Executive summary:

This is a research on the right and responsibilities of banks to their customers.

The research sort to know the bank right right and responsibilities to their customers which
has bee in existence in banking operation and has been felt by the people and to the extent,
their objectives has been achieved.
In carrying out this research the researcher made use of oral interviews, questionnaire and
library and the finding were rights and responsibilities of banks to their customers, which has
been felt through many areas of their promotional activities such as loan advancement.
It has been find out that banks charges commission to their customers, banks accept money
from their customers, and banks a turn irregular instrument to their customers, all his has
been greatly achieved through banks and customers relationship.
Therefore, it was this base that the researcher made the conclusion that banking operation has
been appreciated by the people and customers objectives has been achieved greatly.

Introduction :
A bank is a financial institution that provides banking and other financial services to their
customers. A bank is generally understood as an institution which provides fundamental
banking services such as accepting deposits and providing loans. There are also nonbanking
institutions that provide certain banking services without meeting the legal definition of a
bank. Banks are a subset of the financial services industry. A banking system also referred as
a system provided by the bank which offers cash management services for customers,
reporting the transactions of their accounts and portfolios, through out the day. The banking
system in India, should not only be hassle free but it should be able to meet the new
challenges posed by the technology and any other external and internal factors. For the past
three decades, Indias banking system has several outstanding achievements to its credit. The
Banks are the main participants of the financial system in India. The Banking sector offers
several facilities and opportunities to their customers. All the banks safeguards the money and
valuables and provide loans, credit, and payment services, such as checking accounts, money
orders, and cashiers cheques. The banks also offer investment and insurance products. As a
variety of models for cooperation and integration among finance industries have emerged,
some of the traditional distinctions between banks, insurance companies, and securities firms
have diminished. In spite of these changes, banks continue to maintain and perform their
primary roleaccepting deposits and lending funds from these deposits.
Need of the Banks :
Before the establishment of banks, the financial activities were handled by money lenders and
individuals. At that time the interest rates were very high. Again there were no security of
public savings and no uniformity regarding loans. So as to overcome such problems the
organized banking sector was established, which was fully regulated by the government. The
organized banking sector works within the financial system to provide loans, accept deposits
and provide other services to their customers. The following functions of the bank explain the
need of the bank and its importance:
To provide the security to the savings of customers.
To control the supply of money and credit

 To encourage public confidence in the working of the financial system, increase savings
speedily and efficiently.
To avoid focus of financial powers in the hands of a few individuals and institutions.
To set equal norms and conditions (i.e. rate of interest, period of lending etc) to all types of
customers

Origins
Although no adequate documentation exists prior to the thirteenth century, banking is known
to have a longer history. However, many of the early banks dealt primarily in coin and
bullion, much of their business being concerned with money-changing and the supply of
lawful foreign and domestic coin of the correct weight and fineness. A second and important
group consisted of merchant-bankers who dealt not only in goods but also in bills of
exchange, which provided for the remittance of money and the payment of accounts at a
distance, without shipping actual coin. This was possible because many of these merchants
had an international business and held assets at a number of points on the trading routes of
medieval Europe. For a consideration, a merchant would be prepared to accept instructions to
pay out money through an agent elsewhere to a named party, the amount of the bill of
exchange to be debited by the agent to the merchant-bankers account. In addition to the
consideration paid, the merchantbanker would also hope to make a profit from the exchange
of one currency for another. Since there was the possibility of loss, any profit or gain was not
regarded as usurious. There were also techniques for making concealed loans by supplying
foreign exchange at a distance but deferring payment for it until a later date. The interest
charge was camouflaged by fluctuations in the rate of exchange between the date of ordering
goods and the date of payment for them.
The acceptance of deposits was another early banking activity. These might relate either to
the deposit of money or valuables merely for safekeeping or for purposes of transfer to
another party or to the deposit of money in current account. A balance in current account
might also represent the proceeds of a loan granted by the banker. Indeed, by oral agreement
between the parties, recorded in the bankers journal, a loan might be granted merely by
allowing a customer to overdraw his account. In all these instances, a banker was held liable
to meet on demand the claims of his depositors.

Classification of Indian bank:

Indian banking industry has been divided into two parts, organized and unorganized sectors.
The organized sector consists of Reserve Bank of India, Commercial Banks and Co-operative
Banks, and Specialized Financial Institutions (IDBI, ICICI, IFC etc). The 28 unorganized
sector, which is not homogeneous, is largely made up of money lenders and indigenous
bankers. An outline of the Indian Banking structure may be presented as follows:- 1. Reserve
banks of India. 2. Indian Scheduled Commercial Banks. a) State Bank of India and its
associate banks. b) Twenty nationalized banks. c) Regional rural banks. d) Other scheduled
commercial banks. 3. Foreign Banks 4. Non-scheduled banks. 5. Co-operative banks.

