FINAL REPORT OF MANAGEMENT RESEARCH PROJECT REPORT ON “A COMPARATIVE STUDY OF CUSTOMER RELATIONSHIP MANAGEMENT OF STATE BANK OF INDIA & HDFC BANK” MANAGEMENT RESEARCH PROJECT ON “A COMPARATIVE ANALYSIS OF CUSTOMER RELATIONSHIP MANAGEMENT OF STATE BANK OF INDIA AND HDFC BANK”  TABLE OF CONTENTS CONTENTS PAGE NUMBER 1.ACKNOWLRGEMENT 4 2.TITLE AND OBJECTIVE OF THE PROJECT 5-6 3.A BRIEF IDEA OF THE BANKING SECTOR 7 4.WHAT IS CRM 8 5.CUSTOMER FOCUS ON BANKING SERVICES 9 6.A BRIEF IDEA OF BOTH THE SECTOR BANKS 10 7.SBI 10 8.SBI CUSTOMER CARE 11 9.SBI CITIZENS CHARTER 12 10.SBI COMPENSATION POLICY 13-21 11.MOBILE AND INTERNET BANKING. 22 12.KEY COMMITMENTS OF SBI 23 13.KYC 24 14.HDFC BANK 31 15.TECHNOLOGY 32 16.CRM POLICY 33-37 17.GRIEVIEANCE REDRESSAL MECHANISM 37-40 18.QUESTIONNAIRE 40-42 19CRM IN PUBLIC AND PRIVATE SECTOR BANKS 42-46 20.PREVENTION OF EFFECTIVENESS OF CRM 46 21.CONCLUSIONS 46-47 22.REFERENCES 47  TITLE: “A compatative study of Customer Relationship Management of State Bank Of India and HDFC Bank” 3. OBJECTIVE OF THE PROJECT: - The objective of the study is to know, i.) How the Customer Relationship Management is implemented in the banks of both the sector. ii.) The main areas of focus of the project will be as the name suggests: customer , relationship , and the management of relationship by the two banks and how they are different from each other. iii.) The objective of the study s to know how both the banks are using CRM to provide better customer service to discover new customers and , serves the customer and finally retain the customers. A BRIEF IDEA OF THE BANKING SECTOR IN INDIA: (ITS PAST AND PRESENT) Banking in India originated in the last decades of the 18th century. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks. Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms.  New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the possibility to nationalise the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August, 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. But as time goes on there take a huge changes in the banking sector.There was a rapid turnaround in the banking sector. In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.  The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, At present it has gone up to 49% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.All this led to the retail boom in India. People not just demanded more from their banks but also received more. SCHEDULED BANKS IN INDIA SCHEDULED COMMERCIAL BANKS SCHEDULED COOPERATIVE BANKS PUBLIC BANKS PRIVATE BANKS FOREIGN BANKS REGIONAL RURAL BANKS NEW PRIVATE BANKS OLD PRIVATE BANKS SCHEDULED URBAN SCHEDULED COPERATIVE COOPERATIVE BANKS STATE BANKS With the increase in competition of retail banking in india there leads to a he competition among the banks. Their sole objective is to retain customers. Customers become the heart of the every bank.so inorder to retain the customers they emphasized not only the technological aspect but also also ther aspect to build long term relations with their customers. Today, banks have moved away from a transactional-based marketing approach to a relationship- based approach that has at its core the recognition of the lifetime value of the customer. WHAT LEADS TO CHANGE IN BANKING SCENARIO AND HOW IT CHANGES THROUGH CRM? The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relations with the king-the customer. In the past,  the banks took their customers for granted because at that time customers were not demanding nor had many alternative sources of supply or suppliers. Since he was a passive customer, the producer dictated terms and had little customer commitment. But today there is a radical transformation. The changing business environment is characterized by economic liberalization, increasing competition, high consumer choice, enlightened and demanding customer, more emphasis on quality and value of purchase. All these changes have made today's producer shift from traditional marketing to modern marketing. Modern marketing calls for more than developing a product, pricing it, promoting it and making it accessible to target customers. It demands building trust, a binding force and value added relationship with the customers to win their hearts. The new age marketing aims at winning customers for ever, where companies greet the customers, create products to suit their needs, work hard to develop life time customers through the principles of customer delight, approval and enthusiasm. Customer relationship management (CRM) strategies have gained momentum in recent years. Understanding and responding to customer needs and improving customer service have become important elements of corporate strategy. IT based CRM applications are being used by banks to support corporate strategies. WHAT IS A CRM(CUSTOMER RELATIONSHIP MANAGEMENT)? The process of developing a cooperative and collaborative relationship between the buyers and sellers is called customer relationship management shortly called CRM. CRM aims at focusing all the organizational activities towards creating and maintaining a customer. CRM is a new technique in marketing where the marketer tries to develop long term collaborative relationship with customers to develop them as life time customers. CRM aims to make the customer climb up the ladder of loyalty. Customer Relationship is the base on which the entire structure of banking rests. Customer service is the vital for the success of banking. Customer Relationship Management (CRM) emerged as an amalgamation of different management and information systems approaches, in particular Relationship Marketing and technology-oriented approaches such as Computer Aided Selling (CAS) and Sales Force Automation (SFA).  CUSTOMERS FOCUS ON BANKING SERVICES: As the intense competition becomes a way of doing business, it is the customer who calls the shot in deciding the nature of products and services offered in the market by the banks. The customers are becoming demanding, dominant and selective. In fact the perceptions and the expectations of the customers have undergone a sea change, with the availability of banking services to the customers at their door steps through the help of technology. Marketing of customer services aims at two important goals: prosperity to the bank and satisfied customers. Banks offer tangible services like loan schemes, interest rates and kinds of account and the intangible services like behavior and efficiency of staff, speed of transactions and the ambience. The banks may need to include customer oriented approach or customer focus in their five areas of businesses such as Cash accessibility, asset security, money transfer, deferred payment and financial advices. There are four strategies available to customer relations' managers: • To win back or save customers • To attract new and potential customers • To create loyalty among existing customers and • To up sell or offer cross services. The future of banking business very much depends upon the ability of the banks to develop close relationship with the customers. In order to develop close relationship with the customers the banking industry has to focus on the technology oriented innovations that offer convenience to the customers. Today customers are offered ATM services, access to internet banking and phone banking facilities and credit cards. These have elevated banking beyond the barriers of time and space. NEED FOR CRM IN BANKS: Helps financial institutes and wealth management firms create the relationship. They need to uncover new business opportunities and enhance client service. Provides financial advisors with an intuitive interface that incorporates detailed insight into customer information and full integration with the Microsoft Office programs.  Provides management functions and helps enable confident decision making by providing better insight across the organization. Provides full-featured CRM capabilities tailored to banking industry requirements including financial risk management and customer financial planning features. Integrates fully with core banking applications and with the Internet and corporateintranets through the use of Web services. Better compete with banks offering similar products. Compete with new market players— mostly from segments outside of the banking industry, such as insurance. Increase sales and marketing effectiveness. Increase customer loyalty and retention. Win new customers A brief idea of both the banks and their CRM policy: STATE BANK OF INDIA:- STATE BANK OF INDIA is the government owned and the largest bank in India.It traces its ancestry back to the BANK OF CALCUTTA which was established in 1806 and made SBI the oldest commercial bank in the sub continent.It has the largest ATM network all over India and and rendering a wide range of products and services to their customers not only in India but also outside India also. There seven other associate banks which fall under SBI.They all use “The State Bank Of” followed by the regional headquarters name. State Bank Of India is present in 32 countries with 84 offices serving the international needs of foreign customers. The State Bank Of India was the first public sector bank in India who implemented core banking solution as a part of its banking activities.It then introduces various fascilities to satisfy their customers.  