regulated entities should ensure that employees understand that their primary responsibility is to serve customers'financial needs. there should be clear and transparent incentive structures that reward employees for delivering quality financial advice and services rather than just making sales. staff should ensure that products are recommended based on the customer's financial situation, goals, and risk tolerance. towards this, every financial institution should have a policy for customer appropriateness and product suitability framework. by adhering to such a policy framework in letter and spirit, res can greatly reduce the mis - selling complaints which form a substantial portion of the complaints that we get to see. addressing the root cause of customer complaints in order to truly embrace customer centricity, we must delve into the root causes of customer complaints. complaints are not mere inconveniences but vital feedback. as bill gates said, " your most unhappy customers are your greatest source of learning. " 1 they point us toward areas needing improvement. by addressing these root causes, we can prevent complaints from arising in the first place. i would therefore urge you to have a proactive approach in identifying root causes. regular analysis of customer feedback, complaints, and suggestions can serve as an invaluable compass in navigating toward a service - oriented future. root cause analysis will not only allow rectification of individual grievances but also enhance systemic processes to prevent reoccurrence. i would urge the customer service committees to allocate adequate time and focus on discussing the outcome of such root cause analysis to ensure that the institutions put in place mechanisms that can prevent recurrence of such complaints. it has also come to our notice that some of the banks have adopted an innovative approach to classify certain complaints as queries which results in understating the problem. this results in a false sense of complacency, and the truth will be out in any case. we seek to disincentivise such practices and as a regulator, we will not hesitate to act in case if it turns out to be an entity wide behaviour. i, therefore, request the customer service committees to keep a close watch and guard against such practices. resolution at the point of first contact every customer grievance is also an opportunity to prove our commitment to service excellence. therefore, it is essential that customer complaints are addressed promptly and fairly through a robust and efficient complaint resolution process. regulated entities should empower their customer facing staff to resolve issues at the point of first contact. the objective

shri swaminathan j : a customer centric approach - navigating the path to excellence in customer service speech by mr shri swaminathan j, deputy governor of the reserve bank of india, at the conference on customer service, mumbai, 21 september 2023. * * * chairmen of customer service committees of banks, whole time directors in charge of customer service verticals, principal nodal officers and my colleagues from the reserve bank of india. a very good morning to you all. we have gathered here today to discuss a crucial aspect of our banking and financial services sector : customer service standards and grievance redress mechanism in rbi regulated entities. as senior functionaries overseeing this critical domain, you bear a significant responsibility in shaping the quality of customer service rendered by your respective financial institutions. the focus must be on nurturing a customer - centric approach, for trust is the bedrock of the financial services business, and customer service, along with prompt grievance redress, is the bridge to building that trust. over the course of my address today, i would like to highlight five important areas for your consideration which are : i. need for a customer centric approach ii. addressing the root cause of complaints iii. importance of resolution at first point of contact iv. responsible handling of complaints v. combatting cybercrime before closing, i would also like to highlight the importance of cultivating a culture of continuous improvement as ensuring quality of customer service is a journey and not a destination. the need for a customer - centric approach let me begin by reaffirming a simple truth : financial services institutions exist because of their customers. they entrust regulated entities with their hard - earned money, their dreams, and their aspirations. as you all would know, the predominant source of your liabilities is customer deposits whose interest that we all seek to protect. it is, therefore, imperative to place them at the heart of operations of any bank. in fact, a customercentric approach is not an optional thing ; it is a necessity. in the world of finance, trust is the currency of the realm. every transaction, every investment, and every interaction is underpinned by the faith customers place in 1 / 5 bis - central bankers'speeches financial institutions. when you prioritize customer needs and concerns, you strengthen this trust, which in turn promotes your business and financial resilience, side by side. being commercial entities, there is nothing wrong in being target driven but