For the fiscal year 2023, the Reserve Bank of India (RBI) has recorded a 68.2% increase in complaints filed through its Integrated Ombudsman Scheme (RB-IOS), with a startling 703,000 complaints. This increase is a significant increase over the prior years, when complaints increased by 15.7% in FY21 and 9.4% in FY22.

The central bank credits this dramatic rise to its aggressive public education campaigns and a more convenient complaint filing procedure that enables the public to air their frustrations and worries.

Type of Grievances

The majority of complaints against banks and non-bank payment system players concerned mobile and electronic banking. In contrast, the most common reason for complaints against NBFCs was their failure to follow the Fair Practices Code. A considerable fraction (57.48%) of complaints that could be maintained were settled through mediation, conciliation, or mutual agreement. The remaining complaints were either dismissed, the complainants withdrew their complaints, or decisions were made by passing awards.

Which states received the most complaints?

Delhi, Gujarat, Rajasthan, Haryana, Chandigarh, and Delhi were found to be the main sources of ombudsman complaints. Mizoram, Nagaland, Meghalaya, Manipur, and Arunachal Pradesh, on the other hand, recorded the fewest complaints.

The research demonstrated a wide demographic engagement with the ombudsman scheme by highlighting an increase in complaints from urban, semi-urban, and rural areas.

Eighty-seven percent of all the complaints that the ORBIOs received concerned banks, which were the main target of complaints.

Which complaints were most frequently made?

The report listed a number of common complaint categories, such as fraudulent or unauthorized digital transactions, delays in transaction reversals, unclear loan terms communication, problems with pension resolutions, failure to maintain minimum balance charges, product cross-selling and mis-selling, late credit reporting, and non-compliance with regulatory guidelines by recovery agents.

Managing and Resolving Complaints

Of all the complaints that were received, the Centralized Receipt and Processing Center (CRPC) handled 468,000 complaints, while the Ombudsman office handled 234,000 of them. The first review and processing of complaints received in person is greatly aided by the CRPC, which also contributes to the overall effectiveness of the complaint management system.