Law of banking :
Banking Regulation Act in India, 1949 defines banking as Accepting for the purpose of
lending or investment of deposits of money from the public, repayable on demand and
withdraw able by cheques, drafts, orders etc. as per the above definition a bank essentially
performs the following functions: Accepting Deposits or savings functions from customers or public by providing bank
account, current account, fixed deposit account, recurring accounts etc.
The payment transactions like lending money to the public. Bank provides an effective
credit delivery system for loanable transactions.
Provide the facility of transferring of money from one place to another place. For
performing this operation, bank issues demand drafts, bankers cheques, money orders etc.
for transferring the money. Bank also provides the facility of Telegraphic transfer or telecash orders for quick transfer of money.
A bank performs a trustworthy business for various purposes.
A bank also provides the safe custody facility to the money and valuables of the general
public. Bank offers various types of deposit schemes for security of money. For keeping
valuables bank provides locker facility. The lockers are small compartments with dual
locking system built into strong cupboards. These are stored in the banks strong room and
are fully secured.

 Banks act on behalf of the Govt. to accept its tax and non-tax receipt. Most of the
government disbursements like pension payments and tax refunds also take place through
banks.
There are several types of banks, which differ in the number of services they provide and the
clientele (Customers) they serve. Although some of the differences between these types of
banks have lessened as they have begun to expand the range of products and services they
offer, there are still key distinguishing traits. These banks are as follows: Commercial banks,
which dominate this industry, offer a full range of services for individuals, businesses, and
governments. These banks come in a wide range of sizes, from large global banks to regional
and community banks. Global banks are involved in international lending and foreign
currency trading, in addition to the more typical banking services. Regional banks have
numerous branches and automated teller machine (ATM) locations throughout a multi-state
area that provide banking services to individuals. Banks have become more oriented toward
marketing and sales. As a result, employees need to know about all types of products and
services offered by banks. Community banks are based locally and offer more personal
attention, which many individuals and small businesses prefer. In recent years, online banks
which provide all services entirely over the Internethave entered the market, with some
success. However, many traditional banks have also expanded to offer online banking, and
some formerly Internet-only banks are opting to open branches. Savings banks and savings
and loan associations, sometimes called thrift institutions, are the second largest group of
depository institutions. They were first established as community-based institutions to
finance mortgages for people to buy homes and still cater mostly to the savings and lending
needs of individuals. Credit unions are another kind of depository institution. Most credit
unions are formed by people with a common bond, such as those who work for the same
company or belong to the same labour union or church. Members pool their savings and,
when they need money, they may borrow from the credit union, often at a lower interest rate
than that demanded by other financial institutions. Federal Reserve banks are Government
agencies that perform many financial services for the Government. Their chief
responsibilities are to regulate the banking industry and to help implement our Nations
monetary policy so our economy can run more efficiently 35 by controlling the Nations
money supplythe total quantity of money in the country, including cash and bank deposits.
For example, during slower periods of economic activity, the Federal Reserve may purchase
government securities from commercial banks, giving them more money to lend, thus

expanding the economy. Federal Reserve banks also perform a variety of services for other
banks. For example, they may make emergency loans to banks that are short of cash, and
clear checks that are drawn and paid out by different banks. The money banks lend, comes
primarily from deposits in checking and savings accounts, certificates of deposit, money
market accounts, and other deposit accounts that consumers and businesses set up with the
bank. These deposits often earn interest for their owners, and accounts that offer checking,
provide owners with an easy method for making payments safely without using cash.
Deposits in many banks are insured by the Federal Deposit Insurance Corporation, which
guarantees that depositors will get their money back, up to a stated limit, if a bank should fail.

A bank deals in money and money substitutes; it also provides a range of financial services.
In a formal sense, it borrows or receives deposits from firms, individuals, and (sometimes)
governments and, on the basis of these resources, either makes loans to others or purchases
securities, which are listed as investments. In general, it covers its expenses and earns its
profits by borrowing at one rate of interest and lending at a higher rate. In addition,
commissions may be charged for services rendered.
A bank is under an obligation to repay its customers balances either on demand or whenever
the amounts credited to them become due. For this reason, a bank must hold some cash
(which for this purpose may include balances at a bankers bank, such as a central bank) and
keep a further proportion of its assets in forms that can readily be converted into cash. It is
only in this way that confidence in the banking system can be maintained. In its turn,
confidence is the basis of credit. Provided its promises are always honored (for example, to
convert notes into gold or deposit balances into cash), a bank can create credit for use by its
customerseither by issuing additional notes or by making new loans (which in turn become
new deposits). A bank is able to do this because the public believes the bank can and will
without question honor these promises, which will then be accepted at their face value and
circulate as money. As long as they remain outstanding, these promises continue to constitute
claims against that bank and can be transferred by means of checks or other instruments from
one party to another. In essence, this is what is known as deposit banking. With some
variations, it is the accepted basis of commercial banking as practiced in the modern world.
Indeed, deposit banking cannot be said to exist as long as the assets held by a bank consist
only of cash lodged by depositors. Once the accounts of banks begin to show more deposits

than cash, part of these deposits must represent loans that have been made by a banker to his
customers, that is, deposits created by the banking system.

