RBI Deputy Governor Swaminathan J has asked banks and financial institutions to improve their internal complaint handling systems. He pointed out that many customer complaints reaching the RBI Ombudsman were never addressed by the institutions first. As per the updated rules from July 1, customers must first raise complaints with the concerned bank or NBFC.
Data shows that complaints increased by 13.55% in FY25, reaching 1.33 million. Chandigarh reported the highest complaint rate, much higher than the national average. Most complaints were related to loans and advances. For the first time since FY21, private banks received more complaints than public sector banks, while complaints against NBFCs also increased.
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