The biggest problem, as I see it, is the rapid launch of new marketing strategies that foreign and private banks are constantly evolving to hook customers. Often the schemes are ill-conceived, not transparent enough and staff at the call-centres is not trained to deal effectively with customer queries. This leads to wrong billing, harassment and angry complaints to the Ombudsman. When customers are finally able to get the attention of top management at these banks, the problem is instantly resolved and an apology proffered. This is hardly an appropriate solution.

The RBI must work at creating a level playing field between bankers and their customers. When banks make a mistake -- and this is frequent -- the redressal process is agonising. I have helped resolve a complaint where a youngster was nearly driven to suicide on account of the bank’s intimidation tactics. I also know cases where customers have preferred to pay false or incorrect charges levied by the bank and close their account rather than waste time and energy in fighting the system. Even in cases where banks have tendered profuse apologies, there is never any mention of interest payment on wrong debits.

Yet, banks themselves ruthlessly debit customer accounts to recover their charges; interest and penalties and the interest clock never stops ticking until repayment is completed to their satisfaction. The RBI must ensure that banks are at least forced to pay interest and some penalty when they admit to wrong debits.

Another RBI action that can go a long way in reducing customer complaints would be to issue a blanket ban on seeking what are ‘negative consents’ from customers. Often, banks offer services or facilities (such as Citibank Suraksha) for a fee that is debited without the customer’s overt consent. The customer is expected to read the fine print in the bank statement, figure out that it is a paid service and call the bank to cancel it -- or the charge is debited. Or, banks unilaterally convert card payments into interest-free “Equated Monthly Instalments” but do not mention the 3 per cent service charge, or offer add-on cards to existing card holders without mentioning a Rs 250 charge if the card is not used for six months. These dubious practices are rampant in the industry. A simple 'fatwa' from the RBI against seeking negative consents or imposing hidden charges will end a great deal of harassment and reduce customer complaints.