Banking law is based on a contractual analysis of the relationship between the bank and
customerdefined as any entity for which the bank agrees to conduct an account. The law
implies rights and obligations into this relationship as follows:
The bank account balance is the financial position between the bank and the customer:
when the account is in credit, the bank owes the balance to the customer; when the account is
overdrawn, the customer owes the balance to the bank.
The bank agrees to pay the customer's cheques up to the amount standing to the credit of the
customer's account, plus any agreed overdraft limit.
The bank may not pay from the customer's account without a mandate from the customer,
e.g. cheques drawn by the customer.
The bank agrees to promptly collect the cheques deposited to the customer's account as the
customer's agent, and to credit the proceeds to the customer's account.
The bank has a right to combine the customer's accounts, since each account is just an
aspect of the same credit relationship.
The bank has a lien on cheques deposited to the customer's account, to the extent that the
customer is indebted to the bank.
The bank must not disclose details of transactions through the customer's accountunless
the customer consents, there is a public duty to disclose, the bank's interests require it, or the
law demands it.
The bank must not close a customer's account without reasonable notice, since cheques are
outstanding in the ordinary course of business for several days. These implied contractual
terms may be modified by express agreement between the customer and the bank. The
statutes and regulations in force within a particular jurisdiction may also modify the above
terms and/or create new rights, obligations or limitations relevant to the bank-customer
relationship.

Relationship between the banker and the customer

The relationship between the banker and the customer can be said to be a contractual one.
This means that there is a contract between the banker and the customer in relation to any
general transaction and some specific transactions. The contract specifies the obligations
imposed on the banker and the customer, some obligations may however be agreed on at a
later stage. Bankers are obliged to perform certain obligations; however some obligations are
not obligatory and therefore must be agreed on in case that it is not a habit for the banker to
perform them. Examples of such services which the bankers are not obliged to prove can be
letters of credit, foreign currency for travel abroad etc. The relationship between the banker
and the customer was not held to be so specific and close so as to amount to a relationship of
an agent and the customer.
The Banking Code
The Banking Code is a set of rules, regulations and guidelines which set a standard of good
practice with respect to banking practice. The code presents commitments of the bankers to
their customers. The key commitments state that the banks must act fairly and reasonably and
will not mislead the customer in any circumstances. The key commitments promise to give
the customer clear information with respect to his or her bank account including all terms and
conditions and interest rates. The commitment also promises to keep the customer informed
about the changes to the charges, terms and conditions by sending regular updates and bank
statements. The Code also obliges the bank to deal with all problems as efficiently as
possible. The bank must also keep all the information private and confidential in order for the
customer to exercise secure banking. All staff must be aware of the commitments stated in the
Banking Code and must also perform them. Given that there is a contractual relationship
between the banker and the customer, the obligations and customers rights stated in that
contract must be in a clear and plain language. If there is a significant change in terms and
conditions the customers are entitled to receive a new copy of the terms and conditions so
that they are fully aware of the change. The Banking Code is applicable to personal banking
customers. The Business Banking Code applies to businesses. There is a significant overlap
between the contents of the two codes however the Business Banking Code does not state

that the banks will refuse unlimited guarantees. The Business Code also mentions other
provisions which may relate to businesses e.g. international payments, foreign exchange.
Obligations of the bank
Generally it is the banks primary obligation to take care of its customers and provide
services which are fundamental to the contractual relationship of the banker and the customer.
Further provisions stated in the Banking Code state what services will the bank provide to its
customers as a part of general contractual obligations which are owed to the customer. E.g.
the bank will help you to choose products or services which meet your needs and will also
give you clear information with regards to services which the bank will provide to you e.g.
joint account customers rights and responsibilities and many more. The Bank will also
provide its customers with regular account statements and all information with respect to
running the customers account e. g how direct debit works, or cheque payments work etc. If
the customer has a passbook the bank will not be required to send bank statements to the
customer. The Banking Code also contains provisions regarding the means of notification of
the change to the terms and conditions; there should also be a notice period of 30 days which
must be given to the customer. If the change in terms and conditions is advantageous to the
customer such change can be carried out immediately without the need for notice to be
submitted to the customer. The notice period stated in the Banking Code is 30 days however
under common law such notice only needs to be reasonable. What is reasonable is determined
by the case law.
Implied terms of the contract and duties between the banker and the customer
It is an implied term of the contract that the bank or the banker is not responsible to repay the
customer for the proceeds borrowed from the customer until the customer officially demands
such a payment. Therefore the customer could not have a claim for debt. This term is the
significant term of the contractual relationship between the banker and the customer.

