A

Summer Internship Project

On
“CUSTOMER COMPLAINT REDRESSAL MECHANISM”

Submitted for partial fulfillment of requirement for the award of degree

Of

Post Graduate Diploma in Management

PGDM

Of
DISHA SCHOOL OF MANAGEMENT
Raipur (C.G.)
Session 2009-11

Supervised By External Guide Supervised By Internal Guide

Name-Ved Saurabh Narang Name- Dr. Monika sethi
Designation-Customer Care Manager Designation- Associate Professor
Department- ING VAYSYA BANK Department-HOD HR

Submitted by
Murtaza Ahmed Jamil
Roll No.0908035
Unique ID No.0908035
PGDM III Trimester

2010

DEPARTMENT OF MANAGEMENT

DISHA SCHOOL OF MANAGEMENT

AICTE Approved, Ministry of HRD Government of India
(Disha Education Society)
Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud,
 Raipur (C.G.)492007

DECLARATION

I the undersigned solemnly declare that the report of the project work entitled customer
complaint redressal mechanism, is based my own work carried out during the course
of my study under the supervision of Dr. Monika Sethi.

I assert that the statements made and conclusions drawn are an outcome of the project
work. I further declare that to the best of my knowledge and belief that the project
report does not contain any part of any work which has been submitted for the award of
any other degree/diploma/certificate in this Institute or any other Institute.

Murtaza Jamil
Roll No.:0908035
Unique ID No.:0908035

2
Certificate by Organization

3
 CERTIFICATE BY INTERNAL GUIDE

This to certify that the report of the project submitted is the outcome of the project work
entitled customer complaint redressal mechanism, carried out by Murtaza Ahmed
Jamil bearing Roll No.:0908035 & Unique ID No.:0908035 carried by under my
guidance and supervision for the award of Post Graduate Diploma in Management of
Disha School of Management, AICTE approved, Ministry of HRD Government of India
Raipur (C.G), India.
To the best of the my knowledge the report
i) Embodies the work of the candidate him/herself,
ii) Has duly been completed,
iii) Fulfils the requirement of the ordinance relating to the PGDM degree of the
Institute and
iv) Is up to the desired standard for the purpose of which is submitted.

_______________________
(Signature of the Guide)
Name: Dr. Monika Sethi
Designation: Associate Professor
Department: HOD HR
DISHA SCHOOL OF MANAGEMENT

The project work as mentioned above is hereby being recommended and forwarded for
examination and evaluation.

4
 CERTIFICATE BY THE EXAMINERS

This is to certify that the project entitled customer complaint Redressal mechanism
Submitted by Murtaza Ahmed Jamil Roll No.:0908035 Enrollments No.:0908035

Has been examined by the undersigned as a part of the examination for the award of Post
Graduate Diploma in Management of Disha School of Management, AICTE approved,
Ministry of HRD Government of India Raipur (C.G), India.

________________ __________________
________________ __________________
Name & Signature of Name & Signature of
Internal Examiner External Examiner
Date: Date:

Forwarded by

Academic Head
Department of Management

5
 ACKNOWLEDGEMENT

If words are considered to be signs of gratitude then let these words Convey the very same. My sincere
gratitude to Mr.VED SAURABH NARANG Customer Care Manager, ING VYSYA BANK and giving
necessary directions on doing this project to the best of my abilities.

I am highly indebted to Mr. SATYENDRA SHRIVASTAV, Branch Manager, who provided me with
the necessary information and also for the support extended out to me in the completion of this report
and his valuable suggestion and comments on bringing out this report in the best way possible.

So in the same sequence at very first, I would like to acknowledge my parents because of whom I got
the existence in the world for the inception and the conception of this project. Later on I would like to
confer the flower of acknowledgement to Ms. MONIKA SETHI and other faculty members who
Taught me that how to do project through appropriate tools and techniques. Because ING VYSYA
BANK has given me a chance to do my integrated projects report. I would like to give thanks
Dr.SATISH BENEDICT (Principal, DSME).

Murtaza Ahmed Jamil

Roll No.:0908035
Unique ID No.:0908035

6
 PREFACE

OBJECTIVES

To study grievances Redressal of customers of bank in the area of

1 Complaints about customer representative.

2 Complaints about branch banking.
3 Complaints about internet banking.
4 Complaints about deposit account.
5 Complaints about remittance.
6 Complaint about loan and advances.

7
 Declaration i
Certificate by Examiner ii
Acknowledgement iii
Preface iv

TABLE OF CONTENT
Chapter Title Page No
I Introduction 9
II Introduction To Banking 11
(a)Types of Bank
III ING Bank Profile 19
IV Grievances Redressal 24
(a)Types of Complaints
V Resolution Mechanism 30
(a)Banking ombudsman
(b)Consumer protection act 1986
VI Ing vaysya bank grievance Redressal policy 47
VII Research Methodology 53
VIII Data Analysis 54
IX Finding 65
X Recommendations & Limitation of the Study 67
XI Conclusion 70

Bibliography v
Wibliography vi
Annexure vii

8
 CHAPTER I

INTRODUCTION

9
INTRODUCTION

To this study :-

 To properly understand and learn the Banking system, the way of redressing its customer
grievances and sorting out of complains.

 To interact with customers and understand their complaints

 To handle the customer complaints independently and also assisting the banking staff in
redressal of the same.

10
 CHAPTER II

INTRODUCTION TO BANKING

11
INTRODUCTION

The basic services a bank provides are checking accounts, which can be used like Money to make
payments and purchase goods and services; savings accounts and Time deposits that can be used to
save money for future use; loans that consumers And businesses can use to purchase goods and
services; and basic cash management Services such as check cashing and foreign currency exchange.
Four types of banks Specialize in offering these basic banking services: commercial banks, savings
And loan associations, savings banks, and credit unions.

A broader definition of a bank is any financial institution that receives, collects, Transfers, pays,
exchanges, lends, invests, or safeguards money for its customers. This broader definition includes
many other financial institutions that are not usually thought of as banks but which nevertheless
provide one or more of these broadly defined banking services. These institutions include finance
companies, Investment companies, investment banks, insurance companies, pension funds, Security
brokers and dealers, mortgage companies, and real estate investment trusts.

