RBI Guidelines Push Banks to Offer Services in Regional Languages

The Reserve Bank of India (RBI) has issued comprehensive guidelines to improve customer service in banks by mandating the use of regional languages. Banks have been advised to adopt a Board-approved policy for branch management, including display of indicator boards at counters and providing customers with booklets detailing available services.

All printed materials such as account opening forms, pay-in slips and passbooks must be available in Hindi, English and the relevant regional language. Additionally, banks are required to ensure customer grievance mechanisms are accessible in multiple languages.

Multilingual Support and Digital Channels

To enhance accessibility, banks have introduced multilingual contact centres and digital platforms offering assistance in regional languages. This initiative aims to bridge communication gaps and improve customer experience across diverse linguistic regions.

RBI has reiterated that all customer communications should be issued in a trilingual format, Hindi, English and the local language. These measures are designed to make banking services inclusive and user-friendly for customers in rural and semi-urban areas.

Role of Public Sector Banks and Recruitment Policies

The Department of Financial Services has directed Public Sector Banks (PSBs) to comply with RBI’s instructions on regional language usage. The Indian Banks’ Association (IBA) has also advised PSBs to frame policies for recruiting Local Bank Officers (LBOs) to ensure effective communication with customers.

This approach is particularly important in rural and semi-urban centres where local language proficiency is critical. Recruitment processes now include a Local Language Proficiency Test (LPT) for Customer Service Associates (CSAs) to strengthen front-end interactions.

Impact on Customer Service

The emphasis on regional language integration is expected to significantly improve customer satisfaction and trust in banking services. By ensuring that staff can communicate in local languages, banks can offer personalised assistance and resolve queries more efficiently.

Multilingual support across physical branches and digital channels will help reduce barriers for customers unfamiliar with Hindi or English. These steps align with RBI’s broader goal of promoting financial inclusion and accessibility for all segments of society.

Read More: RBI Releases 2025 List of Domestic Systemically Important Banks.

Conclusion

RBI’s guidelines on regional language usage mark a major step toward inclusive banking in India. With multilingual communication, recruitment of local officers and language proficiency tests, banks are better equipped to serve diverse communities.

Public Sector Banks are actively implementing these measures to enhance customer experience and compliance. The initiative underscores the importance of language accessibility in building trust and improving service delivery across the country.

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