RBI releases draft charter for customer rights
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Mumbai: The Reserve Bank of India (RBI) on Friday released a draft charter of five rights for customers of financial services—right to fair treatment, right to transparent, fair and honest dealing, right to suitability, right to privacy and right to grievance redressal and compensation.
The central bank said the draft had been framed based on global best practices of consumer protection and discussions with various stakeholders.
Customers have the right to hold a financial services provider accountable for the products offered and will have a clear and easy way to have any valid grievances redressed, the central bank said.
A financial services provider is required to communicate its policy for compensating for mistakes, lapses in conduct, as well as non-performance or delays in performance.
“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,” RBI said in a statement on its website.
The banking regulator also emphasized the need for maintaining transparency when creating and selling financial products to customers. The draft charter states that the product’s price, associated risks, the customer’s responsibilities and the terms and conditions that govern use over the product’s lifecycle should be clearly disclosed.
RBI said that customers of financial services and products have a right to suitability, in which only products and services that are appropriate to the needs and financial conditions of the customers may be sold to them.
“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 draft charter says.
The draft is open for public comment till 22 September, RBI said in its statement.