RBI Ombudsman Complaints Surge Amid Rising Grievances Against Private Sector Banks

The Reserve Bank reported a 13% increase in consumer complaints under the Ombudsman scheme for FY25, with a notable rise against private banks and small finance banks. However, complaint growth slowed compared to FY24. Complaints about loans and advances were the most common, though grievances about mobile/electronic banking declined.

The Reserve Bank announced on Monday a 13% surge in consumer complaints under its Ombudsman scheme for FY25. This increase in grievances is primarily against private sector lenders and small finance banks, according to a recent report by the central bank.

The Reserve Bank Integrated Ombudsman Scheme received 1,334,244 complaints in FY25, up from 1,175,075 in FY24. However, the growth rate in consumer complaints has decelerated significantly from the 33% recorded in FY24, the bank noted.

Grievances related to loans and advances topped the complaint charts for FY25, followed by issues concerning credit cards. Interestingly, complaints about mobile/electronic banking decreased by 12.74% year-on-year. Private sector banks saw the largest share of complaints, representing 37.53% of the total in FY25, slightly up from FY24.

(With inputs from agencies.)