Banking services are extremely important in a free market economy such as that found in Canada
and the United States. Banking services serve two primary purposes. First, by supplying customers
with the basic mediums-of-exchange (cash, checking accounts, and credit cards), banks play a key
role in the way goods and services are purchased. Without these familiar methods of payment, goods
could only be exchanged by barter (trading one good for another), which is extremely time-
consuming and inefficient. Second, by accepting money deposits from savers and then lending the
money to borrowers, banks encourage the flow of money to productive use and investments. This in
turn allows the economy to grow. Without this flow, savings would sit idle in someone’s safe or
pocket, money would not be available to borrow, people would not be able to purchase cars or
houses, and businesses would not be able to build the new factories the economy needs to produce
more goods and grow. Enabling the flow of money from savers to investors is called financial
intermediation, and it is extremely important to a free market economy.

12
Banking institutions include commercial banks, savings and loan associations (SLAs), savings
banks, and credit unions. The major differences between these types of banks involve how they are
owned and how they manage their assets and liabilities. Assets of banks are typically cash, loans,
securities (bonds, but not stocks), and property in which the bank has invested. Liabilities are
primarily the deposits received from the bank’s customers. They are known as liabilities because
they are still owned by, and can be withdrawn by, the depositors of the financial institution.

13
TYPES OF BANKS

There are various types of banks which operate in our country to meet the financia requirements of
different categories of people engaged in agriculture, business, profession, etc. On the basis of
functions, the banking institutions in

India may be divided into the following types:

TYPES OF BANK

CENTRAL SPECIALIZED
DEVELOPMENT
BANKS BANKS
BANKS

CO-OPERATIVE BANKS
COMMERCIAL BANKS

Public Sector Banks Primary Credit Societies

Private Sector Banks Central Co-operative Banks
Foreign Banks State Co-operative Banks

14
1. Central Banks

A bank which is entrusted with the functions of guiding and regulating the banking system of a
country is known as its Central bank. Such a bank does not deal with the general public. It acts
essentially as Government’s banker; maintain deposit accounts of all other banks and advances money
to other banks, when needed. The Central Bank provides guidance to other banks whenever they face
any problem. It is therefore known as the banker’s bank. It advises the Government on monetary and
credit policies and decides on the interest rates for bank deposits and bank loans. Another important
function of the Central Bank is the issuance of currency notes, regulating their circulation in the
country by different methods. No other bank than the Central Bank can issue currency.

2. Commercial Banks
Commercial Banks are banking institutions that accept deposits and grant short-term loans and
advances to their customers. In addition to giving short-term loans, commercial banks also give
medium-term and long-term loan to business enterprises. Commercial banks are of three types:

 Public Sector Banks

These are banks where majority stake is held by the Government of India or Reserve Bank of India.
Examples of public sector banks are: State Bank of India, Corporation Bank, Bank of Baroda and
Dena Bank, etc

 Private Sectors Banks

In case of private sector banks majority of share capital of the bank is held by private individuals.
These banks are registered as companies with limited liability. For example: The Jammu and Kashmir
Bank Ltd., Bank of Rajasthan Ltd.,Development Credit Bank Ltd, Lord Krishna Bank Ltd., Bharat
Overseas Bank Ltd., Global Trust Bank, Vysya Bank, etc.

15
  Foreign Banks
These banks are registered and have their headquarters in a foreign country but operate their branches
in our country. Some of the foreign banks operating in our country are Hong Kong and Shanghai
Banking Corporation (HSBC), Citibank, American Express Bank, Standard & Chartered Bank,
Grindlay’s Bank, etc. The number of foreign banks operating in our country has increased since the
financial sector reforms of 1991.
3. Development Banks
Business often requires medium and long-term capital for purchase of machiner and equipment, for
using latest technology, or for expansion and modernization.Such financial assistance is provided by
Development Banks. They also undertake other development measures like Public Sector Banks
comprise 19 nationalized banks and State Bank of India and its 7 associate banks. Industrial Finance
Corporation of India (IFCI) and State Financial Corporation’s (SFCs) are examples of development
banks in India.

4. Co-Operative Banks

People who come together to jointly serve their common interest often form a cooperative society
under the Co-operative Societies Act. When a co-operative society engages itself in banking business
it is called a Co-operative Bank. The society has to obtain a license from the Reserve Bank of India
before starting banking business. Any co-operative bank as a society is to function under the overall
supervision of the Registrar, Co-operative Societies of the State. As regards banking business, the
society must follow the guidelines set and issued by the Reserve Bank of India. There are three types
of co-operative banks operating in our country:

 Primary Credit Societies

These are formed at the village or town level with borrower and non-borrower members residing in
one locality. The operations of each society are restricted to a small area so that the members know
each other and are able to watch over the activities of all members to prevent frauds.

16
  Central Co-operative Banks

These banks operate at the district level having some of the primary credit societies belonging to the
same district as their members. These banks provide loans to their members (i.e., primary credit
societies) and function as a link between the primary credit societies and state co-operative banks.

 State Co-operative Banks

These are the apex (highest level) co-operative banks in all the states of the country. They mobilize
funds and help in its proper channelization among various sectors. The money reaches the individual
borrowers from the state co-operative banks through the central co-operative banks and the primary
credit societies.

5. Specialized Banks

There are some banks, which cater to the requirements and provide overall support for setting up
business in specific areas of activity. EXIM Bank, SIDBI and NABARD are examples of such banks.
They engage themselves in some specific area or activity and thus, are called specialized banks.

 Export Import Bank of India (EXIM Bank)

If you want to set up a business for exporting products abroad or importing products from foreign
countries for sale in our country, EXIM bank can provide you the required support and assistance.
The bank grants loans to exporters and importers and also provides information about the
international market.

 Small Industries Development Bank of India (SIDBI)

If you want to establish a small-scale business unit or industry, loan on easy terms can be available
through SIDBI. It also finances modernization of small-scale industrial units, use of new technology
and market activities. The aim and focus of SIDBI is to promote, finance and develop small-scale
industries.

