Customer complaints to RBI Ombudsman rise to 2.96 lakh in FY25

RBI Governor Sanjay Malhotra at the RBI headquarters

Customer grievances filed with the Reserve Bank of India's (RBI) Ombudsman Offices saw a marginal increase in FY25, reaching 2.96 lakh complaints, up from 2.93 lakh in the previous fiscal year, according to the RBI's annual report released on May 29.

The majority of these complaints were directed against banks, followed by non-banking financial companies (NBFCs), other non-bank system participants, and credit information companies (CICs).

Common issues raised by customers pertained to loans and advances, as well as digital banking products, areas that continue to be particularly vulnerable to customer dissatisfaction.

The RBI attributed the steady rise in complaint volumes to growing consumer awareness and outreach. During the year, the central bank conducted 47 townhall meetings and 239 awareness programmes, specifically targeting user groups such as students, senior citizens, and women.

These initiatives were supported by thematic public campaigns focusing on topics such as Aadhaar-enabled payment systems, how to lodge complaints, and safeguards against digital frauds.

Looking ahead, the RBI has outlined a series of measures under its Utkarsh 2.0 strategy to strengthen its consumer protection framework during FY26.

According to the RBI report, the initiatives include a comprehensive review of the Reserve Bank-Integrated Ombudsman Scheme (RB-IOS), 2021, with the aim of streamlining operations and enhancing efficiency.

The central bank also plans to develop a Centralised Complaint Processing Centre and strengthen contact centres to improve grievance handling across the financial system.

An upgraded Complaint Management System (CMS) is also on the cards to ensure greater consistency, faster turnaround times, and an improved user experience, the report said.

The RBI Ombudsman Scheme was first introduced in 1995 to provide customers with an effective and affordable grievance redressal mechanism against banks and financial institutions regulated by the Reserve Bank of India.