RBI seeks Comments on its Draft Charter of Customer Rights
Amba Salelkar
Dlu South
1. Right to Fair treatment: Defensible, commercially acceptable economic rationale for discriminating customers cannot be accepted. What does it mean? A bank should contribute to the holistic development of the country where by each sector of the population is developed and empowered economically. What does fairness or unfairness means? Shall not be discriminated by any means.
2. Right to Transparency, fair & honest dealing: The contracts & agreements framed by financial service provider shall also disclose the responsibilities of the financial service provider. The contracts & agreements and all sources of information including websites, common industry supported portal, all marketing / promotional material and other means shall be made available in accessible formats / universal design for persons / customers with disabilities. The statement ‘that is outside normal and reasonable business practice’ shall be removed in the 10th point with respect to influence.
3. Right to Suitability: This right shall be made available for all customers and not only service providers. The service providers shall not have the freedom to choose their own modus operandi for implementation and they shall have equal responsibility to provide honestly any relevant and reasonable information that is demanded by customers to make a determination of suitability. The financial service provider shall engage accessible information and communication system including AAC devices towards this task.
4. Right to Privacy: The financial service provider shall not disclose the identification of the customer out of public interest or to protect its interest by disclosing, as mentioned in the explanatory notes. Legal procedures shall be followed wherever necessary for disclosure.
5. Right to Grievance Redress & Compensation: While acknowledging the complaint, all the info required should be notified to the complainant so that there is no further delay in receiving the information. The grievance Redress & compensation mechanism has to be made accessible for all persons with disabilities at all levels in all accessible formats as per request.
6. Right to accessibility for all customers: Universal design standards shall be incorporated in all environments, programs, products, services and (information & communication) systems to be accessible for all including all persons with all disabilities. Example: barrier free infrastructure, accessible website with WCAG format, sign language interpretation, Information material in Braille & simple large text, engagement of AAC devices & special educators / professionals wherever necessary.
Right to be the primary customer: Any customer, at any point of time and circumstances, shall be considered the primary customer / beneficiary of the product/program/service chosen / accessed / contracted by him or her. (Example: The dealings of transactions concerned to a person with disability shall be wrt the person concerned and not with his / her guardian, if he / she has a guardian appointed for the purpose of the concerned transaction. Guardians in case of those who are appointed likewise, shall be used as a support mechanism only).
Dlu South
Amba Salelkar
Amba Salelkar
I will send you the file as soon as possible.
Best regards,
Amba.
Amba Salelkar
Best regards,
Amba.
To,
The Chief General Manager,
Customer Service Department,
Reserve Bank of India, Central Office,
1st Floor, Amar Building,
Sir P. M. Road, Mumbai-400001
22nd September, 2014
Subject: Comments on the Charter of Customer Rights and Explanatory Notes from the perspective of persons with disabilities
Sir,
We, the persons and organizations working for the rights of persons with disabilities listed at the end of this submission, would like to congratulate the Reserve Bank of India for beginning the process of creation of such a seminal document for consumer rights, which we believe would go a long way towards the empowerment of consumers of services offered by Banks. However, we strongly believe that the Bank's commitment to the financial inclusion of marginalized sections of society, in this case, persons with disabilities, would be strongly enhanced by the incorporation of enabling provisions to enshrine their rights as consumers herein.
The rights of persons with disabilities to services and the obligation to accommodate them is enshrined within the United Nations Convention on the Rights of Persons with Disabilities. Even otherwise, the Reserve Bank of India has acknowledged the needs of some categories of persons with disabilities in previous Master Circulars issued. However, several of these provisions have actually discriminated against persons with disabilities, particularly the provisions with regard to persons with disabilities covered under the National Trust Act and the Mental Health Act. All persons with disabilities have the potential to be consumers of the Bank, and to this end their specific needs and rights must be addressed within this document. Such inclusions would ensure the compliance of the Reserve Bank of India with the provisions of the UNCRPD, more particularly Article 9 of the same, which can be found at the end of this document as an annexure. There are ongoing studies being conducted on the accessibility of banking for persons with disabilities, and a very comprehensive study has been conducted by the Centre for Internet and Society, Bangalore, which is found as a separate attachment to this submission.
