At last customers can have their say in banking. The Reserve Bank of India formed the Tarapore committee on procedure and performance audit of public services to study the performance of banks in disbursing public services in January 2, 2004.
The recommendations not only helped in sensitising individual bank boards but also the RBI itself to lay down guidelines for better customer service.
It does not stop here. Incognito visits (RBI officers in disguise) are being conducted at bank branches to verify customer service.
A customer deals with RBI for retail activities such as subscribing to government bonds, clearing foreign exchange for personal use just as it deals with normal bank.
We take a look at some major recommendations for better customer service. In order to simplify things for an individual dealing with the RBI for foreign exchange:
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The procedure for release of foreign exchange up to $100,000 has been simplified. Thereby, foreign exchange could be released by banks on the basis of self certification without disclosing documents for using it for education, employment, medical treatment, emigration and remittance to close relatives.
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Similarly, for any permissible current account transaction, drawing foreign exchange from $500 to $5,000 has been made hassle free as the customer has to just furnish a letter citing the requirement without the documents.
Current account transaction includes payments due in export and import, short term banking and credit card facilities during ordinary course of business, payments due as interest on loans and as net income from investments, remittances for living expenses of parents, spouse, children residing abroad among others.
This however does not include capital account transaction that cover mainly those dealings that change the nature of assets and liabilities such as purchase of immovable property, acquiring business.
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Non-resident ordinary account can now be held jointly held by NRIs with resident Indians for operational flexibility. In streamlining the methods for individual transaction in government saving schemes, norms for services to be rendered by the RBI, have been revised by incorporating the following:
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Application form for savings bonds has been standardised against different format used by the RBI, its agency banks and its regional offices earlier.
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There are two types of savings bonds - RBI relief bond - tax-free 6.5 per cent and taxable 8 per cent.
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From now on, advices are being sent by the RBI and agency banks to savings bond investors one month in advance of maturity of bonds reminding them for collecting the maturity proceeds.
Similarly, for collecting maturity proceeds, an investor is no longer required to produce the certificate of holding of the particular instrument. Rather the proceeds could be drawn by furnishing a simple receipt.
The RBI has also framed a policy to reimburse the investor the maturity proceeds or interest warrants of the relief /savings bonds in case there is a delay in despatch.
- The facility of issuing interest warrants has also been extended to senior citizens' deposit scheme.
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The procedures for settlement of deceased accounts claims has been simplified. A model operational procedure is being worked out by the Indian banks' Association so that relatives of the deceased need not furnish succession certificate to settle the claim and incur delay in the process.
