RBI to do annual evaluation of banks’ grievances redressal system

Image Source : FILE PHOTO/PTI RBI to do annual evaluation of banks’ grievances redressal system
The Reserve Bank of India (RBI) will undertake annual evaluation of customer support and grievances redressal mechanisms of banks as a part of its supervisory mechanism. The RBI just lately determined to place in place a complete framework for grievances redressal.
“The Reserve Bank will undertake, as a part of its supervisory mechanism, annual assessments of customer service and grievance redressal in banks based on the data and information available through the Complaint Management System, and other sources and interactions,” stated an RBI notification.
Banks recognized as having persisting points in grievances redressal can be subjected to an intensive evaluation of their mechanisms to higher establish the underlying systemic points and provoke corrective measures.

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The intensive evaluation will embody — adequacy of the customer support and buyer grievances redressal-related insurance policies, functioning of the Customer Service Committee of the Board, degree of involvement of the highest administration in customer support and buyer grievances-related points and effectiveness of the grievances redressal mechanism of banks.
The RBI stated that based mostly on the evaluation, a remedial motion plan can be formulated and formally communicated to the banks for implementation inside a particular time-frame.
“In case no improvement is observed in the grievance redressal mechanism within the prescribed timelines despite the measures undertaken, the bank(s) will be subjected to corrective actions through appropriate regulatory and supervisory measures,” it stated.
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