We have made certain suggestions to the present draft as listed below. By World Health organization estimates, 15% of the India population lives with disability. Inclusion of such a large number would indeed do much to further the economic progress in this Country.
We hope that you find our recommendations useful and that the same are incorporated within your document in its final shape and form. We are ready and willing to appear before you or provide any further explanation that you may require for making this a more inclusive document.
Thanking you,
Best regards,
Amba Salelkar
Inclusive Planet Centre for Disability Law and Policy
[amba.s...@inclusiveplanet.org.in]
With inputs from:
Bhargavi Davar,
Bapu Trust for Research on Mind and Discourse, Pune
Dr. Renu Addlakha,
Senior Fellow at Centre for Women's Development Studies, New Delhi
Dr. Satendra Singh,
University College of Medical Sciences, New Delhi
Smitha S.S.
DLU South, Vidya Sagar, Chennai
Dr. V. S. Sunder
Institute of Mathematical Sciences, Chennai
Feedback on the Charter of Customer Rights and Explanatory Notes on behalf of Persons with Disabilities (suggestions for additions/deletions in italics/strikethrough)
Right to Fair Treatment
Charter of Rights
Both the customer
and the financial services provider have a right to be treated with
courtesy. The customer should not be unfairly
discriminated against on grounds such as gender, age, religion, caste
and/or physical ability disability
when offering and delivering financial products.
Explanatory Notes
The financial services provider must:
Ensure that staff members attend to customers and their business promptly, patiently and courteously and give priority attendance in case of the elderly or persons with disabilities or other conditions.
Not discriminate
unfairly against any customer on grounds such as
gender, age, religion, caste and/or disability physical
ability. The financial services provider may, however, have
certain special products which are specifically designed for members
of a target market group or may use defensible, commercially
acceptable economic rationale based on empirical research and data
for discriminating between customers. For instance, a young healthy
customer and an old infirm customer may reasonably be offered
different term life insurance premium rates. When asked, the
financial services provider should provide customers with the reason
for such discrimination. In no case can the existence of a
disability be a ground for denial of financial services and financial
services providers must take steps to make all products suitably
accessible for persons with disabilities. Such measures to
make products and services more accessible to persons with
disabilities shall not be construed as discrimination.
Right to Accessibility, Transparency, Fair and Honest Dealing :
Charter of Rights
The financial services provider should make every effort to ensure that the contracts or agreements it frames are transparent, are available in accessible formats which are easily understood by and well communicated to, the common person. The product’s price, the associated risks, the customer’s
responsibilities and the terms and conditions that govern use over the product’s life cycle, should be clearly disclosed. The customer should not be subject to unfair business or marketing practices, coercive contractual terms or misleading representations. Over the course of their relationship, the financial services provider cannot threaten the customer with physical harm, exert undue influence,
or engage in blatant harassment.
Explanatory Note:
The financial services provider must
Provide customers with product terms and conditions that are in simple language, easily understandable, available in accessible formats and with sufficient information that the customer could be reasonably expected to make an appropriate choice of product. The key risks associated with the product as well as any features that may especially disadvantage the customer should be made known to him/her. Most Important Terms and Conditions (MITC) should be clearly brought to the notice of the customer while offering the product. In general, product terms should not inhibit a customer’s future choice. Features of the product that do inhibit future choice should be part of the
MITC.
Provide, wherever
possible and when asked, directions to informational
resources that allow the customer to compare product features and
fees with those of similar products offered by the competition. For
the poor or those with limited access to information, or for
persons with accessibility requirements, the financial services
provider should endeavor to collect and share such information in
appropriate and accessible formats when requested.
Communicate to the customers any changes in the terms and conditions, fees, service charges, discontinuation of particular products, relocation of provider offices, changes in working hours, change in telephone numbers, temporary unavailability of accessibility provisions etc. with reasonable advance notice. Disclosure of information is an on-going process through the life-cycle of the product and must be diligently followed by the financial services provider. The provider may begin with web-site disclosure as a general thumb rule for all communications and graduate to other means of communication. Further, such information should be made easily accessible to the customer through a variety of channels, once the provider reaches a particular level of preparedness.
A common industry supported portal may be envisaged to provide access to similar products or to enable the customer to compare products and prices. The financial service provider must make known to the customer the availability of the portal.
