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Customer feedback and complaintsFeedback from customers is of immense help informulating products, fine tune services and plug theloopholes. Each complaint of the customer should beproperly analyzed, assessed.Grievances Redressal MechanismImproving upon the services is an ongoing process.An organization which has robust mechanism toredress the complaints and resolve problem of thecustomer gets recognition as a customer friendlyorganization.Market StudiesMarket studies are effective tools to study thebehavior of customers and their response to presentstandard of services. It also helps to understandfuture trends and requirements as needs of thecustomer's keeps on changing with change of times.Market research gives way to innovations in productsand services. Market studies may be done in-house,or assigned to outside expert agencies or bothdepending upon the vision of the bank.Institutional Initiatives for Better Customer ServiceSystemsAt the instance of the Reserve Bank of India, bankshave set up internal customer grievances redressalmechanism at branches and controlling offices. A fourfoldstructure is put in place in banks. Board levelCustomer Service Committee for policy formulation,standing committee to review customer service, nodaldepartment / nodal officer for liaisoning with variousauthorities, the bank and branch level customercommittees. The revised Banking Ombudsman Scheme2006 has been made more customer friendly byincreasing the areas covered under the scheme.It now entertains e-mail complaints and providesfor an appeal against the decision of Ombudsman.In 2003, Reserve Bank of India had issued the FairPractices Code for Lenders, which required banksand FIs to provide a copy of loan agreement. Customerscan also sign in for national 'Do Not Call Registry'to avoid unsolicited phone calls from banks / salesoutfits.special featureBanking Codes and Standards Board of India (BCSBI)has been set up in 2006 to promote good bankingpractices by setting up minimum standards, increasingtransparency, achieving higher operating standardsand promoting cordial bank customer relationship.Most member banks of BCSBI are committed toprovide information about interest rates, fees andcharges applicable to various products.Specific time frame is fixed for disposal of loanapplications and disbursal of loan proceeds, grantingcollateral free loans wherever the schemes providefor. It lays down policy of banks for collection ofdues / cheques, compensation and grievance redressal.A separate department of Customer Service is set upin Reserve Bank of India to oversee the complianceof standards set by it.Advantages of Technology in Improving BankingServicesOverall, technological innovation has brought aboutspeedy processing and transmission of information,easy marketing of banking products, enhancementof customer access and awareness, wider networkingand, regional and global links on an unprecedentedscale. Most banks make visible efforts to keep upwith new systems and processes and thus deliverimproved services to customers.Increased use of technology led to delivery of neatand accurate banking service to the customers.Computerized passbook printing, statement ofaccounts, auto printing of standard letters to customers,quick access to information on personal computersprovided a huge value and satisfaction to thecustomers who were struggling to read differenthandwritings of bank employees manning the counters.Though technology was introduced as a customerconvenience tool, it began to become a cost cuttingtool by transforming human intensive banking totechnology intensive banking.Thus, taking the help of technology, banks are fastmoving from 'brick and mortar' banking to virtualbanking though physical presence is going to stayin India due to the unique nature of Indian bankingThe Journal of Indian Institute of Banking & Finance October - December 2011 23