The Committee on Procedures and Performance Audit on Public Services (CPPAPS) set up to evaluate and oversee the observance of a voluntary code of conduct by the banks has felt the need to benchmark the extant level of public service in the banking sector. Consequently RBI with the banks has decided to set up, as a collaborative effort, an autonomous body, viz. Banking Codes and Standards Board of India (BCSBI) in which our bank has become a member. The BCSBI envisages to provide a framework for a minimum standard of banking services, which individual customers can legitimately expect. Towards this end, BCSBI has advised member banks to place a Policy on Grievance Redressal before their respective Boards and display it at all their branches. The Bank's Board in its meeting held on 17.03.2007 observed that the Bank's policy should be in alignment with that of State Bank of India. As such, the Grievance Redressal Policy duly aligned with that of State Bank of India is placed before the Executive Committee of the Board for approval.

 I. Introduction:

 In the present scenario of competitive banking, excellence in customer service is the most important tool for sustained business growth. Customer complaints are part of the business life of any corporate entity. This is more so for banks because banks are service organizations. As a service organization, customer service and customer satisfaction should be the prime concern of any bank. The bank believes that providing prompt and efficient service is essential not only to attract new customers, but also to retain existing ones. This policy document aims at minimizing instances of customer complaints and grievances through proper service delivery review mechanism and to ensure prompt redressal of customer complaints and grievances. The review mechanism should help in identifying shortcomings in product features and service delivery. Customer dissatisfaction would spoil bank's name and image.

The Bank's policy on grievances redressal follows the under noted principles:

• Customers be treated fairly at all times
• Complaints raised by customers are dealt with courtesy and on time.
• Customers are fully informed of avenues to escalate their complaints/grievances within the organization and their rights to alternative remedy, if they are not fully satisfied with the response of the bank to their complaints.
• Bank will treat all complaints efficiently and fairly as they can damage the bank's reputation and business if handled otherwise.
• The bank employees must work in good faith and without prejudice to the interests of the customer.

In order to make bank's redressal mechanism more meaningful and effective, a structured system needs to be built up towards such end. Such system would ensure that the redressal sought is just, fair and within the given frame-work of rules and regulation. The policy document would be made available at all branches. The concerned employees should be made aware about the Complaint handling process.

1.1 The customer complaint arises due to:

a)     The attitudinal aspects in dealing with the customers

b)     Inadequacy of the functions/arrangements made available to the customers or gaps in standards of services expected and actual services rendered.

The customer is having full right to register his complaint if he is not satisfied with the services provided by the bank. He can give his complaint in writing, orally or over telephone. If the customer's complaint is not resolved within given time or if he is not satisfied with the solution provided by the bank, he can approach Banking Ombudsman with his complaint or other legal avenues available for grievances redressal.

2. Internal Machinery to handle Customer Complaints/grievances:

2.1. Grievances relating to branch transactions:

i.                    In case of any difficulty in transactions, the customers may approach the officer concerned or the Manager of the Division or the Branch Manager, who will ensure that the customers' banking needs are attended to. However, if this does not happen, customers may demand the complaint book, which will be available in all branches, and lodge a written complaint. A copy of the complaint shall be returned to customer with an acknowledgement of receipt. The branch shall take efforts to ensure that the redressal of the complaint takes place expeditiously and in any case within a maximum period of three weeks. If for any reason the branch is unable to redress the grievance within three weeks the customer will be informed of the reasons and the action taken for early redressal.

ii.                  In case of difficulty with the branch, or unsatisfactory reply in respect of compliant lodged with the Branch, the customer can approach the Assistant General Manager of the concerned Regional Office or Deputy General Manager of the Zonal Office under whose administrative control the Branch functions. The contact particulars of the Assistant General Manager/Deputy General Manager can be obtained from the Branch or from the helpline numbers at the Head office. The helpline numbers will also be made available on the Bank's website.

iii.                The customer can also write to Grievances Cell at the Head Office. The address of the General Manager (Operations), who is the Nodal Officer for complaints will be available at the Branches and Bank's Website. An online complaint form is available in the home page of Bank's website sbhyd.com for customers' convenience to lodge complaints.

2.2. Grievances relating to technology related transactions:

i.                    For redressing complaints arising out of ATM transactions, the bank has presently the following toll free contact numbers:(only BSNL/MTNL)                          

1.     SBH Helpline: 1800-425-4055

2.     Email: agmmktg@sbhyd.co.in

3.     email: cmgrievances@sbhyd.co.in

4.     SBH toll free: 1800-345-4099 (Hyderabad & Vijayawada)

5.     SBI helpline: 1800-112-211

The Customers may contact the branch where they hold their accounts for loss of ATM PIN numbers for necessary process in getting a new PIN.

   ii.      For assistance in Internet Banking transactions, the customer may contact the same help line number for ATM card transactions. He may also post his grievance online on the Bank's website onlinesbh.com. A ticket number will be immediately generated when the grievances are posted on line. The customer can track the status of his grievances using the unique identification number. If PIN is forgotten, the customer is requested to seek the help in the any of the above toll free numbers.

