CGAP Consumer Protection Policy Diagnostic Report: India

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.