17
  National Bank for Agricultural and Rural Development
(NABARD)

It is a central institution for financing agricultural and rural sectors. If a person is engaged in
agriculture or other activities like handloom weaving, fishing, etc. NABARD can provide credit, both
short-term and long-term, through regional rural banks. It provides financial assistance, especially, to
co-operative credit, in the field of agriculture, small scale industries, cottages and village industries in
rural areas.

18
 CHAPTER III

ING VAYSYA BANK PROFILE

19
1.3 The Origin of ING Group
ING group originated in 1990 from the merger between “National Nederland” the largest Dutch
Insurance Company and “NMB Post Bank” Group. Combining roots and ambitions, the newly formed
company called International Nederland Group ﾝ. Market circles soon abbreviated the name to I-N-G.
The company followed suit by changing the statutory name to ING Group. ING is a global financial
services company providing banking, investments, life insurance and retirement services and operates
in more than 50 countries.

PROFILE

ING is a global financial institution of Dutch origin offering banking, investments, life insurance and
retirement services. ING serve more than 85 million private,corporate and institutional customers in
Europe, North and Latin America, Asia and Australia. They draw on their experience and expertise,
their commitment to excellent service and their global scale to meet the needs of a broad customer
base,
comprising individuals, families, small businesses, large corporations, institutions and governments

STRATEGY

ING’s overall mission is to help customers manage their financial future.Capitalizing on changing
customer preferences and building on our solid business capabilities, ING’s strategic focus is on
banking, investments, life insurance and retirement services. They provide retail customers with the
products they need during their lives to grow savings, manage investments and prepare for retirement
with confidence. With wide range of products, innovative distribution models and strong footprints in
both mature and developing markets, ING has the long-run economic, technological and demographic
trends on their side. ING aligns its business strategy around a universal customer ideal: saving and
investing for the future should be easier. While steering the business through turbulent times, ING
will execute efforts across all its business lines to strengthen customer confidence and meet their
needs, preserve a strong capital position, further mitigate risks and bring its costs in line with revenue
expectations.

20
COPERATE RESPOSIBILITY

ING wants to pursue profit on the basis of sound business ethics and respect for its stakeholders.
Corporate responsibility is therefore a fundamental part of ING’s strategy: ethical, social and
environmental factors play an integral role in business decisions

The ING Vysya BANK Ltd.

ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a
premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin,
during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930
that a team of visionaries came together to form a bank that would extend a helping hand to those who
weren't privileged enough to enjoy banking services. ING and ING Vysya Life Insurance are
headquartered at Bangalore, while the corporate office of ING Investment Management is situated at
Mumbai. The synergies arising out of the three distinct but complimentary businesses are bound to be
an asset to the group in the changing market dynamics of the future. The first such signs are already
visible on the horizon with combined products being successfully launched by the different entities of
the group in conjunction with each other It's been a long journey since then and the Bank has grown
in size and stature to encompass every area of present-day banking activity and has carved a distinct
identity of being India's Premier Private Sector Bank. In 1980, the Bank completed fifty years of
service to the nation and post 1985; the Bank made rapid strides to reach the coveted position of being
the number one private sector bank. In 1990, the bank completed its Diamond Jubilee year. At the
Diamond Jubilee Celebrations, the then Finance Minister Prof. Madhu Dandavate, had termed the
performance of the bank stupendous. The 75th anniversary, the Platinum Jubilee of the bank was
celebrated during 2005.

The long journey of seventy-five years has had several milestones

21
1930 Set up in Bangalore
1948 Scheduled Bank
1985 Largest Private Sector Bank
1987 The Vysya Bank Leasing Ltd. Commenced
1988 Pioneered the concept of Co branding of Credit Cards
1990 Promoted Vysya Bank Housing Finance Ltd.
1992 Deposits cross Rs.1000 crores
1993 Number of Branches crossed 300
Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery
1996
Export Promotion Council for excellent performance in Export Promotion
Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the
1998 best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global
Finance (International Financial Journal - June 1998)
State -of - the -art Date Centre at ITPL, Bangalore.
2000
RBI clears setting up of ING Vysya Life Insurance Company
2001 ING-Vysya commenced life insurance business.
The Bank launched a range of products & services like the Vys Vyapar Plus, the range of
loan schemes for traders, ATM services, Smartserv, personal assistant service, Save &
2002
Secure, an account that provides accident hospitalization and insurance cover, Sambandh,
the International Debit Card and the mi-b@nk net banking service.
2002 ING takes over the Management of the Bank from October 7th , 2002
2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02
Introduced customer friendly products like Orange Savings, Orange Current and Protected
2003
Home Loans
2004 Introduced Protected Home Loans - a housing loan product
Introduced Solo - My Own Account for youth and Customer Service Line – Phone Banking
2005
Service
Bank has networked all the branches to facilitate ‘AAA’ transactions i.e. Anywhere,
2006
Anytime & Anyhow Banking

22
In terms of pure numbers, the performance over the decades can better be appreciated from the
following table:

Rs. in millions
Year NetworthDeposits Advances Profits Outlets
1940 0.001 0.400 0.400 0.001 4
1950 1.40 5.30 3.80 0.09 16
1960 1.60 20.10 13.50 0.13 19
1970 3.00 91.50 62.80 0.74 39
1980 11.50 1414.30 813.70 1.13 228
1990 162.10 8509.40 4584.80 50.35 319
2000 5900.00 74240.00 39380.00 443.10 481
2001 6527.00 81411.10 43163.10 371.90 484
2002 6863.24 80680.00 44180.00 687.50 483
2003 7067.90 91870.00 56120.00 863.50 456
2004 7473.20104780.00 69367.30 590.01 523
2005 7094.00125693.10 90805.90(381.80) 536
2006 10196.70 133352.50 102315.20 90.6 562
2007 11101.90 154185.70 119761.70 889.0 626
2008 14260.00204980.00 146500.00 1569.00 677
2009 15940.00248900.00 167510.00 1888.00 857*

*Outlets comprises of 441 branches, 37 ECs, 28 Satellite Offices and 351 ATMs as of March 31st
2009. Additionally the bank also has Internet Banking, mi-b@nk and Customer Service Line for
Phone Banking Service.

