Chapter 17: Customer Service Guidelines (JAIIB – Paper 2)
1. As per RBI guidelines, banks must display key information such as service charges, interest rates, and grievance redressal mechanism at:
A. Head Office only
B. RBI Website
C. Each branch premises and bank’s website
D. Government Gazette
RBI mandates transparency. Service charges, interest rates, and grievance contacts must be displayed in every branch and published on the bank’s website for customer awareness.
2. A bank branch must provide customers with a complaint/suggestion box. How often should these complaints be reviewed?
A. At least once every week
B. Once a month
C. Once a quarter
D. Only when escalated to RBI
As per RBI’s Policy for General Management of the Branches, complaint boxes must be checked at least once a week and reviewed by the branch manager.
3. A customer approaches a bank branch for opening a savings account but refuses to provide PAN or Form 60. What should the bank do?
A. Open the account without PAN
B. Reject the request immediately
C. Report to RBI
D. Insist on PAN/Form 60 as per KYC norms before opening the account
PAN or Form 60 is mandatory under Income Tax and KYC rules. Banks cannot open accounts without these documents to ensure compliance with regulatory guidelines.
4. Who is designated as the “Nodal Officer” for customer complaints and grievance redressal in banks?
A. Branch Manager
B. An official at Head Office (not below the rank of General Manager)
C. RBI Ombudsman
D. Zonal Manager
RBI directs banks to appoint a Nodal Officer (GM rank or above) at Head Office level for customer service and complaint redressal, especially for Ombudsman-related cases.
5. A senior citizen customer complains that the bank staff asked him to visit multiple counters for basic services. As per RBI’s customer service guidelines, what is expected?
A. Provide single-window services and priority treatment for senior citizens
B. No special provision is required
C. Ask customer to submit a written complaint
D. Direct the customer to visit only on senior citizen day
RBI advises banks to offer single-window services and give priority in queue/transactions to senior citizens and differently-abled customers for better service experience.
6. What is the maximum liability of a customer in case of unauthorized electronic banking transactions, if the bank is informed within 3 working days?
A. ₹25,000
B. ₹10,000
C. Zero liability
D. 50% of transaction amount
As per RBI’s 2017 guidelines, if a customer reports unauthorized transactions within 3 working days, the liability is zero.
7. Which of the following is a primary security feature of an ATM card?
A. EMV chip
B. Magnetic strip only
C. Signature panel
D. Card color and design
EMV chip (Europay, MasterCard, Visa) provides encrypted transaction security, reducing skimming frauds compared to magnetic stripe cards.
8. A customer’s ATM card is skimmed, and money is withdrawn fraudulently. What is the immediate step the customer should take?
A. Wait for monthly statement
B. Immediately inform the bank and block the card
C. File FIR first
D. Apply for a new card without informing bank
Immediate reporting to the bank helps block the card and reduce liability. FIR may follow later, but first step is informing the bank.
9. To reduce fraud risk, RBI has mandated that all new debit/credit cards should be issued:
A. With global usage enabled
B. With lifetime validity
C. With magnetic stripe only
D. For domestic use only, unless customer requests international usage
RBI mandated (from March 2020) that new debit/credit cards must be enabled for domestic transactions only, unless customer requests international usage.
10. In ATM operations, “skimming” refers to:
A. Capturing card details using hidden devices
B. Stealing PIN through shoulder surfing
C. Hacking into bank’s central server
D. Issuing duplicate ATM card by bank
Skimming is a fraud where criminals use hidden devices to copy card information from the magnetic strip for unauthorized use.
11. As per RBI’s guidelines, what is the maximum time within which a customer should be attended at a bank counter during normal business hours?
A. 20 minutes
B. 5 minutes
C. 15 minutes
D. 30 minutes
RBI customer service committee guidelines require banks to minimize waiting time. As a benchmark, customers must be attended within 5 minutes of arrival at counters.
12. Which of the following must be compulsorily displayed at every bank branch counter?
A. RBI Annual Report
B. Names of employees
C. Shareholder details
D. Time norms for common transactions and service charges
RBI requires banks to display service charges, interest rates, and expected time norms for basic transactions at every branch for customer transparency.
13. A senior citizen visits a branch to deposit a cheque. As per customer service guidelines, how should the bank handle this request?
A. Give priority service and avoid making him wait in long queues
B. Ask him to return during non-peak hours
C. Direct him to use ATM/CDM only
D. Treat at par with all customers with no priority
RBI’s policy for customer service directs banks to extend priority and single-window service to senior citizens and differently-abled customers.
14. If a bank levies charges on a customer without prior notice, this would be:
A. Permissible under bank’s discretion
B. A case of operational risk
C. Violation of RBI guidelines on transparency
D. An internal HR issue
RBI mandates banks to give customers prior notice before introducing or revising charges. Failure to do so is a violation of transparency guidelines.
15. Banks are required to display the name, designation, and contact details of the official responsible for customer complaints at:
A. RBI Office
B. Bank Head Office only
C. Branch Notice Board
D. Both Branch Notice Board and Bank’s Website
To improve grievance redressal, RBI requires banks to display complaint officer details at branch notice boards and on the bank’s website.
16. As per RBI guidelines, what facility must banks provide to visually impaired customers at branches?
A. No special facility required
B. Talking ATMs and accessible documents in Braille/large print
C. Only a caretaker must be present
D. Free courier delivery of passbooks
RBI directs banks to ensure financial inclusion by providing talking ATMs, accessible forms, and support for visually impaired customers.
17. To assist senior citizens and differently-abled persons, banks must provide which of the following at branches?
A. Dedicated counters or single-window service
B. Only online complaint redressal
C. Free ATM usage unlimited
D. Separate account categories
Banks must provide single-window services or priority counters for senior citizens and differently-abled customers to reduce inconvenience.
18. Banks are required to provide coin and small denomination note exchange facilities at:
A. Only Head Offices
B. Only Currency Chests
C. Only Rural Branches
D. Designated branches identified for the purpose
RBI directs banks to designate select branches for coin/small denomination exchange facilities to ensure availability of change for the public.
19. What is the minimum percentage of new bank branches that must be opened in unbanked rural centres as per RBI’s financial inclusion policy?
A. 10%
B. 15%
C. 25%
D. 50%
As per RBI’s branch authorization policy, at least 25% of new branches opened during a financial year must be in unbanked rural centres.
20. Banks are required to provide “May I Help You” counters in:
A. Large and metropolitan branches
B. Rural branches only
C. ATM centres
D. Currency chest locations
For customer convenience and guidance, RBI suggests banks to provide “May I Help You” counters in large, busy, and metropolitan branches.
