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<keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword>'s ombudsmen should ensure that consumer complaints are resolved quickly and in a fair manner, <keyword id="30067" type="General" weightage="80" keywordseo="rbi" source="Orion">RBI</keyword> Governor <keyword id="6359111" type="General" weightage="80" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> said on Friday. Addressing the Annual Conference of <keyword id="8494679" type="General" weightage="80" keywordseo="rbi-ombudsmen" source="Orion">RBI Ombudsmen</keyword> in Jodhpur, he said that the RBI ombudsmen and regulated entities (REs) must identify the root causes of persisting customer complaints and take necessary systemic measures to correct them. The central bank governor said he was concerned about rising customer grievances, despite the RBI's efforts to resolve them. Some specific areas which have reported most complaints, include mis-selling, disproportionate service charges, and very high penal rates. Das also raised the matter of intimidating tactics used by representatives of financial institutions, citing media reports. He also expressed concern over various methods of payment frauds being used by undesirable entities like phishing, vishing, fake links and websites, and remote-access apps. "What is of concern is that still a large number of complaints pertain to traditional banking," Das said. "This calls for serious review of the working of the customer service and grievance redress mechanism in the regulated entities," he added. The root cause of the persistence of such grievances should be analysed and corrective measures taken, Das emphasised. At the same time though, he added that the ombudsman offices should be sensitive and judicious in their approach. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/apple-surges-to-add-178-billion-in-market-value-as-4th-quarter-earnings-help-drive-a-turnaround-in-the-stock-market/articleshow/95153518.cms">Apple surges to add $178 billion in market value as 4th-quarter earnings help drive a turnaround in the stock market</a> <a href="https://www.businessinsider.in/stock-market/news/the-fed-will-hike-rates-too-far-and-tip-the-global-economy-into-a-recession-survey-of-economists-says/articleshow/95151308.cms">The Fed will hike rates too far and tip the global economy into a recession, survey of economists says</a> <a href="https://www.businessinsider.in/thelife/news/see-inside-an-almost-1-million-prefab-tiny-home-village-near-seattle-trying-to-solve-the-ongoing-homelessness-crisis/slidelist/95153993.cms">See inside an almost $1 million prefab tiny home village near Seattle trying to solve the ongoing homelessness crisis</a>

Consumer complaints need to be resolved quickly, says RBI Governor

<ul><li>An <keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword> Committee on customer service standards has proposed setting up of a common complaints portal where customers of any regulated entity can lodge their grievances.</li><li> No need for multiple KYC verifications suggests the committee. Says required documents can be kept in a centralised database instead.</li><li>RBI panel proposes setting up of a dedicated phone line for senior citizens to address their queries on services. </li><li>Lenders must compensate customers if they lose the original home agreement of customers and take responsibility for getting certified copies of the same.</li></ul>Have a complaint against your bank which is not getting resolved? Worry not. The <keyword id="50847" type="General" weightage="80" keywordseo="reserve-bank" source="Orion">Reserve Bank</keyword> of India, plans to come to your rescue by cracking the whip on entities that fail to resolve grievances. The regulator intends to adopt a carrot and stick approach to ensure better service standards. Social media platforms are rife with consumers complaining about service quality banks with some alleging that even writing to the ombudsman does not yield any resolution. In view of rising complaints by customers, the Reserve Bank of India, which regulates banks and non-bank lenders, appointed a committee last year to review customer service standards. The committee’s report, submitted on 6 June, has listed out several recommendations to improve the quality of customer service and grievance redressal mechanism. The Committee, after extensive deliberations with diverse stakeholders, has since submitted its report and now seeks comments of stakeholders and members of the public. The RBI surveyed over 5,000 customers to understand the areas where the maximum complaints were ariting from. It found that maximum complaints pertained to account operation services at 22.0%, and internet or mobile banking came second at 16.3% and ATM or CDM facilities accounted for 16.2% of complaints. The RBI committee has proposed several constructive measures to ensure that consumers are not held to ransom by lenders. <cmsannotation type="cmsannotation" annotationid="The new proposals" comment="subhead" text="The new proposals">The new proposals</cmsannotation> For starters, the committee proposes the setting up of a common complaints portal where customers of any regulated entity can lodge their grievances. The Reserve Bank Complaint Management System (CMS) portal would be brand agnostic so that the customers of any lender can lodge a complaint. The portal would then allocate the complaint to the respective RE at the back-end. The central bank offers customers the option to escalate their complaints to an internal ombudsman if grievances are not resolved. However, the committee has said that in order to increase the effectiveness of the Internal Ombudsmen (IO) appointed in the regulated entities, the Reserve Bank may nudge the Indian Banks’ Association (IBA) to create a fund to directly pay the salary / compensation to the IOs of the banks. Similar funds can be created by respective Self-Regulatory Organisations (SROs) for other categories of regulated entities. Alternatively, the Reserve Bank itself may consider creating the fund. Cost of the above fund, thus created, may be recovered from the REs, in proportion to the complaints against them referred to the IOs. The central bank is currently aware of the challenges that consumers face and that the system is focused on complaints and not their redressal. The RBI committee on customer complaints has said that in case of loss of property documents, the regulated entities should not only be obligated to assist in obtaining certified registered copies of the documents at their cost but also compensate the customer adequately, keeping in view the time taken to arrange the alternate copies of the documents. The committee has also recommended setting up of dedicated telephone numbers by lenders where the senior citizens can call for clarifications, queries and / or guidance with respect to service that they are eligible to avail/want to avail. India has 13.8 crore senior citizens and of this many are immobile, the RBI committee wants to ensure that they are not left out of the financial system. <cmsannotation type="cmsannotation" annotationid="The KYC headache" comment="subhead" text="The KYC headache">The KYC headache</cmsannotation> If you are a customer of any bank or non-bank lender, chances are you would have had to repeatedly provide KYC documents at regular intervals. Now RBI’s committee has recommended that entities should maintain a centralised database of KYC documents of all customers, linked to a unique customer identifier, say the Customer Information File (CIF), obviating the need for submitting KYC documents repeatedly for availing multiple facilities from the same RE. Whenever KYC documents are updated by the customer, the same should be reflected for all other facilities availed by the customer from the RE. The regulator is cognisant of the changing landscape of financial services and high levels of digitisation. Currently, banks limit the debits in saving accounts. Basic Savings Bank Deposit Account (BSBDA) holders are allowed four free debit transactions in a month. In order to give a fillip to digital transactions, the Committee has recommended that transactions undertaken through Unified Payment Interface (UPI) may be kept outside the stipulated limits on debit transactions in saving bank accounts, including Basic Savings Bank Deposit Accounts. The Reserve Bank may develop and publish a “Customer Service and Protection Index” with a view to capture, at the system level, the quality / standards of customer service and extent of customer protection in the REs through a single score.