23
 CHAPTER IV

GRIEVANCES REDRESSAL

24
POLICY FOR THE GRIEVANCES REDRESSAL OF THE
CUSTOMER COMPLAINTS

In the present scenario of competitive banking, excellence in customer service is the most important
tool for sustained business growth. Customer complaints are part of the business life of any corporate
entity. This is more so for banks because banks are service organizations. As a service organization,
customer service and customer satisfaction should be the prime concern of any bank. The bank
believes
that providing prompt and efficient service is essential not only to attract new customers, but also to
retain existing ones. This policy document aims at minimizing instances of customer complaints and
grievances through proper service delivery and review mechanism and to ensure prompt redressal of
customer complaints and grievances. The review mechanism should help in identifying shortcomings
in product features and service delivery. Customer dissatisfaction would spoil bank’s name and
image. The Bank’s policy on grievance redressal follows the under noted principles:

 Customers be treated fairly at all times

 Complaints raised by customers are dealt with courtesy and on time

 Customers are fully informed of avenues to escalate their complaints/grievances within the
organization and their rights to alternative remedy, if they are not fully satisfied with the response of
the bank to their complaints.

 Bank will treat all complaints efficiently and fairly as they can damage the bank’s reputation
and business if handled otherwise.

 The Bank employees must work in good faith and without prejudice to the interests of the
customer.
In order to make bank’s redressal mechanism more meaningful and effective, a structured system
needs to be built up towards such end. Such system would ensure that the redressal sought is just and
fair and is within the given frame-work of rules and regulation. The policy document would be made

25
available at all branches. All employees of the Bank should be made aware about the Complaint
handling process

The customer complaint arises due to:

 The attitudinal aspects in dealing with customers

 Inadequacy of the functions/arrangements made available to the customers or gaps in

standards of services expected and actual services rendered.

 The customer is having full right to register his complaint if he is not satisfied with the
services provided by the bank. He can give his complaint in writing, orally or over telephone. If
customer’s complaint is not resolved within given time or if he is not satisfied with the solution
provided by the bank, he can approach Banking Ombudsman with his complaint or other legal
avenues available for grievance redressed.

Types of Complaints
Category 1 : Deposit Accounts

 Refusal to open savings accounts without valid reason.

 Refusal / delay in furnishing of statement of accounts.
 Non-issue of cheque books.
 Insisting the account holders to drop the cheques / cash in drop boxes.
 Banks refuse to provide acknowledgements across the counter for cheque deposits.
 Cheques put up in drop box not credited to the correct accounts.
 Abnormal delay in clearing cheques dropped in the drop box resulting in unnecessary in
cheque Returns leading to levying of peal charges and overdue charges.
 Pilferage of cheques leading to fraudulent transactions.
 Wrongful dishonour of cheques.
 Wrong debits in accounts. (unauthorized debits).
 Debits for unsuccessful ATM Transactions.

26
 Non- issue of ATM cards.
 Abnormal annual ATM fee / charges.
 Non-receipt of cash/shortfall in receipt of cash but account debited in full.

 ATMs swallowing the cards and no receipts given therefore.

 ATMs not working / frequent shut-downs.
 Not paying promised interest on fixed deposits.
 Refusal to repay / delay in repayment of deposit.
 Non payment of interest during overdue period.
 Refusal to grant contractual rte of interest in case of renewal.
 Not sending deposit due notices in time.
 Wrongly effecting TDS on interest and not remitting it.
 Exercise of banker's general lien without notice.
 Delay in transfer of deposit accounts from one branch to another.
 Closure of account without giving notice to the customer.
 Freezing of the accounts without any valid notice
 Refusal to close the account.
 Delay in settlement of death claim accounts / unnecessary production of succession
Certificates

Category 2 : Remittances
 Delay in collection of outstation cheques.
 Delay in issue of duplicate drafts.
 Delay in credit of proceeds remitted to customer's accounts.
 Levying of excess collection charges.
 Refusal to accept tax remittances.
 Failure to provide immediate credit of cheques as per RBI guidelines.
 Delay in crediting remittances received from abroad.
 Debiting without authorization remittance received from abroad and credited into the account
Non- issue of DD / Pay order / Banker's cheque.

27
Category 3 : Credit card
 Non-issue of credit cards.
 Issue of unsolicited cards.
 Non-dispatch of account statement in time.
 Levy of excessive service charge.

 Unauthorized debits.
 Late appropriation of payments made through cheques even though deposited in time and levy
of late fee in such cases.
 Excessive late fee and penal charges.
 Sanction of loan against credit cards on the basis of offers over telephone without clear
consent of customer.
 Refusal to cancel credit card.
 Refusal to settle Insurance claims.
 Not adhering to settlement terms for settling credit card dues.
 Wrong reporting of status of cardholder's dues to CIBIL.
 Failure to note caution / instructions in lost cards.
 Freezing of cards without informing the cardholder.
 Disowning responsibility in claiming insurance amount.
 Harassment by recovery officer.

Category 4 : Loans and advance – General

 Rejection of loan applications without any valid reasons.
 Denying verbally without giving / providing loan application.
 Delay in disposal of loan applications.
 Non refund of processing fee for non sanctioned loan.

28
 CHAPTER V
RESOLUTION MECHANISM

29
RESOLUTION MECHANISM:-
ING VAYSYA BANK uses 3 mechanism to resolve its consumer complaints
These are :-

1 QUERY AT BRANCH- its solve branch level queries related to local clearing to local
cheques internet passwords ATM passwords

2 CUSTOMER COMPLAINT MANAGEMENT SYSTEM (CCMS):-This mechanism solves

queries related to various services rendered by bank with the help of related parties like maestro visa
other banks

