendering of accounts of transactions with a bank is not within the scope of the
provisions of the Consumer Protection Act.

Succession Certificate

It has been held that there is no deficiency in service on the part of a bank in insisting that the
children of a deceased account holder should produce a succession certificate before releasing
the amount to them in accordance with the Succession Act and the Reserve Bank guidelines.

Insistence on denomination of notes

A customer cannot as of right insist for a particular denomination of notes, as the notes provided
by the bank are legal tender and therefore, no deficiency in service in failing to comply with the
demand.

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Forgery of Power of Attorney

Once a registered power of attorney is produced before the bank, the bank does not have to make
any further verification of signature. As the bank is not expected to verify signature, it cannot be
held responsible for negligence in verification of signature. The failure in respect of an act which
does not form part of the service cannot be considered as a deficiency in service.

Compliance of RBI directions

It has been held that the Consumer Forum may not direct the banks to make payment to a
depositor contrary to the directions issued by RBI under section 35A of the Banking Regulation
Act or allow the directions issued by RBI to be flouted.

Vicarious Liability

A bank is bound by the act of negligence of its staff during the course of employment. Thus
where the bank cashier fails to account for the money deposited with him at the counter, the bank
would be liable.

Rude behavior

A bank may be held liable for deficiency in service owing to rude behavior of its officials and be
ordered to pay compensation for the mental agony and discomfort caused.

Notice before auction

A notice to pay or face auction without making any earlier demand for repayment of loan and
without giving date of auction was held to constitute deficiency in service.

Non-return of dishonored cheque

The failure to return a dishonored cheque has been held to be deficiency in service where the
complainant was unable to take action against the drawer without the instrument.

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Strike

A bank may not be liable to pay compensation for suspension of business due to illegal strike by
the employees and when no loss is caused due to the negligence of the bank. However, in a case
when the strike by award staff was not such as to paralyze work and when the officers and other
employees were willing to work and still the salary accounts were not credited, it was held that
the bank was liable for deficiency in service.

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 Chapter 4
GRIEVANCE HANDLING IN BANK
1. INTRODUCTION

In the present scenario of competitive banking, excellence in customer service is the most
important tool for sustained business growth. Customer complaints are part of the business life in
any corporate entity. This is more so for banks because banks are service organizations. As a
service organization, customer service and customer satisfaction are our prime focus. We believe
that providing prompt and efficient service is essential not only to attract new customers, but also
to retain existing ones. Banks have come up with a lot of initiatives that are oriented to providing
a better customer service and a better complaints redressal mechanism with a view to “Out
serve” customers.

Excellence in customer service is the key differentiator deciding the customer preference and
acts as a tool in the hands of bank for spurring sustained business growth. Customer complaints
are part of any corporate's business life, especially if it is part of a service industry like banking.
As a service organization, superior customer service and customer satisfaction is of paramount
importance to any Bank. Bank should be aiming at customer delight by keeping its staff in listen
mode to understand the customers' requirements vis-a-vis the products, services, process and
procedures, facilities offered and strive to bridge the gap by staying in mission mode to
implement new initiatives to provide simple procedures and hassle free products / services,
prompt and efficient service essential for not only attracting new customers, but also to retain
existing ones. This policy document aims at providing redressal machinery and a review
mechanism to keep the redressal machinery robust and sensitive and ensure prompt redress of
customer complaints / grievances, trying to minimize recurrence thereby raising the level of
service delivery. The review mechanism should help in identifying shortcomings in product
features and service delivery. Customer dissatisfaction would spoil bank's name and image.

The bank’s policy, on grievance redressal has been formulated taking into account the
following:

 Customers are treated fairly at all times

 Complaints raised by customers are dealt with courtesy and on time
 Customers are fully informed of avenues to escalate their complaints/grievances
within the organization and their rights to alternative remedy, if they are not fully
satisfied with the response of the bank to their complaints.
 All complaints are dealt efficiently and fairly
 The bank employees work in good faith and without prejudice to the interests of the
customer.

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  Grievance of differently abled customer, pensioners and senior citizens and
customer who are not literate are dealt on priority.

In order to make the Bank’s redressal mechanism more meaningful and effective, a structured
system needs to be built up towards such end. Such system would ensure that the redressal is just
and fair and is within the given framework and in compliance with the rules and regulations. The
policy document would be made available at all branches /business units. All employees of the
bank would be made aware of the complaint handling process.

Customer complaints arise due to:

a. Inadequacy of the business and technological processes/ functions/ arrangements

made available to the customers or gaps in standards of services expected and actual
services rendered.
b. Attitudinal aspects in dealing with customers.

The customers has full right to register his complaint if he /she is not satisfied with the services
provided by the Bank. He/she can lodge complaint over telephone or in writing through letters
/email/the Bank’s website /social media. If the customer’s complaint is not resolved within given
time or if he/she is not satisfied with the resolution provided by the Bank, which has also been
seen by the Internal Ombudsman (IO), he/ she can approach the Banking Ombudsman, RBI or
other statutory / regulatory avenues available for grievance redressal. The bank has put in place a
system whereby in case the Bank decides to reject a complaint and /or decides to provide only
partial relief to the complainant, it would invariably forward such cases to the Internal
Ombudsman (IO) for further examination. The advice to the complaint after examination by IO
in such cases would necessarily have a clause that the grievance has also been examined by the
IO. The Bank has in place Board approved Compensation Policy, Cheque Collection Policy and
Customer Care Policy that guide the officials in handling the customer grievance and
appropriately compensate them, for any financial loss he/ she might incur due to deficiency in
service on the part of the Bank or any act omission or commission directly attribute to the Bank
and there is no negligence on the part of the customer to avoid such loss.

2. SCOPE OF THE POLICY:

The Policy is applicable across all branches / business segments of the Bank, and is to be read
in tandem with changes/modifications that may be advised by RBI and /or any regulatory and/or
by the Bank from time to time.

The policy may be reviewed every three years or earlier, if required.

