RBI Ombudsman Reports Surge in Banking Complaints: Here’s How to Address Your Issues

Complaints to RBI Ombudsman rise 32.81% from April 2023 to March 2024, with loan-related grievances topping the list. Online complaints dominate, reflecting customer awareness. The RBI addressed fairness in loan interest practices.

Loans and Advances at the Center of Complaints

The RBI Ombudsman Scheme saw a significant rise in complaints during the 2023-24 period, with a 32.81% increase in banking grievances. A total of 9.34 lakh complaints were filed, suggesting a surge in customer dissatisfaction or greater awareness of the Ombudsman service.

The most common complaints, accounting for 29.01% of all grievances, were related to loans and advances. These issues saw an increase of 42.70% compared to the previous year, signalling growing concern over loan-related services.

Rising Complaints in Digital Banking and Credit Cards

Complaints related to mobile and net banking rose by 32.61%, and credit card grievances increased by 23.95%, highlighting a rising demand for transparency and better service in these areas.

Nearly 65% of complaints filed with the RBI Ombudsman during this period were submitted online. This shift indicates that customers are increasingly turning to digital platforms to resolve their issues with banks and financial institutions.

Senior Citizens at the Forefront of Complaints

Senior citizens and individuals, especially, have become increasingly vocal in lodging complaints, with a notable rise of 24.09% in complaints from this demographic between 2022-23 and 2023-24.

The RBI has uncovered instances of unfair practices by some banks, such as prematurely charging interest and collecting payments incorrectly, which contributes to customer dissatisfaction.

Efficient Resolution with High Disposal Rates

The Ombudsman offices resolved 2.84 lakh complaints in 2023-24, achieving a high disposal rate of 95.10%. A majority of the complaints resolved were settled amicably, demonstrating the effectiveness of the scheme in resolving disputes.

Most complaints were directed against public sector banks, accounting for 38.32% of all issues. However, private sector banks also contributed significantly, making up 34.39% of total grievances.

How to Register a Grievance With the RBI Ombudsman?

The RBI’s Integrated Ombudsman Scheme applies to institutions regulated by the central bank, including scheduled commercial banks, urban cooperative banks, non-banking financial companies (NBFCs), and non-scheduled primary co-operative banks with deposits exceeding ₹50 crore.

You have several options for filing a complaint with the ombudsman. You can submit your complaint online via the RBI website. Alternatively, you can call the toll-free number 14448 for assistance, or physically mail the completed form to the ‘Centralised Receipt and Processing Centre’ located in Chandigarh.

Conclusion

The significant rise in complaints to the RBI Ombudsman reflects a growing awareness among customers about their rights and avenues for resolution. With a high disposal rate and accessible complaint-filing methods, the Ombudsman Scheme continues to be an effective tool in addressing and resolving banking issues. Customers are encouraged to use these channels to ensure their grievances are heard and resolved promptly.

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