Duties owed by the bank to the customer

There are further duties owed by the bank to the customer e.g. the bank has a duty to protect
its customer from fraud committed by the agents, directors , partners in making payment

orders etc. There are some statutory protections in relation to the bank in the absence of
negligence. There is also a duty of care owed by the bank to the customer when the bank is
giving advice on investments or when the bank gives advice or explains security
documentation. However it was held that the bank is not under a continuing duty to keep the
advice under review. In some circumstances the bank was also held not to have a duty of care
to any third parties.
Duties owed by the customer to the bank
The duties are defined by case law and they constitute duties of care to the bank. Any wider
duties of care will not be accepted or recognised unless they are implied as contractual terms.
And such term will not be implied if they do not comply with the following requirements,
these are that the term is reasonable and equitable, it is necessary in order for the contract to
have business efficacy, the intention to create this term must be obvious and must be clearly
expressed and it must not clash with any other term.
Business Days and Hours
It is an implied term that the bank will be open for business on the particular days. Normally
these are Monday to Friday except for bank holidays, or if there was a variation in the
contract in relation to open days and subject to reasonable notice if the business closes. Each
bank sets its own hours of business.

Basic rights of customers:

The Banking Codes and Standards Board of India, BCSBI, has stipulated customer
rights, which public and private banks have committed to provide to their customers.
These 10 are the most important rights every bank customer ought to know.
The Banking Codes and Standards Board of India, BCSBI, was established, as an
independent organisation in the year 2006 by Reserve Bank of India for the purpose of
providing protection to individual customers and micro & small enterprise (MSEs) customers
of banks.
All the scheduled commercial banks, as also, some of the urban cooperative banks and
regional rural banks are members of the BCSBI. There are at present 128 member banks
of BCSBI.
In order to ensure that member banks provide transparent and fair customer
service, BCSBI has come out with two Codes, a) Code of Banks Commitment to Customers
and b) Code of Banks Commitment to MSEs (medium and small enterprises), in the year
2006 and 2008 respectively.
These Codes stipulate customer rights, which member banks have committed to provide to
their customers.
Both the Codes are reviewed and revised by BCSBI periodically. Currently, Code of Banks
Commitment to Customers (2014) and Code of Banks Commitment to MSEs (2012) are
being followed by the member banks.
Here are 10 rights that customers should be aware of, as provisioned by the BCSBI Code and
stipulated by the RBI.
1. No bank can refuse to open an account for you if you are an Indian citizen, who lives
somewhere in India, only lacking proof of permanent address. This is called simplified KYC
norms. This account may have some limitations.
2. Any walk-in customer in any bank, even without an account in that bank, can send a
remittance of up to 50000 by NEFT (National Electronic Fund Transfer).

3. Every account that is designated as a BBA (basic banking account) does not need a
minimum balance. This is regardless of whether you are a PSU bank or a private sector bank.
However, value added services may not be provided for this account by the bank.
4. The bank has to inform you, through a 30 day notice, of any change in the terms and
conditions of your agreement with the bank.
5. The customer has a right to get compensated for late collection of cheques, beyond the
period specified by the bank, at a simple rate of interest.
6. The customer should get back any security, against which liability is fully cleared, within
15 days of clearing such a liability.
7. The bank must not force you to buy third party products: For example: a mutual fund or an
insurance policy.
8. The bank cannot offer you a product with changed qualities suo moto (on their own
accord).
9. No unauthorised debit can be forced on you. The onus of proving the debit lies with the
bank. This can be of immense help to customers in case there is a fraud on your bank
account.
10. Whatever facility the bank refuses to you, the customer has the right to know the reasons
for refusal.
"Though banks have adopted Codes long back, their system for implementation of Codes
needs further strengthening and improvement. The key problem in implementation is lack of
awareness of Codes among bank officials," Mahajan told Rediff.com.
"Codes are available on banks' website, and are to be made available at bank branches for
perusal by customers. However, at many bank branches, the bank officials are not aware of
their bank's commitments, as envisaged in Codes, in regard to banking services," he said.
"It is expected of customers to apprise themselves of their rights while dealing with their
banks. On the other hand, it is the duty of bank officials to make their customers aware of
their rights at the time of providing any bank product or service," Mahajan added.

