Summary of this article
RBI urges stronger internal ombudsman framework for better complaint resolution.
Banks, NBFCs asked to identify recurring issues and root causes.
Effective grievance redress can reduce complaints reaching RBI Ombudsman.
The Reserve Bank of India (RBI) has urged internal ombudsmen of banks, non-banking financial companies (NBFCs) and other regulated entities to ensure that customer complaints are resolved in a fair, meaningful and effective manner. The central bank highlighted the need for stronger internal grievance redress systems so that customers receive satisfactory resolutions before approaching external forums.
Focus On Fair And Effective Complaint Resolution
Addressing the third annual conference of Internal Ombudsmen on Monday, RBI Deputy Governor Swaminathan J. urged internal ombudsmen to identify recurring issues, carry out root cause analysis and help implement remedial measures to improve customer service.
He also urged boards and senior management of regulated entities to strengthen the internal ombudsman framework and make better use of the insights generated through customer complaints. According to him, a stronger internal review mechanism can improve grievance handling and reduce the number of complaints that reach the RBI Ombudsman or other external forums.
Role Of Internal Ombudsmen
The internal ombudsman serves as the final independent level of review within a regulated entity for customer complaints that remain unresolved or are not fully addressed. Customers can approach the RBI Ombudsman or another external dispute resolution forum after this stage.
Swaminathan has directed that internal ombudsmen should look beyond resolving individual complaints and strive to focus on identifying patterns that point to wider operational or service-related inefficiencies. He also added that addressing the root causes of recurring complaints can help financial institutions improve their systems, reduce future grievances, and act fast towards resolution when such complaints are lodged.
Conference Discusses Grievance Redress
The conference brought together internal ombudsmen from banks, NBFCs, credit information companies (CICs) and other regulated entities. Managing directors, chief executive officers, executive directors responsible for customer service, Principal Nodal Officers, RBI Ombudsmen and senior RBI officials also attended the event.
The discussions covered recent developments in grievance redress, regulatory expectations and insights from the RBI Ombudsman framework. Participants examined ways to improve the speed and quality of complaint resolution while encouraging institutions to address systemic issues that lead to repeated customer grievances.
RBI Executive Director Sonali Sen Gupta interacted with participants during an open-house session that focused on measures to further strengthen the effectiveness of the internal ombudsman framework and improve customer grievance redress across regulated entities.
