Banking in India serves as the foundation for the country's economic progress. With the growth of technology and the consideration of people's demands, the banking system and administration have seen various changes throughout the years. Banks are the first spot where the majority of Indians save their money. There are other ways to invest money, such as FD or RD, but eventually, the money gets saved in banks.
With a large number of customers, the banking system in India has experienced a fundamental transformation, particularly in the preceding twenty years. Banks have evolved from being vital creditors to industry to extensive financiers of house loans, auto loans, credit cards, personal loans, and more. From public sector banks contributing most of the country's loans to private banks progressively taking over, These and other reforms have transformed the Indian banking system from what it was ten years ago.
In addition to cooperative credit institutions, the Indian banking system includes 12 public sector banks, 22 private sector banks, 46 foreign banks, 56 regional rural banks, 1485 urban cooperative banks, and 96,000 rural cooperative banks. The total number of ATMs in India as of September 2021 was 213,145, with 47.5% located in rural and semi-urban regions.
It has progressed significantly concerning credit risk, innovation, and laws. It has transitioned from physical banking, which involves client move and face-to-face connections, to digital foundations, which include banking services enabled by cutting-edge, contactless technology.
Particularly in the post-demonetization environment, the financial sector witnessed a radical transformation towards digitalization, with its stakeholders being better equipped to use the technologies at their disposal.
A consumer rights act was established to ensure the safety of the consumer in other sectors. Therefore, with the expansion of the Indian banking system, consumers must understand their consumer rights to have a secure, seamless, and rewarding banking experience.
As a client, you have the right to expect fair treatment. The bank or any other financial service provider cannot discriminate against consumers based on age, gender, religion, or other factors. However, they can have varying Rates of Interest for business reasons, but only within the guidelines of a commercially legitimate economic basis for discriminating amongst its clients. For example, older persons and women have varied interest rates.
You have the right to request that the language in bank papers be simplified so that it is readily understood. The bank and the customers should have open lines of contact. The bank is responsible for fully disclosing the customer's duties and crucial hazards. The buyer should be aware of any hidden and relevant terms and conditions.
The right to suitability ensures that the bank can only sell items suitable for a particular consumer. You can disallow banks from misselling or forcing you to buy products you don't desire. It has made it mandatory for banks to offer items only after considering the client's unique needs, financial conditions, and life goals.
Banking, as a financial service, has access to your personal information. As a result, banks must keep your information safe and secret under this right. Your information will not be shared with cross-selling firms by the bank. It is your right to privacy, and you should limit the sharing of personal data.
There may be times when banks give you poor service. In such instances, you can redress and compensate when banks are held liable for their goods and third-party products such as insurance. They will no longer be allowed to wash their hands of responsibility after selling the products. Banks must convey the compensation policy to clients to ensure they know their grievance redressal rights. Banks must explicitly outline their clients' rights under their policies if and when such an incident occurs.
With these options, you can personalize and safeguard your banking experience. Follow your banking tasks regularly to guarantee these rights are in your favor. If a bank breaches RBI's rights, the consumers can contact the apex bank's customer care section. "With this charter, the RBI will have legislative powers to act against wayward institutions," a retired executive from a prominent public sector bank argues.