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 3. RESOLUTION OF GRIEVANCE

Internal machinery to handle customer complaints/grievances:

Customer services committee of the board (CSCB):

The Customer Service Committee of the Board shall periodically review major areas of customer
grievance and measures taken to improve customer service. The committee will review the
annual survey of depositor satisfaction, triennial audit of services and customer service and
protection measure undertaken by the Bank. The Committee, inter-alia, will exercise oversight
on the functioning of the Internal Ombudsman (IO), who shall furnish periodical reports (at least
once in six months) with regard to the latter’s effectiveness. The committee shall also examine
aspects relating to frauds, misappropriations, etc. reported by IO.

Standing Committee on Customer Service:

On the recommendations of Committee on Procedures and Performance Audit of Public Services
(CPPAPS) the previous Ad hoc Committees on Customer Services (chaired by CMD OR ED).

It serves as the micro level executive committee while the Customer Service Committee of the
Board would oversee and review / modify the initiatives. Thus the two Committees would be
mutually reinforcing with one feeding into other.

The SCCS would be chaired by Deputy Managing Directors of the Bank and comprise of senior
executives of the Bank. Customers are also invited during these meetings. The IO of the Bank
will be a member of the Standing Committee on Customer Service (SCCS).the Committee would
have the following functions.

 Evaluate feedback on quality of customer service received from various quarters.

The committee would be also review comments/ feedback on customer services and
implementation of recommendations received from BCSBI in regard to the Code of Bank’s
Commitments to Customers.

 The committee would be responsible to ensure that all regulatory instructions regarding
customer service are followed by the Bank. Accordingly, the Committee would obtain
necessary feedback from Zonal/ Regional Managers/ functional heads.
 The committee would also take note of unresolved complaints/grievances referred to it by
the chief grievance redressal officer (CGRO) responsible for redressal and offer its
advice.
 The committee would submit report on its performance to the Customer Service
Committee of the Board at quarterly intervals.

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Committee Board of Director:

Banks to have a Committee of Board of Directors with experts and representatives of customers.
The role of such committee is deposit policy formulation.

Branch Level Committees:

The branch level committee is to submit quarterly reports giving inputs/ suggestions to the
Standing Committee on Customer Service, enabling the Standing Committee to examine them
and provide relevant feedback to the Customer Service Committee of the Board of Directors for
necessary policy/ procedural action. These committees to have members from all sections of
staff. In addition customers including senior citizens will be members.

Customer Meet:

The Branch Level Customer Service Committee may meet at least once a month to study
complaints/suggestions, cases of delay, difficulties faced/ reported by customers / members of
the Committee and evolve ways and means of improving customer service.

Chief Grievance Officer (CGRO) and Grievance Redressal Officer (GROO to handle
complaints and grievance.

The Bank would appoint a CGRO, who will be responsible for the implementation of customer
service and complaint handling for the entire bank. The Corporate Centre. CCC in association
with the Zonal/Regional offices and branches will strive to resolve all customer grievances,
including examinations by IO, wherever necessary, within the specified timeframe of 30 days.
Towards this end, the Bank would appoint 2nd tire of Grievance Redressal Officer (GRO) at its
Zonal Offices. Branches Managers would be responsible for ensuring closure of all complaints
received at the branches. It is his/her foremost duty to see that the complaint should be resolved
completely to the customer’s satisfaction and if the customer is not satisfied, then he/she should
be provided with alternate avenues to escalate the issue. If the branch manager feels that it is not
possible at his/her level to solve the problem, he/she should refer/escalate the case to GRO at the
Zonal level. In case, a complaint remains still unresolved, it could be escalated to CGRO at CCC,
Corporate Centre.

35
Internal Ombudsman (IO):

The Bank has appointed an IO, who is an independent authority placed at apex position in the
Bank’s internal Grievance Redressal Mechanism. All the cases, wherein the bank decides to
reject the complaint or provides only partial relief to the complainant would be forwarded by the
CGRO to IO for further examination. The advice to the complaint after examination by IO in
such cases would necessarily have a clause that the grievance has also been examined by the IO
and in case the complaint is still not satisfied, he/she can appeal further to the Banking
Ombudsman, RBI, whose address shall be given in the reply.

Nodal Officer:

The Bank has appointed Nodal Officer (NO) at each RBI (BO) location in order to facilitate
customers who have escalated their complaint to RBI-Banking Ombudsman. The Nodal Officer
operates as appoint to contact between the RBI, the customer and concerned branch/department
of the Bank for ensuring quick closure of the complaints.

Handling Escalations: leading a pan consumer bank (RL, RA and CC) team of 14 people
including a Team Leader at AVP level.

 Liaising with various stakeholders across Consumer Bank to ensure that customer
escalations are resolved quickly and effectively through Senior Regional Team
Interactions. Customer Interactions would also be required for ensuring effective
handling.
 Explore correct and complete closure of grievances raised to escalations Team at
minimum TAT.
 Conducting SQ Workshops with Branch Teams and also visiting branches for ground
level feedback.
 Improving brand image on complaints and grievance handling mechanism and process
reengineering through Root Cause Analysis
 Monitor Social Media and resolve customer service grievances received through social
media

 Regulatory Interface with Banking Ombudsperson Offices, RBI and other regulators on
Representing the Bank as the Nodal Officer in Regulator Meets and Customer Service
Committees
 Regulatory relationship with regulators especially Banking Ombudsman
 Regulatory Compliance of the Bank i.e.Damodaran Committee, Master Circular, etc.
 Managing Regulatory Customer Service Audits like RBI and BCSBI Audits

36
  Handholding of different verticals of the bank – Commercial banking, Wholesale banking
etc. on escalations and regulatory compliance

 Driving Customer Focused Service Culture

 Customer Communications Review
 Ensuring a Well Controlled in Internal Audit of Customer Service

Standardize Public Grievance Redressal System (SPGRS):

The Bank has implemented SPGRS so as to ensure timely and qualitative redressal of complaints
received from the customer and also to maintain escalations of complaints to
Ombudsman/regulatory level to the barest minimum.

The salient features of SPGRS are as under:

 All grievances received through multiple channels to be lodged into a common digital
platform in order to have an integrated information system for customer grievance.
 A unique reference number to be generated along with an intermediate reply stating
the likely time within which the final reply would be sent to the customer, but not
later than 30 days, in any case.
 Facility of complaints tracking by customers.

