DT
PT
Subscribe To Print Edition About The Tribune Code Of Ethics Download App Advertise with us Classifieds
Add Tribune As Your Trusted Source
search-icon-img
search-icon-img
Advertisement

RBI to review basic savings account directives

To empower IO with compensation power

  • fb
  • twitter
  • whatsapp
  • whatsapp
Advertisement

In a bid to align banking services with the digital era and enhance financial inclusion, the Reserve Bank of India has decided to review the instructions governing Basic Savings Bank Deposit (BSBD) accounts.

Advertisement

Simultaneously, the central bank outlined measures to fortify internal grievance mechanisms within regulated entities (REs) and review its flagship Integrated Ombudsman (IO) mechanism.

Advertisement

The BSBD account, launched to promote financial inclusion among underserved populations, offers minimum banking facilities free of charge and without the mandatory minimum balance requirement. However, with rapid digitalisation transforming customer expectations, RBI stated that the existing framework needs updating to provide "affordable banking facilities" and encourage greater adoption of these accounts.

Advertisement

"Digitalization in the banking sector necessitates a BSBD account that is in sync with the customer's changing requirements," RBI said in a statement. The review aims to deepen financial inclusion by driving enhanced usage of BSBD accounts, potentially incorporating modern features like seamless digital transactions while keeping costs low for account holders.

In a parallel move to elevate customer service standards, RBI proposed enhancements to the Internal Ombudsman (IO) mechanism in select REs. The IO system, already in place for independent reviews of rejected complaints, will now empower ombudsmen with "compensation powers" and direct access to complainants, mirroring the authority of RBI's own ombudsman.

Advertisement

To streamline the process, RBI suggested introducing a "two-tiered structure" for grievance redress within REs before cases escalate to the IO level. These changes are designed to deliver "meaningful and timely resolution of customer grievances," fostering greater consumer confidence and improving overall service quality in the sector.

Advertisement
Advertisement
Advertisement
tlbr_img1 Classifieds tlbr_img2 Videos tlbr_img3 Premium tlbr_img4 E-Paper tlbr_img5 Shorts