Rising Customer Complaints Under RBI's Ombudsman Scheme

Current Affairs National

Posted by newadmin on 2025-01-28 18:46:57 |

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The Reserve Bank of India (RBI) reported a rise in customer complaints under its Integrated Ombudsman Scheme for the fiscal year ending March 2024, with complaints increasing by 32.81% to 934,355. This surge suggests a decline in banking service standards, calling for immediate improvements.

Launched on November 12, 2021, the Integrated Ombudsman Scheme addresses grievances related to banks, non-banking financial companies (NBFCs), payment system participants, and credit information companies. Complaints mainly concerned loans and advances, mobile and electronic banking, and deposit accounts.

Geographically, regions like Chandigarh, NCT of Delhi, Rajasthan, Gujarat, and Uttarakhand had the highest complaint rates, while Mizoram, Nagaland, Ladakh, Manipur, and Lakshadweep had the lowest. A significant number of complaints were about unfair banking practices, unauthorized charges, fraudulent activities, and credit card disputes.

Out of the 934,355 complaints, the RBI Ombudsman resolved 284,355, achieving a 95.10% disposal rate. However, many complaints were found non-maintainable, especially those submitted directly to the RBI without prior lodging with the concerned entity.

Additionally, the Centralised Receipt and Processing Centre (CRPC) saw a rise in complaints, with 766,957 complaints processed, most of which were closed as non-maintainable.

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