RBI asks banks to tackle repeat customer complaints, fix gaps in grievance systems
The Reserve Bank of India (RBI) has directed banks to identify and address systemic, process, and operational gaps that lead to recurring customer complaints. The regulator urged banks to conduct root-cause analyses to reduce repeat grievances and called for stronger capacity building and improved grievance handling mechanisms. Over 1.33 million complaints were received under the ombudsman scheme in FY25.
What this means
This directive underscores the RBI's increasing focus on customer protection and operational efficiency. Banks will need to invest further in technology and training to proactively identify and resolve common issues, improving customer satisfaction and reducing potential regulatory penalties.
Most affected: Bank operations, customer service, compliance departments
Key takeaway: Prioritize a thorough review of internal grievance mechanisms and invest in technology to perform root-cause analysis and reduce complaint recurrence, or face closer RBI scrutiny.
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