As a part of their CRM activities SBI computerized all its branches and then it introduces a programme named “PARIVARTAN” to make a change in the behaviour of their employees . Technological changes: As a part of the technological activities it introduces various changes to make long term and good relations with their customers.State Bank aims to response faster to the market demand enabling real time information access and assighn right people in the right place. On implementation of SAP ERP help State Bank helps to retain customer. The CRM portal at SBI SBI Life Insurance chose the WebLogic platform to streamline its CRM initiatives and other business processes. The need for system automation became critical at SBI . The challenge was to meet the demanding service and fulfilment levels of the growing banking sector. SBI was on the lookout for a technology solution that was easy to implement, cost-effective and robust to expand its presence in the banking sector and achieve a higher degree of service differentiation. Early on, the top management realised that technology was a crucial driver for product and service delivery. Although using the extensive SBI group platform for cross-selling products and services was a viable option, reaching and engaging the customer cost effectively required a technology backbone. The portal initiative started sometime in 2003. Earlier, the insurance major had little enterprise software to support its business and the processes were carried out in an ad hoc manner. The system went live in 2004, taking just four to five months to go online. It was clear as far back as 2002 that a durable and scalable system was going to be essential, and it was felt that a Web portal would be the best solution as a part of SBI’s CRM initiative. Various options were taken into consideration-recreating their entire operations in-house, allowing a vendor to provide the basic platform and then build applications on it, etc. SBI also spoke to some leading providers in the industry, did some spadework, and finally decided to go for BEA WebLogic. SBI CUSTOMER CARE State Bank of India Customer Care or SBI Customer Care is a dedicated customer service by India's largest bank. SBI provides a 24 - hour help line where you can dial up and enquire about any of the State Bank of India products and banking services. To know about the  ongoing interest rates on various credit card services and loans, or to get details of the terms and conditions of the bank in regard to any of the banking service or product, you can directly contact SBI through their customer care numbers. Customers of the Bank can meet senior executives of the Bank on 15th of every month (between 3.00 p.m. and 5.00 p.m.) without any prior appointment and discuss issues relating to their accounts/banking transactions. In case 15th of month is a holiday, customer can meet on the next working day. In case, excessive delay in resolving their problems is experienced, customers can contact the helpline of the Local Head Office, under whose control the branch functions. CITIZENS’ CHARTER OF STATE BANK OF INDIA PREFACE: I. State Bank of India strongly believes that a satisfied customer is the most important factor for growth of its business. The Bank was the first in India to introduce a code of Fair Banking Practices in India called “Towards Excellence”. The code reflected the commitment of the Bank to provide Banking services of a high order to individual banking customers. The code came into effect from October 1997 as part of the Golden Jubilee Celebrations of Indian Independence. The Code was substantially revised in the year 2005 taking into consideration the transformation in banking practices and customer service standards that have since taken place. II. In February 2006, Reserve Bank of India set up the Banking Codes and Standards Board of India (BCSBI) as an independent autonomous watchdog to ensure that customers get fair treatment in their dealings with Banks. The BCSBI has published the “Code of Banks’ Commitments to Customers “ (the Code) which sets minimum standards of banking practice and benchmarks in customer service for banks to follow. SBI is a member of the BCSBI and has therefore voluntarily adopted the Code as its Fair Practice Code in dealings with its customers. III. This document called the “Citizens’ Charter of State Bank of India” provides key information on various facilities/services provided to customers in ordinary branches of State Bank of India. The Code together with the Citizens’ Charter will thus ensure high standards of accountability, responsibility and transparency in the Bank’s dealings with customers. The Charter also provides comprehensive information on Bank’s Grievance redressal mechanism. It also specifies the obligations on the part of the customers for healthy banker- customer relationship.  IV. This is not a legal document creating rights and liabilities. The information on general terms and conditions provided herein may not apply to special branches of the Bank like Personal Banking Branches etc. (The information on services provided by these branches can be obtained from the branches or the helplines of the respective Local Head office Centres). Loans and advances may also have specific terms and conditions not mentioned in the Charter. However, all terms and conditions will comply with the principles and commitments undertaken by the Bank in the Code. V. Copies of the Code and Citizens’ Charter will be available on request to all our customers at our branches, administrative offices and at our web site. We will ensure that all our staff members are aware of the commitments contained in these documents and faithfully implement them. VI. The Charter provides essential information on transactions relating to savings, current and fixed deposit accounts, collections and remittances, grievance redressal etc. VII. Information given in the Charter is current as of March 31 2007. Information given is subject to change/revision. The Bank will endeavour to update the information on the website when changes are made but please contact the nearest branch/Zonal Office/Local Head Office for the latest changes, if any. VIII. We request all our customers to keep us informed of their experiences about the customer services rendered at our branches and feel free to comment on the Code and Citizens Charter. Your feedback will help us evaluate, improve and widen our range of services. COMPENSATION POLICY Introduction Technological progress in payment and settlement systems and qualitative changes in operational systems and processes undertaken by various players in the market have improved efficiencies for providing better service to the users of the system. It has been the endeavour of the Bank to offer services to its customers with best possible utilisation of its technology infrastructure. Withdrawal of RBI's instructions to banks on time frame for collection of outstation cheques, payment of interest on delayed collection of outstation cheques/instruments etc., with effect from 1st November 2004 had given further scope for increasing efficiency for better performance.  Objective The objective of the policy, namely "State Bank of India Compensation Policy (Banking Services)" (hereinafter called the Policy), is to establish a system whereby the Bank compensates the customer due to deficiency in service on the part of the Bank or any act of omission or commission, directly attributable to the Bank. Scope •The Policy is based on principles of transparency and fairness in the treatment of customers. •It is designed to cover deficiency in service in areas relating to account operations, collections and remittances etc., as specified in this Policy. •Grant of compensation under this Policy is without prejudice to the Bank's rights in defending its position before any Court of Law, Tribunal or any other forum duly constituted to adjudicate banker-customer disputes and does not constitute admission of liability or any other issue, of any nature whatsoever for the purposes of Adjudicatory proceedings. Recognition of deficiency and compensation a) Unauthorised / Erroneous Debit •If the Bank has raised an unauthorized/ erroneous debit to an account, the entry shall be reversed immediately on being detected/informed, after due verification. If such a debit has resulted in reduction in the minimum balance applicable for payment of interest on savings bank deposit or payment of additional interest to the Bank in a loan account or levying of penalty for not maintaining the stipulated minimum balance in the account, Bank shall compensate the customer to that extent. •In case of return of a cheque or not carrying out of direct debit instructions due to insufficiency of balance on account of the unauthorized / erroneous debit, Bank will compensate the customer with an amount equivalent to interest calculated on the unauthorised/erroneously debited amount at applicable Savings Bank rate, minimum Rs.20/-, besides refunding the cheque return charges. •In case verification of the entry reported to be unauthorised/erroneous by the customer does not involve a third party, the Bank shall arrange to complete the process of verification within a maximum period of 3 working days from the date of reporting of erroneous debit. If  it involves a third party, the Bank shall complete the verification process within one month from the date of reporting of unauthorised/erroneous transaction by the customer. b) ECS direct debits/other debits to accounts •The Bank undertakes to carry out, within the prescribed time, direct debit / ECS (Electronic Clearing Service) debit instructions of customers. In the event of non-compliance/delayed compliance of instructions by the Bank to meet such commitments, the customer will be