CUSTOMER SERVICE

GRIEVANCE REDRESSAL

MECHANISM

Presented by,

Abinash Kr. Mandilwar

Chief Manager & Faculty Member,

STC, Bhopal

COPRA(Consumer Protection Act-1986)

INTRODUCTIONInitially enacted during 1986 and

implemented w.e.f. 15th April 1987.

A legal force available to customer toenforce their right as consumer (notapplicable in the State of J & K).

Amendment on 17.12.2002, andimplemented w.e.f. 15th March 2003(World Consumers’ Rights Day).

DEFINITION OF CONSUMER

1. Any individual who buys goods orhire services for consideration i.e.for a price for his use and not forresale is a consumer.

2. Any use of such goods andservices with the permission ofthe buyers is also a consumer.

NOT A CONSUMER1. Person buying goods for resale.

2. Person buying goods for anycommercial purpose.

3. Person receiving goods/servicesfree or gifts.

4. Person enjoying personal serviceunder a contract( i.e.- service byemployees/maid servants) etc.

COVERAGE All goods and services including

banking, insurance, transport,processing, electricity, professionalsuch as physicians etc. in private, publicand cooperative sectors are coveredunder this Act .

All banking services are covered due totheir being essential services.

WHO CAN FILE A COMPLAINT ?

A consumer (individually or jointly),any voluntary consumer organisation,Central or State Governments.

Limitation period is 2 years from thedate of cause of action i.e. purchase ofgoods/hiring of services.

PECUNIARY (FINANCIAL) JURISDICTION

.District Forum Up to Rs. 20

lakhheaded by President (qualified to be a District Judge) & 2 other members (1Woman)

State Commission > Rs. 20 lakhup to Rs. 100 lakh

headed by President (has/had been HC Judge) & 2 other members(1Woman)

National Commission

Above Rs. 100 lakh

headed by President (has/had been Judge of Supreme Court) & 4members (1Woman)

TIME LIMITACTION TIME

Admission of complaint from the date of receipt of the complaint.

21 days

Disposal without analysis or testing of commodities

3 months

Disposal analysis or testing of commodities 5 months

Disposal should be done at State/National Commission

3 months

Decision should be taken on Appeals for admission/rejection

90 days

PROCEDUREA simple written complaint in duplicate

with full name and address of oppositeparty narrating facts of the complaintalong with copies of the supportingdocuments and details of relief sought.

No Court Fee is charged.

Engaging of Lawyer is not necessary,consumer or anyone can represent hiscase.

RELIEF BY COPRAIncludes rewards of default forgoods, removal of deficiencies inservices, replacement by newgoods free from defects, refund ofprice/ charges, award ofcompensation for loss of injuriessuffered, if any.

PENALTYPenalty for non-compliance of order is

imprisonment for not less than onemonth and up to 3 years/fine not lessthan Rs. 2,000/- and up to Rs. 10,000/-or both.

If the complaint is found to be of frivolousnature, fine up to Rs. 10,000/- orimprisonment for not less than onemonth but up to 3 years.

APPEALPeriod of appeal against the order is limited to 30

days from the date of order in all cases.

Appeal to State Commission against the award ofDistrict Forum, Deposit amount is 50% of theClaim amount/maximum Rs. 25,000/-.

Appeal to National Commission against the awardof State Commission, Deposit amount is 50% of theclaim amount/maximum Rs. 35,000/-.

Appeal to Supreme Court against NationalCommission, Deposit amount is 50% of the claimamount/maximum Rs. 50,000/-.

Any Question ?

BANKING OMBUDSMAN

SCHEME 2006

INTRODUCTIONRBI notified the Banking Ombudsman

Scheme 2006 u/s 35A of Banking RegulationAct1949 and scheme came into force w.e.f.01st Jan 2006 covers all commercial banks,RRB’s & scheduled primary Co-operativeBanks.

Objective –Resolution of complaints relatingto banking services through conciliation &mediation between the bank and theaggrieved parties or by passing an award.

BANKING OMBUDSMAN SCHEMEEligibility of Ombudsman- CGM/GM of RBI tenor

not exceeding 3 Yrs at a time. Cost borne by RBI.

Who can file a complaint –A person himself orhis authorised representative (other than anadvocate) on paper or electronic media (e-mail), or forwarded by RBI or Central Govt.

Jurisdiction- For Credit card, the jurisdiction iswith reference to ombudsman havingjurisdiction over the billing address of the cardholder. For other accounts, it is as per locationof the branch.

