Customer Service and Consumer Protection
Customer Service and Consumer Protection
This domain tests the RBI Charter of Customer Rights, grievance redressal, the Integrated Ombudsman Scheme, 2021, and liability for unauthorised transactions. Expect questions on complaint timelines and compensation.
Core rules
- RBI Charter of Customer Rights (2014): right to fair treatment, transparency, suitability, privacy, and grievance redressal.
- Internal grievance redressal: a customer must first complain to the bank. If no satisfactory reply within 30 days, the customer may approach the RBI Ombudsman.
- RBI Integrated Ombudsman Scheme, 2021: one nation, one ombudsman; complaints can be filed online, by email or phone; the scheme covers deficient service.
- Compensation: the Ombudsman may award up to ₹20 lakh for loss and up to ₹1 lakh for expenses, subject to the scheme.
- Unauthorised electronic transactions: zero liability if reported within three working days; limited liability if reported later; bank must resolve within a specified period.
- Fair practices: no harassment by recovery agents; clear disclosure of charges; suitable products; confidentiality.
- Special customer groups: senior citizens, differently abled persons, and doorstep banking facilities.
Worked example
A customer's account is debited ₹20,000 by an unauthorised UPI transaction. The customer reports it to the bank within two working days. Under RBI's zero-liability framework, the customer bears no loss, provided there was no fraud or negligence by the customer. If the customer had shared the OTP, the bank could treat it as customer negligence. The reasoning is that liability turns on prompt reporting and customer conduct, not on the amount alone.
Traps
- The Ombudsman is not the first port of call; the bank must get 30 days to respond.
- Compensation caps are maximums, not automatic awards.
- Zero liability requires prompt reporting and no customer negligence.
- A bank cannot refuse to accept a complaint; it must have a grievance redressal system.
- The Ombudsman cannot award punitive damages beyond the scheme.