RBI releases charter giving more rights to bank customers

Has your bank been unfair to you or made you invest in an unsuitable product? You can now
take the bank to task. The RBI has released a charter of customer rights that lays down five
basic rights that bank customers enjoy. Though a framework laying down service standards
already exists, industry-watchers feel a direct intervention from the RBI could make the
process more robust. "This will also simplify the process for laypersons. Customers can flash
this charter and demand that the rights be met," says certified financial planner Harshvardhan
Roongta, CEO, Roongta Securities.

The central bank has also advised the Indian Banks Association (IBA) and the Banking Codes
and Standards Board of India (BCSBI) to formulate a 'Model Customer Rights Policy' based
on the charter's principles. In case a bank violates any of the rights as laid down by RBI,
customers can approach the customer services division of the apex bank. "With this charter,
the RBI will have legislative powers to act against errant banks," says a retired head of a large
public sector bank. Here are the rights of customers as notified by the RBI.

Right to Fair Treatment

This right prohibits banks from discriminating on grounds of gender, age, religion, caste and
physical ability while offering products and services. Banks can continue to offer differential
rates of interest or products to customers. "The financial services provider may, however,
have certain special products which are designed for members of a target market group or
may use defensible, commercially acceptable economic rationale for discriminating between
customers," the central bank had clarified.

Right to Fair & Honest Dealing

You can expect documents and language used to be simplified and more transparent. The
charter requires banks to ensure that all contracts are transparent and easily understood by the
common person. The onus of sending out effective communication in a simple language will
rest with banks. Also, information on the product's price, customer's responsibilities and,
most importantly, key risks will have to be disclosed upfront. The charter, through this right,
will also protect you against unfair business practices and harassment.

Right to Suitability

Despite several regulations, complaints related to mis-selling continue to plague the

distribution space, particularly in case of life insurance-cum-investment policies. Lured by
higher commissions, sales officials tend to push products without ascertaining their suitability
for the customer. With this charter coming into force, such officials might find it difficult to
palm off, say, market-linked insurance products to senior citizens who are looking for stable
returns.

Right to Privacy

Banks are duty-bound to keep customers' personal information confidential, unless the
disclosure is required by law or customers have given their consent. "Customers have the
right to protection from all kinds of communications, electronic or otherwise, which infringe
upon their privacy," the charter states. Banks cannot pass on your details to telemarketing
companies or for cross-selling. "There have been instances where bank officials, on the basis
of transaction details, have asked customers to route their investments through them. This is
not ethical," says Roongta.

Right to Redressal & Compensation

The right to grievance Redressal will come to your aid if your bank fails to adhere to basic
norms. The charter makes banks accountable for their own products as well as those of third
parties. They will no longer be able to wash their hands off the responsibility once the
product is sold.
Millions of us use banks each day without anything going wrong. However, when problems
do arise it is easy to feel you dont know enough to challenge your bank. Introduction This
guide explains your rights and how to use them, especially if you have an issue with:
opening a new account;
switching an account; making or receiving payments;
understanding changes to the terms of your account; or
fraud on your account.
Know your rights 123

Keep evidence Keep records of all transactions and contacts with your bank. That

way, if anything goes wrong, you can back up your case with written proof.
Always ask questions Not sure why money has gone into or out of your bank
account? Wondering why your interest rate has dropped? Problems like these are

common, so dont be afraid to ask your bank questions, every step of the way.
Dont be put off If the person you are speaking to cannot help, ask to speak to a
manager. You can make a complaint to your bank if you are not happy with the way it
deals with a problem. If you are not satisfied with its response, you have the right to
complain to the Financial Ombudsman Service.

DID YOU KNOW?

If your bank wants to make a material change to
the terms and conditions on your account that
would be to your disadvantage, it must tell you
before the change take effect. REMEMBER if
you dont like these new terms, you can move
your account

Your rights when moving an account

Banks have agreed to make the process of moving an account as straightforward as possible.
In addition, our rules say that if you want to move your account to another bank, both your
old and new bank must provide a prompt and efficient service.
How long will it take to move my current account to another bank?
Under banking industry guidance, switching a current account to another bank should be a
simple process and the new account should be operational within ten working days of your
application being approved. Sometimes getting other people to update their records with the
details of your new account can take a bit longer. Your new bank will do much of the work
for you.
Once your application for a new account is approved, if you wish to transfer direct debits and
standing orders to the new bank account, your new bank should ask your old bank for details
of them within three working days.
Your old bank should then give your new bank this information within three working days
from receiving the request.
The banks will agree a date to transfer the balance but should not charge you for making
the transfer. Your new account should be ready for use within ten working days of your
application being approved.
Your new account should be ready for use within ten working days of your application
being approved

If your account is not switched within ten working days of the application
being approved, ask your new bank to chase it up for you.