Customers can lodge/register his /her grievance/feedback through any of the following
channels/ inter alia:

 Online on the Bank’s website.

 By calling at Phone Banking center.
 By mailing to customer care.
 By sending SMS.
 By visiting a Branch.
 By writing to the Branch Manager/Regional Head/Grievance Redressal officer/Chief
Grievance Officer.

37
External Machinery to handle Customer complaints/grievances

If customer’s complaint is not resolved within the given time or if he/she is not satisfied with the
resolution provided by the Bank after having been examined by the IO, he/she may be provided
information about hoe he/she can escalate his/her complaint to the next level i.e. to the Banking
Ombudsman or other regulatory/statutory avenues which are available for grievances redressal.

Banking Ombudsman

Banking Ombudsman is a quasi-judicial authority functioning under India’s Banking

Ombudsman Scheme 2006, and the authority was created pursuant to a decision made by the
Government of India to enable resolution of complaints of customers of banks relating to certain
services rendered by the banks. The Banking Ombudsman Scheme was first introduced
in India in 1995, and was revised in 2002. The current scheme became operative from 1 January
2006, and replaced and superseded the banking Ombudsman Scheme 2002. From 2002 until
2006, around 36,000 complaints have been dealt by the Banking Ombudsmen. There are 20
regional offices of Banking Ombudsmen in India. The latest offices are opened Jammu &
Raipur.

The Ombudsman Scheme is a system of expeditious and inexpensive resolution to the

customer complaints. Any person whose grievance against a Bank is not resolved to his
satisfaction by the Bank within a period of two months, he can approach the Banking
Ombudsman if his complaint pertains to any of the matters specified in the scheme. Banking
Ombudsmen have been authorized to look into the complaints concerning

a. Deficiency in banking service

b. Sanction of loans and advances in so far as they relate to non-observance of the Reserve
Bank of India directives on interest rates, delays in sanction or non-observance of
prescribed time schedule for disposal of loan application or nonobservance of any other
directions or instructions of the Reserve Bank, etc. and
c. Other matters as may be specified by the Reserve Bank. Ombudsman would make
recommendations after listening to both parties. In case the recommendation made by
the Banking Ombudsman is not accepted by either of the parties, Banking Ombudsman
proceeds to make an award. The scheme is applicable to all scheduled commercial banks
having business in India and scheduled primary co-operative banks except Regional
Rural Banks. The procedure for the redressal of grievances under the Banking
Ombudsman Scheme is profiled as under:

1. Written complaint is to be lodged by a person or an authorized representative

2. Complaint shall include signature of the complainant or an authorized representative along

with the name, address and also name and address of the bank office/branch along with
supportive documents, the nature and extent of the loss incurred and the relief sought from the
Banking Ombudsman and a statement about the compliance of the conditions referred to in Sub-
clause (3) of this clause.

38
3. No complaint to the Banking Ombudsman shall lie unless:

 Written representation was made to the bank and either the bank had rejected the
complaint or no reply was received from the bank within 60 days of receipt of
complaint or in case of unsatisfactory reply received from the bank.
 The complaint is made one year after the rejection of the representation by the bank
or dispatch of final reply by the bank on the representation.
 The complainant is not in receipt of the same subject matter if settled by the Banking
Ombudsman in previous proceeding/s whether received from the same complainant
or any one or more of the parties concerned with the subject matter.
 The complaint is not the same subject matter, for which any proceedings before any
court, tribunal or arbitrator or any other forum is pending or a decree or Award or
order of dismissal has the agent
 The complaint if not frivolous or vexatious in nature.

39
Banking ombudsman scheme:

The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank
customers for resolution of complaints relating to certain services rendered by banks. As on date,
eighteen Banking Ombudsman have been appointed with their offices located mostly in state
capitals. The Banking Ombudsman Scheme as well as addresses and contact details of the
Banking Ombudsman offices are available at the RBI’s website (www.rbi.org.in) and also
updated on the Bank’s website.

40
Banking codes and standards board of India (BCSBI):

Aggrieved customers may approach the BCSBI, if their complaints in respect of the non-
compliance of the BCSBI Code remain unresolved after escalating to the Chief Code
Compliance Officer (CCCO) of the Bank. Chief Grievance Redressal Officer (CGRO) will act
CCCO of the Bank as well.

Complaints relating to non-compliance of the BCSBI Code may be referred to Bank’s Code
Compliance Officer at Regional level, who shall ensure speedy disposal of all such complaints.in
case, a complaint remains still unresolved, it could be escalated to Chief Compliance Officer of
the Bank. The names, address and contact numbers of Code Compliance Officer and Chief Code
Compliance Officer are available at the Bank’s branch as well as on Bank’s website.

Centralized Public Grievance Redress and Monitoring System (CPGRAMS):

The Government of India, Department of Administrative Reforms and Public Grievances,

Ministry of Personnel, Public Grievance and Pension has recently introduced a web based
mechanism for lodging of complaints / grievance by citizens of India, which includes the Bank’s
customers as well. This is known as PUBLIC GRIEVANCE PORTAL
(www.pgportal.gov.in). Aggrieved customers may lodge their complaint to government of india
through online Public Grievance Lodging and Monitoring System available on website
(www.pgportal.gov.in).

