Dr. Joshi also chairs two meetings on ‘Acquisition of accounts by NARCL’ and ‘Resolution of accounts under the provisions of IBC’

Dr Vivek Joshi, Secretary, Department of Financial Services (DFS), today presided over a workshop on ‘customer service’ attended by MDs/ EDs of banks including that of Public Sector Banks (PSBs).

During the workshop, a few banks presented the initiatives undertaken by them to enhance customer service experience, while constantly monitoring customer feedback via multiple channels, and enabling better contact-center experience.

To capture on-ground pulse of customer experience at PSBs, a detailed customer survey had been conducted through 3 key interventions:

• social listening (capturing voice of customers across 10 digital platforms like X, Facebook, et al);
• customer interviews and surveys; and
• analysis of data submitted by banks (avg wait time of customers at branches/ call center, availability of self-service machines, etc.)

During the workshop, it was emphasised that PSBs can take initiatives across multiple pillars like institutionalised customer service measurement (process efficiency, channel mix, complaint management, etc.), developing a customer centric mindset across entire organisation, adopting technology for improving customer service (embedding technology in product and customer processes) and setting service delivery standards.

Later during the day, Dr Vivek Joshi, Secretary, Financial Services chaired a meeting to discuss the progress of National Asset Reconstruction Company Limited (NARCL). The meeting was also attended by Chairman, SBI; MD & CEO/ EDs of banks, including that of PSBs and Chairmen of NARCL and India Debt Resolution Company Ltd (IDRCL).

During the course of the meeting, NARCL and banks flagged challenges faced by them. It was observed that lenders are required to set up system and processes to efficiently assign potential debt to NARCL. Further, deliberations of processes that could lead to minimising the time taken for acquisition process were done. The issues pertaining to inter-se creditors arising due to differential security structures, additional collaterals, exclusive securities, which lead to longer time frame, were also discussed.

Dr. Joshi also chaired another meeting to deliberate on the status of resolution of accounts under the provisions of IBC. The meeting was also attended by Secretary, Ministry of Corporate Affairs, Shri Manoj Govil; Chairman, IBBI, Shri Ravi Mitall; senior officials of Department of Financial Services and Ministry of Corporate Affairs, Chairman, SBI; MD & CEOs/ EDs of banks including that of PSBs.

During the meeting status of ongoing insolvency cases filed by banks in respect of large accounts was comprehensively discussed. In order to improve efficiency in IBC processes, including, inter-alia, simplifications of applications filed by banks, hiring of more experienced counsels and regular monitoring by bank’s management of high value cases were also deliberated. It was suggested by banks that record of default provided by the National E-Governance Services Limited (NeSL) should be sufficient ground for ascertaining the existence of a default, which will help in expeditious admission of insolvency applications. Banks also flagged the requirement for having a working collaboration amongst banks’ legal teams, NeSL and the Insolvency and Bankruptcy Board of India for swift, efficient and time-bound resolution. It has been decided that MDs of the banks shall monitor all the cases very closely and particularly, top 20 accounts at their level.

IBC process efficiency enhanced through streamlined filings, NeSL default recognition, and mandatory bank monitoring of large accounts. Lenders must establish systems to efficiently assign eligible debt to NARCL and address inter creditor issues caused by differential security structures and additional or exclusive collateral. To expedite insolvency resolution under the IBC, banks should simplify filings, engage more experienced counsel, and ensure regular senior management monitoring of high value cases. Record of default from NeSL was proposed as sufficient evidence of default to facilitate admission of insolvency applications, and enhanced collaboration among banks' legal teams, NeSL and the insolvency regulator was recommended; MDs will closely monitor top accounts.