compensated equivalent to interest calculated on the amount to be debited, for the delayed period, at applicable Savings Bank rate minimum Rs. 20/-, subject to a maximum of Rs. 1,000/-. •In the event the Bank levies any charge in violation of the arrangement/ or inadvertently, the Bank will reverse the charges, subject to scrutiny of agreed terms and conditions, and compensate the customer by a sum equal to the charges reversed. c) Issue of ATM/Debit Cards •Where the Bank had issued and activated a debit card without written consent of the customer which has been disputed by the customer without using the card, the Bank would not only reverse the charges, if levied, immediately but also pay compensation to the customer minimum Rs 50/- and maximum Rs. 100/-. d) Payment of Cheques after Acknowledgement of Stop Payment Instructions •In case a cheque has been paid after stop payment instruction is acknowledged by the Bank, the Bank shall reverse the debit with value dated credit within two working days of the customer intimating the transaction to the Bank and also compensate the customer with Rs. 100/-. e) Collection of cheque drawn on foreign countries •As time for collection of instruments drawn on banks in different countries vary and even within a country from place to place, delay in collection of cheques payable at foreign centres will be construed if the customer’s account is not credited within 10 working days, excluding Saturdays, from the date of clear credit to the Bank's Nostro account i.e. after taking into account the prescribed cooling period for that currency, with the correspondent.  •The compensation on account of delays in collection of instruments in foreign currency would be as detailed below: i) At 5% p.a. if the period of delay is beyond prescribed collection period and upto 45 days where proceeds of the instruments are to be credited to the deposit accounts. ii) In case of abnormal delay i.e. delays exceeding 45 days, interest will be paid at 1% above the specified rate (i.e. 5% p.a.). iii) In the event of the proceeds of cheque under collection being required to be credited to an overdraft / loan account of the customer, interest will be paid at interest rate applicable to the loan account or State Bank Advance Rate (SBAR), whichever is lower. iv) For abnormal delays i.e beyond 45 days, interest will be paid at the rate of 1% above the applicable interest rate to the loan account or SBAR, whichever is lower. Such interest shall be payable with a minimum of Rs. 20/-. No separate compensation is payable by the Bank on account of movement in the values of the respective currency. f) Collection of cheques payable in India •The compensation on account of delays in collection of instruments drawn and payable in India for individual account holders will be as per 'Cheque Collection Policy' and in respect of other account holders it would be paid as detailed below: i) At 5% p.a. if the period of delay is beyond prescribed collection period and upto 45 days where proceeds of the instruments are to be credited to the deposit accounts. ii) In case of abnormal delay i.e. delays exceeding 45 days, interest will be paid at 1% above the specified rate (i.e. 5% p.a.). iii) In the event of the proceeds of cheque under collection being required to be credited to an overdraft / loan account of the customer, interest will be paid at the applicable interest rate or State Bank Advance Rate (SBAR), whichever is lower. iv) For abnormal delays, interest will be paid at the rate of 1% above at the applicable interest rate or State Bank Advance Rate (SBAR), whichever is lower Such interest shall be payable with a minimum of Rs. 20/-.  Compensation as detailed above shall be paid without any formal demand from customers and there shall be no distinction between instruments drawn on the Bank's own branches or on other banks which are payable in India. g) Cheques / Instruments lost while in Bank's custody •In the event a cheque or an instrument accepted for collection is lost in Bank's custody or in transit, Bank shall, immediately on coming to know of the loss of instrument, notify the customer and shall, simultaneously, advise the drawee bank particulars of lost cheques for exercising caution against payment and provide assistance to the customer to obtain a duplicate instrument from the drawer / maker of the instrument. •The Bank will compensate the account holder in respect of instruments lost while in its custody as detailed below: i) In case intimation regarding loss of instrument is conveyed to the customer beyond the time limit stipulated for collection, as per the Cheque Collection Policy of the Bank, interest will be paid for the period beyond the stipulated collection period at the rates specified in (f) above for cheques payable in India and at rates specified at (e) above in regard to cheques payable abroad. ii) Bank will pay interest on the amount of the cheque for a further period of 15 days at Savings Bank rate to provide for possible further delay in obtaining duplicate cheque/ instrument and collection thereof. iii) The Bank will bear the actual charges of recording Stop Payment instructions levied by drawee bank. iv) The Bank would also reimburse the customer with actual charges levied by the drawer/bank in issuing duplicate cheque/instrument, subject to a maximum of Rs. 250/-. Compensation for delay in other services:- In respect of the following services provided to the customers, if the delay in providing services is beyond twice the time norms, specified hereunder, compensation would be payable as indicated hereinafter:  Sl. Services Time Norms No Delay in issue of cheque book by Liability Centralised Processing Beyond 3 working 1. Centre (LCPC)/Branch days Beyond 7 working 2. Delay in issue of duplicate ATM card/PIN days Beyond 7 working 3. Delay in issue of internet banking id/password days Delay in providing banking services after receipt of request / Beyond 3 working 4. completed formalities, days either through internet banking platform or across the counter. Beyond 14 5. Delay in transfer of accounts working days Delay in effecting remittances or crediting customers account Beyond 2 working 6. after receipt of funds days The compensation paid by the Bank will be Rs.100/- per instance, if the delay is upto twice the specified time norm given above and Rs. 250/- per instance for delays beyond twice the time norm. Payment of "at par" cheques issued by other Banks Bank will not pay any compensation, to the cheque holder, for dishonour of "at par" cheques issued by other banks, including co-operative banks, in the absence of adequate funds in the account on which cheques are issued even though the amount of the cheque may have been paid to the bank which had issued the "at par" cheque.  Force Majeure The Bank shall not be liable to compensate customers under this Policy if some unforeseen event including but not limited to civil commotion, sabotage, lockout, strike or other labour disturbances, accident, fire, natural disasters or other "Acts of God", war, damage to the Bank's or its correspondent bank(s) systems, communication channels etc. beyond the control of the Bank, prevents it from performing its obligations within the specified service delivery parameters Amendment/Modification of the Policy The Bank reserves the right to amend/modify this Policy, as and when deemed fit and proper, at its sole discretion. CHEQUE COLLECTION POLICY Local / outstation cheques for Deposit / Loan accounts of individuals Policy Guidelines (A) Arrangements for Collection (salient feature) I) Local Cheques All cheques and other Negotiable Instruments payable locally would be presented through the clearing system prevailing at the centre. Cheques deposited at branch counters and in collection boxes within the branch premises before the specified cut-off time will be presented for clearing on the same day. Bank would give credit to the customer account on the same day of clearing settlement. Withdrawal of amounts so credited would be permitted after reckoning the cheque return schedule of the clearing house. Wherever applicable, facility of high-value clearing (Rs. 1 lac and above) will be extended to customers (same day credit).  