A recent press reports said that banks are now under RBI scanner regarding any kind of criminal behavior showed by them in terms of customer service. The RBI has put forward measures on the basis of which banks would be held accountable. Banks will have to comply with BCSBI (Banking Codes and Standards Board of India), code of commitment to customers.
Reports said that most of the borrowers feel that even after having met the compromise settlement process with banks regarding a loan, their credit history is in bad state. This has made it difficult for them to take any further loan or so in future.
According to the code, once a compromise settlement has taken place for the borrower’s account, then a report of the same has to be sent in the subsequent monthly report to the credit rating agency by the bank without fail. Another measure the code has set is that in case the bank delays in allowing credit to the borrower due to their deficiencies, then they are accountable to pay penal interest for the same.
The third code states that the bank can start recovery proceedings only after it has sent written information to the borrower for the same.
Reports also said that agents have to maintain civil code of conduct while dealing with borrowers and can only contact them between 7am to 7pm.