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RBI guidelines: Taking your complaint lightly will cost banks, RBI brought new guidelines

Banks will no longer be able to take customer complaints lightly. Rather, banks may be competing to reduce customer complaints. In fact, Reserve Bank has issued a new guideline to settle customer complaints.




Banks will no longer be able to take customer complaints lightly. Rather, banks may be competing to reduce customer complaints. In fact, Reserve Bank has issued a new guideline to settle customer complaints. Under which, on receiving more complaints against a bank, banks will suffer financial losses. Because whatever is the cost related to the disposal of the complaint related to the bank with more complaints, the Reserve Bank will compensate it only from the bank concerned. However, on hearing the complaint from the customer, no charge will be taken as before. It is also a matter to keep in mind that this system is currently connected to banking complaints and this guideline is not yet applicable on complaints against any other institution.

What is the new guidelines of the Reserve Bank What is the new guidelines of the Reserve Bank

Under the new policy of Reverse Bank, the expenses of hearing complaints against banks will be recovered from the bank. This policy will be applicable to banks on the basis of more complaints. The decision will be taken on the basis of the complaint lodged with the bank customer Ombudsman. Top 5 complaints related to which service will also have to be given. If complaints continue to increase, the bank’s complaint settlement will be reviewed. There will also be a review of the functioning of the Customer Service Committee of the bank. It will also be seen how serious the management is on the complaints. After review, the bank will prepare an action plan by the RBI. Banks have to implement the action plan within the stipulated time frame. Regulatory action will be taken over the bank if not applicable within the prescribed limit. The average expenditure on hearing complaints in 2018-19 was Rs 3145. Within the scope of the guideline, all banks except the regional rural bank will be banks. The guideline will be deemed applicable from 27 January 2021. Banks will give more disclosure on complaints in their annual report.

What will be the scale of recovery of complaints expenses What will be the scale of recovery of complaints expenses

  • Scale 1-branch complaint exceeds average complaint
  • Scale 2-Number of complaints received per thousand accounts
  • Scale 3-average 1000 digital transactions

How will the settlement cost be recovered How will the settlement cost be recovered

  • Expenditure of more then 30% on any one scale
  • More then 60% of expenditure on any two scales
  • Recovery of entire expenditure over average on three
  • Recovery per complaint will be fixed on average cost per year

Banks will give more disclosure on complaints Banks will give more disclosure on complaints

  • On complaints received by myself
  • How many unsolved complaints remained at the beginning of the year
  • How many new complaints will come in the beginning of the year
  • You have to tell how many complaints have been resolved
  • It is also necessary to tell how many complaints were rejected
  • Banks will also tell the remaining complaints at the end of the year

On complaints from ombudsman on complaints from ombudsman

  • How many complaints from Ombudsman were worth hearing
  • Ombudsman’s decision in favor of bank on how many complaints
  • How many complaints were settled through the reconciliation agreement in the year
  • Complaints in which Ombudsman decides against bank
  • Cases in which Ombudsman’s orders are not followedWhich cases apply to complaints
  • ATM / debit card
  • Credit Card
  • Internet / Mobile / Electronic Banking
  • Difficulty opening / closing accounts =
  • Miss selling / Para banking
  • Recovery Agent / Direct Sales Agent
  • Pension of senior citizens etc.
  • Loans and advances
  • Without notice charge / over charge / foreclosure charge
  • Check / draft / bill
  • Non-adherence to Fair Practice Code
  • Complaint of changing coin / not taking small note coin
  • Bank Guarantee / Letter of Credit
  • Staff behavior
  • Services / working hours etc. in the branch
  • Any other complaint
  • What bothers bank customers more

Complaint part

  • ATM / Debit Card 21.96%
  • Mobile / Electronic Banking 13.38%
  • Non-adherence to Fair Practice Code 11.73%
  • Credit Card 9.30%
  • Promise Khalifa 8.11%

How to complain to RBI

  • The easiest system is RBI’s CMS
  • CMS: Complaint Management System
  • Go to RBI website and find CMS
  • Https://www.rbi.org.in/Scripts/Complaints.aspx
  • What should you give the complaint against by giving your details
  • CMS will itself go to the concerned organization
  • Banking Ombudsman can also complain by post

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