Bank branches situated at centers where no clearing house exists, would present local cheques on drawee banks across the counter and proceeds would be credited, at the earliest, on realization. II) Outstation Cheques payable in India Cheques drawn on other banks at outstation centers in India will normally be collected through bank's branches at those centers. Where the bank does not have a branch of its own, the instrument would be directly sent for collection to the drawee bank or collected through a correspondent bank. The bank would also use the National Clearing services offered by Reserve Bank of India at centres where such collection services exist. Cheques drawn on bank's own branches at outstation centers will be collected using the inter-branch arrangements in vogue. Branches which are connected through a centralized processing arrangement and are offering anywhere banking services to its customers will provide same day credit to satisfactorily conducted accounts (defined hereafter in the policy) of its customers in respect of instruments drawn on any of its branches in the CBS network. III) Cheques payable in Foreign Countries Cheques payable at foreign centers where the bank has branch operations/ banking operations through a subsidiary etc. will be collected through that office. The services of correspondent banks will also be utilized in country / centers where we have no presence. Cheques drawn on foreign banks at centers where the bank or its correspondents do not have direct presence will be sent direct to the drawee bank with instructions to credit proceeds to the respective Nostro Account of the bank maintained with one of the correspondent banks. Cheques / Instruments lost in transit / in clearing process Or at paying banks branch: In the event a cheque or an instrument accepted for collection is lost in transit or in the clearing process or at the paying bank's branch, the bank shall immediately on coming to know of the loss of instrument not only bring the same to the notice of the account holder so that drawer can be informed to record stop payment and also take care that cheques, if any,  issued by him / her are not dishonored due to non-credit of the amount of the lost cheques / instruments but also compensate the customer as per Bank's Compensation Policy. The bank would also advise the drawee bank all particulars of lost cheques / instruments for exercising caution and provide all assistance to the customer in obtaining a duplicate instrument from the drawer of the cheque. Force Majeure The bank shall not be liable to compensate customers for delayed credit if some unforeseen event (including but not limited to civil commotion, sabotage, lockout, strike or other labour disturbances, accident, fire, natural disasters or other "Acts of God", war, damage to the bank's facilities or of its correspondent bank(s), beyond the control of the bank prevents it from performing its obligations within the specified service delivery parameters. Interest payment for delayed collection : It is the responsibility of Bank to collect the instruments within the time frame prescribed for the purpose and to compensate the customers for delays due to non-adherence to time schedule. Following guidelines are, therefore, laid down for cheques / instruments payable in India: I) a) Interest shall be payable without any claim from the customers, if the Instruments are not realized / proceeds credited to the customer's accounts within the period as mentioned in paragraph (C) above. b) The rate of interest payable will be 5% p.a. If the collection of outstation Instruments are delayed beyond the stipulated period and upto 45 days where the proceeds of the instruments are to be credited to the deposit accounts. Where proceeds are to be credited to overdraft or loan accounts of the customers, the interest payable would be at State Bank Advance Rate (SBAR). II) For abnormal delays, the rate of interest payable would be 1% above the prescribed rate (i.e. 5% p.a.) in deposit accounts and 1% above SBAR in case of overdraft/loan accounts.  III) Such interest shall be payable with a minimum of Rs. 10/- even if the interest calculated works out to less than Rs. 10/-. IV) In respect of cheques / instruments sent for collection to foreign countries Bank will value date the collection once the proceeds have been credited in the NOSTRO Account of the bank / with its correspondent. INTERNET BANKING For assistance in Internet Banking , a customer may contact Toll-free helpline No. 1800-11- 2211 of our contact centre at New Delhi, Mumbai, Kolkata , Hyderabad, Bangalore, Chennai, Chandigarh, Lucknow, Bhubaneswar, Bhopal and 170 other cities or e-mail at email@example.com for other centres. The customer can also access the contact centre at New Contact Centre Access Numbers from land lines and mobile phones 24x7. This number, however, is not toll free and the call charges shall be borne by the customer. In case the customer is not satisfied with handling of Internet Banking related complaints by Local Head Office / Helpline, he may contact Dy. General Manager (Internet Banking) at apex office on the following address MOBILE BANKING SERVICE For assistance in Mobile Banking Service, a customer may contact Toll-free helpline No. 1800-11-2211 of our contact centre or e-mail at firstname.lastname@example.org. The customer can also access the contact centre at 080-26599990 from land lines and mobile phones 24x7. This number, however, is not toll free and the call charges shall be borne by the customer. In case the customer is not satisfied with handling of Mobile Banking related complaints, he/she may contact the Dy. General Manager (IT-PSG) at apex office on the following address:  Dy. General Manager(IT PSG), State Bank of India, E-mail address- email@example.com 1st floor, A Wing Sector 11 CBD Belapur Fax No. 022-27561664 Navi - Mumbai - 400614. ATM SERVICES For help in ATM-cum-Debit card related operations, a customer may contact Toll-free helpline No. 1800-11-2211 of our contact centre at New Delhi, Mumbai, Kolkata , Hyderabad, Bangalore, Chennai, Chandigarh, Lucknow, Bhubaneswar, Bhopal and other cities . The customer can contact the nearest card issuing branch or e-mail at firstname.lastname@example.org for other centres. The customer can also access the contact centre at New Contact Centre Access Numbers from land lines and mobile phones 24x7. This number, however, is not toll free and the call charges shall be borne by the customer. In case the customer is not satisfied with handling of ATM-cum Debit card related issues by the concerned Local Head Office or Helpline centre, he may contact the General Manager (ATM) at central office in the following address :- General Manager ATM State Bank of India, E-mail:email@example.com Ground Floor,B Wing Tel No. 27566050 Extn. Sector 11 CBD Belapur Fax No. 27566052 Navi - Mumbai 400614 OUR KEY COMMITMENTS TO CUSTOMERS: i. We promise that we will act courteously, fairly and reasonably in all our dealings with you ii. We will make sure that our documents and procedures are clear and not misleading and  that you are given clear information about our products and services. iii. When you have chosen an account or service we will give you clear information about how it works, the terms and conditions and the interest rates which apply to it. iv. We will help you use your account or service by sending you regular statements (where appropriate) and we will keep you informed about changes to the interest rates, charges or terms and conditions. v. We will deal quickly and sympathetically with things that go wrong by correcting mistakes quickly, handling complaints quickly and reversing any bank charges applied in error. vi. We will treat all your personal information as private and confidential, and operate secure and reliable banking and payment systems. vii. We will publicise our Citizens’ Charter, have copies available and make sure that our staff are trained to put it into practice. WE EXPECT OUR CUSTOMERS TO: i.to help us meet the “Know Your Customer (KYC)” guidelines at the time of opening the account ii. take precautions that are indicated for protection of their accounts iii. Avail services like Automated Teller Machine (ATM), Online banking, Electronic Clearing System (ECS), Electronic Fund Transfer (EFT) etc. if offered by the branch. iv. Avail nomination facility for their accounts and safe deposit lockers. v. Not to introduce any person not known personally for the purpose of opening account. vi. Pay service charges for non maintenance of minimum balances, return of cheques, remittances, collections etc. The details of charges are available on the Bank’s web site and also with our branches.  vii. Provide valuable feedback on our services so as to enable us to correct our mistakes and improve our customer service. FAIR LENDING PRACTICES CODE (FLPC) 1. PREAMBLE Scope: l(a) FAIR LENDING PRACTICES CODE (FLPC for short) is a voluntary code adopted by our Bank, which aims to achieve synchronization of best practices while dealing with Customers in India. It aims to provide valuable inputs to Customers and facilitates effective interaction of customers with the Bank. Extent: l(b) FLPC would be applicable in the Bank from the date it is placed in the Bank's web site or is otherwise publicised through the media.FLPC contains 8 important declarations from us, the spirit of which pervades the entire FLPC provisions. 2. Important declarations: The Bank declares and undertakes To provide in a professional manner, efficient, courteous, diligent and speedy services in the matter of retail lending. Not to discriminate on the basis of religion, caste, sex, descent or any of them. To be fair and honest in advertisement and marketing of Loan Products. To provide customers with accurate and timely disclosure of terms, costs, rights and liabilities as regards loan transactions. If sought, to provide such assistance or advice to customers in contracting loans.  To attempt in good faith to resolve any disputes or differences with customers by setting up complaint redressal cells within the organization. To comply with all the regulatory requirements in good faith. To spread general awareness about potential risks in contracting loans and encourage customers to take independent financial advice and not act only on representations from banks. 3. FAIR PRACTICES: 3.1. Product Information: (a) A prospective customer would be given all the necessary information adequately explaining the range of loan products available with the Bank to suit his / her needs. (b) On exercise of choice, the customer would be given the relevant information about the loan product of choice. (c) The Customer would be explained the processes involved till sanction and disbursement of loan and would be informed of timeframe within which all the processes will be completed ordinarily at our bank. (d) The Customer would be informed of the names and phone numbers of branches and the persons whom he can contact for the purpose of loan to suit his needs. (e) The Customer would be informed the procedure involved in servicing and closure of the loan taken. 