Context:
The Finance Ministry on Wednesday urged public sector banks and insurance companies to expedite the resolution of public grievances.
Resolution of Public Grievances in Banking
The resolution of public grievances in banking is crucial for ensuring consumer satisfaction and maintaining trust in the financial system. India has established several frameworks and regulatory mechanisms to address complaints and disputes related to banking services.
Banking Ombudsman Scheme and RBI’s Consumer Protection and Complaints Redressal Mechanism
- Banking Ombudsman Scheme
- Initiated by RBI in 1995 to settle complaints against banks.
- Covers all commercial banks, regional rural banks, and co-operative banks of India.
- RBI’s Consumer Protection and Complaints Redressal Mechanism
- RBI’s “Consumer Protection” division ensures banks adhere to fair practices and customer-centric norms.
- Complaint resolution process involves filing a complaint with the Grievance Redressal Officer of the bank.
- National Consumer Helpline (NCH)
- It is an initiative of the Department of Consumer Affairs. NCH provides a platform for consumers to escalate unresolved issues.
- NCH Toll-Free Number: 1800-11-4000 (toll-free) and 14404.
- Banking Codes and Standards Board of India (BCSBI)
- BCSBI is an autonomous body, which lays down the standards for customer service for banks.
- BCSBI has formulated a Code of Bank’s Commitment to Customers, specifying basic rights of customers and the responsibility of banks.