41
 4. MANDATORY DISPLAY REQUIREMENT
It is mandatory for the bank to provide;
Appropriate arrangements for receiving complaints and suggestions and resolution
mechanism.
The names, address and contact numbers of CGRO/Grievance Redressal Officers.
Contact details of Banking Ombudsman of the area
Code of bank’s Commitments/Fair Practice code framed by Banking Codes and Standard
Board of India (BCSBI)
The bank’s Toll Free Number(s)
5. TIME FRAME
Complaints have to be seen in the right perspective because they indirectly reveal a weak
spot in the working of the Bank. Complaint received should be analyzed from all possible
angles by doing a root cause analysis. The complainant can lodge complaints through
multiple channels, viz. phone banking, website, generic e-mails, letters, social media, and
complaint from at branch level. The Bank will adopt the following escalations matrix for
the resolution of all complaints:

For General Card Banking Complaints (excluding Credit Cards)

S. No Level of Complaint Lodgment / Escalations and Day of Lodging / Days Available for
Official escalating Redressal
complaint
1 First level: Branch / Region Day 1 8 Working Days
Branch Head/ Regional Head
2 Second Level: Zone Day 9 5 Working Days
Grievance Redressal Officer (GRO)
3 Third Level: Head office Day 14 6 Working Days
Chief Grievance Redressal Officer (CGRO)
4 Fourth Level: Head office Day 20 11 Working Days
Internal Ombudsman (IO)

42
 For Credit Card Related Complaints

S. No Level of Complaint Lodgment / Escalations and Day of Lodging / Days Available for
Official escalating Redressal
complaint
1 First Level: ATOS/Head Office Day 1 8 Working Days
ATOS Customer Care Team/Credit Card Team
(Head Office)
2 Second Level: Head Office Day 9 5 Working Days
Product Head- Credit Cards
3 Third Level: Head Office Day 14 6 Working Days
Chief Grievance Redressal Officer
4 Fourth Level: Head Office Day 20 11 Working Days
Internal Ombudsman(IO)

However, in line with the RBI directives as outlined in the Bank’s Compensation Policy,
in case of complaint lodged by the customer on account of failed ATM transactions, effort would
be made to resolve the complaint by crediting the customer’s account within 7 days from the date
of complaint.

All efforts would be made to resolve each complaint received by the Bank within the
timeframe as specified above. If the customer’s complaint is not resolved within the given tome
or the customer is not satisfied by the resolution provided by the Bank, he /she can appeal to the
Banking Ombudsman, RBI.

43
INTERACTION WITH CUSTOMER:

The bank recognizes the customers’ expectations/requirements/grievances can be better

appreciated through personal interaction with customers by the Bank’s staff. The Bank has
established Branch Level Customer Service Committees (BLCSC) at all its branches. BLCSC
encourages communication between customers and the Bank at the branch level, thereby
strengthening the branch service with the active involvement of its customers. The committee
provides a forum for direct interaction with a cross section of branch customers representing at
least four categories of customers comprising of a savings account holder, current account
holder, a lady customer and a senior citizen. Accordingly, meetings are held on 15th (next
working day, if 15th happens to be a holiday) of every month. These structured customer meets
give a message to the customers that the Bank cares for them and values their
feedback/suggestions for improvement in customer service. Many of the complaints arise on
account of lack of awareness among customer service. Many of the complaints arise on account
of lack of awareness among customer about bank services and such interactions will help the
customer appreciate banking services better. As for the Bank the feedback from customers is a
valuable input for revising its products and services to meet customer requirements.

44
 6. SENSITIZING OPERATING STAFF ON HANDLING COMPLAINTS

Staff should be properly trained for handling complaints. The bank deals with people and hence
difference of opinion and areas of friction can arise. With an open mind and a smile on the face,
the bank should to be able to win the customer’s confidence. Imparting soft skills required for
handling irate customers will be an integral part of the staff training programs.

7. DISCLOSURE OF COMPLAINTS BY BANKS

Banks should disclose the brief details regarding the number of complaints along with their
financial results. Where the complaints are redressed within the next working day, banks need
not include the same in the statement of complaints.

Where the complaints are not redressed within one month, the concerned branch/controlling
office should forward a copy of the same to the concerned Nodal Officer under the Banking
Ombudsman Scheme.

45
 PROCEDURE FOR REDRESSAL OF GRIEVANCE
GROUNDS OF COMPLAINT:
A complaint on any of the following grounds alleging deficiency in banking or other services
may be filed with the banking ombudsman having jurisdiction:

 Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.
 Non acceptance, without sufficient cause, of small denomination notes tendered for any
purpose, and for charging of commission in respect thereof.

A complaint on any of the following grounds alleging deficiency in banking or other services in
respect of loans and advances may be filed with the banking ombudsman having jurisdiction:

 Non observance of Reserve Bank directives on interest rates

 Delays in sanction, disbursement or non- observance of prescribed time schedule for
disposal of loan application.
 Non acceptance of application for loans without furnishing valid reasons to the applicant
; and
 Non observance of any other direction or instruction of 1reserve 1bank as maybe
specified by the Reserve Bank for this purpose from time to time.
The Banking Ombudsman may also deal with suck other matter as maybe specified by the
Reserve Bank from time to time in this behalf.

46
PROCEDURE FOR FILING COMPLAINT:

 Any person who has a grievance against bank on any one or more of the grounds
mentioned in Clause 8 of the scheme may, himself or through his authorized
representative (other than an advocate), make a complaint to the Banking Ombudsman
within whose jurisdiction the branch or office of the bank complained against is located.
Provided that a complaint arising out of the operation of credit cards, shall be filed before
the Banking Ombudsman within whose territorial jurisdiction the billing address of the
card processing unit is located and not the place where the bank concerned or the credit
unit is located.

 The complaint in writing shall be dully signed by the complainant or his authorized
representative and shall be, as far as possible, in the form specified in Annexure ‘A’ or as
near as thereto as circumstances admit, stating clearly:
 The name and the address of the complainant.
 The name and the address of the branch or office of the bank against which the
complaint is made,
 The facts giving rise to the complaint,
 The nature and extent of the loss caused to the complainant, and
 The relief sought for

47
 The complainant shall file along with the complaint copies of the documents if any,
which he proposes to rely upon and a declaration that the complaint is maintainable under
sub clause (3) of this clause
 A complaint made through electronic means shall also be accepted by the banking
ombudsman and a print out of such complaint shall be taken on the record of the banking
ombudsman
 The banking ombudsman shall also entertain complaints covered by the scheme received
by Central Government or Reserve Bank and forwarded to him for disposal

 No complaints to the banking ombudsman shall lie unless:-

 The complainant had before making a complaint to the banking ombudsman , made a
written representation to the bank and the bank had rejected the complaint or the
complainant had not received any reply within a period of 1 month after the bank
received his representation or the complainant is not satisfied with the reply given to
him by the bank.
 The complaint is made not later than 1 year after the complainant has received the
reply of the bank to his representation or where no reply is received not later than 1
year and 1 month after the date of the representation to the bank:
 The complaint is not in respect of the subject matter which was settled or dealt with
on merits by the banking ombudsman in any previous proceedings whether or not
received from the same complainant or along with 1 or more complainants or 1 or
more of the parties concerned with the subject matter :
 The complaint does not pertain to the same subject matter for which any proceedings
before any court, tribunal or arbitrator or any forum is pending or decree or award or
order has been passed by any such court , tribunal , arbitrator or forum:
 The complaint is not frivolous or vexatious in nature : and
 The complaint is made before the expiry of the period of limitation prescribed under
the Indian Limitation Act 1963 for suck claims.

