RBI has tightened guidelines to enhance regional language use in banking services. Banks must issue trilingual communication, provide forms and materials in local languages, recruit local officers, and ensure frontline staff clear language proficiency tests to improve customer experience.

RBI Tightens Guidelines to Boost Regional Language Services in Banks; PSBs Told to Hire Local Officers

RBI Strengthens Framework for Customer Service with Regional Language Emphasis

The Reserve Bank of India (RBI) has taken a significant step to make banking more accessible to customers, especially in rural and semi-urban regions, by directing banks to increase the use of regional languages across all touchpoints.

Key Highlights:

Implementation of a structured, Board-approved policy for branch management and customer services
Mandatory display boards at all counters in Hindi, English, and regional languages
Easy access to essential documents, including account opening forms and grievance redressal details
Multilingual support across digital channels and customer contact centres
Official communication with customers in a trilingual format (Hindi, English, and regional language)

The RBI's move aims to break language barriers and ensure that customers can engage with banks in their local languages. This initiative is particularly crucial in rural and semi-urban areas where banking familiarity depends heavily on language comfort.

Government's Focus on Inclusive Banking:

The government has reiterated its commitment to promoting inclusive and customer-friendly banking practices. The Department of Financial Services has instructed Public Sector Banks (PSBs) to adhere to the RBI's directions and the Indian Banks' Association (IBA) has advised PSBs to frame policies for recruiting Local Bank Officers (LBOs) who can interact fluently with local customers.

Implementation of Local Language Proficiency Test:

Customer Service Associates (CSAs) are now required to clear a Local Language Proficiency Test (LPT) for the official language of the state or union territory where they will be posted. This ensures seamless communication at the counter level and improves service quality.

Minister's Response:

Minister of State for Finance Pankaj Chaudhary shared the details in a written reply to the Rajya Sabha, highlighting the government's continued focus on promoting inclusive and customer-friendly banking practices.