Sharp rise in banking complaints; RBI calls for immediate action
In response to the rising grievances, RBI Governor Sanjay Malhotra has urged banks to enhance their internal grievance redressal mechanisms and prioritize customer satisfaction.
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As per the latest report from the RBI (Reserve Bank of India), the banking sector in India is witnessing a significant hike in customer complaints. In the financial year 2023-24, banks received over 1 crore complaints, with Reserve Bank of India stepping in to fix 57 per cent of the cases. Additionally, complaints under RBI’s Integrated Ombudsman Scheme reached 9.34 lakh, growing at an alarming rate of 50 per cent per year.
Sanjay Malhotra, RBI Governor has asked banks to enhance their internal grievance redressal mechanisms and prioritise customer satisfaction, in response to the rising grievances.
Key concerns and RBI’s directives
- Sharp increase in complaints – 9.34 lakh complaints registered in 2023-24 under RBI's Integrated Ombudsman Scheme, which is increasing by 50 per cent every year
- More than 1 crore banking complaints – In the financial year 2023-24, banks received more than 1 crore customer complaints, out of which RBI had to intervene in 57 per cent of the cases.
- Emphasis on improving customer experience – The Governor said that the banking sector should focus on increasing customer satisfaction so that complaints are reduced.
- Asking for KYC repeatedly is unnecessary hassle – If the customer has already submitted KYC to a financial regulatory body, then it is not right to ask for it again.
- Banks' internal complaint redressal system should be strong – Banks should resolve complaints at their own level so that customers do not have to go to RBI Ombudsman.
- Avoid misclassification – Do not do wrong reporting to show less number of complaints, this will not solve the problem.
- Senior officials have to pay attention to complaints – MD, CEO, Zonal and Regional Managers and Branch Managers of banks should take time out for complaint redressal every week or daily.
- Faster and better solutions with AI – The governor focused on increasing the use of AI so that complaints can be resolved faster.
Benefits of Artificial Intelligence:
• Fast classification – Separating complaints that can be resolved immediately and complex ones.
• Access to the right department – The complaint reaches the right team as soon as possible.
• Data analysis – Identifying recurring problems.
• Assistance in local languages – with AI chatbots and voice recognition.
9. Data security is also important with AI – Confidentiality, fairness and transparency have to be taken care of.
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