48
COMPLAINT FORM

49
SETTLEMENT OF COMPLAINT BY AGREEMENT:
 As soon as it may be practicable to do, the banking ombudsman shall send a copy of the
complaint to the branch or office of the branch named in the complaint, under advice to
the nodal officer referred to in sub clause (3) of clause 15, and endeavor to promote a
settlement of a complaint by agreement between the complainant and the bank through
conciliation or mediation.

 For the purpose of settlement of a complaint, the banking ombudsman may follow such
procedure as he may consider just and proper and he shall not be bound by any rules of
evidence.

 The proceedings before the banking ombudsman shall be summary in nature.

AWARD BY THE BANKING OMBUDSMAN:

 If a complaint is not settled by agreement within a period of 1 month from the date of
receipt of the complaint or such further period the banking ombudsmen may allow the
parties, he may, after affording the parties a reasonable opportunity to present their case,
pass an award or reject the complaint.

 The banking ombudsman shall take into account the evidence placed before him by the
parties, the principles of banking law and practice, directions, instructions and guidelines
issued by the RBI from time to time and such other factors which in his opinion are
relevant to the complaint

 The award shall state briefly the reasons for passing the award

 The award passed under sub clause (1) shall specify the amount, if any, to be paid by the
bank to the complainant by way of compensation for the loss suffered by him and maybe
contain any direction to the bank

 Notwithstanding anything contained in sub clause (4) , the banking ombudsman shall not
have the power to pass an award directing payment of an amount which is more than the
actual loss suffered by the complainant as a direct consequence of the act of omission or
commission of the bank, or 10 lakh Rs whichever is lower

 In the case of complaints arising out of credit card operations, the banking ombudsman
shall, while determining the amount of compensation payable, take into account the loss
of the complaints time, expenses incurred by the complaint, financial loss, harassment
and mental anguish suffered by the complainant.

50
  A copy the award shall be sent to the complainant and the bank

 An award shall not be binding on the bank against which it is passed unless the
complainant furnishes to it, within a period of 15 days from the date of receipt of copy of
the award, a letter of acceptance of award in full and final settlement of his claim in the
matter. If the complainant does not accept the award passed by the banking ombudsman
or fails to furnish this letter of acceptance within the set period of15 days or within such
further time no exceeding the time of 15 days that may be granted by the banking
ombudsman, the award shall lapse and be of no effect

 The bank shall within 1 month from the date of receipt by it of the acceptance of writing
of the award by the complainant under sub-clause (8) or within such time not exceeding a
period of 15 days that may be granted by the banking ombudsman, comply with the
award and intimate compliance to the banking ombudsman

REJECTION OF THE COMPLAINT:

1. The banking ombudsman may reject a complaint at any stage if it appears to him the
complaint made is :
 Frivolous, vexation, malafide or ,
 Without any sufficient cause or that is not pursued by the complainant with
reasonable diligence or
 In the opinion of the banking ombudsman there is no loss or damage or
inconvenience caused to the complainant
 beyond the pecuniary jurisdiction of banking ombudsman prescribed under clause
12(5)

2. The banking ombudsman may reject a complaint at any stage if after consideration of the
complaint and evidence produced before him the banking ombudsman is of the opinion
that the nature of the complaint requires consideration of elaborate documentary and oral
evidence and the proceedings before the banking ombudsman are not appropriate for
adjudication of such complaint. The decision of the banking ombudsman in this regard
shall be final and binding on the complainant and the bank.

51
APPEAL BEFORE THE APPELLATE AUTHORITY:

(1) Any person aggrieved by the award may, within 45days of the date of receipt of the award,
prefer an appeal against the award before the Appellate Authority.

Provided that the Appellate Authority may, if he is satisfied that the applicant had
sufficient cause for not making the appeal within time, allow a further period not
exceeding30days
Provided further that the appeal may be filed by the bank only with the previous
sanction of the chairman or, in his absence, the managing director or the Executive
Director or the Chief Executive Officer or any other officer of equal rank.

(2) The Appellate Authority shall. After giving the parties a reasonable opportunity of being
heard
 Dismiss the appeal: or
 Allow the appeal and set aside the Award : or
 Remand the matter to the banking ombudsman for fresh disposal in
accordance with such directions as the Appellate Authority may consider
necessary, proper : or
 Modify the Award and pass such directions as may be necessary to give
effect to the Award so, modified or
 Pass any other order as it may deem fit

(3) The order of the Appellate Authority shall have the same effect as the Award passed by
the Banking Ombudsman under clause 12 or the order rejecting the complaint under
clause 13, as the case may be.

52
CUSTOMER GRIEVANCE HANDLING MECHANISIM

TIME NORMS FOR COMPLAINTS

 All complaints/communications must be acknowledge immediately but in any case within

10 days by sending interim reply, if final reply is not possible to be sent within 10 days. All
complaints should be recorded in a complaint register.

 VIP complaints should be resolved within 15 days in case of references from PMO,
within 3 weeks in case of communication from Ministers/ MPs.

53
 THE NORMS OF CUSTOMER SERVICE

Encashment of cheque through teller 5-8 minutes

Encashment of cheque thru cashier 8-10 minutes

Receipts of cash 10-20 minutes

Issuance of demand draft/ Travelers cheque/ 15-20 minutes

term deposit receipt

Payment of demand draft 10-20 minutes

Payment of term deposit receipt 5-25 minutes

Opening of account 20-25minutes

Retirement of bills 20-30 days

Updating of passbooks 5-15 minutes

Statement of account from due date 5-7 days

Collection of local cheque 2-3 days

Collection of outstation cheque 10-14 days

Issuance of cheque book 15 minutes

54
GRIEVANCE RELATED TO RECOVERY:

RBI issued the guide lines (Apr 24. 2008), as follows:

Information to borrowers: The agents should carry a copy of the notice and the authorization
letter from the bank along with the identity card issued to him by the bank or the agency
firm/company.

