Over 4 lakh ombudsman complaints; most on playing cards, telephone/e-banking

The Reserve Bank of India (RBI) witnessed a 22.27 per cent rise within the quantity of complaints underneath varied ombudsman schemes throughout April 2020-March 2021, with ATM and debit playing cards, cell banking and bank cards accounting for a bulk of the complaints. The quantity of complaints stood at 4,04,143 through the interval on an annualised foundation.
Chandigarh, Kanpur and Delhi obtained the utmost variety of complaints, the RBI mentioned in its Annual Report of the Ombudsman Schemes for the 12 months 2020-21. The main areas of complaints underneath the schemes pertained to ATM/debit playing cards, cell/digital banking and bank cards, which collectively accounted for 42.74 per cent of the whole variety of complaints as in comparison with 44.65 per cent within the earlier 12 months, the RBI mentioned. It has modified the reporting interval to April-March.
“Complaints relating to credit cards, failure to meet commitments, direct selling agents (DSAs) and recovery agents increased during July 1, 2020 to March 31, 2021 as against July 1, 2019 to June 30, 2020 period, with complaints related to DSAs and recovery agents registering a surge of over 60.66 per cent,” the RBI mentioned.
There have been 60,203 complaints about ATM and debit playing cards, 40,721 about bank cards and a couple of,440 in opposition to DSAs and restoration brokers.
Within the whole complaints, the shares of complaints associated to ATM/debit card, cell/digital banking and bank card acquired throughout July 1, 2020 to March 31, 2021 stood at 17.40 per cent, 12.98 per cent and 12.36 per cent, respectively. The corresponding proportion of complaints in opposition to these grounds throughout July 1, 2019 to June 30, 2020 have been 21.97 per cent, 13.38 per cent and 9.30 per cent, respectively, the RBI mentioned.

ExplainedMajor areas reportedUnder the assorted ombudsman schemes, the RBI famous in its report that the majority complaints pertained to ATM/debit playing cards, cell/digital banking and bank cards. In alignment with the change within the monetary 12 months of the RBI from ‘July-June’ to ‘April-March’, the amount of complaints replicate a 22.27 per cent rise on an annualised foundation.

RBI information exhibits that Chandigarh acquired the utmost complaints (28,019) throughout July 1, 2020 to March 31, 2021, accounting for 10.26 per cent of the whole complaints, adopted by Kanpur (21,168) and New Delhi (18,767), accounting respectively for 7.75 per cent and 6.87 per cent of the whole complaints acquired by the 22 Offices of Banking Ombudsman (OBOs).
Continuing the development and owing to large quantity of complaints acquired on the ombudsman workplaces of Chandigarh and New Delhi, the North zone accounted for the utmost share of complaints (43.10 per cent) in 2020-21, adopted by the West zone (24.35 per cent) and the South zone (19.18 per cent). East zone (13.37 per cent) continued having the least share of complaints. In phrases of progress of complaints, the West zone registered the very best year-on-year progress at 13.51 per cent, adopted by North zone (12.65 per cent) and East zone (9.00 per cent) and South zone (4.73 per cent).

The banking ombudsman scheme accounted for 90.13 per cent of the whole complaints (2,73,204) acquired underneath the three ombudsman schemes. The variety of complaints acquired in opposition to NBFCs and digital transactions stood at 8.89 per cent and 0.98 per cent, respectively, of the whole variety of complaints.
The total disposal charge improved to 96.59 per cent from 92.52 per cent within the earlier 12 months, regardless of increased quantity of complaints, which may be attributed to the end-to-end digitisation of criticism processing in CMS (Complaint Management System), the central financial institution mentioned.
Regarding NBFCs, the RBI mentioned the foremost areas of complaints have been non-adherence to Fair Practices Code, non-observance to RBI instructions and levy of fees with out prior discover, accounting for 75.32 per cent of the complaints as in comparison with 63.23 per cent within the earlier 12 months. The total disposal charge improved to 96.59 per cent from 92.52 per cent within the earlier 12 months, regardless of increased quantity of complaints.