Reserve Bank of India ombudsman resolves 95% of complaints in FY24
Delhi, Jan 26, 2025
Complaints rise 32 per cent in FY24
The Reserve Bank of India (RBI) resolved 95 per cent of complaints received under the Reserve Bank-Integrated Ombudsman Scheme (RB-IOS) between April 1, 2023, and March 31, 2024.
According to the annual report of the Ombudsman Scheme for this period, a total of 9,34,355 complaints were lodged under RB-IOS. These complaints were handled by the Offices of the RBI Ombudsman (ORBIOs) and the Centralised Receipt and Processing Centre (CRPC).
The RBI’s Integrated Ombudsman Scheme recorded a 32.81 per cent increase in complaints from banking customers during the financial year ending March 2024. As per the report, 57.07 per cent of maintainable complaints were resolved through mutual settlement, conciliation, or mediation, while 40.78 per cent were dismissed due to the absence of any service deficiency.
Loans and advances accounted for 85,281 complaints, representing 29.01 per cent of the total complaints—a sharp increase of 42.70 per cent compared to the previous year. Mobile and electronic banking issues generated 57,242 complaints (19.48 per cent of the total), marking a 32.61 per cent rise from the previous year. Complaints related to the opening and operation of deposit accounts totalled 46,358 (15.77 per cent), reflecting a 34.45 per cent increase, while credit card-related issues accounted for 42,329 complaints (14.40 per cent), showing a 23.95 per cent rise year-on-year.
During its onsite examination of regulated entities for the period ending March 31, 2023, the Reserve Bank identified several instances of unfair practices in interest charging. These included cases where banks began charging interest from the date of loan sanction or the execution of the loan agreement, rather than from the actual date of fund disbursement to the customer. Similarly, in loans disbursed via cheque, some lenders charged interest from the date the cheque was issued, even though it was handed over to the customer days later. In other cases, when loans were disbursed or repaid mid-month, some entities charged interest for the entire month rather than for the actual duration the loan was outstanding.
Additionally, customers raised concerns about inaccurate or unauthorised charges on their statements, fraudulent activities, unsolicited issuance of credit cards, and unresolved disputes with merchants. Other complaints included the non-receipt of promised rewards and promotional benefits on credit cards, as well as arbitrary changes to card terms and conditions.
Regionally, Chandigarh, the National Capital Territory of Delhi, Rajasthan, Gujarat, and Uttarakhand emerged as the top five contributors to complaints received at ORBIOs per lakh accounts (deposit and credit). On the other hand, Mizoram, Nagaland, Ladakh, Manipur, and Lakshadweep reported the lowest number of complaints during FY24.
[The Business Standard]