Grievances/Complaints: Each bank should have a mechanism whereby the borrowers’ grievances
with regard to the recovery process can be addressed.

Methods followed by recovery agents: Banks should adhere to guidelines regarding

(a) Fair Practices Code for Lenders,

(b) Out sourcing of financial services, (c) Credit Card Operations and (d) ‘Code of Bank’s
Commitment to Customers’ (BCSBI Code) pertaining to collection of dues.

Training for Recovery Agents: The recovery agents should be properly trained (minimum 100
hours of training) to handle with care and sensitivity, their responsibilities, in particular aspects
like hours of calling, privacy of customer information etc.

Use of forum of Lok Adalats: Banks are encouraged to use the forum of Lok Adalats for
recovery of personal loans, credit cards loans or housing loans with less than Rs. 10 lakhs as
suggested by the Honorable Supreme Court.

55
TALWAR COMMITTEE RECOMMENDATIONS

Customer Service Group- 176 recommendations, 120 accepted and implemented. Important
ones:

1. Customer Service Committee at branches to meet quarterly

2. Customer meet should be held once in a half year by the branch,
3. Customer day on 15th of every month (next day in case of holiday ) to be observed at
branches and administrative offices.
4. Complaint-cum-suggestion box should be provided at each branch.
5. Credit of pension on last day of each month.

RECOMMENDATIONS OF GOIPORIA COMMITTEE

The committee submitted its report during Dec 1991 and gave recommendations. Important are:

1. Employees’ working hours should commence 15 minutes before business hours in

metropolitan and urban centers.
2. Banks may extend business hours for all banking transactions except cash, up to one
hour before close working hours.
3. All branches with 30 or more staff strength should provide “May I help you” counters.
4. Tellers should pay cash up to Rs. 5000 and non-cash transactions up to Rs 10000
5. More facilities in respect of acceptance of cash, mutilated and soiled notes should be
given and notes/coins counting machines may be introduced and currency notes should
be packed in paper seal/band.
6. Nominations should be provided unless customer does not want it .
7. All customers who enter inside the bank hall before close of business hours, should be
attended to.
8. Change in interest rate by bank branches should be affected on the basis of press reports.
9. Single window concept for issuance of drafts up to Rs.5000 should be introduced.
10. Facility of instant credit of outstation instruments should be available for instruments of
upto Rs.5000 instead.
11. Delay on collection of outstation instruments be compensated by allowing interest at
the rate of 2 percent above SB rate.
12. Value dating of mail orders and telegraphic transfers should be started.
13. Clearing houses at centers with 10 or more banks should be opened.
14. Special attention should be given to complaint areas.
15. Infrastructural facilities at branches should be upgraded by bestowing particular
attention to provide adequate space, proper furniture, drinking water facilities etc.

56
 16. The manpower should be redeployed with emphasis on rural areas.

Majority of these recommendations have already been implemented by banks.

57
 Chapter 5
DATA ANALYSIS AND INTERPRETATION
Analysis of data is a process of inspecting, cleaning, transforming, and
modeling data with the goal of discovering useful information, suggesting
conclusions, and supporting decision making. Data analysis has multiple facets and
approaches, encompassing diverse techniques under a variety of names, in
different business, science, and social science domains.

1. AGE
Count of
Age Age
18-25 23
26-40 17
41-60 10

COUNT OF AGE

10
41-60

17
26-40

23
18-25

ANALYSIS

In the above observation 23% is in age group of 18-25, 17% is in age group of 26-
40, 10% is in age group of 41-60.

58
 2. GENDER

Gender Count of Gender

Female 30

Male 21

Gender

Male
41%
Female Female
59%
Male

ANALYSIS

In the above observation 41% respondents are male and 59% are female.

59
 3. OCCUPATION

Occupation Count of Occupation

Employed 25

Self Employed 6

Student 19

Unemployed 1

COUNT OF OCCUPATION

1
UNEMPLOYED

19
STUDENT
Total

6
SELF EMPLOYED

25
EMPLOYED

ANALYSIS
In the above observation 2% respondent are unemployed, 49% are employed,
12% are self-employed, and 37% are student.

60
 4. Are you a bank customer?

Are you a bank customer? Count of Are you a bank customer?

No 1

Yes 50

Are you a bank customer?

2%

No
Yes
98%

ANALYSIS

In the above observation only 2% of respondent do not have a bank account, 98%
respondent have bank account.

61
 5. Which bank do you hold a account?
In which bank do you hold a account? Count of In which bank do you hold a account?
AXIS 1
Bank of Baroda 1
Bank of Maharashtra 4
BOI 10
Central bank 2
Citi 1
DNS bank 2
Dombivli Nagari Sahakari Bank Ltd. 1
HDFC 2
ICICI Bank 6
IDBI 6
None 1
Saraswat 5
SBI 5
Syndicate 1
TJSB 1
Union Bank of India 1
Yes bank 1

In which bank Do you have your account ?

AXIS
Bank of Baroda
2%
2%
2% 2%
2%
2% 8% Bank of Maharashtra
10%
BOI
10% 20%
Central bank
2%
4% Citi
12% 2%
4% DNS bank
12% 4%2%
Dombivli Nagari Sahakari Bank Ltd.
HDFC
ICICI Bank
IDBI

62
ANALYSIS
In the above observation no of respondent in AXIS bank is 1, in Bank of
Baroda is 1, in bank of Maharashtra are 4, in DNS Bank are 2, in Dombivli
Nagri Sahakari Bank Ltd is 1, in HDFC are 2, in ICICI are 6, in IDBI are 6, in
Saraswat are 5, in SBI are 5, in Syndicate is 1, in TJSB is 1, in Union Bank of
India is 1, in Yes Bank is 1.

