Customer service of high standard and quality implemented through the use of modern technology helps banks succeed in the competitive world of retail banking. RBI has come out with broad guidelines by framing `Fair Practices Code on lenders liability' to be implemented by all the banks to improve customer service. The biggest challenge that the banks face is the protection of privacy and dignity of the customers in the electronic age.

Banks are commercial institutions whose chief activity is to borrow money from those entities that have surplus cash and lend money to those entities which are deficient in cash, at different rates of interest. They depend on individuals and commercial establishments for carrying out business with money. Under retail banking activity, banks have to deal with a large number of individual accounts whose account size is very small when compared to the account size of corporate entities.

The individual customer is the presiding deity for banks in the field of retail banking. All the products and services are designed and offered to satisfy the financial needs of the customers. The customers belong to different economic, educational, cultural and social backgrounds. Hence the products and services offered are also varied. Through out the world it has been felt that main focus of the banks in the retail sector should be customer service. It is the acceptance by the customers of the banking products and his satisfaction with the services that bring profit for the banks in this sector. Unlike corporate banking where corporate customers have a well-defined financial policy and projects, in retail banking the onus lies on the banks to approach the customers, find out their financial needs and problems, design the products and services, market them and finally sell them to the satisfaction of the customer

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