Lok Sabha Question No. 159 (UNSTARRED), answered on 2025-12-01
Subject: Local Language Proficiency in Public Sector Banks
Ministry: FINANCE
Asked by: Shri Manickam Tagore B, Shri Vijayakumar Alias Vijay Vasanth

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 159

ANSWERED ON MONDAY, DECEMBER 1, 2025 / AGRAHAYANA 10, 1947 (SAKA)

## Local Language Proficiency in Public Sector Banks

## 159.  SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH: SHRI MANICKAM TAGORE B:

Will the Minister of FINANCE be pleased to state:

(a) the steps taken to ensure that PSU bank staff in all branches, especially in southern and western States, are proficient in the local languages to facilitate effective customer service;

(b) whether the Government plans to revise HR policies of public sector banks to give priority to local candidates  during  recruitment  and  postings  and  include  local  language  proficiency  in  performance appraisals, if so, the details thereof;

(c) the measures being implemented by the Government to restore personal connect in banking, reduce dependency on digital-only interactions and ensure customers can communicate in their own language;

(d) the plan to train existing staff and officers in local languages and monitor the timely resolution of language-related grievances of customers; and

(e)  whether  the  Government  has  introduced  or  proposes  a  mechanism  to  monitor  Branch-level compliance on language and customer service standards, with regular reporting to ensure accountability and corrective action, if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (e):  Public Sector Banks (PSBs) are board governed commercial entities. The customer service functions  at  the  front-end  in  PSBs  are  primarily  dealt  by  the  Customer  Service  Associates  (CSAs), recruitment in respect of whom is undertaken by the PSBs, State-wise, through Institute of Banking and Personnel Selection (IBPS), a Public Examination Authority, in thirteen regional languages, in addition to English and Hindi.

During the recruitment process, CSAs are required to pass a Local Language Proficiency Test (LPT) for the official language of the State or Union Territory (UT), where the staff shall be posted. This facilitates seamless communication in regional languages resulting in effective customer service.

Banks have also initiated recruitment of 'Local Bank Officers (LBOs)' for a particular State/ Region, wherein these officers are required to undergo LPT as a part of their selection process and are posted in the State / UT for which they have applied. This ensures priority being accorded to the local candidates who are  proficient  in  the  local  language  in  their  recruitment  as  well  as  posting,  thereby  leading  to enhanced customer experience and satisfaction.

While CSAs and LBOs are recruited for a particular State / Region, other officers are recruited on a PanIndia basis and are subject to transfer all over India. For such officials, PSBs conduct language training (online & offline)/workshops, to learn communicative skills in regional languages.

Further,  to  ensure  customer  service  standards  and  boost  personal  connect  with  customers  including addressing of service-related concerns, PSBs undertake various customer outreach initiatives such as customer  service  meets,  providing  door  step  banking  facilities,  utilizing  the  services  of  Business Correspondents, Call Centres, Grievance redressal framework, Feedback mechanism, compliance with RBI directives on Customer Service in Banks etc.