What changed
RBI mandates that banks place a statement analyzing customer complaints before their Board or Customer Service Committee, focusing on frequent issues, sources, systemic gaps, and corrective actions. Banks must also disclose pending and resolved complaint numbers, as well as unimplemented Banking Ombudsman awards, in their financial results. Additionally, a detailed complaint statement must be published on the bank's website annually.
What it means for you
This directive forces banks to systematically track and analyze complaints, making grievance redressal a board-level priority. Disclosing complaint data and unimplemented Ombudsman awards publicly increases accountability and may pressure banks to resolve issues faster. For lenders, this means tighter internal processes and potential reputational risk if complaint volumes are high or awards remain unimplemented.
What you must do
- Set up a process to compile and analyze complaint data quarterly, focusing on frequent issues, sources, and systemic deficiencies.
- Present the complaint analysis to the Board or Customer Service Committee for review and action.
- Disclose complaint numbers (pending, received, redressed) and unimplemented Ombudsman awards in financial results.
- Publish a detailed complaint statement on the bank's website at the end of each financial year.
Who it affects
All scheduled commercial banks (excluding RRBs), Board of Directors and Customer Service Committees, Customer grievance redressal teams, Compliance and disclosure departments
What specific complaint data must be disclosed in financial results?
Banks must disclose the number of complaints pending at the start and end of the year, received during the year, and redressed during the year. Also, unimplemented Banking Ombudsman awards at the start and end of the year, awards passed, and awards implemented during the year.
How should the complaint analysis be structured?
The analysis must identify customer service areas with frequent complaints, frequent sources of complaints, systemic deficiencies, and initiate actions to improve the grievance redressal mechanism.
Is the complaint statement required to be made public?
Yes, banks must place the detailed statement of complaints and its analysis on their website for public information at the end of each financial year.