Rights You Must Know About As A Banking Customer

By | February 28, 2018

Here’s all you need to know about your rights as a banking customer. Read on.

Rights You Must Know About As A Banking Customer

Are you aware of your rights as a banking customer? To protect your rights as a banking customer, RBI has established some regulations. All financial institutions like commercial banks, regional rural banks, and urban co-operative banks are required to respect these rights. You, as a customer, have an option to raise your voice in case of any issues.

Additional Reading: Rights Of A Home Loan Borrower!

Here are your rights as a banking customer:

Right To Fair Treatment

This right aims at giving an opportunity to both customer and financial institution to be treated fairly. It prohibits any kind of discrimination that might arise due to caste, gender, age or physical disability of any of the customers. However, the financial institution still has the right to provide a scheme specifically designed for a specific set of customers.   

Right To Transparency, Fair, And Honest Dealing

This right makes the financial institution in question responsible for simplifying things for customers so that they have a better idea about various products. The institution is also supposed to disclose every condition associated with the product. In case of any change in the terms and conditions related to the product, the financial institution is supposed to keep the customers informed within 30 days.

If the involved financial institution fails to adhere to these conditions, you as a customer are free to file a complaint.

Right To Suitability

This right has been introduced to protect the customers from becoming a victim of misselling. It makes it mandatory for the financial institution to offer products and services according to the needs and requirements of the customers.

It’s also supposed to keep in mind the financial situation of the customer while pitching various financial products. The customer also gets the right to say no to any third party product being sold as a quid-pro-quo by the institution.

Right To Privacy

It’s the duty of the financial institution to keep every customer’s personal information private. Unless authorised by the customer, the bank can’t share their personal/contact information for any marketing purposes. When it comes to mandated disclosures, the customers need to be informed in writing about the same.

Right to Grievance Redress and Compensation

The customer has the right to hold the financial institution accountable for any product or service offered and also has the right to an easy and simple grievance redressal system. In order to use the grievance redressal system, you first need to file an official complaint with the bank in question. In case the complaint is not addressed to, you have the right to go the banking ombudsman, appointed by the Reserve Bank of India. You can file a complaint online on RBI’s website.

Additional Reading: Who Else Wants to Know Their Rights as an Insurance Policy Holder?

Now that you’re well aware of your rights as a banking customer, it’s time to exercise them. Need more information about various financial products? Everything is just a click away.

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Category: Banks

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