RBI Tightens Guidelines to Boost Regional Language Services in Banks; PSBs Told to Hire Local Officers

The Reserve Bank of India (RBI) has strengthened its framework for customer service by directing banks to significantly expand the use of regional languages across all touchpoints. The move aims to make banking more accessible and ensure that customers, especially in rural and semi-urban regions, can engage with banks in their local languages without barriers.

According to the latest guidelines, banks must adopt a structured, Board-approved policy that governs the general management of branches and the delivery of customer services. This includes mandatory display boards at all counters, customer information booklets detailing available services, and easy access to all essential documents—such as account opening forms, pay-in slips, passbooks and grievance redressal details—in Hindi, English and the relevant regional language.

The RBI has also emphasised multilingual support across digital channels and customer contact centres, enabling customers to seek assistance in their preferred language. In its communication to Scheduled Commercial Banks, the central bank reiterated that all official communication with customers must invariably be issued in a trilingual format.

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Parallelly, the Department of Financial Services has instructed Public Sector Banks (PSBs) to fully adhere to these directions. To deepen linguistic accessibility, the Indian Banks’ Association (IBA) has advised PSBs to frame policies for recruiting Local Bank Officers (LBOs) who can interact fluently with local customers. This is particularly crucial in rural and semi-urban areas where banking familiarity depends heavily on language comfort.

PSBs have already begun aligning recruitment norms with this requirement. Customer Service Associates (CSAs), who form the primary front-line interface in branches, are now required to clear a Local Language Proficiency Test (LPT) for the official language of the state or union territory where they will be posted. This ensures seamless communication at the counter level and improves service quality.

The details were shared by Minister of State for Finance Pankaj Chaudhary in a written reply to the Rajya Sabha, highlighting the government’s continued focus on promoting inclusive and customer-friendly banking practices.