More rights seem to be on their way for individual as well as small borrowers. A committee formed by RBI has come up with recommendations about a new law which will need banks to be more acountable to customers and thereby protect their interests.

"The committee has proposed that there is a need for a specific law to cover consumers of financial services, something that exists in developed markets like the US and the UK. In India, we don't have a specific law for that purpose," a top banker familiar with the development said.

The committee was set up regarding this issue as it was felt that there are often very few options for customers. They can either go to the banking ombudsman or consumer protection act.

The Fair Practices Code has also been ineffective. "I have my doubts if the Fair Practice Code is followed in true spirit since there is no legal obligation on lenders. In fact, the Right to Information Act is far more effective because it is legally binding on us and borrowers are actively using it to know the status of the loan," said the chairman of a large commercial bank.

Some banks are though taking steps to empower their customers. The idea is to enforce customers and bring more efficiency in the system," said PNB chairman and managing director KR Kamath.