Customer Service in Banks
Posted
February 9, 2011
A high-powered
committee, constituted by RBI last year under the Chairmanship of former Sebi
chief M Damodaran, is likely to soon submit its recommendations to the central
bank on required changes in existing policy framework and prevalent practices of
customer service in banks.
The Reserve Bank of
India (RBI) may soon tighten its noose on banks lacking on customer service
front by a new set of rules, which could include hefty penalties and other
remedial measures to guard against such lapses.
RBI desires
improvement in customer service. Damodaran committee has submitted report by
collecting opinions of CMD or ED of a few banks that too sitting in a AC room.
But in my view no improvement may take place until there is a change in attitude
of field functionaries, front like workers and officers who are monitoring the
operations of the branches. As a matter of fact, employees in banks are the most
neglected sector. Practically there is no effective policy for Human Resource
Development through there is a name board for HRD in all administrative offices.
There are a few officers who are looking into routine matters of sanction of
leave, LTC, training etc. But no efforts are ever taken to award the real
workers to create an environment which motivates honest and devoted workers,
which may award an officer whose image among customers is the best, which may
award an officer whose lending is safe and secure. On the contrary all actions
of higher officials demonstrate that flatterers are the choice of big
bosses.
Higher management
in PSU banks or the officials of RBI or that of banking division or the Ministry
of Finance in government of India always talk of health of bank, health of loan
assets, and quality of customer service but never talk on Human Resource. They
have never tried to assess and ascertain whether employees who are working in
various branches are really enthusiastic to show excellent performance. Fact is
that everybody who is interested to move fast in career in busy in keeping
immediate boss happy or to keep his godfather at higher offices happy, not by
work performance but by offering costly gifts and by extending red carpet
welcome to visiting officials. Such flatterers manage costly gifts not by
spending from their own pocket but by instructing to their valued customers to
manage gifts for bosses.
When customers
spend lacs and crores on providing gifts to bank officials, bank management
should never expect quality financing from Branch officials. As such quality of
assets shown in their balance sheet would never be safe and sound. Similarly
Customers service is good for those customers who spend huge money on bank
employees and on officers who visit branches from higher offices and on officers
who are number one flatterers of higher officials. Flattery is the key to
success in promotion or to get choice posting. Customer service or quality of
asset is totally irrelevant. Most of senior employees, hard workers, honest
performers and devoted officers are frustrated and demotivated and passing
through depression or various diseases. They are neither given annual increment
nor treated fit for promotion. Juniors are selected for higher post at the cost
of dignity of seniors. Obviously when there is no self respect for working
officials there is no interest left in the mind of good worker toward quality of
customer service or the quality of loan assets created by bank loans.
RBI has never tried
to assess why banks are directly recruiting officers in higher scales and
createing frustration among existing senior, experienced and talent officers and
clerical staff. Why in the name of marketing banks are spending crores of rupees
on MBAs who know nothing about banking? I therefore without any hesitation say
that selection of CMD. ED.of a bank is defective which promotes not honesty or
work culture only flattery and bribe culture. In such position Damodaran
committee report on improvement of customer service will prove futile and
ineffective just like other committee reports.
Only happy servant
can extend good customer service. It is foolish to imagine of improvement in
service when serving employees are not inclined to do so. Ten men can pull a
horse forcefully to a pond but cannot force horse to drink water. In Private
sector, the more an employee is old, the more he is treated as loyal, reliable
and trustworthy. Senior employees in private sector are highly respected and
treated as good as owner. But in public sector banks, importance of an employee
specially in officer cadre increases not by dint of work or seniority but by
dint of flattery, gifts and bribe only.
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