3.2. Interest Rates 3.2.1. Interest Rates for different loan products would be made available through and in anyone or all of the following media, namely:  (a) In the Bank's Web site (b) Over phone, if Tele Banking services are provided (c) Through prominent display in the branches and at other delivery points (d) Through other media from time to time 3.2.2 Customers would be entitled to receive periodic updates on the interest rates applicable to their accounts. 3.2.3 On demand, Customers can have full details of method of application of interest. 3.3 Revision in Interest Rates: (a) The Bank would notify immediately or as soon as possible any revision in the existing interest rates and rnake them available to the customers in the media listed in Para 3.2.1. (b) Interest Rate revisions to the existing customers would be intimated within 7 working days from the date of change through notifications in the Bank’s Website / media/ notice board at branches. 3.4. Default Interest/Penal Interest: (a) The Bank would notify clearly about the default interest/penal interest rates to the prospective customers.  3.5. Charges: (a) The Bank would notify details of all charges payable by the customers in relation to their loan account. (b) The Bank would make available for the benefit of prospective customers all the details relating to charges generally in respect of their retail products in the media specified in Para 3.2.1. (c) Any revision in charges would be notified in advance and would also be made available in the media as listed in Para 3.2.1. 3.6. Terms and Conditions for Lending: (a) The Bank would ordinarily give an acknowledgement of receipt of loan request and if demanded by the customer, a copy of the application form duly acknowledged would also be given, as soon as the customer chooses to buy a product of or service of his choice. (b) Immediately after the decision to sanction the loan, the Bank would show draft of the documents that the customer is required to execute and would explain, if demanded by the customer, the relevant terms and conditions for sanction and disbursement of loan. (c) Loan Application forms, Draft documents or such other papers to be signed by a customer shall comprehensively contain all the terms and conditions relating to the product or service of his choice. (d) Reasons for rejection of loan applications would be conveyed to all barrowers irrespective of the size of the loan. (e) Before disbursement of loan and on immediate execution of the loan documents, the Bank shall deliver a copy of the documents to the customers.  3.7. Accounting Practices: (a) The Bank would provide regular statement of accounts, unless not found necessary by the customers. (b) The Bank would notify relevant due dates for application of agreed interest, penal interest, default interest, and charges if they are not mentioned in the Loan applications, documents or correspondence. (c) The Bank would notify in advance any change in accounting practices which would affect the customer before implementation. 3.8. Information Secrecy (a) All personal information of the customer would be confidential and would not be disclosed to any third party unless agreed to by customer. The term 'Third party' excludes all Law enforcement agencies, Credit Information Bureaux, Reserve Bank of India, other banks/ financial and lending institutions. (b) Subject to above Para, customer information would be revealed only under the following circumstances; If our Bank is compelled by law. If it is in the Public Interest to reveal the information. If the interest of the Bank require disclosure. 3.9. Financial Distress:  a) The Bank would sympathetically reckon cases of customer's financial distress. b) Customers would be encouraged to inform about their financial distress as soon as possible. c) The Bank would adequately train the operational staff to give patient hearing to the Customers in financial distress and would try to render such help as may be possible in their view. 3.10. Grievance Redressal a) The Bank would have in place a Grievance Redressal Cell/ Department/ Centre. b) The Bank would make available all details, namely; Where a complaint can be made How a complaint should be made When to expect a reply Whom to approach for redressal of grievance etc., to the customers individually on demand and through the media. SPECIMEN OF COMPLAINT FORM:- STATE BANK OF INDIA - CUSTOMER COMPLAINT FORM Customer Type: Existing SBI Customer Not a SBI Customer  NAME ACCOUNT NO BRANCH STATE ADDRESS Email Telephone No Mobile No Product / Service about which you have complaint: Nature of Complaint Please give brief details of your complaint HDFC BANK:- Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The  following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India. HDFC Bank has always prided itself on a highly automated environment, be it in terms of information technology or communication systems. All the braches of the bank boast of online connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to retail clients. The bank makes use of its up-to-date technology, along with market position and expertise, to create a competitive advantage and build market share. TECHNOLGY HDFC today is leader in the banking industry and today IT and HDFC together combined has reached the sky.new technology has changed the concept of the customers and also the queue concept also from the mind of the customer. Centralized processing units Derived Economies of scale Electronic straight through processing Reduced transaction cost Data warehousing CRM Improved cost efficiency cross sell Innovative Technology Application Provide new or superior product HDFC BANK bank decided to implement a datawarehouse solution that would eliminate the inconsistencies of working with disparate sources. The warehouse pulls information from the different customer interface channels the bank offers, centralising them in a single database. In early 2002, the bank completed the interface of the warehouse with the retail banking liability system, followed by the assets system and the depository system by the end of 2002. The analytical capability of the CRM solution throws up data on the basis of which processes are re-engineered, often resulting in the dual benefit of improving customer service as well as reducing cost for the bank. In addition, the single view of the customer across products and channels enables banks to service the customer better in a more integrated fashion. HDFC  Bank now undertakes analytics-driven database driven marketing efforts based on the banking behaviour of the customer. If he has used his card in an apparel shop, customised incentive mailers are sent to him; or marketing programs are sent to merchants who facilitate usage of the bank’s cards on the bank’s terminals. With over two terabyte of data under management, the data warehouse empowers the product managers to study and monitor the customer and business trends over the last six quarters in an online manner. HDFC Bank Ltd Customer Compensation Policy Customer Compensation Policy Introduction HDFC Bank offers high levels of service to its customers. In the event, for some reasons beyond the control of the bank or inadvertently, the bank is unable to meet the service levels committed in the dealings with individual customer, this compensation policy will be applicable. The Compensation policy is therefore, designed to cover areas relating to unauthorized debiting of account, payment of interest to customers for delayed collection of cheques /instruments, payment of cheques after acknowledgement of stop payment instructions, remittances within India, foreign exchange services, etc. The policy is based on principles of transparency and fairness in the treatment of customers. The objective of this policy is to establish a system whereby the bank compensates the customer for any financial loss he/she might incur due to deficiency in service on the part of the bank or any act of omission or commission directly attributable to the bank. By ensuring that the customer is compensated without having to ask for it, the bank expects instances when the customer has to approach Banking Ombudsman or any other Forum for redressal to come down significantly.It is reiterated that the policy covers only compensation for financial losses in real terms for specific value which customers might incur due to deficiency in the services offered by the bank which can be measured directly and as such the commitments under this policy are without prejudice to any right the bank will have in defending its position before any forum duly constituted to adjudicate banker-customer disputes. The policy does not cover and is not applicable in respect of claims made by customers on account of opportunity losses or damages or claims pertaining to reputation loss. 1. Un-authorized / Erroneous Debit: If the bank has raised an unauthorized/erroneous direct debit to an account and upon being informed of the erroneous debit, the entry will be reversed with proper value date, after due verification. In such cases, the Bank will compensate the customer, by way of loss of savings  account interest due to reduction in the minimum balance applicable for payment of interest on savings bank deposit or payment of additional interest to the bank in a loan account or any HDFC Bank Ltd Customer Compensation Policy. charges levied for balance falling below minimum balance requirement or any charges levied for return of cheques due to shortfall in balance.In case verification of the entry reported to be erroneous by the customer does not involve a third party, the bank shall arrange to complete the process of verification within a maximum period of seven working days from the date of reporting of erroneous debit. In case, the verification involves a third party, the bank shall complete the verification process within a maximum period of one month from the date of reporting of erroneous transaction by the customer. 