How is RBI Guiding Banks to Cater to Customers in Regional Languages?
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Synopsis
The Indian government has mandated that banks enhance customer service by utilizing regional languages, as outlined by the RBI. This initiative aims to improve communication and service delivery tailored to local needs, ensuring a better banking experience for all.
Key Takeaways
- RBI guidelines promote the use of regional languages in banking.
- Banks must provide services in Hindi, English, and local languages.
- Customer Service Associates are required to pass a Local Language Proficiency Test.
- Public Sector Banks are encouraged to recruit Local Bank Officers for better communication.
- Multilingual contact centers are being established to assist customers.
New Delhi, Dec 2 (NationPress) On Tuesday, the government announced that the guidelines provided by the Reserve Bank of India (RBI) regarding customer services in banks offer extensive instructions for the use of regional languages, enabling banks to tailor their service delivery to meet local requirements.
In a written response to an inquiry in the Rajya Sabha, Minister of State for Finance, Pankaj Chaudhary, stated that banks have been instructed to establish a Board-approved policy for the overall management of their branches. This includes, among other things, ensuring the display of indicator boards at all counters, providing customers with booklets containing comprehensive details about available services and facilities, and making all printed materials such as opening forms, pay-in slips, and passbooks accessible in Hindi, English, and the respective regional language.
Additionally, banks are equipped with multilingual contact centers and digital platforms to offer banking services and support in local languages, as Chaudhary informed.
Moreover, the Department of Financial Services (DFS) has urged Public Sector Banks (PSBs) to adhere to the RBI's directives on employing relevant regional languages in customer service.
Furthermore, in communication to Scheduled Commercial Banks (SCBs), the RBI has emphasized that all communications with customers should be presented in a trilingual format—Hindi, English, and the relevant regional language.
According to the minister, the Indian Banks’ Association (IBA) has recommended that all PSBs consider having policies for the recruitment of Local Bank Officers (LBOs) to ensure effective communication with local customers, particularly in rural and semi-urban areas, and this is actively being pursued by PSBs.
Moreover, customer service functions at the front end of PSBs are primarily managed by Customer Service Associates (CSAs), who are now required to pass a Local Language Proficiency Test (LPT) for the official language of the State or Union Territory where they will be employed during the recruitment process.
This approach promotes smooth communication in regional languages, resulting in improved customer service, Chaudhary stated.
Point of View
This initiative by the RBI demonstrates a commitment to inclusivity in banking services. By mandating the use of regional languages, the government aims to bridge the communication gap between banks and customers, ultimately fostering financial literacy and empowerment across diverse linguistic demographics.
NationPress
02/12/2025
Frequently Asked Questions
What are the new guidelines issued by the RBI?
The RBI's guidelines focus on enhancing customer service by mandating the use of regional languages in banking communications, ensuring that all printed materials and services are accessible in Hindi, English, and the local language.
Why is the use of regional languages important in banking?
Using regional languages in banking is crucial for effective communication, especially in rural and semi-urban areas, as it helps to cater to the linguistic needs of customers, thereby enhancing service delivery.
