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special featurethe customer must note that there could be times whenthe rate moves downward and be prepared for it.The deregulation of the Savings Bank interest ratecoupled with technology will lead to product innovationsby banks. It would be in the interests of banks to ensurethat they explain the features of the product suitablyto the customer and document this rather than faceconsumer grievances later. Also, if banks succumb to thetemptation of increasing charges for services rendered tothe savings bank account holders, they would need tokeep in mind that bank customers now have a choice andmay exercise it. If the critical elements of fairness andtransparency are met by banks when a new product isintroduced or new charges are levied there ought to beno cause for complaint.A related issue which does not have a direct bearingon customer service but needs to be looked at, isthe role of the Deposit Insurance and Credit GuaranteeCorporation (DICGC) in the context of the deregulationof the savings bank interest rate. As on September 30,2010 the DICGC covered 1052 million deposit accountswith assessable deposits of `49,52,427 crores. The sizeof the deposits insured and the element of moral hazardinvolved in the current system of uniform premium pricingmust make DICGC recognize the urgent need to moveto risk-based premium pricing. Towards this end, it wouldbe necessary for DICGC to also undertake the rating ofthe financial soundness of banks and placing theseratings in public domain.At the last Banking Ombudsman Conference convenedby RBI in September 2011, the Governor hadindicated some ten action points for bringing aboutimprovements in customer service. Some of theimportant ones relate to banks notifying the MostImportant Terms and Conditions (MITC) for depositas well as loan products; (the terms and conditionspresently available are numerous and are rarely, ifever, read by any bank customer. The MITC are requiredto be not more than a page and should include thoseterms / conditions which indicate the obligations imposedupon the customer and which may affect the customeradversely); providing insurance for a reasonable amountto cover loss of credit / debit card, providing periodicloan account statements, despatching Tax Deductionat Source (TDS) Certificates to each customer etc. aresome of the other action points for banks.The RBI has also stepped out of its crease in reachingout to the bank customer by organising Town HallEvents with existing and potential bank customers,which are televised. The Bank also conducts Outreachprogrammes so as to cover existing and potential bankcustomers in small towns and villages. It may surpriseone to know that recently one such Outreach Programmewas conducted at an unbanked village, having apopulation of about 3000, situated about 16 kms. fromthe district Head Quarters in Aantnag in the KashmirValley. The nearest bank branch is at a distance of5 kms. from this village. It is for banks to follow throughon these initiatives of the RBI and convert this intotheir customer base.Steps are being taken to continuously not onlyattend to basic customer needs but also the specialneeds of disadvantaged groups such as pensioners,small borrowers etc. and the changing face of customerservice as highlighted above is a testimony of thisconcern. While the degree of efficiency in renderingcustomer service may vary from bank to bank, therecan be no denying that there has been a paradigmshift. No doubt, the BCSBI will continue to exerciseits role of a watchdog and ensure that complianceby banks does not slip. BCSBI is also taking stepsto generate greater awareness among bankersabout their commitments, and customers about theirrights, as enshrined in the two Codes referred toearlier; but as the old adage goes - you can takea horse to the water but you can't make it drink. Forthis, you require either a change of mind-set or greateraccountability.16October - December 2011The Journal of Indian Institute of Banking & Finance