Paper
CGAP Consumer Protection Policy Diagnostic Report: India
Assessing consumer protection policy for low-income consumers in India
45 pages
This report presents findings from an assessment that CGAP carried out in collaboration with an independent consultant on the Indian consumer protection policy environment for low-income and/or inexperienced customers. It focuses on branchless banking models that can serve poor and marginalized people.
The report examines technologies and processes used in agent-based models in India, in the context of customer protection and comfort. Recommendations include:
- Banks should identify problems related to use of technology and using agents, and accordingly set up supervision and monitoring systems that examine transactions and processes;
- Banks should institute monitoring practices independent of government requirements;
- There should be greater emphasis on client-side research to understand issues that customers face;
- Due diligence should be exercised when selecting correspondents, call centers, and recovery agents;
- Selection of banking correspondents should focus on whether the correspondents would be able to represent the bank adequately;
- Banks should make customers aware of how best to use banking services;
- Complaint procedures should be simple and responsive with systems in place for lodging complaints orally over the phone and/or in person.
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