Loan disputes, mobile banking complaints up in FY24

Shopper complaints towards banks rose in FY23-24, with points associated to loans, digital banking, and deposit accounts main the cost. The highest 5 grievance classes for FY2023-24 got here from loans and advances, cell banking, deposit accounts, bank cards, and ATM/debit playing cards, which collectively accounted for 87.24% of complete grievances, up from final 12 months, RBI stated within the annual report of the Ombudsman scheme. Solely ATM and debit playing cards complaints eased.Complaints towards banks and non-banking monetary firms (NBFCs) rose 33% in 2023-24 with the Reserve Financial institution of India strengthening the patron grievance mechanism giving buyer safety one among its high priorities.

Loans and advances associated complaints had been essentially the most in FY24 and grew 42.7% to 85,281 complaints, whereas cell and digital banking associated complaints grew 32.6% on 12 months to 57,242

Equally, cell and digital banking points elevated 32.6%, pushed by failed transactions and glitches as digital banking adoption grew.

Additionally, complaints about deposit accounts rose 34.45%, typically tied to delays and surprising prices.

Bank card disputes climbed 23.95%, with billing errors and fraud topping the listing.ATM and Debit playing cards complaints fell 15.7%, making it the one class with a decline. Out of the complaints obtained at Ombudsman places of work, complaints towards personal sector banks grew 37% in 2023-24 over the previous fiscal to 1.01 lakh, whereas complaints towards public sector banks grew 10.3% to 1.13 lakh. Grievances towards banks — each private and non-private sector banks — had been essentially the most, accounting for 72.7% of the entire complaints obtained at Ombudsman places of work, whereas complaints towards NBFCs had been 14.5% of the entire complaints.

The Reserve Financial institution – Built-in Ombudsman Scheme (RB-IOS) supplies an alternate grievance redress mechanism for expeditious and cost-free grievance redressal of buyer complaints that haven’t been satisfactorily redressed by the regulated entities or the place the complainants haven’t been replied to inside a interval of 30 days.

The central financial institution’s built-in Ombudsman scheme adopts “One Nation One Ombudsman” precept and supplies a single window for decision of complaints towards the regulated entities together with banks, NBFCs), fee system members and credit score data firms.

Out of two.94 lakh complaints, 65% or 1.92 lakh had been obtained by the grievance portal, whereas 23.6% of the complaints had been obtained by e-mail, information confirmed.

The RBI disposed 2.84 lakh complaints through the 12 months, disposing 95% of the entire complaints in FY24. It had disposed 98% of complete complaints the earlier 12 months.