RBI issues draft charter of customer rights

The Charter spells out the rights of the customer and also the responsibilities of the financial service provider

Aug 25, 2014 09:08 IST India Infoline News Service

The Reserve Bank of India (RBI) on Friday issued the draft of a charter comprising five basic customer rights. Feedback has been invited by September 22.
These cover a right to fair treatment, transparency, suitability, privacy, grievance redress and compensation.
The draft Charter of Customer Rights to deal with entities regulated by RBI, has been framed based on global best practices of consumer protection as also discussions and interaction with various stakeholders. The Charter spells out the rights of the customer and also the responsibilities of the financial service provider.
The Charter spells out the rights of the customer and also the responsibilities of the financial service provider (FSP).
The RBI has said both the customer and the FSP have a right to be treated with courtesy. "The customer should not be unfairly discriminated against on grounds such as gender, age, religion, caste and physical ability when offering and delivering financial products," it said.
“Over the course of their relationship, the FSP cannot threaten the customer with physical harm, exert undue influence or engage in blatant harassment,” said RBI.
"The customer should be informed upfront about likely mandated business purposes. Customers have the right to protection from all kinds of communications, electronic or otherwise, which infringe upon their privacy," the central bank said.
  • Right to Fair Treatment: No discrimination on basis of gender, age, religion, caste and physical ability
  • Right to Transparency, Fair and Honest Dealing: Contracts or agreements between financial service provider and customer should be transparent and easy to understand
  • Right to Suitability: Products offered should be appropriate to the needs of the customer
  • Right to Privacy: Customers' personal information to be kept confidential. No unwarranted communication, electronic or otherwise, to be sent
  • Right to Grievance Redress and Compensation: Financial services provider accountable for products offered (including third party products). Provider to facilitate easy grievance redressal.

Related Story

Open Free Demat Account (Rs699)