Have a complaint against your bank? Here’s how RBI plans to resolve your grievances

Mumbai, Dec 17 () Complaints to banking ombudsman rose by nearly 20 per cent to over 1.96 lakh during 2018-19, with non-adherence to fair practices accounting for the highest number of cases, RBI data released Tuesday showed.
Non-observance of fair practices code accounted for a maximum number of complaints, the Reserve Bank of India (RBI) said in the Annual Report of Ombudsman Schemes for 2018-19.
The complaints received at Offices of Banking Ombudsman (OBOs) rose by 32,311, taking the total to 1,95,901 complaints in 2018-19 over the previous year (1,63,590), recording a year-on-year increase of 19.75 per cent, the Reserve Bank said.
Even as complaints related to unfair practices topped the list, the percentage share came down to 19.17 per cent in 2018-19 from 22.10 per cent a year ago.
Complaints on ATM and debit card issues increased from 15.08 per cent in 2017-18 to 18.65 per cent in 2018-19; while those related to pension, levy of charges without notice, credit card related issues and remittance declined during the year, the RBI said.
The number of complaints pertaining to mis-selling have gone up from 579 complaints in 2017-18 to 1,115 in 2018-19, an increase of 92.57 per cent.
"The average cost of handling a complaint came down from Rs 3,504 in 2017-18 to Rs 3,145 in 2018-19," it said.
The disposal rate for 2018-19 was 94.03 per cent as against 96.46 per cent in 2017-18. The reduction in disposal rate is largely due to rise in volume of complaints with resource remaining the same, the central bank said.
The RBI said that during the year, the number of complaints resolved by agreement like through intervention of OBOs, mediation and conciliation among others rose 70.40 per cent from 65.82 per cent a year earlier.
Number of awards and appeals issued by banking ombudsmen stood at 98 and 78, respectively, as compared to 133 and 125, respectively a year earlier.
With relation to NBFC-O scheme which came to effect on February 23, 2018, as many 3,991 complaints were received, as against 675 in four months operation during 2017-18.
The scheme is administered from offices of the NBFC-Os in four metro centres Chennai, Kolkata, Mumbai and New Delhi for handling complaints from the respective zones, so as to cover the entire country. 
Non-adherence to fair practices code constituted 40.44 per cent of complaints received, followed by non-observance of RBI directions (17.21 per cent), levy of charges without notice (12.63 per cent) and lack of transparency in contract / loan agreement (9.17 per cent).
The disposal rate of NBFC-Os stood at 95.41 per cent in 2017-18 and 99.10 per cent in 2018-19. The RBI said one appeal has been received against the decision of NBFC-O during 2018-19, as compared to nil in the previous year.
Among the important developments during the year, RBI said that the Ombudsman Scheme for Digital Transactions was introduced on January 31, 2019 and the NBFC-O scheme was extended with effect from April 26, 2019 to cover the regulated non-deposit taking NBFCs having asset size of Rs 100 crore and above.
On the way forward for strengthening consumer protection, RBI said that during the ongoing fiscal, it would conduct a review of IO Scheme for extension to NBFCs.
It will also review the Consumer Education and Protection Cells (CEPCs) for empowering them on the lines of OBOs; review the Ombudsman Schemes for updation and effective implementation including through convergence and formulate policy to strengthen the system based on Root Cause Analysis of major areas of complaint.
The RBI said it will also introduce Interactive Voice Response System (IVRS) in CMS for online support to the customers.
Awareness generation about the grievance redressal mechanisms of the RBI and the Ombudsman Schemes as also campaigns on safe digital banking and the regulatory stipulations on customer protection would be continued, RBI said. KPM MKJ

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Consumer complaints need to be resolved quickly, says RBI Governor

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Have a complaint against your bank? Here’s how RBI plans to resolve your grievances

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Complaints to banking ombudsman rise 20% in FY'19: RBI

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