Which of the following describes the most accurate service standard regarding the 'Right to Privacy' under the charter of customer rights in the Indian banking sector?

Evaluate these statements based on RBI's Charter of Customer Rights: Statement 1: The 'Charter of Customer Rights' issued by the RBI enshrines five basic rights: Right to Fair Treatment, Right to Transparency, Right to Suitability, Right to Privacy, and Right to Grievance Redressal and Compensation. Statement 2: The 'Right to Suitability' implies that the bank must ensure that the financial products being sold to a customer are appropriate for that customer's financial status, age, risk appetite, and needs. Statement 3: Sells of high-risk mutual fund to a 90-year-old pensioner who requested a safe fixed deposit conforms to the 'Right to Suitability'.

A retail customer visits a bank branch to close their fixed deposit prematurely due to a medical emergency. The bank staff informs the customer that a penalty of 1 percent will be deducted. However, the customer points out that at the time of booking the deposit, the terms and conditions explicitly mentioned that no penalty would be levied for medical emergencies. The bank manager insists that the internal policy changed subsequently and new rules apply. Identify the correct legal standing in this situation.