Customer complaints are rising, but real crisis is lack of empathy: RBI DG Swaminathan J

Reserve Bank of India

The Reserve Bank of India’s (RBI) Deputy Governor Swaminathan J said that complaints of the customers are rising in recent years, especially through digital channels, but the real issue is lack of empathy among bankers.

“The number of customer complaints—especially through digital channels—has risen significantly in recent years. From social engineering frauds to poor grievance redressal, the loss and frustration is real. Often, the problem is not the product or service—but, as I see it, the real issue is a lack of empathy,” Swaminathan said, while addressing speech at the National Institute of Bank Management (NIBM), Pune.

He added that the industry is seeing increasing automation but decreasing ownership. “Systems respond with templated emails; helplines loop back endlessly. This is not how trust is built, and certainly not how it can be sustained," he said.

According to the RBI’s latest annual report, customer grievances filed with the RBI Ombudsman Offices saw a marginal increase in FY25, reaching 2.96 lakh complaints, up from 2.93 lakh in the previous fiscal year.

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.

Swaminathan also said that today’s banker must find a way to bring back that personal awareness and responsibility, even in a digital context.

“Technology will enable the transaction. But only you can build the relationship and only you can earn the customer’s trust for your institution. Finally, that is what will distinguish a banker from an app,” Swaminathan added.