RBI announces framework for strengthening grievance redress mechanism in Banks

New Delhi, Jan 29 (KNN) With an aim to strengthen the grievance redress mechanism in banks and nudge lenders to address the customer complaints in a time bound manner, the Reserve Bank of India (RBI) has announced a comprehensive framework.

The central bank’s action follows an increase in customer complaints in the banking industry in the recent years.

The framework comprises enhanced disclosures on complaints to be made by the banks; recovery of the cost of redress of maintainable complaints from the banks against whom the number of complaints received in the Offices of Banking Ombudsman (OBOs) are in excess of their peer group averages; and intensive review by RBI of the grievance redress mechanism.

''The framework intends to, inter-alia, provide greater insight into the volume and nature of complaints received by the banks as also the quality and turnaround time of redressal, promote satisfactory customer outcomes and improved customer confidence, and identify remedial steps to be taken by the banks having persisting issues in grievance redress mechanism,'' the apex bank said in statement on Wednesday.

The central bank added that the redress of complaints will continue to be cost-free for the customers of banks and members of public.

''The framework will come into effect from the date of the circular,'' it added.