Make sure you tell your bank that you want to move your cash ISA rather than close the
account.
Does it take longer to move a cash ISA?
A cash ISA is an individual savings account that allows you to save money without being
taxed on the interest earned. Moving a cash ISA can be a little more complicated if you want
to protect the tax-free status of interest earned. Your new bank should ask you to complete a
transfer request and send it to your old bank, which should then send a cheque for the balance
or transfer the money electronically to your new bank. Make sure you tell your bank that you
want to move your cash ISA rather than close it.

Did you know?

The banks have agreed that the transfer of a cash ISA
should normally be done within 15 working days. Your
new bank should start paying interest on the date of the
cheque, the date the electronic payment was begun or day
16 of the transfer process whichever is earlier.

Your rights when managing your account:

Your bank may want to make changes to your account, such as to the interest rate or overdraft
limit. Find out how much notice your bank must give you and your rights if the terms on your
account are set to change.
What are the different types of account?
The type of bank account you have can affect what banks have to tell you about interest
rates. There are accounts used for regularly making and receiving payments, such as current
accounts, card-based accounts and some instant-access savings accounts. There are also other
accounts for savings, such as those with a notice period and cash ISAs. Check with your bank
if you are not sure what type of account you have

Will my bank tell me if it drops the rate of interest on my account?

If your bank wants to reduce the rate of interest it pays you on credit balances on a current
account, a card-based account or (in some cases) an instant-access savings account, it
generally has to tell you two months before the rate changes. The exception to this rule is if
the interest rate on your account is linked to an official rate such as the Bank of England
base rate and it moves automatically in line with any change in that rate. This is sometimes
known as a tracker rate. For other savings accounts, such as those with a notice period or
cash ISAs, a bank should give you reasonable notice that it proposes to make a material
reduction to the interest rate. If the interest rate on your account is reduced without warning,
you can make a complaint to your bank. If you are not satisfied with its response, you have
the right to complain to the Financial Ombudsman Service.

Your rights when making and receiving payments

How do I know if money has gone in or out of my account?
Your bank must make the following details available to you for every payment into and out of
your account:
The date of the transaction;
The amount of the transaction;
Who it was to or from (where appropriate); and
A reference so you can identify the payment. In most cases this will be done through a
passbook, monthly statement or internet banking.

Responsibilities of banks:
1. To act fairly and reasonably in all our dealings with you by
a. Providing minimum banking facilities of receipt and payment of cash /Cheques, etc. at the
bank's counter.
b. Meeting the commitments and standards set in this Code, for theproducts and services we
offer, and in the procedures and practiceswe follow.
c. Making sure our products and services meet relevant laws andregulations in letter and
spirit and are appropriate to your needs.
d. Ensuring that our dealings with you rest on ethical principles of integrityand transparency.
e. Operating secure and reliable banking and payment systems.
2. To help you to understand how our financial products and services work by
a. Giving you information about them in any one or more of the following languages - Hindi,
English or the appropriate local language.
b. Ensuring that our advertising and promotional literature is clear and not misleading.
c. Ensuring that you are given clear information about our products and services, the terms
and conditions and the interest rates / service charges, which apply to them.
d. Giving you information on the facilities provided to you and how you can avail of these
and whom and how you may contact for addressing your queries.
3. To help you use your account or service by
a. Providing you regular appropriate updates.
4. To treat all your personal information as private and confidential

We will treat all your personal information as private and confidential subject to matters
mentioned in Paragraph No. 5 below.
b. Keeping you informed about changes in the interest rates, charges or terms and conditions.
c. Displaying in our branches, for your information
i. Services we provide.
ii. Minimum balance requirement, if any, for Savings Bank Accounts and Current Accounts
and the charges for non-maintenance thereof.
iii. Name of the official at the branch whom you may approach if you have a grievance.
iv. Name and address of the Regional / Zonally Manager / Principal
Nodal Officer (PNO) whom you can approach if your grievance
is not redressed at the branch.
v. Name and contact details of the Banking Ombudsman under whose jurisdiction the branch
falls.
vi. Information available in booklet form.
d. Displaying on our website our policies on
i. Deposits
ii. Cheque collection
iii. Grievance Redressal
iv. Compensation
v. Collection of Dues and Security Repossession.
5. To deal quickly and sympathetically with things that go wrong by
a. Correcting mistakes promptly and cancelling any bank charges that we apply by mistake
and compensate you for any financial loss you may have incurred due to our mistake, in
terms of our compensation policy.

b. Handling your complaints promptly.

c. Telling you how to take your complaint forward if you are still not satisfied.
d. Providing suitable alternative avenues to alleviate problems arising out of technological
failures.
6. To publicize the Code
a. provide you with a copy of the Code when you open an account with us and otherwise on
request.
b. make available this Code at every branch and on our website.
c. ensure that our staff are trained to provide relevant information about the Code and to
effectively put the Code into practice.
d. take other steps to increase awareness of the customers about the Code and its provisions.
7. To adopt and practice a non - discrimination policy
We will not discriminate you on the basis of age, race, gender, marital status,religion,
disability or financial status.