63
 6. What kind of account do you maintain with the
Bank?
What kind of account do you Count of What kind of account do you
maintain with the Bank? maintain with the Bank?

Current 6
None 1
Salaried 6
Savings 38

What kind of account do you maintain with

the bank ?

12%
2%
12% Current
none
74% Salaried
Savings

ANALYSIS
In the above observation 74% respondent have savings account, 12% have
current account, 12% have salaried account and 2% do not have account in
bank.

64
 7. Which bank services do you use?
Count of Which bank services do you
Which bank services do you use? use?
Debit card 23
Debit card, E-lobby 8
Debit card, Net banking 15
Fund transfer 8
Fund transfer, Credit card, Debit card, Net
banking 15
Fund transfer, Debit card, Net banking 31

Which bank services do you use ?

Debit card

23% Debit card, E-lobby

31%

Debit card, Net banking

8%

Fund transfer
15% 15%
8%
Fund transfer, Credit card, Debit card,
Net banking
Fund transfer, Debit card, Net
banking

ANALYSIS
In the above observation 31% respondent Fund Transfer, Debit Card and Net
Banking, 23% use only Debit Card services, 8 % use Debit Card and E-Lobby,
15% use Debit Card and Net Banking, 8% use only Fund Transfer, 15% use
Fund Transfer, Credit Card and Net Banking.

65
 8. Are you satisfied with the services offered by your
Bank?
Are you satisfied with the Count of Are you satisfied with the services
services offered by your bank? offered by your bank?

No 4

Yes 9

Are you satisfied with the services offered

by your bank ?

31%

No
69% Yes

ANALYSIS
In the above observation 69 % of the respondent are satisfied with the services
provided by their Bank, while 31% are not satisfied.

66
 9. What is the time period taken by the bank to resolve complaints?
Count of What is the time period
What is the time period taken by the bank to taken by the bank to resolve
resolve complaints? complaints?
1 day 31
1 week 8
15 days 8
2 days 15
3 days 15
5 days 15
7 days 8

What is the time period taken by the bank to

resolve complaints ?

8% 1 day
15% 31% 1 week
15 days
15% 2 days
8%
15% 8% 3 days
5 days
7 days

ANALYSIS

In the above observation the respondent thinks that the time period taken by the
bank to resolve the complaint is 31% - 1day, 8% - 1week, 8% - 15days, 15% -
2days, 15% - 3days, 15% - 5days, 8% - 7days .

67
 10.What are the causes of grievance?

What are the causes of Grievances? Count of What are the causes of Grievances?
ATM is out of service frequently/Shortage of
currencies in ATM 32
Deficiency in services 28
Delay in deliverables (debit card, debit pin,
cheque book) 28
Inconvenience due to non-working
Saturdays 8
Technical issue 4

What are the causes of Grievances ?

ATM is out of service
frequently/Shortage of currencies in
ATM
8% 4%
32% Deficiency in services

28%
Delay in deliverables (debit card, debit
pin, cheque book)
28%
Inconvenience due to non-working
Saturdays

Technical issue

ANALYSIS
In the above observation 32% respondent’s cause of grievance is ATM is out
of service frequently/Shortage of currencies in ATM, 28% is deficiency in
service, 28% is delay in deliverables(debit card, debit pin, cheque book),
8% is Inconvenience due to non-working Saturdays,4% is technical issue.

68
 11.Are you aware of the various committees that redress the grievance?

Are you aware of the

various committees that Count of Are you aware of the various
redress the grievance? committees that redress the grievance?

No 65

Yes 35

Are you aware of the various committees

that redress the grievance ?

35%
no
65%
yes

ANALYSIS
In the above observation 35% of the respondent are aware of the committees
that redress grievance, while 65% are unaware.

69
 12. Is the real basis of your problem identified?

Is the real basis of your Count of Is the real basis of your

problem identified? problem identified?

No 9

Yes 42

Is the real basis of your problem

identified ?

18%
No
Yes
82%

ANALYSIS
In the above observation 82% respondent say the real basis of their problem
is identified, where as 18% say it is not identified.

70
 13.Is there a positive and friendly approach during grievance handling?

Is there a positive and friendly

approach during Grievance Count of Is there a positive and friendly
handling? approach during Grievance handling?

No 22

Yes 78

Is their a positive and friendly approach

during Grievance handling ?

22%

No

78% Yes

ANALYSIS
In the above observation 78% respondent think there is positive and friendly
approach during grievance handling, where as 22% does not think so.

71
 FINDINGS

 In the above observation 23% is in age group of 18-25, 17% is in age group
of 26-40, 10% is in age group of 41-60.
 In the above observation 41% respondents are male and 59% are female.
 In the above observation 2% respondent are unemployed, 49% are
employed, 12% are self-employed, and 37% are student.
 In the above observation only 2% of respondent do not have a bank account,
98% respondent have bank account.
 In the above observation no of respondent in AXIS bank is 1, in Bank of
Baroda is 1, in bank of Maharashtra are 4, in DNS Bank are 2, in Dombivli
Nagri Sahakari Bank Ltd is 1in HDFC are 2, in ICICI are 6, in IDBI are 6, in
Saraswat are 5, in SBI are 5, in Syndicate is 1, in TJSB is 1, in Union Bank
of India is 1, in Yes Bank is 1.
 In the above observation 74% respondent have savings account, 12% have
current account, 12% have salaried account and 2% do not have account
in bank.
 In the above observation 69 % of the respondent are satisfied with the
services provided by their Bank, while 31% are not satisfied.
 In the above observation the respondent thinks that the time period taken by
the bank to resolve the complaint is 31% - 1day, 8% - 1week, 8% -
15days, 15% -2days, 15% - 3days, 15% - 5days, 8% - 7days .
 In the above observation 32% respondent’s cause of grievance is ATM is
out of service frequently/Shortage of currencies in ATM, 28% is
deficiency in service, 28% is delay in deliverables(debit card, debit pin,
cheque book), 8% is Inconvenience due to non-working Saturdays,4%
is technical issue.
 In the above observation 35% of the respondent are aware of the
committees that redress grievance, while 65% are unaware.
 In the above observation 82% respondent say the real basis of their
problem is identified, where as 18% say it is not identified.
 In the above observation 78% respondent think there is positive and
friendly approach during grievance handling, where as 22% does not
think so.