2. ECS direct debits/other debits to accounts: The bank undertakes to carry out direct debit/ ECS debit instructions of customers in time subjectto (a) Customer having already provided valid and complete mandate to accept any debit received from ECS (b) Direct debit / ECS received is complete and correct. Failure to carry out the instruction subject to clause (a) and (b) as above and for reasons directly attributable to the bank, the customer shall be compensated at the prevailing fixed deposit interest rate for the period between the due date of direct / ECS debit and the date of actual debit carried out by the bank. Direct / ECS debits which are towards payments of an Equated Monthly Installment (EMI), the bank would reimburse the customer, penal interest, late payment charges, if any levied upon producing evidence of the same. Electronic payments such as RTGS / EFT / NEFT instructions will be governed by the applicable terms and conditions communicated to the customer. The bank would debit the customer’s account with any applicable service charge as per the schedule of charges notified by the bank. In the event the bank levies any charge in violation of the arrangement, the bank will reverse the charges with value when pointed out by the customer subject to scrutiny of agreed terms and conditions and such other terms and conditions as may be communicated from time to time. Credit Cards: Where it is established that the bank had issued and activated a credit card without written consent of the recipient, the bank would reverse the charges immediately and also pay a penalty without demur to the recipient amounting to twice the value of charges reversed in this regard. Operation of credit account shall be in accordance with HDFC Bank credit card terms and conditions. Transactions reported as erroneous by customers in respect of credit card operations, which require specific reference to a merchant establishment will be handled as per chargeback HDFC Bank Ltd Customer Compensation Policy  Version: October 2008 3 of 5 rules laid down by VISA / Master card international. The bank will provide explanation and, ifnecessary documentary evidence to the customer within a maximum period of sixty days. 3. Payment of Cheques after Stop Payment Instructions: In case a cheque has been paid after stop payment instruction is received and acknowledged bythe bank, and there have been no subsequent and contradictory instructions received by the bank,the bank shall reverse the transaction and give value-dated credit to protect the interest of the customer. Any consequential financial loss to the customer will be compensated as providedunder Para 1 above. Such debits will be reversed after ascertaining the facts within seven working days of the customer intimating the transaction to the bank. 4. Foreign Exchange Services: The Bank would not compensate the customer for delays in collection of cheques designated inforeign currencies sent to foreign countries as the bank would not be able to ensure timely credit from overseas banks. It is the bank’s experience that time for collection of instruments drawn on banks in foreign countries differ from country to country and even within a country, from place toplace. The time norms for return of instruments cleared provisionally also vary from country to country. The bank will compensate the customer for undue delays in affording credit once proceeds are credited to the Nostro Account of the bank with its correspondent. Such compensation will be given for delays beyond the day when the amount is due for credit after taking into account normal cooling period as detailed in the cheque collection policy. The compensation in such cases will be worked out as follows: a) Interest for the delay in crediting proceeds as indicated in the collection policy of the bank. b) Compensation for any possible loss on account of adverse movement in foreign exchange rate. 5. Remittances in India: I) The compensation on account of delays in collection of instruments would be as indicated in the bank’s cheque collection policy in the following instances a. Payment of Interest for delayed Collection of Outstation Cheques: b. Cheques / Instruments lost in transit / in clearing process or at paying bank’s branch: HDFC Bank Ltd Customer Compensation Policy Version: October 2008 4 of 5 II) For NEFT remittances, the credit will be given to the beneficiary’s account on the same day of receipt of remittance at HDFC Bank, provided the following conditions are met: a) Request for remittance is tendered within the prescribed time frame set for same day credit. Inany case, the credit will be given latest by the next working day. b) There is no mismatch in the beneficiary details. c) The account of the beneficiary is not blocked due to statutory reasons/frozen/closed.  d) Necessary information on remittances in NRE accounts is available from remitting bank. For any delayed period of credit of NEFT remittances beyond the prescribed timelines and subject tomeeting the conditions as given above, compensation would be paid at the then prevailing RBI repo rates. Other remittances falling under the various payment system products would not be eligible for the same. 6. Erroneous Debits Arising on account of Fraudulent or Other Transactions: a) In case of a claim raised by any of the customers, the bank shall depute staff personnel to investigate the matter in its entirety and if the bank is convinced that an irregularity /fraud has been committed by its staff towards any constituent, the bank will acknowledge its liability and pay the just claim. b) In cases where the bank is at fault, the bank will compensate the customer without demur. c) In cases where neither the bank nor the customer is at fault, but the fault lies elsewhere in the system, the Regional Business Manager can take a decision to reimburse the customer up to an amount of Rs 1,000/-. d) For any claim greater than Rs 1,000/- the matter would be required to be referred to the Grievance Redressal Cell. The Cell would then after updating the Top Management take a final decision in this regard. 7. Violation of the Code by banks agent: In the event of receipt of any complaint from the customer that the bank’s representative / courier or DSA has engaged in any improper conduct or acted in violation of the Code of Bank’s Commitment to Customers which the bank has adopted voluntarily, bank shall take appropriate steps to investigate and to handle the complaint and to revert to the customer within seven days from the date of receipt of complaint and wherever justified, shall compensate the customer for financial losses, if any. HDFC Bank Ltd Customer Compensation Policy Version: October 2008 5 of 5 8. Transaction of “at par instruments” of Co-operative Banks by Commercial Banks * The RBI has expressed concern over the lack of transparency in the arrangement for payment of “at par” instruments of co-operative banks by commercial banks resulting in dishonor of such instruments when the remitter has already paid for the instruments. In this connection it is clarified that since the "at par" instruments are only cheques drawn on accounts maintained with the bank and are not prepaid instruments, the drawee bank will not honour cheques drawn on thecurrent accounts maintained by the concerned banks with it unless arrangements are made for funding the cheques issued. This has been communicated very clearly in the agreements entered into with the co-operative banks concerned. Thus, the issuing bank i.e. Cooperative Banks/Drawer of the cheque would be responsible to compensate the cheque holder for nonpayment/delayed payment of cheques in the absence of adequate funding arrangement.  