In a major move to make banking more inclusive and customer-friendly, the Reserve Bank of India (RBI) has issued strengthened guidelines mandating far greater use of regional languages across all banking touchpoints. The objective is clear: ensure that every customer—especially in rural and semi-urban India—can access banking services without language barriers.
A New Framework for Customer-Centric Banking
Under the updated rules, banks must implement a Board-approved policy governing customer service, branch management and multilingual communication. The RBI has made it compulsory for:
- All official customer communication to be issued in three languages—Hindi, English and the relevant regional language.
- Branches to display signage, instructions and grievance details in the local language.
- Customer service booklets, passbooks, account opening forms, pay-in slips, and complaint procedures to be available in regional languages.
The guidelines reflect RBI’s push to standardise customer experience and reduce linguistic barriers that often discourage rural customers from fully utilising banking services.
Digital Channels Must Also Support Regional Languages
The central bank has extended the multilingual mandate to digital platforms as well. Banks must now:
- Provide regional-language support on mobile apps, websites and internet banking portals.
- Offer customer assistance in local languages at call centres.
This is expected to boost digital adoption, especially in states where English literacy is low.
Recruitment of Local Officers to Improve Communication
Alongside RBI’s directive, the Department of Financial Services (DFS) has asked Public Sector Banks (PSBs) to actively recruit Local Bank Officers (LBOs) to deliver regionally fluent service. The Indian Banks’ Association (IBA) has echoed this requirement, urging PSBs to create structured policies for recruitment and training.
Crucially, all frontline staff designated as Customer Service Associates (CSAs) must now clear a Local Language Proficiency Test (LPT) before joining branches. This ensures smooth communication at counters—an area where many customer complaints historically originate.
Government Reinforces Push for Accessible Banking
Minister of State for Finance Pankaj Chaudhary shared these details in the Rajya Sabha, reaffirming the government’s commitment to inclusive banking. With these new norms, customers across India can expect clearer communication, improved service delivery and a banking experience better aligned with local linguistic needs.
