One Third of Banking Complaints About Loan & Advance-related: RBI Ombudsman Report 2023-24

New Delhi, Jan 27 (KNN) The Reserve Bank-Integrated Ombudsman Scheme report for fiscal year 2023-24 received 9,34,355 complaints during this period.

Loan and advance-related grievances dominated the complaint landscape, accounting for 29.01 percent of total complaints with 85,281 cases, marking a 42.70 percent increase from the previous year. 

Mobile and electronic banking issues followed with 57,242 complaints, representing 19.48 percent of the total and a 32.61 percent year-over-year increase. 

Deposit account operations generated 46,358 complaints, while credit card-related issues accounted for 42,329 cases, showing increases of 34.45 percent and 23.95 percent respectively.

The annual report indicates a substantial increase of 32.81 percent in banking customer complaints compared to the previous fiscal year. Of the maintainable complaints, 57.07 percent were resolved through mutual settlement, conciliation, or mediation, while 40.78 percent were dismissed due to the absence of service deficiency.

The RBI's onsite examinations revealed several concerning practices in interest charging by regulated entities. These included premature interest charges from loan sanction dates rather than actual disbursement dates, inappropriate interest calculations for cheque-based disbursements, and incorrect interest charges for partial month loan periods. 

Customer grievances also encompassed unauthorised charges, fraudulent activities, unsolicited credit card issuance, and unresolved merchant disputes, along with issues regarding promotional benefits and arbitrary modifications to card terms.

Geographic analysis of complaint distribution revealed that Chandigarh, the National Capital Territory of Delhi, Rajasthan, Gujarat, and Uttarakhand recorded the highest number of complaints per lakh accounts. 

In contrast, Mizoram, Nagaland, Ladakh, Manipur, and Lakshadweep reported the lowest complaint volumes during FY24, indicating significant regional variations in banking service satisfaction levels.

(KNN Bureau)