RBI releases framework for strengthening the grievance redress mechanism in banks
RBI had announced in the ‘Statement on Developmental and Regulatory Policies’ issued as part of the Monetary Policy statement dated December 4, 2020 that with a view to strengthen and improve the efficacy of the grievance redress mechanism of banks, a comprehensive framework will be put in place during January 2021.
Accordingly, a framework comprising of i) enhanced disclosures on complaints to be made by the banks; ii) 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 iii) intensive review by RBI of the grievance redress mechanism of banks having persisting issues in their redress mechanism has been issued today.
The redress of complaints will continue to be cost-free for the customers of banks and members of public.
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 framework will come into effect from the date of the circular.
