INVC NEWS
New Delhi — : The public Sector Banks (PSBs) are under the scanner as the Finance Ministry takes a strict stance against growing complaints of staff misbehavior and poor customer experience. Following a series of customer grievances and viral social media incidents, the ministry has ordered all PSBs to ensure immediate corrective action and review staff conduct thoroughly.
Finance Services Secretary M. Nagaraju has directed top officials at all PSBs to enforce strict adherence to employee conduct guidelines. He emphasized that customer service quality must remain a top priority and that periodic performance reviews of branch managers are now mandatory. These assessments will focus on hygiene, infrastructure, and, critically, staff behavior with customers.
A recent incident in Karnataka involving a State Bank of India (SBI) employee refusing to speak in the local language sparked outrage online. The SBI official later issued an apology after intense public backlash. The bank issued a statement affirming its zero-tolerance policy towards disrespectful behavior and assured commitment to customer dignity.
Nagaraju’s surprise inspections of PSB branches in Delhi revealed severe service gaps. In some branches, the secretary had to wait extended periods to meet managers, while others displayed evident rudeness from staff. The visits highlighted PSBs’ lag in service quality compared to private banks.
To address the issue, PSBs are now integrating AI-powered soft skills training programs aimed at improving frontline staff’s customer interaction. These AI modules simulate real-world scenarios to better prepare employees for dealing with diverse customer needs with empathy and professionalism.
Declining deposit growth and rising customer complaints have driven banks to overhaul service strategies. Senior officials confirm an increased focus on customer engagement using real-time feedback systems and digital monitoring tools.
Punjab National Bank (PNB) Managing Director Ashok Chandra shared that PSBs have launched new systems enabling customers to provide instant service feedback after transactions. This data is directly linked to head offices to evaluate service quality.
The urgency is clear. According to the RBI Ombudsman, PSBs accounted for 38.32% of total customer complaints in FY 2023–24 — the highest among all banking categories. In comparison, private banks faced 34.39% of complaints.
Public Sector Banks are now racing to repair their image, improve soft skills, and earn back the trust of millions of Indian banking customers.
