In a bid to improve customer service in regulated entities, the Reserve Bank of India announced on Friday that it would set up a panel to review and further strengthen consumer protections.
“Over the years, the Reserve Bank has taken a number of steps to strengthen consumer protection. These steps include establishing regulatory frameworks on customer service, internal grievance resolution and ombudsman mechanisms. “, RBI Governor Shaktikanta Das said when announcing the bi-monthly monetary policy. .
Considering the ongoing transformation of the financial landscape due to innovations in products and services, deepening digital penetration and emergence of various service providers, he said, it has been proposed to establish a committee to examine and review the current state of customer service in RBI (RE) regulated entities, the adequacy of customer service regulation and suggest measures to improve it.
Regulatory instructions are issued to regulated entities based on the conditions prevailing in the financial system, the findings of conduct monitoring, the analysis of complaints received and the recommendations received from the various committees created for this purpose.
Important committees set up by RBI on Customer Service over the years include Talwar Committee on Customer Service (1975), Goiporia Committee (1990), Tarapore Committee on Procedures and Service Performance Audit (CPPAPS, 2004) and the Damodaran committee on customer service. Services (2010).
To facilitate a 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 released shortly for comment.
Climate change can lead to physical and transitional risks that could impact 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 robust process to understand and assess the potential impact of climate-related financial risks in their business strategy and operations, in accordance with the Statement on Development and regulations.
This would require, among other things, an appropriate governance structure and a policy framework to effectively manage and address these risks. In addition, some regulatory initiatives in the area of climate risk and sustainable finance would also help regulated entities better manage climate risk and guide them through the transition period, he said.
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