The Reserve Bank of India (RBI) Deputy Governor Swaminathan J has asked banks and financial institutions to improve their internal complaint handling systems. He pointed out that many complaints reaching the RBI Ombudsman were not first handled by the institutions themselves.
As per the updated Integrated Ombudsman Scheme (from July 1), customers must first raise complaints with the concerned bank or NBFC before approaching RBI.
Latest data shows:
- Chandigarh has the highest complaint rate in FY25, over 4.5 times the national average.
- Total complaints increased by 13.55% to 1.33 million in FY25.
- Loans and advances are the biggest source of complaints.
- Private banks have received more complaints than public sector banks for the first time since FY21.
- Complaints against NBFCs have also increased.
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