The Reserve Bank today set up a committee under the chairmanship of former Sebi chairman M Damodaran to suggest ways for improving customer services at banks.

"The committee will review the existing system of attending to customer service in banks -- approach, attitude and fair treatment to customers from retail, small and pensioners segment," RBI said in a statement. The apex bank has also invited all stakeholders to send in their suggestions by July 15.

The committee has been mandated to review the role of the bank directors and the role of regulators in customer service matter. RBI said the committee would evaluate the existing system of grievance redressal mechanism at banks, and recommend measures for expeditious resolution of complaints.

"The committee may also lay down a suitable time-frame for disposal of complaints including last escalation point within that time frame," RBI said. Besides, the panel has been mandated to recommend ways of making the functioning of the Banking Ombudsman Scheme more effective and responsive.

RBI said in view of the increasing use of IT and the Internet for banking, the committee would also suggest ways to enhance consumer protection and leveraging technology with proper legal safeguards.

It called upon all stakeholders, including academics, social/consumer organisations and NGOs to offer their suggestions on "this subject of social and economic importance and help in making the committee's task purposeful and holistic".