The Consumer Protection Act 2019 was notified on August 9th, 2019. However, it came into effect on July 20th 2020. An Act that makes provision for the establishment of consumer councils and other authorities for the settlement of consumers’ disputes and matters connected therewith. Under the Consumer Protection Act 2019, a consumer is defined as…
Effective from 20 July 2020, the Consumer Protection Act, of 2019 replaces the more than three decades old Consumer Protection Act, of 1986. The new Consumer Protection Act 2019 seeks to revamp the process of administration and settlement of consumer disputes, with strict penalties, including jail terms for adulteration and misleading ads by firms. Among…
Customer complaints or any expression of dissatisfaction about a product or service or non-compliance to the Code of Bank’s Commitment to Customers will be dealt with courteously and within a defined time frame. The very foundation of an internal dispute resolution system relies on its capacity to provide fair, impartial, and judicious adjudication’ The Reserve…
The Reserve Bank of India in May 2015 notified all public sector banks and some private sector and foreign banks to appoint an internal ombudsman. The internal ombudsman would be designated Chief Customer Service Officer (CCSO). The CCSO should not have worked in the bank in which he/she was appointed as CCSO. The Reserve Bank…
In a speech in South Africa in 1890 Mahatma Gandhi said this: “A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption of our work. He is the purpose of it. He is not an outsider to our business.…
The objective of the Customer rights policies is to document/enshrine the basic rights of the customers of the Bank as per Reserve Bank of India regulations. Customer Rights Policy recognises the intrinsic rights; a customer gets during and after the termination of his/her banking relationship. This policy is based on the guiding principles enlisted in…
The obligations between Banks and their customers are reciprocal. Customer Obligations means all obligations of every nature of Customer from time to time under any Transaction Document, whether for the Aggregate Principal Outstanding, interest, fees, expenses, indemnification, or otherwise. By opening an account in the bank in the name of the customer, there will be…
Customer education is the preparation of an individual to be capable of making informed decisions when it comes to purchasing or using a product. It can help customers remain safe taking precautions while using electronic banking or other banking products with the knowledge and skills to use a product or service effectively. Here are some…
In our previous article, we understood CUSTOMER RIGHTS POLICIES FOR BETTER BANKING. At the same time, the obligations between Banks and their customers are reciprocal. Commercial Banks in India also enjoy the following six rights; The banks in India have the right to charge interest on the loans and advances sanctioned to customers. Interest is…
A bank’s duty of reasonable care is a legal requirement and banks must exercise reasonable care and skill when transacting and providing other services to customers. The bank has to carry out the instructions of the customer while dealing with the customer’s account. The clear order of the customer for payments should be promptly executed…