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special featurebusiness-like smile. Bankers will do well to wear awarm smile as part of their dress-code. Customerswant to be listened to, understood and empathizedby the bankers. If they are taken care of, they will,in turn, take care of the business of the banks!Their problems are important for them, though theymay appear insignificant to the banker. The bankershould respond to the customers' issues and providecomfort.Dissemination of financial literacy and productfeatures :Customers do not want jargons or high-profileterminology. They want to understand the bankingproducts and services in a simple way. The bankersshould illustrate, for example, what is a fixed depositand what is a re-investment deposit, what isthe mechanism of Equated Monthly Instalment(EMI), what is the difference between flat rate andinterest rate on monthly reducing balance, what arethe implications of a loan product quoted in floatinginterest rates. The customers also need to be toldabout the products which are suitable for them.SME borrowers need to be told patiently about thevarious facilities offered by different agencies fortheir uplift. Most of the borrowers require financialliteracy rather than finance per se. Bankers have avital role to play as financial advisors to thecustomers. Banks also need to retain their existingcustomers; when new customer-base is createdwith the technology, there should not be a drain of theexisting customer-base.Banks and Corporate Social Responsibility (CSR) :National level initiatives such as Financial Inclusionand Government sponsored loan schemes for ruraland urban poor to uplift people {living below thePoverty Line (BPL)} above the Poverty Line, cansucceed with the pro-active participation of banks.Similarly, the country can witness a second Greenrevolution when agriculture and allied activities arefinanced by banks. Borrowers engaged in agricultureand allied activities and the SME sector, need constantcounseling. They need bankers to act as a bridgebetween them and the other nodal agencies. Banks alsoneed to leverage the core-competencies of variousagencies-Government and non-government, to reachand teach the poor and the downtrodden.Conclusion :New-age banking is welcome if it can be complementedand supplemented by the core-customer servicevalues that will impact all segments of the society.Technology should not distance the banker fromthe customer. On the other hand, technology andhuman values should go hand in hand and work intandem. In that scenario, the banks will contributetheir best towards nation's growth.Recommendations of the Working Group on Securing Card Present TransactionsA Working Group was constituted by the Reserve Bank on March 31, 2011 for recommending measures to secure all CardPresent (CP) transactions. The Group, which submitted its report on May 31, 2011, made inter alia the following recommendations :(a) The technology and payment infrastructure like implementation of Unique Key Per Terminal (UKPT) and Terminal LineEncryption (TLE) should be strengthened within 18-24 months; (b) An additional factor (Personal Identification Number (PIN) orBiometric) for all domestic debit card transactions should be introduced within 24 months; (c) After monitoring the progress madein the roll-out of Aadhaar UID, it may be considered to use the biometric finger-print capture in lieu of PIN at the ATM and PoSfor 18 months; (d) Based on the above recommendations, a decision should be taken to introduce Euro pay Master Card Visa(EMV) Chip and PIN for credit cards and debit cards for all domestic transactions within five and seven years, respectively; (e) EMVChip Card and PIN should be issued in lieu of Magstripe cards when at least one purchase is evidenced at an overseas location.The Report was placed on the RBI website for public comments. The recommendations of the Group have been accepted by theBank and appropriate directions have been issued in September 2011.Source : Report on Trend & Progress of banking in India, 2010-11, RBI28October - December 2011The Journal of Indian Institute of Banking & Finance
special featureCustomer service - best practicesin Union Bank of IndiaV. L. Vaidya *M. K. Nanda **“The Customer is not king any more, he is the dictator”- Fortune MagazineAll the resources of service organizations inparticular are focused on one goal that is customerservice in the present socio economic environmentprevailing across the globe. Union Bank of Indiahas made its presence highly perceptible in thepublic at large because of customer centricity cultureadoption with a good homogeneous geographicalpresence across the country with over 3170 branchesand over 2900 ATMs. Thus the visibility of theinstitution has improved because of this pan Indiapresence.The real beginningThe word customer service was best contemplatedand was drawn into an action plan for implementationby Union Bank of India in the year 2007 througha project called NavNirman, a business process reengineeringexercise which included rebrandingexercise that is to take on the changing demographicadvantage for connecting with the youth of India, whoare a major chunk of working class contributing toaggregate demand in the economy.During the year 2007 to 2010 the projectimplementation included product innovation formeeting value for money, which is one of the brandpromises to the customers of the bank apart fromprocess improvements like creating back office andcreation of various alternate delivery channels forfreeing the branch for attending to customerseffectively, which is also one of the pillars of there-engineering process.On people front, a country wide initiative was takento train all the frontline officers for enhancing thesoft skills for improved customer satisfaction. Duringthe same period a major training programme wasconducted country wide for the then PTS (Part timesweepers) now re-designated as (full time) housekeepersto maintain cleanliness of the premisesapart from etiquettes and attitudinal shift towardscustomers which is highly experienced across thebranches.Today for meeting the retail and SME creditrequirement, bank has set up Union Loan Points andBusiness Banking branches functioning under retailand SME vertical head of corporate office which serveas unique customer touch points for lower turnaroundtime. (TAT)Creating superior customer experiencesOn transparency front, the bank has uploaded acustomer grievance redressal policy, compensationpolicy apart from code of commitment to customers andSME code of commitment. Online grievances receivedfrom customers are redressed efficiently through asystem support of escalation matrix from branch tothe corporate office without leaving a scope fordillydallying. The branches display the address ofombudsman, address of the BCSBI code complianceofficer apart from physical complaints register. Apartfrom monthly customer meet as per RBI directives,the bank also conducts all India customer servicemeetings every quarter across all branches underthe guidance of central office. The prime objectivesof such meetings are to find out customer service* Vice Principal, Staff College, Union Bank of India, Bangalore.** Faculty Member, Staff College, Union Bank of India, Bangalore.The Journal of Indian Institute of Banking & Finance October - December 2011 29
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