##ity ( annex ). thus, it was communicated that rbi was keeping in touch with major settlement banks and the stock exchanges to ensure that payment obligations on the exchanges were met and gave assurance of selling dollars through agent banks in order to augment supply or intervene directly to meet any demand supply imbalances. these press releases were placed on the web - site around 2. 00 p. m, but were released to wire agencies half an hour earlier and were flashed in all the tickers by 1. 30 p. m. trading had resumed by that time at 1 : 16 pm ; subsequent to the flashing of the press release, the market witnessed a quick recovery, before closing at 4505. whereas i am not claiming the entire recovery in the sensex on that day to be solely due to the communication from the rbi, it is important to understand the role and power of such communications when there are occasions when central bank communication can have immediate impact on the market - that too on a market that is not strictly under its jurisdiction. central bank communication has its flip side too. the modern day paparazzi - syndrome haunts central bankers as well. i am sure that many of the central bankers must have at some point of time must have bitterly surprised to find in the next day ’ s newspaper some statement that was ascribed to him or her – whereas the truth could be entirely opposite. let me illustrate this with a personal experience – one among the few i have experienced during my stay in rbi. on august 14, 2004 i was at the annual citibank - fitch debt market conference. on my entry i was chased by the journalists and one of the questions i was asked was about the future rate of inflation. to the best of my recollection i said that the present rise in inflation was predominantly driven by supply - shocks and that we were monitoring the developments carefully. to my utter surprise, a pink paper in the next day ( i. e., august 15, 2004 ) reported a story with the photographs of the president of india and mine side by side, with the following catch lines : • “ president apj abdul kalam said on saturday that sustaining a high eight per cent growth and containing inflation, now at 7. 61 per cent, were the major challenges for the country. ” • “ meanwhile, reserve bank ( rbi ) deputy governor rakesh mohan on saturday reiterated that the authorities were expecting inflation to fall to the earlier levels of five per cent. ” the story implied that

caveat emptor ” principle has led to fundamental flaws in our present consumer protection architecture. from the principle of “ caveat emptor ”, let the buyer beware, we have to move to the principle “ caveat venditor ”, latin for “ let the seller beware ”. it is a counter to “ caveat emptor ” and suggests that seller can also be deceived in a market transaction. this forces the seller to take responsibility for the product and discourages sellers from purveying products of inferior quality. the principle vests the burden of proving that the shortcoming, deficiency of service was absent, on the seller of the product. so what should be the framework governing customer protection? ( chart ) we need to enshrine these principles in a customer ’ s charter of rights and duties of banks towards their customers. “ caveat venditor ” will necessitate these. last but not the least ; banks must focus on improving the skillsets of staff and front - line managers who are face of the bank for the customers. with increasing competition, banks that survive and succeed will be the ones that provide quality service. research studies have repeatedly shown that customers are willing to pay for quality service. banks that wish to stay ahead must therefore systematically build a structure that aims at providing total quality service which is superior and efficient. i wish your deliberations all success and close with the hope that, these will have an impact far beyond immediate issue. thank you for a patient hearing. bis central bankers ’ speeches bis central bankers ’ speeches complaints received in the offices of banking ombudsmen : 2012 - 2013 : complaint category wise complaints regarding non - adherence to bcsbi codes : 2012 - 2013 complaint category - wise bis central bankers ’ speeches bis central bankers ’ speeches