9. Force Majeure: The bank shall not be liable to compensate customers for delayed credit if some unforeseen event (including but not limited to civil commotion, sabotage, lockout, strike or other labour disturbances, accident, fires, natural disasters or other “Acts of God”, war, damage to the bank’s facilities or of its correspondent bank(s), absence of the usual means of communication or all types of transportation, etc beyond the control of the bank prevents it from performing its obligations within the specified service delivery parameters. Grievance Redressal Mechanism Grievance Redressal Policy of HDFC Bank HDFC Bank realizes that quick and effective handling of complaints as well as prompt corrective & preventive actions to improve processes are essential to provide excellent customer service to all segments of customers. To achieve this, the bank has a clearly documented policy for redressal of customer grievances. However, in line with RBI guidelines enumerated in Para 16 of the Master Circular on Customer Service dated 3rdNovember 2008, this policy has been suitably revised and is being tabled for the approval of the Board. Through this policy, the bank shall ensure that a suitable mechanism exists for receiving and addressing complaints from its customers / constituents with specific emphasis on resolving such complaints fairly and expeditiously regardless of sources of the complaints. The policy seeks to ensure that: Bank shall achieve compliance with the procedure on Grievance Redressal as outlined in Para 7 of the Code of Commitment to Individual Customers set out by the Banking Code and Standards Board of India (BCSBI) as well as Para 16 of the Master Circular on Customer Service (RBI/2008-09/261/DBOD.No.Leg.BC.75/09.07.005/2008-09) Dtd. 3rd November 2008 Adequate information will be made available to all customers on the various channels for seeking redressal of grievances arising out of any perceived deficiency in service by the Bank or noncompliance to the Code of Commitment. This will be updated as and when any change occurs in the processes emerging out of internal reasons or change in guidelines from the regulators. Bank shall develop a detailed procedure (Complaints Management Note) to execute the grievance redressal policy. The Procedure shall be reviewed and updated every Quarter. Any complaints received - either verbally, via email or in writing - from the customers, will belogged into the state-of-the art web-based software namely Next step CRM and Vision  Plus (for Credit Card related complaints). The bank will not only ensure that all the complaints received are recorded and resolved, but also ensure effective monitoring / escalation mechanism to the senior functionary responsible so as to ensure that none of the complaints remain unresolved. All complaints received at the retail branches will be entered into Next step CRM, and followed up for resolution by the branches. Complaints to be tracked and closed only after resolution of the customers’ grievance. Quality Initiatives Group of the bank will be responsible to track the pending complaints and provide support to ensure faster resolution. Complaints on credit cards, received telephonically, will be captured online at the time of customer contact with the bank and be referred to the appropriate backend unit for necessary resolution. All complaints pertaining to retail assets will be managed by the Retail Asset Central Complaint Management unit (except for collections related complaints) and will ensure that complaints received are resolved as per the defined TAT. Complaints pertaining to collections shall be forwarded to the collections department for appropriate resolution. Collections department to publish help-line number as well as dedicated email id in newspapers for customers to address their concerns regarding Retail Asset Collections. A Code Compliance Officer will be appointed by the bank for Retail Asset Collections. The name and numbers of the code compliance officer will be published in all Collection reminder letters to facilitate escalation of complaints Grievance Redressal Mechanism Quality Initiatives Group : Dedicated Client Service Desk (CSD) will cater to customer queries/complaints pertaining to nonretail Segment.All complaints received at the corporate office of the bank will be forwarded to the Grievance Redressal Cell for handling in a prompt manner. All complaints received at the Chairman & the Managing Director’s desks shall be handled End-to- End by a dedicated team under the Service Quality Unit. A weekly update of all complaints received at the Chairman’s & the MD’s desk will be sent to the Chairman and the MD. All complaints received through the below mentioned channels will be handled centrally by a dedicated resource under the audit and compliance department. Reserve Bank of India complaints received at Corporate Office. Government of India complaints received at Corporate Office.  BCSBI complaints received at Corporate Office. Consumer Forum complaints received at Corporate Office. CORE Centre complaints received at Corporate Office. The Bank shall appoint Nodal officers at various locations in terms of Clause 15 (3), chapter IV, ofthe Banking Ombudsman scheme 2006 and a list of state wise nodal officers of the bank is to bemade available on bank’s website and through displays at the Branches. The same shall be updatedperiodically. The Bank will provide an email ID (firstname.lastname@example.org) to the National Consumer Helpline (NCH) for any complaints received for / against HDFC Bank. The arrangement to ensure that the forum diverts these complaints to the Bank on the above mentioned email id for necessary action. The Bank will publish a Toll-Free number on the Bank’s website for customers to register their complaints and any query/complaints pertaining to Retail Liabilities, Retail Assets, Depository, Credit Cards and Collections are handled at this desk. The bank, in compliance to the Tara pore committee recommendations, shall set up a Grievance Redressal Cell. In case a customer is not satisfied with the resolution provided to him by the front office staff, the customer will be provided an option to write to the Grievance Redressal Cell either through an e-mail or through a letter. The contact details of the Grievance Redressal Cell will be displayed at all the branch premises of the Bank as well as on the website. The Unit will be responsible for resolution of all complaints received at their end. Customers shall also be provided detailed information on how to escalate the matter in case the redressal is not found to be adequate or appropriate. Through posters in branches, bank shall take necessary steps to do wide publicity about creating awareness among customers that in case they are not happy/satisfied they can approach Branch Manager, followed by GRC and then to Banking Ombudsman. In lieu of the recommendations as per RBI Circular (RBI/2007-08/309-DBOD. No. LegBC.81/09.07.005/2007-08), Bank will ensure that all final written responses to customers shall contain the mandatory clause to make customers aware of their rights to approach the Banking Ombudsman. The standard draft which requires to be communicated to customers with necessary reference to the website will be mandated to all employees by the Quality Initiatives Group of the Bank. Grievance Redressal Mechanism Quality Initiatives Group  Complaints shall be resolved in a proper and time bound manner with detailed advice to the customer. In case the resolution needs time, an interim response, acknowledging the complaint shall be issued. Customer Complaints received through Emails will be responded through Email Only. Bank’s Email Management Unit will be responsible to provide final resolution response to customers raising complaints via Email.Feedback by way of complaints as well as in structured Customer Service Committee meetings will be analyzed and acted upon. Quality Initiatives Group of the bank will be responsible to drive process improvement in coordination with other functions of the bank. All employees at the customer facing channels and other support departments will be periodically trained in handling of complaints.The internal mechanism for recording and resolution of complaints shall operate smoothly at all times and shall be monitored on daily basis. In this direction, the Bank shall establish a Complaints Management Cell within the Quality Initiatives Group of the bank to monitor on a regular basis the complaints logged in Nexstep CRM software. To ensure adequate closure of Customer Complaints and to improve Resolution of Complaints within the defined TAT, bank shall institute 2 Level Escalation Boards. Level 1 Escalation Board – To meet Weekly Senior Escalation Board – To meet Monthly The quality of customer service rendered by the Bank shall be reviewed / examined by Bank’s Top Management at regular intervals. The same shall also be discussed in the meeting of the Standing Committee on Customer Service and will be reported to the Customer Service Committee of the Board of Directors. Various elements of the Grievance Redressal Policy will be elaborated in the form of a detailed procedure which shall be reviewed on a quarterly basis. “QUESTIONNAIRE” 1. On a scale of 1 to 5 where 1 represents "Extremely dissatisfied" and 5 represents "Extremely satisfied," how would you rate your level of overall satisfaction with SBI ? 1 2 3 4 5 2.Why do you say that? What specifically are you satisfied or dissatisfied with SBI? Enter response below… .  3.How likely are you to recommend SBI to a friend or relative? Would you say the chances are … Excellent Very Good Good Fair Poor 4.How likely are you to repurchase products and services from SBI? Would you say the chances are … Excellent Very Good Good Fair Poor 5.How would you rate the overall quality of your relationship with SBI, considering all of your experiences with them? Would you say it is … Excellent Very Good Good Fair Poor 6.About how long did you have to wait before speaking to a representative? I was taken care immediately Within 3 minutes. 3-5 minutes 5-10 minutes. 7.About how long did it take to get this problem resolved? Immediate resolution Within a day. 1-3 days  Problem still not resolved. 