72
 RECOMMENDATIONS

After careful observation and analysis of Primary Research, following recommendations are
put forward.
 It has been witnessed that the major area of concern for any bank is the customer service
and customer satisfaction, thus just like the private sector banks, it is high time that the
public sector banks also start concentrating more on the customers and the services
provided to them.
 The services provided by the public sector banks must be quick and fast. This is a major
disadvantage for public sector banks due to which majority of the respondents prefer
private bank services.
 More ATM coverage should be provided for the convenience of the customers.
 No limit on cash withdrawals on ATM cards.
 The public sector bank should bring out new schemes at time-to-time so that more people
can be attracted. Even some gifts and prizes may be offered to the customers for their
retention.
 24 hours banking should be induced so as to facilitate the customers who may not have a
free time in the daytime. It will help in facing the competition more effectively.
 The charges for saving account opening are high, so they should also be reduced.
 Customers generally complain that full knowledge is not granted to them. Thus, the bank
should properly disclose the features of the product and services to the customers.
Moreover door to door services can also be introduced by bank.
 The need of the customer should properly be understood so that customer feels satisfied.
The relationship value should be maintained.

From the Secondary Research done, the following recommendations are put forward.
 Public sector banks must try to maintain their operating expenses and income in a much
better way which will help them in increasing their net profit and gross profit margin.
 Public sector banks must see to it that there is efficient management of shareholder’s funds
as well as assets of the firm so that they can generate more profits as compared to private
sector banks.
 Also, public sector banks must try to maintain sufficient amount of assets with them so that
they can pay off their financial obligations easily.
 The public sector banks must also maintain a certain amount of cash reserves with them so
that they can meet their short term obligations easily.

73
 CONCLUSION

The customers now days are not only exposed of what type of service is being provided by banks
in India but in the world as a whole. They expect much more than what is actually being
provided. So the new coming banking sector has to provide and cater to all the needs of the
customers otherwise it is difficult to survive in the competition coming up. They not only expect
the safety of money but also best ways to invest that money which need needs to be fulfilled.
Banks need to have a better outlook towards to actually what customers are requiring. Entries of
the private sector banks have made the competition tougher. If a bank is not functioning properly
it is being closed. So it is difficult to face these types of conditions.

Thus, to strive the cut throat competition given to the public sector banks by the private sector
banks, the public sector will have to pull up their shoes to be at the better half part of the race
else the time is very near which can make these public sector banks just a memory or a history
for everyone.

74
 BIBLIOGRAPHY
Journals

1. Rakesh H M & Ramya T J (2014) In their research paper titled “A Study on Factors
Influencing Consumer Adoption of Internet Banking in India”
2. Amruth Raj Nippatlapalli (2013) In his research paper “A Study on Customer
Satisfaction of Commercial Banks: Case Study on State Bank of India”
3. Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2013) In their research paper
“Comparative Study of Customer Satisfaction in Public Sector and Private Sector
Banks in India”.
4. Ms. Nisha Malik & Mr. Chand Prakash Saini (Jul 2013) In their research titled on
“Private Sector Banks Service Quality and Customer Satisfaction”
5. Vijay M. Kumbhar (2011) In his research paper “Factors Affecting the Customer
satisfaction In E-Banking: Some evidences Form Indian Banks”.
6. Pooja Malhotra & Balwinder SINGH (2009) In their research paper “The Impact of
Internet Banking on Bank Performance and Risk: The Indian Experience”.
7. Shaza W. Ezzi (April 2014) In their research paper titled “A Theoretical Model for
Internet Banking: Beyond Perceived Usefulness and Ease of Use”
8. Kartikeya Bolar (2014) In their research paper “End-user Acceptance of Technology
Interface In Transaction Based Environment “
9. Dorra Gherib (2014) In their research paper titled “Adoption and diffusion of internet
banking: case of Tunisian banking sector “
10. Nabil Hussein Al-Fahim (2013) In his research titled “An tentative Study of Factors
distressing the Internet Banking espousal: A Qualitative Study among Postgraduate
Students”
11. Anil Kumar and Manoj Kumar Dash (2013) In their research paper “Constructing a
Measurement in Service Quality for Indian Banks: Structural Equation Modeling
Approach”.
12. Shilpi Khandelwal (2013) In his research titled on “E Banking: Factors of Adoption in
India”
13. Donnelie K Muzividzi, Rangarirai Mbizi & Tinashe Mukwazhe (2013) In their
research paper “An Analysis of Factors That Influence Internet Banking Adoption
among Intellectuals: Case of Chinhoyi University of Technology“.
14. Ankit Kesharwani & Gajulapally Radhakrishna (2013) In their research paper
“Drivers and Inhibitors of Internet Banking Adoption in India”.

75
Book

HAND BOOK OF BANKING INFORMATION - N.S. TOOR

Websites
www.investopedia.com
www.moneycontrol.com
www.wikipedia.com

76
 APPENDIX

Internet Banking Questionnaire

This survey is designed to understand the customer views on using
Internet Banking Services. Your participation in this survey is
greatly appreciated.
1) AGE: 1( ) 2( ) 3( )
2) Gender : Male ( ) Female( )

3) Occupation:

4) Are you a bank customer? : yes ( ) no( )

5) Name of your Bank in which you have Bank Account :

6) What kind of account do you hold in bank? : savings ( ) current ( ) salaried ( )

7) Which bank services do you use? : Debit card ( ) Debit card, E-lobby ( )
Debit card, Net banking ( ) Fund transfer( ) Fund transfer, Credit
card, Debit card, Net banking ( )

8) Are you satisfied with the servies offered by your

bank? : yes ( ) no( )

9) What is the time period taken by the bank to resolve complaints? : 1day ( )
2days ( ) 3 days ( ) 5days ( ) 7 days ( ) 15 days ( )
1 week ( )
10) What are the causes of grievance? : Deficiency in services ( )
Delay in deliverables (debit card, debit pin, cheque book) ( )

77
78