redress grievances and improve the situation. the attitude and behavioural standards especially of the front - line executives of banks are very important aspects. we in rbi keep harping on a need for informed and courteous frontline executives / staff and even serve as torch bearers by conducting exclusive training programmes for the frontline executives of the banks. but the fact remains that customer service and enhancing customer experience is primary responsibility of the banks and hence, the onus of empowering the frontline staff and ensuring the presence of a bevy of well informed and courteous frontline executives lies squarely with the banks. note : caveat venditor : a latin term meaning “ let the seller beware ”, in contrast to the more widely known saying caveat emptor ( let the buyer beware ). the principle of caveat venditor cautions that the seller is responsible for any problem that the buyer might encounter with a service or product bis central bankers ’ speeches recent steps by rbi 4. having dwelt upon generic issues, let me now focus on some specifics that i wish to raise this morning. very often, we found that the fair practices code adopted by banks / financial institutions is observed more in breach than in practice. in view of the growing complexities of the financial transactions and financial markets, rbi, therefore, felt a need to clearly define the role and responsibility of financial services providers, especially in relation to consumer protection and the framing of the charter of customer rights was a logical step in that direction. 5. formulation of the charter was done after extensive consultations with all stakeholders, studying global best practices and drawing upon the domestic experience. as you know, the charter comprises five critical rights : a ) right to fair treatment, b ) right to transparency, fair and honest dealing, c ) right to suitability, d ) right to privacy and e ) right to grievance redress and compensation. 6. as a follow up, a model customer rights policy formulated jointly by the bcsbi and iba was provided to all the member banks and the banks were advised to formulate their own board approved customer rights policy based on the charter and the model policy by july 31, 2015. rbi would be undertaking a close monitoring of the implementation of the policy and if needed, would issue necessary regulatory instructions. it is heartening that all the banks have drawn up a customer rights policy. 7. let me now come to the disheartening

. under the current regulatory conditions, simple, transparent abs built on real assets face almost as many constraints as much more complex financial products. the ecb has therefore, in cooperation with the bank of england, made a number of proposals for a better functioning european securitisation market. we have received positive responses from the commission and the member states. the proposals are derived in part from the quality and transparency requirements that central banks place on abs, which can be deposited as collateral in monetary policy operations. and as a central bank, our demands have always been very high. let me add, that in this regard, the abs market is a good example of how a capital markets union can also benefit our monetary policy, besides generating growth and promoting financial stability. bis central bankers ’ speeches insolvency law the second regulatory obstacle for a single market for securitised products is the heterogeneity of insolvency rules across the eu. this applies to both financial and nonfinancial companies. the council regulation on cross - border insolvency proceedings establishes a common framework of basic rules regarding the competent courts, the applicable law and the recognition of court decisions. but within this framework, national laws differ substantially in how far they protect the different stakeholders in insolvency. for example, the rights of preferential creditors differ substantially in some cases. different prescriptions on the filing and verification of claims can also cause frictions. heterogeneity becomes all the more important in dealing with the insolvency of multi - national enterprise groups. all in all, the heterogeneity of insolvency rules complicates the creation of homogenous asset pools and therefore the securitisation process. the commission proposal to review the regulation on cross - border insolvency makes suggestions how to improve this situation in the right direction. payment and settlement systems the third regulatory challenge for the securitisation market is the field of payment systems and securities settlement. despite much progress over the past decade, securities settlement in the euro area remains fragmented, inefficient and not very customer - friendly. this is not just a problem for smaller businesses, for which adapting to different conditions in the member states often entails high costs, but also for the integration and functioning of the single market as a whole. a striking comparison is often made with the us, an economic area of comparable size : settling a cross - border securities transaction