Advise the customer at the time of selling the product of the rights and obligations embedded in law or regulation, as well as the need to report any critical incidents that they encounter, suspect or discover.
When engaged by the customer for advice, provide advice consistent with the interests of the customer. In cases where there is an arrangement of guardianship, it must be respected that the primary fiduciary relationship is with the beneficiary of guardianship arrangements. To that end, advice consistent with the interests of the beneficiary, should be given, which should be achieved by direct interaction with the beneficiary with the aid and assistance of special educators, interpreters, or alternative and augmentative forms of communication where required.
Not terminate a customer relationship without giving reasonable or contractual prior notice to the customer.
Assist the customer in managing their financial relationship, including by providing regular account statements and alerts.
Ensure that all marketing and promotional material sent to the customer is clear and not misleading to the target customer.
Not threaten the
customer with physical harm, exert undue
influence that is outside normal and reasonable
business practice, or engage in behavior that would
reasonably be construed as unwarranted harassment.
Financial Service Providers must incorporate universal design standards in all environments, programs, products, services and information & communication systems in order to be accessible for all including all persons with all disabilities. Examples of this include barrier free infrastructure, accessible website with WCAG format, sign language interpretation, information material in Braille and large text, engagement of AAC devices and special educators / professionals wherever necessary. The environment of the financial service provider, particularly where customer service is provided, should be calm and friendly.
Right to Suitability
Charter of Rights
The products offered
should be appropriate to the needs of the customer and based on an
assessment of the customer’s financial circumstances and
understanding. Information on products
and products themselves should be tailored to be
understood and used by all persons.
Explanatory Notes
The financial services provider should have a Board approved policy for assessing suitability of products for clients prior to sale which includes measures to make information on products and services accessible to all persons. The policy will need to ensure proportionality, that is, a product like a simple savings bank account might be deemed universally suitable whereas a product such as a loan or insurance or third party products will require the provider to undertake the necessary due diligence prior to sale. The providers have the freedom to choose their own modus operandi for implementation.
Exclusions for assessing suitability include ordinary savings bank account, current account, crop insurance for agriculture loans, KCC and other products identified from time to time
Any customer has the responsibility to provide honestly any relevant and reasonable information that is demanded by the financial services provider to make a determination of suitability including means of ensuring accessibility of the product or service.
The financial services providers should examine the structure of its fees / service charges / penalties to ensure that they are reasonable and in no case can customers be made to bear charges in order to make a product or service accessible.
Right to Privacy
Charter of Rights
Customers’ personal information should be kept confidential unless they have offered specific consent to the financial services provider or such information is required to be provided under the law or it is provided for a mandated business purpose (for example, to credit information companies). The customer should be informed upfront about likely mandated business purposes. Customers have the right to protection from all kinds of communications, electronic or otherwise, which infringe upon their privacy.
Explanatory Notes
Every customer's personal information is to be treated as private and confidential, and, as a general rule, will not be disclosed by the financial services provider to other companies for any purpose unless :
· The customer has authorized disclosure
· Disclosure is compelled by law
· It has a duty to the public to disclose i.e. in public interest
· It has to protect its interests through disclosure
· It is for a mandated business purpose such as disclosure of default to credit information companies or debt collection agencies
The financial services provider must communicate any such likely disclosures to the customer.
In case where the services of any external agency e.g. interpreters, special educators etc. are engaged for enabling persons with disabilities to avail of services or products, the financial service providers must ensure that the persons so engaged are bound by a contractual obligation to maintain confidentiality of any information they may receive as a part of this engagement.
Right to Grievance Redress and Compensation
Draft Charter of Rights
The customer has a right to hold the financial services provider accountable for the products offered and to have a clear and easy way to have any valid grievances redressed. The provider should also facilitate the redress of grievances stemming from its sale of third party products. The financial services provider must communicate its policy for compensating mistakes, lapses in conduct, as well as non-performance or delays in performance, whether caused by the provider or otherwise, in clear accessible formats. The policy must lay out the rights and duties of the customer when such events occur.
Explanatory Notes
The financial services provider must set up a grievance redressal procedure and clearly indicate the grievance resolution authority to be approached. The name and address of this official and the time for resolution of complaints should be clearly accessible at all service delivery locations. The complainant should be informed of the option to escalate his complaint to the Ombudsman if the complaint is not addressed within a pre-set time.
