While unveiling the annual credit report on April 21st, the Reserve Bank of India (RBI) said that any customer, who comes across banks recovery agents adopting violent measures to collect dues, can file a complaint against the bank that does not follow the fair practices code developed by the Indian Banks' Association and code of banks' commitments disclosed by Banking Codes and Standards Board of India.

As per these codes, banks are required to follow some set minimum standards with the customers so as to guarantee a transparent system. A counseller with Abhay, a Bank of India backed counselling centre, VN Kulkarni said, "Banks will have to gear up for addressing customer complaints. They have to get their customer service in ship-shape."

These codes include a wide range of service from opening accounts to costs and charges of different products. On the other hand, interest charges on deposits, maintenance of minimum balance and other charges applicable on different kinds of bank accounts are also been included by RBI. However there has not been any mention about the loans by the banking regulator because the creditworthiness of borrower has to be decided by the bank itself. "We don't interfere with banks' operational freedom," said Surekha Marandi, RBI's in charge of Maharashtra and Goa.

Ms Marandi said that, "The aim is to increase the common man's faith and confidence in the Indian banking system."

RBI has included complaints like delay in payment/collection of cheques/drafts, non-delivery of promised services, refusal to open deposit accounts without a valid reason, or non-compliance of fair practices code and code of bank's commitments under its control.

Further these codes include exposure of essential information like penalty on premature withdrawal of term deposit, offering no-frills account with nil/low minimum balances, defining dormant/inoperative accounts, stating the clearing cycle of local as well as outstation cheques, refund of unauthorized use of money, along with compensation.

Hence when a customer wants to lodge a compliant, he needs to give it in writing along with stating his personal and the bank's details. The complaint is required to be sent to the RBI office in the same authority where the bank is located. Receiving the compliant, RBI takes it to the respective bank. Normally the complaint is addressed between 1 to 2 months but if it extends beyond this period then RBI follows up with every bank in the pending list of complaint. For complex cases, hearing is conducted.

The banking regulator is following this practice with a view to guard customers from financial difficulties connected with customer service.