8.Repetation of same problem Yes No Sometimes The same questionnaire was done for the HDFC bank. After analyzing the questionnaire and the survey among the exsisting customers of both the banks it has been realized that CRM IN PUBLIC SECTOR BANKS: Most CRM initiatives have been in the private sector where a working definition of CRMwould be:“to maximise the value of customers to the organisation by efficient acquisition, retention and penetration of customers”. CRM in the public sector bank is a relatively recent phenomenon. Here, the definition of CRM is usually “to improve levels of services to citizens whilst optimising cost to serve”. However, in many ways the public sector model is similar to the private sector model, except that the former usually lacks the profit motivation, the competitive dimension, and the day-to-day “service management” activities are fewer. The service management stages are: Pre-sales or pre-relationship targeting and management. Welcoming. Fulfilment of product or service. Managing dissatisfaction. Winback of lost or disenchanted customers. CRM Service Processes This type of process consists of sub-processes with direct customer interaction designed for a complete coverage of the customer process. The following processes can be distinguished: Campaign Management:-  Campaign management is the core marketing process, which puts the ideas ofrelationship marketing into practice. It can be defined as planning, realization andcontrolling of marketing activities directed at already known recipients. Sales Management:- The aims of sales management are to find out the needs of potential or existing customers as comprehensive as possible, to advice the customer on possible alternatives for the satisfaction of the identified needs, to provide the customer with an offer, and to close a contract as the final step. Service Management:- Service management can be referred to as planning, realization and controlling of services offered in the after-sales phase. Complaint Management Complaint management is about receiving, processing and communicating the dissatisfaction articulated by the customer throughout the customer process. PRESSURE FOR CHANGES IN PUBLIC SECTOR: The range of public services is wide and varied, from paid-for services, such as leisure club membership, to traditional services such as those provided in education, health and policing. However, in many ways the public sector model is similar to the private sector model, except that the former usually lacks the profit motivation, the competitive dimension, and the day-to-day “service management” activities are fewer. The service management stages are: �� Pre-sales or pre-relationship targeting and management �� Welcoming �� Fulfilment of product or service �� Managing dissatisfaction �� Winback of lost or disenchanted citizens Governments in many developed countries have introduced "Citizen charter" type initiatives. While these set out with the best intentions, designed to make public sector departments more accountable and service focused, the initiatives live or die by the targets that are set, and the measures that are employed. We have carried out  assessments all over the world and those carried out in the Public Sector have shown real issues with Measurement and Target Setting, and this provides a major focus WHAT PREVENTS EFFECTIVE PUBLIC SECTOR CRM? Audience selection: Unlike private sector banks, most public sector ones cannot choose the people they serve. In fact, they often have to target citizens who may qualify for the service or benefit, but who resist approaches from public service departments. This raises significantly the cost of acquisition and of continuing service. This means public sector banks face unique CRM Challenges that are less common in the private sector. For instance, the cost of Providing service to old, infirm and disabled “customers” is one that few private sector CRM programmes have to contend with. Vendors and integrators have little or no experience of designing and delivering CRM to support such programmes. There are high moral and political disadvantages if such groups are overlooked or experience worse service. As in the private sector, public sector organisations are often poorly coordinated across departments and geographies, internally and with each other (the interagency problem). Optimising one part of customer management may increase overall costs and impair the customer experience. There is also a resource problem. The public sector has rarely developed resources to design, build and optimise CRM. Where they have, their best people are often enticed away by higher salaries from the private sector. This is likely to lead to a widening skills gap. Public sector organisations are starting to understand that CRM philosophy involves not just technology but also changes to the proposition, the way service is delivered, integration of access and delivery channels, improved data, different measurement systems and a new way of managing people. In the public sector, only very senior managers can achieve these kinds of change. Leadership tends to be slower to make decisions and act, and this will make it difficult for public sector organisations to manage CRM programmes as suggested in Chapter 7. Lower levels of pay, lower calibre managers, low status or job esteem and a costminimisation culture have created a public sector culture that gives a low priority to customers. Chapter 5 shows the significance of people and organisation issues  in delivering effective customer management. A major cultural shift is required in most public sector organisations to deliver CRM through people. In the private sector, databases are often developed as independent initiatives by separate departments. Over time, their integration into an organisation-wide database becomes commercially justifiable – it helps the company achieve commercial benefits of improving customer value cost-effectively. Issues such as value optimisation motivate the public sector less, and there is usually little history of cross-agency or interdepartmental cooperation. There is also less appetite to understand and optimise the organisation’s data capabilities within data protection and privacy constraints. All this suggests that public sector CRM is more likely to be a follower than a leader in terms of using customer data. There is a strong measurement culture in the public sector, but it tends to be activity and work content-based. There is less experience of process, service and value measures. There is less focus on measures based on the perception of customers concerning the quality of service delivery. Because of the public service culture, which tends to penalise any “bad news” , measures which show negative customer perceptions (e.g. service bottle necks) are often avoided or, if in place, disregarded. Effective CRM requires a strong capability of “honest” measures, measuring current performance and designing and implementing improvements, and then measuring whether the planned improvements – as seen by the company - resulted in improvements as seen by customers. There has been much outsourcing of functions and processes in national and local government, usually to reduce costs or to finance replacements of large IT systems. Outsourcing agreements tend to focus on just one part of the organisation, with performance criteria tightly defined, not usually in customer terms. So outsourcing as usually practiced rarely improves things for customers, and can make it more difficult to re-engineer processes that cross the interface between the client and the outsourcing company.  CRM IN PRIVATE SECTOR BANKS:- There are more banking options than ever these days. Applying a little research and legwork, you can find the banking relationship that you are needing. The following are a few tips to help you to find the 'perfect' banking arrangement: You would want to take a look at what will be crucial to you in a banking relationship. Whenever you expect to be able to create a personalized, long-term relationship with a bank, a smaller, local bank may best suit your needs. Whenever you move around often and expect access to branch offices if you are away, consider a regional or national bank. Check out the branch office where you would be conducting most of your banking business. Are the bank clerks professional and friendly? Are the account officers and/or managers accessible? Are the hours of operation compatible with the hours when you might need to do your banking? Visit different banks' internet sites. That is where you will obtain a sound idea of the types of accounts, available services and rates provided before you enter inside a branch office. Look for a bank that is convenient to your everyday activities. Search for banks that are readily accessible while you go to and from your work or whenever you run your usual errands. Take a look at how you may be banking. In case internet banking and ATM banking interest you, seek a bank that extends those services. Compare interest rates and service charges among banks to make sure you're obtaining the right deal. CONCLUSION From the above survey and the project it can be concluded that CRM is the integral part of the banking system. As a nowadays there is huge competition among the banks to stay in the market there is a constant effort from banks of both the sectors to retain their customers .If the customers are not satisfied they will not be able to carry their activities. But as State Bank Of India is the oldest public sector bank they generally followed a conservative approach in the CRM process, whereas the HDFC bank followed a much aggressive approach to retain their customers. But as the time changes SBI is following new processes to implement CRM in banks. They are employing Relationship manager in almost every branches to solve  customer query. And cross selling of products among the exsisting customer is a common phenomenon in almost every banks.So it may be concluded that in order to withstand in the competition you have to satisfy your customers as they are heart of the business.