DFS strengthens grievance redressal mechanism across BFSI sector
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The Department of Financial Services (DFS) under the Ministry of Finance has rolled out a series of measures to streamline and strengthen the grievance redressal mechanism across the banking, financial services and insurance (BFSI) sectors, with the aim of enhancing customer trust and service quality.
As part of the initiative, the Secretary, Financial Services, has been personally reviewing 20 randomly selected grievances every month, allowing citizens to directly raise concerns in the presence of chairpersons, managing directors, chief executive officers and senior management of the concerned institutions. Officials said the exercise has had a positive impact on accountability and customer confidence.
So far, 15 such review meetings have been held, during which 300 grievances were analysed to ensure qualitative resolution. Similar review exercises are also being conducted by Joint Secretaries, while heads of financial institutions have been encouraged to replicate the process within their organisations. The objective is to assess the effectiveness of grievance redressal through a top-level “dip-stick” review mechanism.
DFS has also completed the first round of Centralised Public Grievance Redress and Monitoring System (CPGRAMS) workshops with all Public Sector Banks for 2025. Separate workshops were held with regulators, including the Pension Fund Regulatory and Development Authority (PFRDA) in August and the Reserve Bank of India (RBI) in October, with participation from grievance officers, senior management and ombudsmen. A similar workshop with the Insurance Regulatory and Development Authority of India (IRDAI) and insurance companies is scheduled in Hyderabad on December 19.
To improve customer service at bank branches, Public Sector Banks have been advised to adopt technology-based feedback mechanisms such as voice calls, emails and QR codes. DFS has also introduced performance-based rankings of Public Sector Banks, Private Sector Banks and Public Sector Insurance Companies from June 2025, based on the quality and timeliness of grievance redressal, leading to improved turnaround time and transparency. Rankings for private insurers are under consideration.
In addition, DFS has launched a ‘Financial Institutions Interaction Programme’ from December 2025, under which meetings are held with organisations based on grievances received through the CPGRAMS portal. Non-Banking Financial Companies have been selected for the first phase of this initiative.