3 QUERY MANAGEMENT SYSTEM (QMS):- It usually solves internal queries related to

their own employees & officers

ING GREIVANCE READRESSING SOFTWARE

QUERY AT CUSTOMER QUERY

COMPLAINT MANGEMENT
BRANCH MANAGEMENT SYSTEM
SYSTEM

30
EXAMPLE
COMPLAINT-ATM CARD NOT RECIVED

HOW CCMS WORK A BRIEF GLANCE

31
32
33
34
35
36
37
HOW QMS WORK A BREIF GLANCE

38
IF THE CUSTOMER IS UNSATISFIED WITH THE SOLUTIONS GIVEN TO HIM THEN
HE CAN APPROACH TO BANKING OMBUDSMAN

39
INTRODUCTION to banking ombudsman

An ombudsman is a person who has been appointed to look into complaints about an organization.
Using an ombudsman is a way of trying to resolve a complaint without going to court. Banking
Ombudsman is a quasi judicial authority functioning under India’s Banking Ombudsman Scheme, and
the authority was created pursuant to the a decision by the Government of India to enable resolution
of complaints of customers of banks relating to certain services rendered by the banks. The Banking
Ombudsman Scheme was first introduced in India in 1995, and was revised in 2002 and 2006. In the
wake of the failure in the efficient services of the banks, the RBI brought a scheme for the prompt,
efficient and courteous services and also to protect the rights of the customers. The Banking
Ombudsman is an official authority to investigate the complaint from the customers and address the
complaint and thereby bring the solution among the aggrieved parties. So the Banking Ombudsman
plays the role of a mediator and serves the purpose of reconciliation. The Banking Ombudsman has
been defined under clause 4 of the Banking Ombudsman Scheme, 2006.

APPOINTMENT & TENNURE

The Reserve Bank may appoint one or more of its officers in the rank of Chief General Manager or
General Manager to be known as Banking Ombudsmen to carry out the functions entrusted to them
by or under the Scheme. The appointment of Banking Ombudsman under the above Clause may be
made for a period not exceeding three years at a time.

CHARACTERISTICS OF BANKING OMBUDSMAN

 The Banking Ombudsman is a quasi judicial authority. It has power to summon both the
parties - bank and its customer, to facilitate resolution of complaint through mediation.
 All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-
operative Banks are covered under the Scheme.

40
 The Banking Ombudsman has power to consider complaints from Non- Resident Indians
having accounts in India in relation to their remittances from abroad, deposits and other bank-related
matters.
 The Banking Ombudsman does not charge any fee for resolving customers’ complaints.

Complaint can be made before a Banking Ombudsman on the same subject matter for which any
proceedings before any court, tribunal or arbitrator or any other forum is pending or a decree or award
or a final order, has already been passed by any such competent court, tribunal, arbitrator or forum.

DUTIES & FUNCTIONS OF OMBUDSMAN

 The Ombudsman shall enquire into and investigate in accordance with the provisions of the
Act, and take action or steps as may be prescribed by the Act and concerning-
 Practices and actions by persons, enterprises and other private institutions where complaints
allege that violations of fundamental rights and freedoms have taken place.
 All instances or matters of alleged or suspected corruption and the misappropriation of public
moneys or other public property by officials.
 Without derogating from the provisions, any request or complaint in respect of instances or
matters referred to in that provisions, may include any instance or matter in respect of which the
Ombudsman has reason to suspect-
 That the provisions of any law or under the authority of the State or by any person in its
employment, or that any practice is so followed, in a manner which is not in the public interest.
 That the powers, duties or functions which vest in the State or, body or institution, or any
person in its employment are exercised or performed in an irregular manner.
 That moneys forming part of the funds of the State or body or institution, or received or held by
or on behalf of the State or body or institution are being or have been dealt with an irregular manner.
 Any person wishing to lay any instance or matter referred to in provisions before the
Ombudsman shall do so in such manner as the Ombudsman may determine or allow.
 The Ombudsman shall not be required to investigate any instance or matter referred to in the
provisions which has been laid before him or her under the provisions when the grounds on account of
which the inquiry is desired is in the opinion of the Ombudsman.

41
The provisions shall not apply in respect of any decision taken in or in connection with any civil or
criminal case by a court of law.

GROUNDS OF CUSTOMERS COMPLAINTS CONSIDERED BY BANKING

OMBUDSMAN
The Banking Ombudsman can receive and consider any complaint relating to the following deficiency
in banking services (including internet banking):
 Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;
 Non-acceptance, without sufficient cause, of small denomination notes tendered for any
purpose, and for charging of commission in respect thereof;
 Non-acceptance, without sufficient cause, of coins tendered and for charging of commission in
respect thereof;
 Non-payment or delay in payment of inward remittances ;
 Failure to issue or delay in issue of drafts, pay orders or bankers’ cheques;
 Non-adherence to prescribed working hours ;
 Failure to provide or delay in providing a banking facility (other than loans and advances)
promised in writing by a bank or its direct selling agents;
 Complaints from Non-Resident Indians having accounts in India in relation to their remittances
from abroad, deposits and other bank-related matters;
 Levying of charges without adequate prior notice to the customer;
 Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on
ATM/Debit card operations or credit card operations;
 Refusal to accept or delay in accepting payment towards taxes, as required by Reserve
Bank/Government;
 Refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of
Government securities;
 Forced closure of deposit accounts without due notice or without sufficient reason;
 Refusal to close or delay in closing the accounts;
 Non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and
 Non-observance of Reserve Bank Directives on interest rates;

42
  Delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of
loan applications;

 Non-acceptance of application for loans without furnishing valid reasons to the applicant; and

GROUNDS OF CUSTOMERS COMPLAINTS NOT CONSIDERED BY

BANKING OMBUDSMAN

 Ones complaint will not be considered if:

 One has not approached his bank for redressal of his grievance first.
 One has not made the complaint within one year from the date one has received the reply of
the bank or if no reply is received if it is more than one year and one month from the date of
representation to the bank.
 The subject matter of the complaint is pending for disposal / has already been dealt with at any
other forum like court of law, consumer court etc.
 Frivolous or vexatious.
 The institution complained against is not covered under the scheme.
 The subject matter of the complaint is not within the ambit of the Banking Ombudsman.
 If the complaint is for the same subject matter that was settled through the office of the
Banking Ombudsman in any previous proceedings.

PROCEDURE FOR FILING COMPLAINT

 Any person who has a grievance against a bank on any one or more of the grounds mentioned
above, may, himself or through his authorized representative (other than an advocate), make a
complaint to the Banking Ombudsman within whose jurisdiction the branch or office of the bank
complained against is located.

 Complaints arising out of the operations of credit cards, shall be filed before the Banking
Ombudsman within whose territorial jurisdiction the billing address of the card holder is located and
not the place where the bank concerned or the credit card processing unit is located.

