recall the experience with services of direct sales agents, employed by banks, which in some cases, generated resentment among the customers. an element of sensitivity and sensibility has to underscore the behavior of such agents when banks outsource credit card operations etc. with emphasis on ensuring appropriate behavior by personnel involved in debt collection and ensuring employment of fair and prudent processes. coercive actions, in the wake of increasing customer awareness can throw open gates of litigation on such grounds as negligence, mental agony or hurt, defamation, invasion of privacy and trespassing, with all their obvious and extended legal connotations. when one talks of redressing customer grievances and complaints, an obvious reference to the banking ombudsman scheme is but inevitable. the scheme operates on the principles of mediation and arbitration resulting in awards. in order that such schemes function unhindered and for the common cause of scores of aggrieved customers, it is imperative that banks implement awards passed by ombudsmen in right earnest. rbi attaches a lot of importance to this function and compliance by banks in this area is monitored through rbi ’ s supervisory processes and appropriate regulatory disclosures diligently. thus, serving the bis central bankers ’ speeches customer satisfactorily is at once, an art, an inexact science as also a mandatory obligation governed by regulatory dictate and institutional arrangements to ensure compliance. to conclude, customer service deserves an outlook that puts a check on targets sought to be achieved by customer service executives by way of a rigor of compliance with extant rules and regulations. profit seeking is the basic ethos that governs any business entity but the same cannot and must not override the genuine demands and requirements of customers. i am sure, the employees being honored today have set an example in not just customer service alone but also for adhering to the compliance diktat. i wish them all success in their career and also congratulate axis bank on their endeavour to enhance the awareness on customer service. thank you. bis central bankers ’ speeches

the one lakh mark has already been crossed in the current year ( july 2016 to may 2017 ). our analysis has shown that percentage of complaints on non - adherence of bcsbi code – clause 8 ( 1 ) ( s ) and 8 ( 2 ) ( d ) of bos over a six year period from 2010 – 11 to 2015 – 16 has increased from 24 % to 34 %. a survey conducted by bcsbi suggests that the increase could be on account of disconnect in application and understanding of codes among frontline staff of the member banks. perhaps, engagement of the top management with implementation of codes in their respective banks has also declined. i urge pccos to take effective steps for creating greater awareness and understanding amongst the frontline bank staff by ensuring buy - in from the top management. 5. in my address today, i intend to focus on few important measures which bcsbi, the pccos and the banks can initiate to further the cause of customer service in the sector. a. updation of codes : i am aware that bcsbi has been periodically updating the codes of banks ’ commitments by factoring in the relevant regulatory guidelines, developments in the banking sector and evolving customer expectations. i am glad to learn that the code of banks ’ commitment to customers is currently under review. as you are all aware, in 2014 rbi had released the “ charter of customer rights ” declaring five basic rights of bank customers as broad, overarching principles for protection of bank customers. all banks have since reportedly adopted / incorporated the model “ customer rights policy ” based on the charter formulated jointly 1 / 5 bis central bankers'speeches by iba and bcsbi. i am sure that the committee reviewing the code of banks ’ commitments to their customers would be guided by the spirit of the principles listed out in the “ charter of customer rights ”. on its part, reserve bank will be monitoring aberrations / non - adherence to the charter during supervisory process. specifically, i would urge the committee to factor in following recent developments in the sector and weave them into the codes appropriately while reviewing the same : ( i ) new branch authorization policy : use of banking correspondents business correspondent ( bc ) model has been a major facilitator for financial inclusion especially in unbanked / under - banked areas. recent rbi circular on ‘ rationalization of branch authorization policy ’ recognizes bcs as an important pillar for delivery of banking services in under - banked areas of