RBI Reports Surge in Consumer Complaints, Escalating Digital Grievance Trend

The Reserve Bank of India (RBI) announced a 13.55% rise in consumer complaints during FY 2024-25. The Integrated Ombudsman Scheme report reveals increased digital grievances, improved efficiency in complaint disposal, and growing concerns over loans and credit card issues. Banks accounted for 81.53% of complaints filed.

In its latest annual report under the Integrated Ombudsman Scheme, the Reserve Bank of India (RBI) has highlighted a notable increase in consumer complaints, with 13.34 lakh grievances recorded in the fiscal year 2024-25. This marks a 13.55% uptick compared to the previous year, driven by an uptick in digital complaints and concerns surrounding loans, credit cards, and digital fraud.

The Centralised Receipt and Processing Centre (CRPC) dealt with 9.11 lakh complaints, while 2.96 lakh grievances were directly submitted to Offices of the RBI Ombudsman (ORBIOs) via the Complaint Management System. Despite the growing numbers, ORBIOs achieved an impressive 93.07% clearance rate, addressing 2.90 lakh complaints throughout the year.

Loans and advances accounted for the largest share of grievances at 29.25%. Credit card issues rose sharply by 20.04%, becoming the second-largest category of complaints. Complaints related to mobile and electronic banking, however, saw a 12.74% decline. Private sector banks surpassed public ones, contributing 37.53% of total complaints. A significant shift towards digital grievance channels was noted, with 91.22% of ORBIO complaints lodged online or via email.

(With inputs from agencies.)