Circular No RBI/2004/197

2. It needs hardly to be emphasised that Reserve Bank of India attaches great importance to ensuring complete satisfaction to the holders of these bonds and as agents of Reserve Bank, it is incumbent on the part of Agency banks to extend best quality customer service to the investors by reorienting / reenergising its resources to the optimum level.

3. While we are confident that the agency banks will be able to gear up their machinery to meet the needs and fulfil the rights of the customers, any violation of such rights by the agency banks will be viewed seriously by the Bank. Accordingly, it has been decided that breach of any of the customer right as already enumerated in the Bond application form, referred to above, will be visited with penalties to be imposed by the Reserve Bank. In case of repeated infringement of any of the customer’s rights e.g. thrice or more in a quarter, as indicated in the information sheet attached to the Bond Application Form by the same designated branch, Reserve Bank will issue a Cautionary Advice to the Agency bank providing an opportunity to review the functioning of the branch concerned and take necessary remedial action. In case such complaints are received in respect of 10 or more branches of the same bank in a calendar year, the Agency bank itself will be de-authorized from conducting the business of Savings Bonds after issuing due notice to the management of that Agency bank.