Strengthening of Grievance Redress Mechanism in Banks: RBI Circular.

29 Jan

Strengthening of Grievance Redress Mechanism in Banks: RBI Circular –  RESERVE BANK OF INDIA – – RBI/2020-21/87 CEPD.CO.PRD.Cir.No.01/13.01.013/2020-21, January 27, 2021.

3. As part of the disclosure initiative, banks were advised to disclose in their annual reports, summary information regarding the complaints handled by them; and certain disclosures were also being made in the Annual Report of the Ombudsman Schemes published by the Reserve Bank. To further strengthen grievance redress mechanisms, banks were mandated to appoint an Internal Ombudsman (IO) to function as an independent and objective authority at the apex of their grievance redress mechanism.

5. In view of the above, and to further strengthen the customer grievance redress mechanism in banks, it has been decided to put in place a comprehensive framework comprising of, inter-alia, enhanced disclosures by banks on customer complaints, recovery of cost of redress from banks for the maintainable complaints received against them in OBOs in excess of the peer group average, and undertaking intensive review of the grievance redress mechanism and supervisory action against banks that fail to improve their redress mechanism in a time bound manner. Details of the framework are provided in the Annex.

click: 28.01.2021 strengthening-of-grievance-redress-mechanism-in-banks-rbi-circular-dated-27-01-2021