43
 The complaint shall be made in writing duly signed by the complainant or his authorized
representative and shall as far as possible be in the form and shall contain such particulars as specified
in the Scheme.
 The complainant shall file along with the complaint, copies of the documents, if any, which he
proposes to rely upon and also a declaration that the complaint is maintainable as per clause 9(3) of
the Scheme..
 A complaint can also be made through electronic means.
 The complainant shall before making a complaint to the Banking Ombudsman, make a written
representation to the bank.
 The complaint can be filed if the bank has rejected the complaint or the complainant had not
received any reply within a period of one month after the bank received his representation or if the
complainant is not satisfied with the reply given to him by the bank.
 The complaint to the Banking Ombudsman is to be made not later than one year after the
complainant has received the reply of the bank to his representation or, where no reply is received, not
later than one year and one month after the date of the representation to the bank.
 The complaint should not be in respect of the same subject matter which was settled or dealt
with on merits by the Banking Ombudsman in any previous proceedings whether or not received from
the same complainant or along with one or more complainants or one or more of the parties concerned
with the subject matter.
 The complaint should not pertain to the same subject matter, for which any proceedings before
any court, tribunal or arbitrator or any other forum is pending or a decree or Award or order has been
passed by any such court, tribunal, arbitrator or forum.
 The complaint should not be frivolous or vexatious in nature.
 The complaint should be made before the expiry of the period of limitation prescribed under
the Indian Limitation Act, 1963 for such claims.

44
IF STILL UNSATISFIED CONSUMER CAN GO TO CONSUMER FORUMS
UNDER CONSUMER PROTECTION ACT 1986
THE CONSUMER PROTECTION ACT, 1986
The consumer protection Act, 1986 is the history of socio-economic legislation in the country. It is
one of the most progressive and comprehensive piece of legislations enacted for the protection of
consumers. It was enacted after in-depth study of consumer protection laws in a number of countries
and in consultation with representatives of consumers, trade and industry and extensive discussions
within the Government.

The Aim of Consumer Protection Act (CPA) is to address the grievances of the consumers and
protecting them from the unethical practices/ behavior or unfair trade practices of the manufacturer/
supplier. All the provisions of the Act have come into force from 1 July 1987. The Act was amended
in 1991 and 1993. To make the Consumer Protection Act more functional and purposeful, a
comprehensive amendment was carried out in December 2002 and brought into force from 15 March
2003. As a sequel, the Consumer Protection Rules, 1987 were also amended and notified on 5 March
2004.
Earlier though there were several legislations to protect the consumer, but the same never proved
adequate to protect consumer and compensate them for their compliances. The act not only enhances
the awareness and educate the consumer but also provide compensation to them by summary and
inexpensive proceedings. Unlike existing laws which are punitive or preventive in nature, the
provisions of this Act are compensatory in nature. The act is intended to provide simple, speedy and
inexpensive redressal to the consumers' grievances, and relief of a specific nature and award of
compensation wherever appropriate to the consumer. It confers upon consumers eight rights i.e.: basic
needs, safety, information, choice, representation, redress, consumer education, healthy environment.
It provides remedies to the aggrieved customer in form Replace, Remove, Refund, Redress.

CONSUMER
“Consumer” means any person who,-
Buy any goods for a consideration which has been paid or promised or partly paid and partly
promised, or under any system of deferred payment and includes any user of such goods other than
the person who buys such goods for consideration paid or promised or partly paid or partly promised

45
or under any system of deferred payment when such use is made with the approval of such person, but
does not include a person who obtains such goods for resale or for any commercial purpose, or Hires
any services for a consideration which has been paid or promised or partly paid and partly promised,
or under any system of deferred payment and includes any beneficiary of such services other than the
person who hires the services for consideration paid or promised, or partly paid and partly promised,
or under any system of deferred payment, when such services are availed of with the approval of the
first mentioned person.

COMPLAINT
“Complaint” means any allegation in writing made by a complaint that: -
 As a result of any unfair trade practice adopted by any trader, the complainant has suffered
loss or damage.
 The goods mentioned in the complaint suffer from one or more defects.
 The services mentioned in the complaint suffer from deficiency in any respect.

A trader has charged for the goods mentioned in the complaint a price in excess of
the price fixed by or under any law for the time being in force or displayed on the
goods or any package containing such goods, with a view to obtaining any relief
provided by this Act.

46
 CHAPTER VI

ING VYSYA BANK POLICY ON REDRESSAL OF

GRIEVANCES

47
Policy on Redressal of grievances

1. Introduction:

Today’s dynamic business scenario makes it necessary to have a strong focus on Customer Service to
retain customer’s loyalty for sustained growth. ING Vysya Bank realizes that this is possible only
when there is a genuine desire to serve the customers. Hence we have a policy for grievance redressal
based on the following principles:

 Customers should be treated fairly at all times.

 Complaints raised by customers are dealt with, courtesy and on time.
 Customers are fully informed of avenues to escalate their complaints/grievances within the
organization and their rights to alternative remedies if they are not fully satisfied with the response of
the bank to their complaints.
 ING Vysya Bank will treat all complaints efficiently and fairly as they can damage the bank’s
reputation and business if handled otherwise.

Our employees must work in good faith and without prejudice in the interests of the customer
The policy document would be made available at all branches. The concerned employees are aware
about the complaint handling process

We aim to provide the best customer service. However, if the customer has a problem or wishes to
register a complaint, he can reach us at any of the following access channels.

1.Customer Service Line / Call Centre : Customers can contact our customer care officers through
phone / Toll free numbers for redressal of their grievance
Call us at 1-800-425-9900 (can be reached from BSNL / MTNL lines only) from across the country
about account details or any other information, effortlessly and fast. If calling from overseas please dial
0091 1800 425 9900.

Apart from the above toll free number you can contact the bank on any of the numbers below as well,
24*7.

48
Customer Service Line
Bangalore 080 3030 9900
Chennai 044 4224 5466
Delhi and NCR 981808 5466
Mumbai 022 4009 5466
AP Circle 986666 5466
1
2 2. Branch: Customers can walk into any of the ING Vysya Bank Branches and speak with the
Branch officials or written complaints for resolution of their issues.