CONDITIONS FOR COMPLAINTComplain was made to the Bank and Bank had

rejected or no reply was received within a monthor complainant is not satisfied with the reply givenby the bank.

Period of more than one year has not lapsed afterreceipt of bank reply.

Complaint is not for issues already settled byombudsman or for which proceeding before courtor any other forum is pending or a decree or orderhas been passed.

The complaint is within limitation period underIndian limitation Act 1963.

REJECTION OF COMPLAINT BY OMBUDSMAN

If it Frivolous, malafide or withoutsufficient cause or there is no loss ordamage or inconvenience caused to thecomplainant or is beyond the pecuniaryjurisdiction of ombudsman.

Can appeal to appellate authoritywithin 30 days of receipt of rejection toDy. Governor RBI .

AWARD BY OMBUDSMANWhere a complaint could not be settled by

agreement within a period of one monthfrom the date of receipt of the complain,the ombudsman may pass an award orreject on the basis of evidence principles ofbanking law and Practice, directions andguidelines issued by RBI.

Awards shall specify the amount to be paidby bank as compensation not more thanactual loss suffered or Rs. 10 lakhs,whichever is lower.

AWARD BY OMBUDSMANAwards shall be binding on the bank if the

complainant sends acceptance in full & finalsettlement within 30 days from the date ofreceipt of the award.

Implementation-Customer to send acceptance ofthe award within 30 days from the date of receiptof the award.

Bank to implement the award within one monthfrom the date of receipt of the acceptance fromthe complainant and intimate compliance to thebanking ombudsman.

APPEALCustomer can file an appeal to appellate authority

(Dy. Governor RBI ) within 30 days of date ofreceipt of award (could be extended by 30days byappellate authority).Appeal by Banks should be filed with sanction of

the CMD /ED. For bank 30days period for filingappeal begins from date of receipt of customer’sacceptance.The appellate authority may dismiss /allow the

appeal or set aside the award or refer the matter toombudsman for fresh disposal or modify the awardor pass any order as it may deem fit.

NODAL OFFICERNodal Officer- The bank shall

appoint nodal officer at theirZO/HO & inform the ombudsmanwho shall represent the bank/furnish information to theombudsman.

Ground of Complaint-All Servicesrendered by the bank.

INTRODUCTIONThe Universal declaration of Human Right(UDHR-1948)

and also the International Covenants on Civil & PoliticalRight (ICCPR-1966) to which India is a signatory urgedupon the member countries to provide citizen the Rightof Information.

Government of India there upon passed RTI Act 2005,which Came into force on 12.10.2005 which extends tothe whole of India except the State of Jammu andKashmir.

It provides right to all the citizens to have access toinformation under the control of public authorities witha view to promoting transparency and accountability.This helps in reducing corruption and inefficiency inpublic administration.

DEFINITION OF PUBLIC AUTHORITYThe expression, public authority means thatany authority or body or institution of self-Government established/constituted :

a. By or under the Constitution,

b. By any other Law made by the Parliament,

c. By any other Law made by the StateLegislature,

d. By notification issued/order made byappropriate Government authority etc.

OBLIGATIONS OF BANK•Bank of India is a public

authority as per the definitiongiven in the RTI Act, 2005. So,Bank of India is obliged toprovide, information to thegeneral public to the extentpermitted by the Act.

WHAT IS INFORMATIONInformation includes records,documents, memos. E-mails, opinions,advices, press releases, circulars,orders, log books, contracts, reports,data materials held in any electronicform and information relating to anyprivate body which can be accessed bya public authority.

WHO CAN REQUEST FOR INFORMATION ?Every citizen of the country, who desires, can make a

request, subject to payment of the fee prescribed byGovernment of India after 12.10.2005. Companies/Corporate /Firms are not being the citizen of countryare not eligible.

Request should be in writing/electronic media.Request should be in English/Hindi/Official Language

of the Area.Request should be made to Central Public Information

Officer of the organisation.Gives full particulars of the Information sought.Person made request should give his contact address in

full.Person making a request should enclose the proof of

his Indian Citizenship.

AUTHORITY/ TIME LIMIT/ PENALTY

Authority to provide information:- Each public authority is to appoint Public Information Officer (PIO) to provide information.

