Customer Service in Banks Essay

4264 Words Dec 15th, 2011 18 Pages

By Ajaya Kumar Mohanty, M.A (Economics), MBA, CAIIB


A good banking sector with good banking habit can accelerate the pace of development of a country. Banking is the key industry in the service sector and it will not be travesty of truth to call it as the financial nerve centre of economy. The unique characteristics of service industry such as Intangibility, Inseparability, Heterogeneity, Perishability and Ownership puts it in altogether different footing. Money Creation is also another unique characteristics of Banking. Indian Banking system is largest branch network and spread over vast area. The
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The committee was headed by M N Goiporia and it submitted its report in the year 1991. It has made 97 recommendations which have been classified in four groups.

Group A : Which can be implemented by Banks themselves (66) Group B : Which can be implemented with RBI approval (15) Group C : Which can be implemented with the approval of Govt. of India (9) Group D:Which can be implemented after necessary dialoque with recognized employee Unions/Associations. (7)

The Goiporia Committee Recommendation (GCR) was definitely a successful attempt in pinpointing exhaustively the causes of below par customer service in Banks and suggested remedial measures for various deficiencies. The committee also identified structural and operational rigidities including the inadequacies in the system and procedures which came in the way of service. It has also suggested noteworthy remedial measures so as to cope with ascending customer expectations/ aspirations levels. It has also suggested upgradation of technology so as to ensure prompt and efficient service, better house-keeping, quicker flow of information and effective supervision, managerial control and last but not the least to have edges on competitive strength. In the matter of work culture and inculcation of greater customer

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