Customer Service and Accountability in Indian Banking

The Indian banking sector is undergoing a paradigm shift in customer service, driven by direct interventions from the Ministry of Finance and the Reserve Bank of India (RBI). A recent incident involving a surprise branch visit by DFS Secretary M. Nagaraju highlights the push for accountability and excellence in customer care.

CPGRAMS Revitalization

• CPGRAMS (Centralised Public Grievance Redress and Monitoring System) is now more active than ever.
• Citizens can file grievances via web and mobile (including UMANG app).
• DFS’s rank is currently low (21st) due to many unresolved banking and insurance complaints.

CPGRAMS: India’s Unified Online Public Grievance Redressal System

Overview:

• Full Form: Centralized Public Grievance Redress and Monitoring System
• Developed By: National Informatics Centre (NIC)
• Managed By: Department of Administrative Reforms and Public Grievances (DARPG)
• Availability: 24/7 online portal for citizens

Key Features:

• Purpose:
  • Enables citizens to lodge grievances related to service delivery
  • Integrates all ministries/departments of the Central and State Governments
• Access:
  • Role-based login for officers across government levels
  • Citizens receive a Registration ID to track and file appeals

RBI’s Push for Customer-Centric Banking

• RBI Ombudsman data (FY 2023-24):
  • Complaints grew at 50% CAGR, touching 9.34 lakh.
  • 57% of maintainable complaints required formal RBI intervention.
  • 10 million+ complaints recorded across 95 scheduled commercial banks.
• Maintainable issues include frauds, wrongful charges, foreclosure fees.
• RBI has flagged:
  • KYC updates turning into “HYC – Harass Your Customer”.
  • Misselling of financial products, particularly to rural customers.

BS