Time Limit:- Information must come within 30 days. ( for life and liberty cases- 48 hours)

Penalty for failure to provide information:- PIO to pay Rs. 250/- per day, maximum Rs. 25000/-

DETAILS OF FEESThe fees shall be charged by way of Cash against

proper receipt or by DD/Bankers’ Cheque/ IndianPostal Orders payable to the public authority atthe following rates :Application Fee of Rs. 10.00/-, Nil in case of BPL

Citizen;Rs. 2.00 for each page of photocopy of A4/A3 size

paper;Actual charge/cost price of a copy in larger size

paper;For information provided in CD/Floppy, Rs. 50.00

per CD/Floppy.

WHOM TO APPROACH IN BANK OF INDIA

Our Bank has designated officers as CentralPublic Information Officers (CPIOs) andAppellate Authorities (AAs) at ourfollowing offices :Head OfficeNational Banking Group OfficesZonal OfficesDivisional Managers (MCB)Large Corporate BranchesBranches

EXEMPTIONSSection 8 & 9 of the Act prohibits PIO to pass

Information affecting the sovereignty andintegrity of India, the security, strategic,scientific/economic trade of the State.

Information which has been expressly forbiddento be published by any Court of Law or disclosureof which may constitute Contempt of Court.

Information received, in confidence, from ForeignGovernment.

Information, the disclosure of which could causea breach of Parliament or State Legislature.

BANKING CODES

&

STANDARDS

BOARD OF INDIA

(B C S B I - 2006)

INTRODUCTIONBased on the recommendation of Tarapore

Committee, BCSBI was setup to oversee the FairPractice Code evolved by the bankers.

The board was set up as a Society. Commercialbanks, RRBs and Urban Banks are its members.

A Governing Council of BCSBI looks after itsfinancial affairs and managerial policies.

The main objective of BCSBI is to plan, prepareand publish voluntary comprehensive code andstandard for bank to provide fair treatment tocustomers.

BANKING CODESA comprehensive Bankers’ Fair Practice Code

prepare by an IBA working group is used as astandard by BCSBI. Through the agreement, themember banks bind themselves forimplementing the code and supervision by theboard.

On 03 July 2006 BCSBI released the banks ‘ codefor customer service which is a voluntary code.

It provides protection to the customers andexplains how banks are expected to deal withthe customers for their day to day operation.

OBJECTIVE OF THE CODEa) Promote good and fair banking practices by

setting minimum standards in dealing with thecustomers.

b) Increase transparency so that the customer canhave a better understand of what they canreasonably expect of the service.

c) Encourage market forces, through competition,to achieve higher standards.

d) Promote a fair and cordial relationship betweenthe customers and their bank.

e) Promote confidence in the banking system.

APPLICATION OF CODESB/CD Account, TDR, PPF & other deposit accounts

Pension, payment orders, remittances by DD etc.

Government Transactions.

Demat accounts, equity, Government bonds.

Indian currency notes exchange facility.

Collection of cheques, safe custody, SDV facility.

Loans and overdrafts.

Foreign exchange services.

Third party insurance & investment products.

Card products including Credit Card, Debit Cards.

TIME SCHEDULE UNDER BCSBI CODEAction Time

Change in term of deposit account notice 1 month

Notification of change without notice 30 days

Closure of account on customer request 05 days

Transfer of accounts to other branch 2 weeks

Acknowledgement of complain 1 week

Redressal of customer complain 6weeks

Closure of account by bank notice 30 days

Settlement of deceased claim case 15 days

Change of fee/charge- notice board 1 month

Closure/shifting of branch- notice Where no other bank has branch 3 months

Closure/shifting of branch- notice Where other bank has branch 2 months

Change in credit card terms- notice 1 month

Loan recovery- time to visit customer 7 am - 7 pm

CUSTOMER SERVICE RELATED ISSUESCUSTOMER SERVICE RELATED ISSUE TIME

FRAME

Draft should be valid uniformly in banks 3 months

Banks should issue duplicate DD without non payment advice up to Rs. 5000/-

Duplicate DD should be issued within 14 days

If duplicate DD not issued timely, int. payment should be made at FDR rate

Immediate credit- outstation instrument and immediate credit within BankDiscretion

Rate of interest payable in case of delay in the collection of outstation cheque.

BankDiscretion

Composition of Branch level customer Service Committee: BM, representative of all staff categories.

Customer day celebrated on- 15th every month

Employee working hours begin 15 minutes before customer service hours :- GoiporiaCommittee