In a significant revelation, the Reserve Bank of India’s (RBI) Integrated Ombudsman Scheme Annual Report for FY24 highlighted a sharp rise in grievances against entities regulated by the central bank. Loan-related complaints dominated the report, increasing by a substantial 43% compared to the previous fiscal year.
Key Highlights from the Report
Rise in Overall Complaints
The ombudsman received 2.9 lakh complaints during FY24, marking a 33% increase from the previous year. Among these, 85,281 complaints were related to loans and advances, making up 29% of the total grievances—the highest share across all categories.
Grievance Distribution by Category
- Mobile and Internet Banking: With 57,242 complaints (19.8% of the total), this was the second most frequent issue.
- Deposit Accounts: Complaints surged by 34.5%, reaching 46,358 cases.
- ATM and Debit Card Complaints: Interestingly, this category saw a decline of 15%, dropping to 25,231 cases, largely due to the growing adoption of the Unified Payments Interface (UPI).
Source of Complaints
- Digital Channels: A staggering 88.8% of complaints were lodged through online platforms such as the CMS portal, email, and CPGRAMS, up from 85.6% in FY23.
- Metropolitan and Urban Centers: These areas accounted for a marginally higher share of complaints compared to rural regions.
Breakdown of Major Grievances
The five main categories—loans and advances, mobile banking, deposit accounts, credit cards, and ATM/debit cards—accounted for 87.2% of all complaints. While complaints in most categories rose, ATM and debit card grievances were the only ones to decline.
Grievance Redressal Insights
The ombudsman managed to resolve 67.8% of maintainable complaints, amounting to 1.9 lakh cases. Of these:
- 57.1% were resolved through mutual agreement.
- 40.8% were rejected due to the absence of service deficiencies.
Additionally, the average cost of handling a complaint fell to ₹1,732, down from ₹2,041 in FY23, signalling improved efficiency in grievance management.
Implications for Banks and NBFCs
Most grievances were directed toward services provided by banks, while NBFCs accounted for less than 15% of the total complaints. The report emphasized the need for enhanced grievance redressal mechanisms at the institutional level, as the complaint conversion ratio across major bank groups showed scope for improvement.
Kreditbazar: A Reliable Partner for Your Loan Needs
With complaints on the rise, choosing the right lending partner has become more important than ever. At Kreditbazar, we connect you with trusted NBFCs and lending institutions, ensuring a seamless experience for personal loans. Whether you need funds for emergencies, business, or personal goals, Kreditbazar offers pre-approved loan options tailored to your needs.
Source
Information derived from the RBI’s Integrated Ombudsman Scheme Annual Report FY24.
