The Reserve Bank of India plans to crack down on banks that don’t ensure the protection of customers’ rights in line with the charter it issued last year.

“We are working to bring a more defined enforcement structure, which will spell out what activities will attract what kind of action from the RBI,” deputy governor SS Mundra told ET.

The RBI will soon review how well banks have implemented the Charter of Customer Rights.

“We have given banks 18 months to adopt it, put an internal structure and an internal ombudsman,” Mundra said. “That period will end in July. We will look into it and if we feel adequate progress has not been made, we will move forward.”

The charter stated that customers should not be subjected to unfair business or marketing practices, coercive contractual terms or misleading representations. It also seeks to restrict practices such as the sale of unsuitable financial products to customers.


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