What changed
RBI reinforced earlier circular DBOD.No.Leg BC.60/09.07.005/2006-07 by adding specific requirements: complaint registers must be placed prominently, complaints must be acknowledged, and a time frame for resolution at each level must be fixed. Banks must now also display contact details of grievance officials and escalate unresolved complaints to the Nodal Officer under the Banking Ombudsman Scheme within one month.
What it means for you
Banks must strengthen their internal grievance redressal machinery to ensure fair and expeditious resolution of customer complaints, regardless of source. This includes rural and priority sector complaints. Non-compliance could lead to regulatory scrutiny and customer dissatisfaction, impacting reputation and operational efficiency.
What you must do
- Place complaint registers at a prominent location in every branch for customer entries.
- Acknowledge all complaints received via letters or forms and set clear time frames for resolution at each level.
- Display contact details (name, direct phone, fax, address, email) of grievance officials at branches.
- Escalate unresolved complaints to the concerned Nodal Officer under the Banking Ombudsman Scheme within one month and inform customers of their right to approach the Ombudsman.
- Include complaint data (excluding those resolved within next working day) in financial results disclosure.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Branch managers and customer service teams, Nodal Officers under Banking Ombudsman Scheme, Compliance and legal departments
What is the time frame for escalating unresolved complaints to the Banking Ombudsman?
If a complaint is not redressed within one month, the branch or controlling office must forward a copy to the concerned Nodal Officer under the Banking Ombudsman Scheme and keep them updated on the status.
Are complaints resolved within the next working day required to be disclosed in financial results?
No, banks need not include complaints redressed within the next working day in the statement of complaints disclosed with financial results. This serves as an incentive for quick resolution.
What details must be displayed at branches for grievance redressal?
Branches must prominently display the names of officials to contact for complaints, along with their direct telephone number, fax number, complete address (not Post Box No.), and email address.