Banks have to follow two broad parameters for identifying the basic banking services:

1. Banking services that are ordinarily availed by individuals in the middle and lower segments, will be the first parameter. These will comprise services related to deposit/loan accounts, remittance services and collection services.
2. When the above transactions occur in different delivery channels, for the purpose of pricing, they may be treated on a separate footing.

Low value of transactions with customers/public up to the ceiling as given below will the second parameter:

1. Remittances up to Rs.10,000/- in each instance
2. Collections below Rs.10,000/- in each instance

(Foreign exchange transactions valued up to $ 500/-)

Based on the two parameters, the Working Group recommends enumeration of the following as the basic banking services:

The above list is compiled only as a guide and the list may not be treated as exhaustive. Banks, may at their discretion, include within the category of basic services such additional services as they consider appropriate.

Banks are advised to identify the basic banking services on the basis of broad parameters indicated by the Working Group.

The list of services identified by the Working Group is only an indicative one and banks may, at their discretion, include within the category of basic services such additional services as they may consider appropriate.

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It is imperative that the customers are made aware of the service charges upfront and the changes in services charges are implemented only with prior notice to the customers. For changes made in the charges, the notice to customers need not necessarily be to each individual customer, as it would be costly and impractical. The Working Group finds that for proper disclosure, the banks would do well to fully recognize the following needs of the customers and take steps to ensure that these are met:

1. Disclosure of the service charges:

• Banks may consider the option of carrying out a one-time publicity of the service charges so that all customers are made aware of the charges;
• The need for communicating the service charges to the new customers at the time of beginning of the relationship.
• The need for displaying the charges in the notice board at the branch and advertising in newspapers, so as to disseminate information to the customers/public, in addition to display on the website as per Reserve Bank instructions.
• The need for using appropriate method for communicating the service charges to customers of different profiles.

(B) Notifying the changes effected in the charges

• The need for effecting any change in the charges only with prior notification to the customers of at least 30 days.
• The need for providing an option to the customer to accept the change and if not accepted, to exit from the relationship with the bank within the above 30 days without any cost.
• Banks may consider the option of advertising the changes in newspapers.
• The need for including the information regarding the changes in any communication sent to the customer.
• The need for displaying prominently in the notice board as well as the website all the changes effected in the preceding 30 days.

Banks may take steps to ensure that customers are made aware of the service charges upfront and changes in the service charges are implemented only with the prior notice to the customers.

Deficient grievance redressal in the banks, including a process of prolonged correspondence, always leads to complaints being escalated to the Banking Ombudsman/Reserve Bank of India. Banks are therefore required to have a robust grievance redressal structure and processes, to ensure prompt in-house redressal of all their customer complaints.