Enhancing Local Language Proficiency in PSBs Staff: Government Measures Explained
Public Sector Banks (PSBs) play a crucial role in delivering financial services across India’s diverse linguistic landscape. To ensure smooth, customer-friendly communication, the Government of India has highlighted several initiatives to strengthen local language proficiency in PSBs staff. A recent Rajya Sabha reply dated 2 December 2025 outlines how banks are improving recruitment, training, and grievance management related to language proficiency.
Why Local Language Skills Are Important in PSBs
India’s banking customers come from varied linguistic backgrounds. For many, their comfort and confidence in interacting with bank staff depend heavily on communication in their regional language. Strengthening local language proficiency helps in:
- Better customer service at branch level
- Increased financial inclusion
- Faster issue resolution
- Enhanced customer trust and satisfaction
Recognizing this need, PSBs and the Ministry of Finance have taken structured measures to build a linguistically capable workforce.
Recruitment Measures to Improve Local Language Proficiency
1. State-wise Recruitment of Customer Service Associates (CSAs)
PSBs conduct recruitment of CSAs through IBPS, which holds examinations in 13 regional languages in addition to English and Hindi. Candidates selected for a particular State or UT must clear a Local Language Proficiency Test (LPT).
This ensures that frontline banking staff can communicate effortlessly with customers in their native language.
2. Introduction of Local Bank Officers (LBOs)
To further strengthen regional representation, banks have begun recruiting Local Bank Officers (LBOs). These officers:
- Are selected specifically for a particular State/Region
- Must qualify the Local Language Proficiency Test
- Are posted strictly within the State/UT they applied for
This move ensures priority to local candidates who naturally possess strong language skills, ultimately improving customer experience.
Training for Officers Recruited on a Pan-India Basis
While CSAs and LBOs are hired for specific regions, other officers are appointed on an all-India basis and may be transferred across the country. To support them:
- PSBs conduct online and offline language training programmes
- Workshops are organized to improve communicative regional language skills
- Officers are encouraged to build basic and functional fluency to serve local customers effectively
This systematic training ensures no region faces language barriers in service delivery.
Customer Outreach and Grievance Redressal Measures
In addition to recruitment and training, PSBs undertake multiple initiatives to maintain high customer service standards and resolve language-related concerns:
- Customer service meets for direct interaction
- Doorstep banking services to assist customers with limited mobility
- Engagement of Business Correspondents who are typically local residents
- Call centres for multilingual support
- Robust grievance redressal and feedback systems
- Compliance with RBI guidelines on customer service
These measures help monitor issues arising from language gaps and ensure timely resolution.
Conclusion
The Government of India and Public Sector Banks have implemented a structured framework to enhance local language proficiency in PSBs staff. From LPT-based recruitment to region-specific postings, and from intensive training modules to customer outreach initiatives, every step aims to make banking more accessible and customer-friendly across all States and Union Territories.
By prioritising local language skills, PSBs not only strengthen service delivery but also promote deeper financial inclusion and trust among millions of customers.