India’s banking ombudsman system recorded 194,021 complaints in FY23–24, marking a significant reduction from the previous year but also showing a notable rise in maintainable or actionable cases, according to the Reserve Bank of India (RBI)’s annual report on the integrated ombudsman scheme (IOS). The share of complaints against private sector banks rose to 37.53% in FY24-25 from 34.39% in FY23-24, while complaints against public sector banks (PSBs)—previously the highest—fell to 34.80% from 38.32% over the same period.
"The ombudsman scheme’s proactive approach, exemplified by the ombudsmen’s ability to identify systemic issues, has driven corrective measures at regulated entities and spurred regulatory interventions. These actions not only address immediate concerns but also foster long-term enhancement in service quality, consumer trust, and financial stability," says Neeraj Nigam, executive director (ED) of RBI.

Out of the 290,567 complaints disposed by the ORBIOs during FY24-25, 62.16% or 180,621 complaints were disposed as maintainable complaints. Of these maintainable complaints, 93,752 complaints or 51.91% were resolved in favour of the complainant through mutual settlement, conciliation or mediation. About 78,323 or 43.36% complaints were rejected by RBI ombudsmen, 8,510 or 4.71% were withdrawn by the complainants and 36 complaints were disposed of by passing awards.
The central bank attributed the decline in overall complaints largely to the phasing out of an older scheme and improved grievance handling by banks, even as customer dissatisfaction around digital payments, cards, ATM failures and service deficiencies remained key drivers of filings.
Although fewer complaints were received, the share of cases requiring ombudsman directions increased slightly. RBI issued directions in 0.39% of complaints, compelling banks to take corrective measures where necessary. The regulator added that such directions often involved operational lapses, delayed responses or failure to follow fair banking practices.
RBI says 37% of all complaints were rejected as non-maintainable, a sharp improvement from 52% in FY21–22, indicating that a larger portion of grievances now fall within the ombudsman’s jurisdiction and meet procedural requirements. Complaints were rejected mainly due to early filing or being outside the scheme’s scope, showing better consumer awareness and improved quality of submissions.
ATM and cash withdrawal issues continued to be among the biggest pain points, accounting for 13% of all complaints, second only to digital transaction-related grievances. Customers most frequently reported card-not-returned incidents and unsettled ATM transactions, highlighting persistent glitches in card and ATM infrastructure despite increasing digital adoption.
The report shows that banks and non-bank entities used the opportunity of ombudsman intervention to settle matters early. A striking 89% of complaints were disposed through mutual settlement, with only 0.44% requiring monetary compensation. The low compensation share, RBI notes, does not necessarily indicate low grievance severity but reflects the system’s design that prioritises corrective action and redress over punitive remedies.
RBI’s latest overhaul of complaint classification rules has contributed to clearer categorisation of grievances. Under revised guidelines, the number of complaint categories was reduced from more than 200 to just 118, improving consistency and reducing ambiguity. Common categories such as ATM issues, internet and mobile banking failures, UPI problems, card-related disputes, loan mis-selling and account servicing errors now account for most submissions.
On the operational front, the report emphasised that the ombudsman system delivered substantially faster turnaround times. Nearly half of all complaints were disposed within 30 days, compared to only 34% the previous year. The proportion of delayed cases—those pending beyond 45 days—fell sharply to 0.69%, reflecting efficiency improvements and better digital processing under the centralised complaint management system (CMS).
The geographical distribution of complaints showed expected trends: high-population, high-banking-penetration zones accounted for a large share of filings. The western, northern and southern zones continued to lead in complaint volumes, while the smallest inflows came from the northeastern states. RBI acknowledged that awareness levels and digital literacy significantly influence complaint patterns.
The regulator also stressed the need for banks to reduce reliance on the ombudsman by improving internal grievance resolution. Large volumes of complaints involving failed digital payments, ATM errors and billing disputes—much of which could be resolved at the bank level—continue to burden the system.