RBI Governor Malhotra Presses Banks and NBFCs on Customer Grievances
Why in the news
Governor Sanjay Malhotra voiced serious concern about the rising tide of customer complaints and told regulated entities (REs) to improve grievance systems without delay.
Key facts
- Complaints under the RBI Integrated Ombudsman Scheme rose about 50% annually for two years.
- 934,000 complaints arrived in FY24.
- The RBI Ombudsman handled 294,000 complaints in FY24, up 25% on FY23.
- Roughly 57% needed formal intervention or mediation.
- Scheduled commercial banks got over 10 million complaints in FY24.
Directions to regulated entities
- CEOs, MDs, zonal heads and branch managers must set aside time weekly or daily for grievances.
- Aim to stop issues recurring, not only to close cases.
- Large REs should run multi-level redress systems with escalation to senior decision-makers.
Problem areas
| Area | Message |
|---|---|
| KYC | Do not ask customers repeatedly for documents; enable Central KYC Records Registry (CKYCRR) integration at once |
| Digital fraud | Growing cases hitting unsuspecting customers |
| Misselling and aggressive recovery | Adopt ethical practices and protect customers |
Role of AI
- AI can transform grievance redress at every step from lodging to resolution, building efficient, data-driven systems.
Exam angle
- Governor: Sanjay Malhotra.
- Scheme: RBI Integrated Ombudsman Scheme.
- Registry: CKYCRR.