The financial services provider must also:
Acknowledge a formal complaint (including complaints lodged through information technology) within three working days and work to resolve it within a reasonable period, not exceeding 30 days (including the time for escalation and examination of the complaint by the highest official responsible for grievance redress and providing all reasonable accommodation which may be required for the complainant's participation in proceedings). The 30 days may be calculated after obtaining all the necessary information from the customer by the service providers.
Provide all eligible customers with the details of the Ombudsman Scheme for resolution of a complaint if the customer is not satisfied with the resolution of a dispute, or with the outcome of a dispute handling process in relation to deficiency in service by a financial services provider.
Display clearly at customer contact points the name and contact details of the Nodal Officer responsible for grievance redress, as also the name and contact details of the Ombudsman under whose jurisdiction the financial services provider is functioning.
The Nodal Officer will be the first point of contact for redressal of customer complaints if the officials who are normally in contact with the customer are unable to resolve the customer’s grievance.
Place in the public domain its compensation policy for delays / lapses in conducting /settling customer transactions within the stipulated time and in accordance with the agreed terms of contract.
Clearly spell out at the time of establishing a customer relationship the liability for losses, as well as the rights and responsibilities of all parties, in the event of products not performing as per specifications or things going wrong. For instance, the moment a customer has informed the financial services provider that an electronic purse has been lost or stolen or that someone else knows the customer's PIN, the provider must take immediate steps to prevent the customer's account from being accessed. In this case, the customer may be held liable for losses if they have not informed the financial services provider as soon as reasonably practicable after having discovered the loss or theft, or that unauthorized transactions have been conducted on the their accounts. At the same time, the financial service provider has an obligation to provide accessible and easy methods of reporting any such incidents by the customer.
Unless the financial services provider can show beyond reasonable doubt to the customer and the grievances redress mechanism that the customer acted fraudulently or without reasonable care, it will refund the customer the amount of any disputed transaction together with any interest and associated charges. In no event will there be any lessening of this burden of proof on account of the customer having any disability.
The financial services provider will not be liable for any losses caused by circumstances that are beyond its reasonable control (such as market changes, performance of the product due to market variables etc.)
All procedures for grievance redressal shall be accessible to persons with disabilities, and financial service providers as well as the offices of the Nodal Officers and Ombudsmen must incorporate universal design standards in all environments, programs, products, services and information and communication systems in order to be accessible for all including all persons with all disabilities. Examples of this include barrier free infrastructure, accessible website with WCAG format, sign language interpretation, information material in Braille and large text, engagement of AAC devices and special educators / professionals wherever necessary.
Article 9, United Nations Convention on the Rights of Persons with Disabilities
Accessibility
1. To enable persons with disabilities to live independently and participate fully in all aspects of life, States Parties shall take appropriate measures to ensure to persons with disabilities access, on an equal basis with others, to the
physical environment, to transportation, to information and communications, including information and communications technologies and systems, and to other facilities and services open or provided to the public, both in urban and in rural areas. These measures, which shall include the identification and elimination of obstacles an
d barriers to accessibility, shall apply to, inter alia:
(a) Buildings, roads, transportation and other indoor and outdoor facilities, including schools, housing, medical facilities and workplaces;
(b) Information, communications and other services, including electronic services and emergency services.
2. States Parties shall also take appropriate measures:
(a) To develop, promulgate and monitor the implementation of minimum standards and guidelines for the accessibility of facilities and services open or provided to the public;
(b) To ensure that private entities that offer facilities and services which are open or provided to the public take into account all aspects of accessibility for persons with disabilities;
(c) To provide training for stakeholders on accessibility issues facing persons with disabilities;
(d) To provide in buildings and other facilities open to the public signage in Braille and in easy to read and understand forms;
(e) To provide forms of live assistance and intermediaries, including guides, readers and professional sign language interpreters, to facilitate accessibility to buildings and other facilities open to the public;
(f) To promote other appropriate forms of assistance and support to persons with disabilities to ensure their access to information;
(g) To promote access for persons with disabilities to new information and communications technologies and systems, including the Internet;
(h) To promote the design, development, production and distribution of accessible information and communications technologies and systems at an early stage, so that these technologies and systems become accessible at minimum cost.