RBI issues framework for strengthening grievance redress mechanism in banks

The Reserve Bank of India (RBI) on Wednesday put in place a framework for strengthening the grievance redress mechanism in banks.The framework comprises enhanced disclosures on complaints to be made by the banks; recovery of the cost of redress of maintainable complaints from the banks against whom the number of complaints received in the Offices of Banking Ombudsman (OBOs) are in excess of their peer group averages; and intensive review by RBI of the grievance redress mechanism.




“The framework intends to, inter-alia, provide greater insight into the volume and nature of complaints received by the banks as also the quality and turnaround time of redressal, promote satisfactory customer outcomes and improved customer confidence, and identify remedial steps to be taken by the banks having persisting issues in grievance redress mechanism,” the RBI said. The central bank added that the redress of complaints will continue to be cost-free for the customers of banks and members of public.

Also read: MPOWER Financing raises a $25M investment round to increase educational access for International and DACA students

“Reserve Bank will undertake, as a part of its supervisory mechanism, annual assessments of customer service and grievance redress in banks based on the data and information available through the Complaint Management System, and other sources and interactions,” as per the framework. The Reserve Bank said it has taken various initiatives over the years for improving customer service and grievance redress mechanism in banks.