In a bid to improve customer service in regulated entities, the Reserve Bank of India on Friday said it will set up a panel to review and further strengthen consumer protection. “The Reserve Bank has over the years taken a number of measures to enhance consumer protection. These measures include laying down regulatory frameworks on customer service, internal grievance redress and the Ombudsman mechanisms,” RBI Governor Shaktikanta Das said while announcing bi-monthly monetary policy.
In view of the transformation underway in the financial landscape due to innovations in products and services, deepening of digital penetration and emergence of various service providers, he said, a committee was proposed to set up to examine and review the current state of customer service in the RBI Regulated Entities (RE), adequacy of customer service regulations and suggest measure to improve the same.
Regulatory instructions are issued to regulated entities based on the conditions prevailing in the financial system, findings of conduct supervision, analysis of complaints received, and recommendations received from various Committees set up for this purpose.
The important committees set up by the RBI on customer service over the years include Talwar Committee on Customer Service (1975), Goiporia Committee (1990), Tarapore Committee on Procedures and Performance Audit on Public Services (CPPAPS, 2004) and Damodaran Committee on Customer Service (2010). To facilitate better understanding and assessment of the potential impact of climate-related financial risks by Regulated Entities, Das said, a Discussion Paper on Climate Risk and Sustainable Finance will be published shortly for feedback.
Climate change may result in physical and transition risks that could have implications for the safety and soundness of individual regulated entities as well as financial stability.Thus, there is a need for Regulated Entities to develop and implement a sound process for understanding and assessing the potential impact of climate-related financial risks in their business strategy and operations, as per the Statement on Developmental and Regulatory Policies.
This would require, among other things, an appropriate governance structure and a strategic framework to effectively manage and address these risks. Further, some regulatory initiatives in the area of climate risk and sustainable finance would also help the regulated entities to better handle climate risk and guide them in the transition period, it said.