 "Consumer complaints against banks increase by 8.5 % in 2013-14: RBI")
Thirty-two per cent of the total complaints were against State Bank of India (SBI) and its associate banks, 32 per cent against other public sector banks, 22 per cent against private sector banks; and 6.5 per cent against foreign banks.
Complaints pertaining to failure to meet commitments and non-observance of fair practices code topped the list at 26.6 per cent.
“A large number of complaints in this category indicate the lack of awareness about these codes among bank staff, as also customers. It also reveals the lack of banks’ commitment to adhere to agreed terms and conditions. There is a need for banks to devote special attention to this aspect and provide appropriate training to their front-level staff regarding these codes,” RBI said in its annual report on the Banking Ombudsman Scheme.
Complaints on cards were as high as 24.1 per cent. However, there was a 0.9 per cent decline in card-related complaints over the previous year.
Some of the main reasons for complaints registered in this regard included issue of unsolicited cards, authorisation of loans over phone, skimming of cards, fraudulent withdrawal using debit/credit cards, etc.
The other complaints registered were with regard to levy of charges without prior notice, delays in sanctioning loans, non-payment of inward remittances, etc.
There were 24,368 complaints registered against SBI and its associates and 24,391 complaints against other public sector banks. In the private bank space, the highest number of complaints were against ICICI Bank - 5,325. On the other hand, 3,357 complaints were recorded against Standard Chartered Bank, the highest among foreign banks.
The BOS scheme was introduced by RBI in 1995 to ensure the customer’s grievances against banks are redressed. Out of the total complaints received in FY14, as much as 96 per cent of the complains were addressed.