Statutory regulatory instructions are set out in letter but sometimes, may not be carried out in spirit. Self-regulation may often be more effective in dealing with deficiencies in service but it has been found that in many cases, it has, by itself, not been a fully effective tool for raising standards of customer service.
To build on the positive features of both the systems, the Committee on Procedures and Performance Audit on Public Services (CPPAPS, 2004) felt that there was a need to benchmark the extant level of public services in the banking sector.