Credit Cards Woes form Largest Chunk of Complaints for Private Banks, Mobile Banking for Public Sector Banks: Report
The largest share of public sector banks' (PSBs') complaints is for mobile banking while for private banks, it is for credit cards, brokerage firm Elara Securities said.
Customer complaints rose 68% year-on-year (y-o-y) in FY22-23, with 6.69 complaints per 100,000 accounts.
Most complaints are from Chandigarh, Delhi, Haryana, Rajasthan, and Gujarat, which are 3.0x the national average.
Complaints from rural and semi-urban centers are on the rise—they form more than 30% of overall, Elara Securities said.
More than 85% of complaints are aimed at banks and PSBs form a larger proportion at 43% in FY22-23 but down from 51% in FY21-22. Private banks (32% of overall) and small finance banks (SFB [4%]) have seen a rise in complaints.
Among lenders, NBFC saw the sharpest rise, from 7% in FY21-22 to 14% in FY22-23, primarily from non-adherence to the Fair Practice Code, and credit cards form the largest chunk of complaints for private banks, loans and advances for SFB and mobile banking for PSBs.
Customer complaints and grievances are behind a slew of regulatory actions undertaken by the Reserve Bank of India (RBI) in recent times, Elara Securities said.
The central Bank has formed a medium-term Strategy Framework for 2023-25, Utkarsh 2.0, wherein it aims to review, consolidate, and update the extant regulatory guidelines on customer service. A committee was set up to probe them and submitted a report, recommendations of which are being examined for implementation.
"While it is difficult to ascertain actions with certainty, these datapoints does indicate directions and highlight key monitorables especially when seen in backdrop of recent RBI regulatory actions," Elara Securities said.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article. 
2 weeks ago
It is time for the regulator to think of thresholds for tolerance. Omission is an error and commission is a blunder. Ignorance cannot be a bliss in the financial sector. Today's human resources in banks know more technology than banking and more a system than a customer. No wonder, customer complaints have been on the rise in almost all the banks and FI. The difference is in volumes and numbers and they moved to billions of rupees and most are not recoverable from the errand as they will far exceed the PF, pensio and perks that one draws, from the manager to messenger.
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