1 3. Email / Website: For all complaints they can write to ccu@ingvysyabank.com

or
Click the link below for online submission of your grievance
http://www.ingvysyabank.com/scripts/emailus.aspx

1 4. Customers may send a letter to :

ING Vysya Bank Customer Care Unit
ING Vysya Bank Ltd,
ING Vysya House,
22 MG Road, Bangalore 560 001

2. Escalation:
Incase Customer is not satisfied with the resolution; he can ask contact details of senior official and can
escalate the issue to them. Complaint plaques providing details of the Regional Operations and Service
Head (ROSH) is available in all the branches. Customers who are dissatisfied with the service provided
can also contact the ROSH.

If the customer is not satisfied with the response provided or has not heard from the Bank for 10 working
days post escalating their complaints and wishes to raise the issue with a senior officer within the bank,
they can contact the Nodal officer for ING Vysya Bank for an impartial resolution:

49
Mr. Chalamaiah Chetty,
Nodal Officer,
ING Vysya Bank Ltd,
ING Vysya House, 22 MG Road, Bangalore 560001
Email: officeofnosh@ingvysyabank.com

3. Time Frame:
1 1. Normal Cases (Other than ones mentioned below) : 7 working days
2 2. Fraud cases, Legal cases and cases where documents or exceptionally old records have to be
retrieved : 15 working days
3 3. Cases involving third party : 30 working days
4 4. Charge back related cases : 45 working days or as per Visa/Master card guidelines
5 5. If any case needs additional time, the bank will explain the reason and will also
communicate the expected time lines to the customer.

4. Reserve Bank of India – Banking Ombudsman Scheme

As per the Reserve Bank of India Banking Ombudsman Scheme, 2006, a customer can file his
complaint before the Banking Ombudsman if the reply is not received from the bank within a period of
one month, after the bank concerned has received his representation, or the bank rejects the complaint,
or the complainant is not satisfied with the reply given to him by the bank.
The details of the Banking Ombudsman Scheme as well as the contact details of the Ombudsman for
your City or State are available on http://www.rbi.org.in

Internal Machinery to Handle Customer Complaints/Grievances

Customer Service Committee of the board:
The committee consists of Chairman, Invitees (any other director), The Corporate Secretary of the
Bank, Chief of Operations & IT. In principle, the committee will meet once in 3 months.
The basic functions are:
1
2
3
4

50
5 a. To initiate, review and implement proactive measures to bring improvements in the quality of
customer service for all categories of clientele
6
7 b. To ensure compliance with the recommendations of the Committee on Procedures and
Performance Audit on Public Services (CPPAPS) and monitor progress regularly

1 c. To oversee the functioning of the Adhoc Committee of the Bank on procedures and
Performance Audit on Customer Services in Banks
2
3 d. To address the issues pertaining to formulation of a Comprehensive Deposit Policy
incorporating the issues such as the treatment of death of a depositor for operations of his
account, the product approval process, the annual survey of depositor satisfaction and the tri-
ennial audit of such services
4
5 e. To address issues of systemic deficiencies existing in banks, if any, brought out by the
awards issued by Banking Ombudsmen
6
7 f. To review all the Banking Ombudsmen awards remaining unimplemented for more than three
months with the reasons therefore and report to the Board such delays in implementation
without valid reasons and for initiating necessary remedial actions
8
9 g. To address issues relating to customer segmentation, adoption of standards and codes,
financial inclusion and financial literacy
10
11 h. To review the progress of implementation of standards/codes agreed as a member of the
Banking Codes and Standards Board of India (BCSBI)
12
13 i. To review all such consumer forum cases involving deficiency of the service/systems and
processes and to address systemic improvements needed
14
15 j. Any other function as assigned by Board from time to time

51
Standing Committee on customer service:
Bank has constituted Standing Committee on Customer Service. Managing Director will chair the
committee. Besides three senior executives of the bank and two customers will be members of the
committee. The committee would play the following role:
 Evaluate feedback on customer service received from various sources. Review
comments/feedback on customer service and implementation of code of Bank's commitment to
customers received from BCSBI.
 It will ensure that all regulatory instructions regarding customer service are followed by the
Bank.
 Discuss unresolved complaints / grievances referred to it by functional Heads responsible for
redressal and offer advise.

Committee has appointed a Nodal Officer who will be responsible for implementation of customer
service and complaint handling.
Committee will meet once in a quarter and report on its performance would be placed before
Customer Service Committee of the Board.

6. Sensitizing Operating Staff on Handling Complaints

ING Vysya Bank does and will continue to train officers handling complaints. The Nodal Officer
provides training inputs based on the analysis of complaints received at the respective departments in
the bank.

52
 CHAPTER VII

RESEARCH METHODOLOGY

53
Research Methodology

Sample and data collection

This survey was conducted in the banking customer complaints.100 percent of the data were collected
in face-to-face interviews of customers coming to banks. The sample of ING VAYSYA banks
customers in Raipur only.

Data collection
The data is collected from primary source through questionnaires and interviews.

Sample size

The sample is selected on random basis. A sample of 50 respondents is used in the research.

Data Sources
Both Secondary and Primary Sources of data is used. The major type of information used is primary
data. This is done through primary survey. The literature review is a secondary data type. The sources
include books, periodicals, websites, printed literature etc.

54
CHAPTER VIII

DATA ANALYSIS

55
Data Analysis

Q1 Which types of account?

complaints valid percent

Saving A/c 42 84%
Current A/c 8 16%
Total 50 100%

Interpretation

Out of 50 customers 84 % saving a/c and anly 16% current a/c

56
Q2 Are you satisfied with services provided by the Bank?

complaints valid percent

Satisfied 34 68%
Dissatisfied 16 32%
Total 50 100%

Interpretation

Out of 50 customers 68% satisfied and 16% only dissatisfied

57
Q3. Do you have any grievances/complaints regarding Services provided by the
bank?
valid percent
YES 16 22%
NO 34 68%
Total 50 100%

Interpretation

Out of 50 customers 68% says No and 16% says Yes only.

