RBI Strengthens Grievance Redressal Mechanism in Banks-Disclosures to be given in Annual Report

RBI Strengthens Grievance Redressal Mechanism in Banks-Modified disclosures to be given in Annual Report

Today, RBI issued a comprehensive framework comprising of 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 of banks having persisting issues.

The redress of complaints will continue to be cost-free for the customers of banks and members of public.

Banks are currently required to make disclosures regarding customer complaints and grievance redress in their annual report. According to the latest directions, the disclosures have been modified and now banks are required to disclose number of complaints received by the bank from its customers and their disposal and pendency at the year end. Also Banks shall disclose number of maintainable complaints received by the bank from Offices of Banking Ombudsman (OBOs) and how they had been resolved.

Banks shall also disclose top five grounds of complaints received by the bank from customers. These ground could be as under:

1. ATM/Debit Cards

2. Credit Cards

3. Internet/Mobile/Electronic Banking

4. Account opening/difficulty in operation of accounts

5. Mis-selling/Para-banking

6. Recovery Agents/Direct Sales Agents

7. Pension and facilities for senior citizens/differently abled

8. Loans and advances

9. Levy of charges without prior notice/excessive charges/ foreclosure charges

10. Cheques / drafts / bills

11. Non-observance of Fair Practices Code

12. Exchange of coins, issuance / acceptance of small denomination notes and coins

13. Bank Guarantees/Letter of Credit and documentary credits

14. Staff behaviour

15. Facilities for customers visiting the branch/adherence to prescribed working hours by the branch, etc.

16. Others

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