2.3. Customer Service Committee of the Board:

This sub-committee of the Board would be responsible for formulation of a Comprehensive Deposit Policy incorporating the issues such as the treatment of death of a depositor for operations of his account, the product approval process,  the annual survey of depositor satisfaction and the triennial audit of such services. The Committee would also examine any other issues having a bearing on the quality of customer service rendered. This committee would also review the functioning of Standing Committee on Customer Service and is also responsible for the rendering of customer service to the individual, both as a depositor and also as a borrower. This committee shall be, therefore made responsible for examining loan policies and service issues for the individual as a borrower also.

     2.4: Standing Committee on Customer Service:

The Standing Committee on Customer Service will be chaired by the Managing Director of the Bank. Besides two to three senior executives of the bank, two to three eminent non-executives drawn from the public shall be included as members. The committee would have the following functions:

• Evaluate feed-back on quality of customer service received from various quarters. The committee would also review comments/feedback on customer service and implementation of commitments in the Code of Bank's Commitments to Customers received from BCSBI.  

•  The Committee would be responsible to ensure that, all regulatory instructions regarding customer   service,  are followed by the bank. Towards this, the committee would obtain necessary feed-back        from Zonal/Regional Managers/functional heads.

• The committee also would consider unresolved complaints/grievances referred to it by functional heads responsible for redressal and offer their advice.

• The committee would submit report on its performance to the customer service committee of the board  at quarterly intervals. 

•  The committee also will look into the complaints arising out of non -compliance of the code.

2.5 Nodal Officer and other designated officials to handle complaints and grievances.

Bank shall appoint a Nodal Officer of the rank of General Manager (or its equivalent) who will be responsible for implementation of customer service and complaint handling for the entire bank. The Bank shall also appoint Customer Relation Officer at Zonal/Regional Offices to handle complaint grievances in respect of branches falling under their control.

3. Mandatory display requirements:

 It is mandatory for bank to provide:

• Appropriate arrangement for receiving complaints and suggestions.  

•  The name, address and contact number of Nodal Officer(s)

• Contact details of Banking Ombudsman of the area

• Code of bank's commitments to customers/Fair Practice Code

3.1 Disclosures:

RBI vide its circular No.DBODNo.Leg BC.60/09.07.005/2006-07 dt.22.02.2007 has directed banks to place a statement of complaints before their Boards/Customers Service Committees along with an analysis of the complaints received as under;

      i.                   to identify customer service areas in which the complaints are frequently received.

     ii.                  to identify frequent sources of complaint

     iii.                to identify systemic deficiencies and

     iv.                 for initiating appropriate action to make the grievance redressal mechanism more effective.

3.2 RBI has also directed that banks also disclose the following brief details alongwith their financial results:

 A. Customer Complaints

B. Awards passed by the Banking Ombudsman

4. Resolution of Grievances;

Branch Manager is responsible for resolution of complaints/grievances in respect of customer's service by the branch. He would be responsible for ensuring closure of all complaints received at the branches. It is his foremost duty to see that the complaint should be resolved completely to the customer's satisfaction and if the customer is not satisfied, then he should be provided with alternate avenues to automatically escalate the issue. If the Branch Manager feels that it is not possible at his level to solve the problem he can refer the case to Regional or Zonal Office for guidance. Similarly, if Regional or Zonal Office finds that they are not able to solve the problem such cases may be referred to the Nodal Officer. In all cases, the Nodal Officer shall be the final authority to close the complaint.

4.1. Time frame:

Complaint has to be seen in the right perspective because they indirectly reveal a weak spot in the working of the bank. Complaint received should be analyzed from all possible angles. Specific time schedule may be set up for handling complaints and disposing them at all levels including branches, zonal and head office. Branch manager should try to resolve the complaint within specified time frames, decided by the bank.

Specific time-frame stipulated is as under:

•  The complainant will be acknowledged within a maximum period of 5 days on receipt of complaint. 

•  Redressal/final response will be given to the complainant within 21 days on receipt of complaint.

Communication of Bank's stand on any issue to the customer is a vital requirement. Complaints received, which would require some time for examination of issues involved should invariably be acknowledged promptly. Branches and zonal offices must send action taken report on complaints received to the head office at the end of every month.

5.Interaction with customers

The Bank recognizes that customer's expectation/requirement/grievances can be better appreciated through personal interaction with customers by bank's staff. Structured customer meets, say once in a month will give a message to the customers that the bank cares for them and values their feed back/suggestions for improvement in customer service. Many of the complaints arise on account of lack of awareness among customers about bank services and such interactions will help the customers appreciate banking services better. As for the bank the feed back from customers would be valuable input for revising its product and services to meet customer requirements.

6. Sensitizing operating staff on handling complaints.

Staff should be properly trained for handling complaints. We are dealing with people and hence difference of opinion and areas of friction can arise. With an open mind and a smile on the face we should be able to win the customer's confidence. It would be the responsibility of the Nodal Officer to ensure that the internal machinery for handling complaints/grievances operates smoothly and efficiently at all levels. He should give feed back on training needs of staff at various levels to the HR dept.