Q4 Is your complaint regarding customer representative? If yes then, it is about.

58
 Complaints YES NO
Call answering time 0 50
Understanding and replying queries correctly 5 45

Interpretation
No such complain regarding call answering time was filed however due to lack of understanding the
problem quickly by bank staff five no of customers complain about them.

Q5 Is your complaint regarding branch banking? If yes then, it is about..

59
 Complaints YES NO
skill of the staff 0 50
Time taken to process transaction 10 40

Interpretation
Staff is properly skilled the only problem is the time taken in processing transaction ten Complaints
have been filed for this problem.

Q6 Is your complaint regarding internet banking? If yes then, it is about.

60
 Complaints YES NO
Page setup /menu flow 0 50
Speed of page loading 0 50
Variety of transaction 4 46

Interpretation
No complaints have been filed related to page setup / menu flow and speed of page handling only
four complaints regarding variety of transaction that transation between banks have been filed.

Q7 Is your complaint regarding deposit account? If yes then, it is about…

61
 Complaints YES NO
Invalid reason to delay account 5 45
Delay in issue of cheque book 4 46
Cheque put up in drop box not credited to the correct account 2 48
wrong debit in a account 3 47
Freezing of the account without any valid notice 1 49
Refusal to close the account 0 50

Interpretation
Five customer complaint of invalid reason to delay in opening account four customer complaints
about delay in cheque book two customer complaints that cheque deposit by them was not credited
in their account where as three customer complaint of wrong debit in their account only one
customer complaint of freezing of his account without any valid notice no such complaint refusal to
close the account.

Q8 Is your complaint regarding remittances? If yes then, it is about…

62
 Complaints YES NO
Delay in Collection of outstation cheque 8 42
levying of excess collection charges 4 46

Interpretation
Eight customer complaint of about in collection of delay outstation cheque and four complaints
levying of excess collection charges were filed.

Q9 Is your complaint regarding loan and advances general? If yes then, it is about…

63
 Complaints YES NO
Rejection of loan application without any valid reason 1 49
Denying verbally without giving loan application 1 49
Non refund of processing fee for non sanctioned loan 1 49

Interpretation
One customer complaint that his loan application was rejected without any valid reason one
complaint regarding denying verbally of any loan given by bank in only one such case processing
fee was not refund loan was not sanctioned loan.

Q10. Are your complaints properly rectified by the bank?

64
 Complaints valid percent
Satisfied 40 80%
Distaisfied 10 20%
Total 50 100%

Interpretation
I have been found during the month of april 80% customer satisfied only 20% customer not
satisfied by the bank.

65
 CHAPTER IX

FINDING

FINDING

66
 Most of the customer complaints are regarding deposit account and remittance. .

 Other complaints are minimal.

 The 80% customer satisfied and only 20% customer dissatisfied.

 The bank has a good grievance Redressal policy and most of the customers are satisfied.

67
 CHAPTER X

RECOMMENDATIONS & LIMITATIONS OF THE STUDY

RECOMMENDATIONS

68
  Clearly defined customer policy should be adopted by the banks.
 Customer’s needs should be anticipated in advance so that they can be helped out in a better
way.
 Treat your customers like your friends and they'll always come back.
 Honors your promises.

LIMITATIONS OF THE STUDY

69
  This study is geographically restricted to Raipur city only.
 Findings are based on sample survey through questionnaires method.

Conclusion

70
During the month of April, I attended 50 cases. Some cases were customers have multiple complains like
Delay in Collection of outstation cheque, Invalid reason to delay account, Delay in issue of cheque book
Next in the Month of May,
I Learnt the 3 mechanism of ING Vyasa.. I.e. CCMS QMS. I also assisted the Banking staff in sorting
out problems related to during the month with the help of the above mechanisms. Maximum complaints
were regarding deposit account and remittance. Others were minimal.
The bank has a good grievance Redressal policy and most of the customers are satisfied.

71
 Organization journals and booklets

72
 WIBLIOGRAPHY

 Websites : www.google.com
http://www.rbi.org.in
http://www.ingvysyabank.com/scripts/About_overview.aspx
http://www.ingvysyabank.com/pdf%27s/redressalfgrievances.pdf
www.bankingombudsman.rbi.org.in

QUESTIONNAIRE
73
Customer Name ……………………………………..
Q1 Which types of account?
1. Saving A/C ( ) Current A/C ( )
Q2 Are you satisfied with services provided by the Bank?
1. Yes 2. No. (or.. satisfied, dissatisfied……)

Q3. Do you have any grievances/complaints regarding Services provided by the

bank?
1. Yes 2. No

Q4 Is your complaint regarding customer representative? If yes then, it is about…

1 call answering time Yes ( ) No ( )
2 Understanding and replying queries correctly Yes ( ) No ( )
Q5 Is your complaint regarding branch banking? If yes then, it is about…
1 skill of the staff Yes ( ) No ( )
2 Time taken to process transaction Yes ( ) No ( )
Q6 Is your complaint regarding internet banking? If yes then, it is about…
1 Page setup /menu flow Yes ( ) No ( )
2 Speed of page loading Yes ( ) No ( )
3 Variety of transaction Yes ( ) No ( )
Q7 Is your complaint regarding deposit account? If yes then, it is about…
1 Invalid reason to delay account Yes ( ) No ( )
2 Delay in issue of cheque book Yes ( ) No ( )
3 Cheque put up in drop box not credited to the correct account Yes ( ) No ( )
4 wrong debit in a account Yes ( ) No ( )

5 Freezing of the account without any valid notice Yes ( ) No ( )

6 Refusal to close the account Yes ( ) No ( )

74
Q8 Is your complaint regarding remittances? If yes then, it is about…
1 Delay in Collection of outstation cheque Yes ( ) No ( )
2 levying of excess collection charges Yes ( ) No ( )
Q9 Is your complaint regarding loan and advances general? If yes then, it is about…
1 Rejection of loan application without any valid reason Yes ( ) No ( )
2 Denying verbally without giving loan application Yes ( ) No ( )
3 Non refund of processing fee for non sanctioned loan Yes ( ) No ( )
Q10. Are your complaints properly rectified by the bank?
1. Yes 2. No. 3.

75
76
77
78