Know the rights of bank customers

Did you know you have many banking rights? And no, we are not talking about the facilities like deposits and withdrawals.

When you choose a bank, you automatically get certain rights that safeguard you as a customer. If you feel that the bank has been unfair to you or has hidden things from you, or even misused your personal information, you can take them to the task. The Reserve Bank of India (RBI) has a formalised Charter of Customer Rights that outlines your rights. The Charter gives RBI legislative powers to step in and take action against the errant bank. This has been done to safeguard your banking rights at all times. If you feel the bank has violated any of your rights, you can address your issues with your bank or approach the customer services division of Apex Bank.

Now that you are aware of your banking rights let's learn about them in detail so that you can exercise them when the need arises.

Fair Treatment

As a banking customer, it is your right to get fair treatment from your financial institution. The bank cannot discriminate against you on grounds such as sex, age, religion, caste, sexual orientation, and physical ability. This means that just because you are a woman, senior citizen, physically challenged, or member of a minority religion, the bank cannot refuse to take you on as a customer or deny you services that you demand. However, there are some exceptions to fair treatment rights. Banks can use their discretion to offer differential interest rates or products to certain customers. A common example is interest rates on fixed deposits. Banks often offer better interest rates to senior citizens. They also offer competitive interest rates to women on various loan products.

Transparency

You have a right to transparency. Banks have a diktat that they need to be absolutely honest and transparent in all their dealings with you–their customer. Hence, they need to be upfront and disclose all information to you. For example, if you invest in an equity product with your bank, they need to honestly tell you the product's price, market performance, and all the risks involved. Moreover, they need to tell you all of this in simple and clear language. All contracts need to be drafted so that a common person can easily understand. It is the bank's responsibility to ensure effective communication. If there is something that you don't understand and you ask them, it is their duty to explain the same to you as clearly as possible. As the Charter says, any features that can be disadvantageous to you, the customer, should be made known to you.

Suitability 

You also have a right to suitability. This right ensures that banks don't sell you products and services that are not suitable for you. Mis-selling is a common complaint in the banking industry. Despite several regulations, there have been instances where customers are sold wrong products to meet internal targets or get higher commissions. These products may or may not suit a particular customer's unique needs. This is a huge disservice to you as you may be investing in products that may not be as useful to you. For example, selling life insurance with lower coverage will not help your beneficiaries meet their life goals in your absence. This unsuitable investment will be of minimal use to them. This Charter makes it difficult to palm off unsuitable products to unsuspecting customers. It has made it mandatory for banks to sell products only after keeping the customers' unique needs, financial circumstances, and life goals in mind.

Privacy 

Privacy is another of your fundamental banking rights. All the personal information you share with your bank, like your Aadhaar card, PAN card, salary slips or income, phone number, email ID, investment information, must be heavily protected. They have to ensure that your information does not fall into the wrong hands, whereby you are affected or inconvenienced. For example, they cannot sell or pass on your information to telemarketers for cross-selling or even use the same data themselves to pitch products to you. They have to remain ethical at all times. Banks are required to keep all customer information confidential unless you can explicitly permit them to use your data or they are required by the law to disclose the same.

Grievance Redressal and Compensation

Despite all the rules mentioned above that banks have to follow, there are chances that things could go wrong. In such circumstances, you have the right to grievance redressal and compensation. The Charter explicitly says that banks are accountable for their own products and third-party products they sell, such as insurance. If they fail to adhere to these basic norms, they have to bear the brunt. To ensure customers are aware of their grievance redressal rights, banks have to communicate the policy for compensation. In their policy, banks have to clearly state the rights of customers if and when such an event occurs.

IDFC FIRST Bank has a detailed grievance redressal policy that safeguards the rights of its customers. It also has a dedicated page where customers can raise any complaints or share their concerns. If you have any form of grievance, IDFC FIRST Bank will immediately spring into action and address your concerns. When banking with IDFC FIRST Bank, be rest assured that all your banking rights will be protected. After all, it only has your best interest at heart.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.