RBI Governor Urges Better Bank Customer Service as Complaints Surge
Why in the news
RBI Governor Sanjay Malhotra, at the annual conference of ombudsmen, asked all banks and NBFCs to raise their customer service standards.
Key facts
- Integrated Ombudsman Scheme complaints grew at about 50% CAGR over two years to FY24; processing capacity rose just 25%.
- RBI advice: senior officials should spend time weekly on grievances, and banks should build systems that cut complaint volumes.
- Augmented reality in banking can show financial data on AR dashboards and demonstrate products in client meetings.
Concerns
| Issue | Detail |
|---|---|
| Awareness | Low-income customers may not know they can complain |
| Urban skew | Over 70% of FY24 complaints were urban or metro, so rural and semi-urban users remain underserved |
| Staff decline | Public sector banks lost over 150,000 clerks between 2013 and 2024 |
| Vacancies | About 40% of director-level posts in PSBs unfilled, per government data in Parliament |
Significance
- Good service supports financial inclusion and customer trust.
Exam angle
- Scheme: RBI Integrated Ombudsman Scheme.
- Current RBI Governor: Sanjay Malhotra.