Consumer Complaints on the Rise

According to the annual report of the Reserve Bank’s Integrated Ombudsman Scheme, consumer complaints related to loans and advances have seen a significant 43% increase, marking the largest share among grievances against entities regulated by the RBI. The overall number of complaints received by the ombudsman rose by 33% in FY24, reaching a total of 2.9 lakh.

Breaking Down the Complaints

Out of the total complaints, 85,281 were related to loans and advances, accounting for 29% of the grievances. Mobile and internet banking complaints followed closely with 57,242 cases, making up 19.8% of the total. Deposit account grievances saw a sharp 34.5% increase, totaling 46,358 complaints.

Digital Platforms Lead in Complaint Filing

Digital platforms emerged as the primary mode for filing complaints, with 88.8% of cases lodged through the CMS portal, email, or CPGRAMS, up from 85.6% in the previous year. The share of complaints from metropolitan and urban centers also showed a marginal increase.

Resolution and Costs

The ombudsman disposed of 1.9 lakh maintainable complaints, or 67.8% of the total, with 57.1% resolved through mutual agreement and 40.8% rejected due to the absence of service deficiencies. The average cost of handling a complaint decreased to Rs. 1,732 from Rs. 2,041 in the previous year, indicating an improvement in the complaint conversion ratio across major bank groups.