RBI Governor urges focus on improving customer service

RBI Governor Sanjay Malhotra is worried about the increase in customer complaints at banks and non-bank financial companies (NBFCs). He wants the CEOs and top management of these institutions to focus more on customer service and resolving issues promptly. Malhotra spoke at an annual conference in Mumbai. He emphasized that many complaints go unresolved and escalate to the RBI Ombudsman. He encouraged bank leaders to spend time each week addressing customer grievances. He believes successful CEOs prioritize these matters. The complaints handled under the RBI's Integrated Ombudsman Scheme have surged. In the last two years, the number of complaints increased significantly, reaching 9.34 lakh in 2023-24. The RBI Ombudsman processed nearly 2.94 lakh complaints in the same period, up from 2.35 lakh the previous year. Additionally, Malhotra advised banks and NBFCs not to repeatedly ask customers for identification documents. He explained that once a customer submits their details and updates them with one financial institution, other regulated entities should be notified. This will simplify the process for customers and reduce unnecessary requests.