8. Privacy and confidentiality:

We will treat all your personal information as private and confidential (even when you
are no longer a customer), and shall be guided by the following principles and
policies.
b. We will not reveal information or data relating to your accounts, whether provided
by you or otherwise, to anyone, including other companies / entities in our group,
other than in the following exceptional cases :
i. If we have to give the information by law or if required by the banking regulator.
ii. If there is a duty towards the public to reveal the information.
iii. If our interests require us to give the information (for example, to prevent fraud)
but we will not use this as a reason for giving information about you or your accounts
(including your name and address) to anyone else, including other companies in our
group, for marketing purposes.
iv. If you authorize us to reveal the information.
v. If we are asked to give a banker's reference about you, we will need your written
permission before we give it.

c. We will not use your personal information for marketing purposes by anyone
including ourselves unless you specifically authorize us to do so.

Responsibility of different banks towards its customers:

There are several types of banks, which differ in the number of services they provide and
the clientele (Customers) they serve. Although some of the differences between these
types of banks have lessened as they have begun to expand the range of products and
services they offer, there are still key distinguishing traits. These banks are as follows:
1. Commercial banks, which dominate this industry, offer a full range of services for
individuals, businesses, and governments. These banks come in a wide range of sizes,
from large global banks to regional and community banks.
2. Global banks are involved in international lending and foreign currency trading, in
addition to the more typical banking services.
3. Regional banks have numerous branches and automated teller machine (ATM)
locations
throughout a multi-state area that provide banking services to individuals. Banks have
become more oriented toward marketing and sales. As a result, employees need to know
about all types of products and services offered by banks.
4. Community banks are based locally and offer more personal attention, which many
individuals and small businesses prefer. In recent years, online bankswhich provide all
services entirely over the Internethave entered the market, with some success.
However, many traditional banks have also expanded to offer online banking, and some
formerly Internet-only banks are opting to open branches.
5. Savings banks and savings and loan associations, sometimes called thrift
institutions,

are the second largest group of depository institutions. They were first established as
community-based institutions to finance mortgages for people to buy homes and still
cater mostly to the savings and lending needs of individuals.
Credit unions are another kind of depository institution. Most credit unions are formed
by people with a common bond, such as those who work for the same company or belong
to the same labour union or church. Members pool their savings and, when they need
money, they may borrow from the credit union, often at a lower interest rate than that
demanded by other financial institutions.
6. Federal Reserve banks are Government agencies that perform many financial
services
for the Government. Their chief responsibilities are to regulate the banking industry and
to help implement our Nations monetary policy so our economy can run more efficiently
by controlling the Nations money supplythe total quantity of money in the country,
including cash and bank deposits. For example, during slower periods of economic
activity, the Federal Reserve may purchase government securities from commercial
banks, giving them more money to lend, thus expanding the economy. Federal Reserve
banks also perform a variety of services for other banks. For example, they may make
emergency loans to banks that are short of cash, and clear checks that are drawn and paid
out by different banks.
7. The money banks lend, comes primarily from deposits in checking and savings
accounts,
certificates of deposit, money market accounts, and other deposit accounts that
consumers and businesses set up with the bank. These deposits often earn interest for

their owners, and accounts that offer checking, provide owners with an easy method for
making payments safely without using cash. Deposits in many banks are insured by the
Federal Deposit Insurance Corporation, which guarantees that depositors will get their
money back, up to a stated limit, if a bank should fail.

