Point 3 – Banking Ombudsman Conference: Action Point to improve Customer Service of Banks

3. Banks would convey to the Reserve Bank, a consensus view on the recommendations of the Damodaran Committee Report on Customer Service in Banks that could be immediately implemented.

RBI vide its press release dt.03/08/2011 sought  Public Comments on Report on Customer Service of Banks.

To stream line the Bank’s customer experience across the Banks,  Reserve Bank of India had constituted a Committee under the chairmanship of Shri M. Damodaran, former Chairman, Securities and Exchange Board of India, to look into banking services rendered to retail and small customers, including pensioners.

Banking today encompasses a complex set of Banking Products, and Damodaran Committee, focused on retial and small customers, including pensioners.

The highlights of the committee’s report are as under. Each point has to analyzed from the Bank angle as well as the customer angle. Hence, not discussing the in detail on each point now.




Creation of a toll free common bank call number
Providing plain vanilla savings account without prescription of minimum balance
Setting up of third party Know Your Customer (KYC) data bank
Prescription of service charges for basic services
Providing small remittances at reasonable price
Providing floating rate housing loans on a non-discriminatory basis
Compensation for delayed return / loss of title deeds in the custody of banks
Zero liability against loss in ATM and online transactions
Enhancement of DICGC cover up to 5,00,000
Prepaid instruments up to 50,000/- for frequent travellers
Differential merchant discount / fee for debit cards
Self-personalisation of cards enabling customer to fix limits / area of operation / activation for international use
Instant blocking of ATM card through SMS -BLOCK for lost / misused cards
Transition to chip based card (EMV) with photograph
Chief customer service officer (CCSO) for grievance redressal in every bank
Submission of life certificate for pensioners in any Core Banking Solution (CBS) branch
Automatic updation of senior citizen status in CBS

 Financial inclusion through branch expansions in

the North -East

Moving towards paperless fund transfers



Ensure fulfillment of the tenets of customer service through inspections



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