Reserve bank: service complaints from bank customers rise from 57 pc to over 3 lakh: RBI report



Mumbai: Consumer complaints about banking services jumped 57% to 3.08 lakh for the year through June 30, 2020, the Reserve Bank said on Monday.

In its annual report on mediation programs, the central bank said more than a fifth of complaints were about services at ATMs or with debit cards, followed by mobile or electronic banking at 13.38%. Non-compliance with the Code of Fair Practices (FPC) comes in third place.

Complaints received regarding credit cards, non-compliance with commitments, collection of fees without notice, loans and advances and non-compliance with the standards of the Banking Codes and Standards Board of India (BCSBI) have increased this year by compared to the previous year.

The number of complaints about “direct sales agents (DSA) and collection agents” has increased from 629 complaints in 2018-2019 to 1,406 this year, he said.

The elimination rate decreased slightly to 92.36%, from 94.03% in 2018-19, as increasing complaints had to be handled by the same number of employees, he said.

On the side of non-bank financial corporations, the number of complaints received by the mediation system for non-bank financial corporations increased by 386 percent to 19,432 and the elimination rate stood at 95.34 percent .

The mediation system for digital transactions handled 2,481 complaints during the year, with a maximum of 43.89% related to non-compliance with the RBI code for payment transactions.

Deputy Governor MK Jain said it had been a difficult year for financial consumers vulnerable to the adverse consequences of the pandemic and praised the ombuds offices for being functional during this difficult time.

He also said that the RBI will work to improve the elimination rate in the future.

Governor Shaktikanta Das announced a plan last week to integrate the three bureaus (banks, NBFC, digital payments) into a single ombudsperson for the country.

The share of SBI and nationalized banks in consumer complaints decreased to 59.65 percent from 61.90 percent, thanks to a sharp increase in the share of private banks.

SBI had the largest share of lenders in the number of settable maintainable cases at 48,333, followed by HDFC Bank at 15,004, ICICI Bank at 11,844 and Axis Bank at 10,457.

The complaint processing time has increased to 95 days compared to the 47 days of the previous year and to 45 days for the period January-June 2020, he said.

The Chandigarh office led in manageable complaints in 2019-2020 with 30,574 concerns against less than 21,000 complaints in two ombudsperson offices in Mumbai and around 29,000 in New Delhi.



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