Conclusion:
To make the consumer aware of their rights and to establish high level ethical conduct for
those engaged in production and distribution of goods and services. High prices, duplicate
articles, underweight and under measurements, rough behavior, undue conditions, artificial
scarcity are some of the ways by which consumers are exploited by manufacturers and
traders. Limited information, limited supplies and low literacy are factors causing
exploitation of consumers. The consumers have to be aware not only of the commercial
aspects of sale and purchase of goods, but also of the health and security aspects. Food safety
has become an important element of consumer rights awareness and depends not only on its
nutritional value, but also on its safety for human consumption. Modern business and
company has a great social responsibility towards the well being of society. Therefore
consumer is an important component of society. Consumer occupies a supreme position in a
free economy and the welfare of the consumer lies in the fulfillment of his normal and
legitimate expectation with regards to the goods and services. The need for empowerment of
consumers as a class cannot be over emphasized and is already well recognized all over the
world. The advancement of technology and advent of sophisticated gadgets in the market and
aggressive marketing strategies in the era of globalization have not only thrown open a wide
choice for the consumer, but all the same also rendered the consumer vulnerable to a plethora
of problems concomitant to such rapid changes. There is an urgent and increasing necessity to
educate and motivate the consumer to be wary of the quality of the products, and also the
possible deficiencies in the services of the growing sector of public utilities. In short, the
consumer should be empowered with respect to his rights as a consumer. He should be
equipped to be vigilant with a discerning eye so as to be able to protect himself from any
wrongful act on the part of the trader. In order to be able to position the consumer in such a
state, there is every need not only to evolve legal remedies but also provide reliable and
exhaustive information, which he can access without much effort and expense. Recognizing
the importance of the problem, the Government of India and State Government have initiated
steps to introduce dispute redressal mechanism by way of Consumer Protection Act, but a lot
more has to be done in the area of creating awareness on the part of the consumer to facilitate
his seeking suitable remedy wherever there is a need. This becomes more important in the
rural areas, where there is wide spread illiteracy. Consumer rights awareness is most vital to
society and a way to eliminate malpractices by the manufacturers, producers, and marketers.

The heartening part of present day consumer courts to Conclusion & Suggestions 329 uphold
the grievances, agony and strive for a transparent method of essential commodities, services
reaches the consumers and keep the service providers as well as manufacturers, marketers at
bay. Corruptions at all stages let those traders to go scot free and unpunished. Hence the need
of the consumer rights awareness and legal remedies through consumer courts to help the
societys welfare is much needed today as we pay for the products from our hard earned
money and we should get its worth. We have been all along mute spectators to those
malpractices, fraudulence trade practices so for and it is time to time this evil which spoils the
society. The present day techniques by many firms to mislead the customers by reduction of
weight, quality, price differences, worthless services, lack of after sales service by ignoring
customers complaints, requests, and lethargic high handedness of monopoly practices. It is
our fundamental right to know about the safety, durability, worthiness of any product we buy.
There are many instances we insist for bills, records, warrantee cards and many times they
ignore and it leads to black money transactions, malpractices and what not. Every product has
to be displayed with date of manufacturing, weight measurements, Maximum Retail Price
(M.R.P.) and warnings of its misuse. Although there are number of laws introduced and still
the traders find it easy to dodge and ultimately we are the sufferers. Right from the beginning
we have been cheated by wrong information, higher pricing, after sales service. With regard
to service providers, they take advantage of our urgency and exploit us. The recent methods
to reduce the weight and maintaining its price by biscuit manufactures, cases of cement bags
sold with lesser contents, the medical services by those corporate & private hospitals,
exorbitant tuition fees, capitations fees by educational institutions and do we have any say on
their terms. Parking lot woes are another area of disturbing for every motorist; do they charge
a uniform rate. Every day we are deprived of our mental peace and forced to tensions due to
unfair practices by the trade & services as well as losing our valuable funds in turn. Purchase
of consumer goods and essential commodities always bring us bitter experiences and regret.
This has to be changed. Monopolies and Restricted Practices Act, 1969 is yet to serve us our
goals and needs. The reason is that we are afraid and do not take it seriously to redress our
grievances due to lack of knowledge about consumer forums, delays in claims and our well
known Indian willingness to keep quiet and not to complain. Many countries have been able
to redress the customers complaints and the awareness through constant consumer
educations. Most of the times manufacturers form a syndicate and fix up the prices
irrespective of quality and durability and we stand to lose our money in the long run. The
more we are alert and conscious about selecting the goods before purchasing and knowing

about their service options Conclusion & Suggestions 330 thereby we stand to gain in the
long run. We do believe that how FREE a country is as much a function of consumer rights,
as it is of free and fair elections. With a billion consumers, India is one of the biggest
consumer markets in the world, but has consumer protection kept pace with the burgeoning
markets? For a consumer, life has only become tougher as services have increased and as
technology has made rapid strides. It is a treacherous path we have to walk on and every
development warrants a serious debate by consumers, who must fight on many fronts to go
parallel with government action, to keep checks on the industry, to address environmental
concerns, and to protect their own rights in the bargain. Even though strong and clear laws
exist in India to protect consumer rights, the actual plight of Indian consumers could be
declared as completely dismal. Very few consumers are aware of their rights or understand
their basic consumer rights. Of the several laws that have been enacted to protect the rights of
consumers in India, the most significant is the Consumer Protection Act, 1986. Under this
law, everyone, including individuals, a Hindu undivided family, a firm, and a company, can
exercise their consumer rights for the goods and services purchased by them. It is important
that, as consumers, we know at least our basic rights and about the courts and procedures that
deal with the infringement of our rights.