RBI reports: Complaints against banks up 32.8%

New Delhi|Despite all the efforts of RBI and the government, customer complaints against banks and financial institutions are not decreasing. A total of 9.34 lakh complaints have been received in FY 2023-24. This is 32.8 percent more than in 2022-23. The highest number of 85,281 complaints were lodged by debt-carrying customers, up from 59,762 in 2022-23.

A recent RBI report noted that the number of complaints against mobile and electronic banking increased from 43,167 to 57,242. The number of complaints relating to deposits and other accounts increased from 34,481 to 46,358.  The number of complaints regarding credit cards increased from 34,151 to 42,393.  However, complaints regarding ATM-debit cards dropped from 29,925 to 25,231.

According to the report, the amount of fine imposed on banks has doubled in a year. RBI has imposed a fine of Rs 86 crore on all banks in 2023-24 by taking 281 actions. These banks were fined Rs 40 crore in 211 cases in 2022-23.

Despite increasing complaints, people are keeping huge amounts of money in banks and that too in savings accounts. On an average, interest on savings account is available at the rate of only three percent every year.

There are total deposits of 63.41 lakh crore in the savings account of banks, which means they are getting three percent interest. Of this, 41.83 lakh crore are deposited in government, 20.24 lakh crore in private and 57,827 crore in foreign banks.

More interest is available on term deposits. Therefore, there are 132.46 lakh crore deposits in such accounts. There are deposits of 79.13 lakh crore in government, 45.49 lakh crore in private and 6 lakh crore in foreign banks.

In view of the irregularities found in granting gold loans (including top-up loans), RBI has advised the monitored entities to comprehensively review their policies, procedures and practices on such loans. This will help in identifying loopholes and initiating appropriate corrective measures in a timely manner.