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Published 15:57 IST, January 28th 2025

RBI Ombudsman Scheme Reports a Record 9.34 Lakh Complaints in FY24: These Issues At Top

The Reserve Bank of India’s Integrated Ombudsman Scheme recorded a significant 32.81% rise in complaints in FY24, receiving over 9.34 lakh grievances.

Reported by: Business Desk
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RBI | Image: ANI

The Reserve Bank of India’s ( RBI ) Integrated Ombudsman Scheme (RB-IOS) witnessed a substantial rise in complaints during FY24, underlining the increasing reliance on the central bank’s grievance redressal mechanisms.

A total of 9,34,355 complaints were received, marking a 32.81% increase from the previous fiscal’s 7,03,544 complaints. The surge reflects the growing trust of customers in the RBI’s alternate grievance redressal system, launched in November 2021.

Top Issues Highlighted by Consumers
Grievances related to loans and advances (29.01%), mobile/electronic banking (15.77%), and deposit account operations (14.40%) emerged as the primary issues. Complaints regarding credit cards and ATM/debit cards were also significant contributors, together forming 16.87% of the total complaints received.

Digital Dominance in Complaint Filing
The majority of complaints (88.77%) were lodged digitally via the Complaint Management System (CMS) portal, email, and the Centralised Public Grievance Redress and Monitoring System (CPGRAMS). This is a notable increase from 85.64% in FY23, showcasing the effectiveness of RBI’s push toward digital infrastructure.

Breakdown by Complainant and Regulated Entities
Individuals Lead Submissions: Complaints from individuals, including senior citizens, accounted for the largest share at 87.27% (2,56,527 complaints).
Banks and NBFCs Dominate Grievances: Public sector banks (38.32%) and private sector banks (34.39%) together comprised a majority of the grievances. Complaints against Non-Banking Financial Companies (NBFCs) rose by 29.11% to 42,699, reflecting concerns over fair practices.

Geographic and Demographic Distribution
Metropolitan areas contributed the highest share of complaints at 46.51%, followed by urban (25.13%), semi-urban (18.09%), and rural regions (10.27%). States like Delhi, Rajasthan, and Gujarat reported the highest complaints per lakh accounts, while regions like Mizoram and Ladakh saw the lowest.

Improved Complaint Resolution Rates
The Ombudsman offices disposed of 95.10% of complaints, equivalent to 2,84,355 cases. Of these:
57.07% were resolved through mutual settlement, conciliation, or mediation.
40.78% were rejected due to the absence of service deficiencies.
23 awards were issued, and 2.14% of cases were withdrawn.
The average cost of handling a complaint decreased to ₹1,732, down from ₹2,041 in FY23, indicating efficiency improvements.

Centralised Complaint Handling and Appeals
The Centralised Receipt and Processing Centre (CRPC) processed over 7,66,957 complaints, closing 83.31% as non-maintainable due to reasons such as incomplete information or addressing incorrect authorities. Appeals received during FY24 totaled 82, with 72 filed by complainants and 10 by regulated entities.

Consumer Education and Awareness Efforts
To enhance consumer protection, the RBI launched several initiatives, including:
Awareness Campaigns: Eight SMS campaigns on safe banking and grievance redressal reached over 30 crore individuals.
Regional Outreach: 46 town-hall meetings and 203 awareness programs targeted groups like students and senior citizens.
Educational Booklet: “The Alert Family” was released, offering simple guidance on safe banking practices and fraud prevention.

Policy Initiatives Strengthening Consumer Protection
The RBI introduced regulatory measures during FY24, including:
Aadhaar -based e-KYC guidelines.
Enhanced limits for digital transactions and e-mandates.
A centralized portal for tracking unclaimed deposits.
The issuance of the “Master Direction - Reserve Bank of India (Internal Ombudsman for Regulated Entities) Directions, 2023” aimed to harmonize and strengthen grievance redress mechanisms across regulated entities.

The Road Ahead: Utkarsh 2.0
Under its medium-term strategy, Utkarsh 2.0, the RBI aims to further improve:
Complaint management systems to ensure consistency in outcomes.
Grievance redressal frameworks in banks to proactively address customer issues.
Awareness programs to address low complaint levels in rural and semi-urban areas.

As customer grievances rise in tandem with financial and digital advancements, the RBI’s Integrated Ombudsman Scheme is poised to continue fostering trust and accountability across the banking ecosystem.

Updated 16:06 IST, January 28th 2025