Issues regarding credit and debit cards lead the list of customer complaints received at various banking channels in 2019–20. ATM/debit card-related complaints were the highest at 67,800 cases from bank customers across the country.

There was also a sharp spike in the total number of all consumer complaints about banks failing to ensure fair services in 2019–20. This stood at 3,08,630 compared to 1,95,901 consumers reporting grievances a year ago.



These are the recorded complaints in the banking channels. Many electronic complaints go to the cyber police, but these do not get recorded in this data. Many cases also remain unreported.

Unsolicited cards being issued to consumers without proper due diligence was a big issue, with the Reserve Bank of India (RBI) receiving 28,713 complaints from hassled consumers through its network of ombudsman in the year. This is more than double the number of complaints the banking regulator received in 2017–18.

According to the RBI report on “Trend and Progress of Banking in India”, 12,647 complaints were reported in 2017–18. Complaints related to the use of recovery agents to recover loans from retail customers almost tripled to 1,406 in 2019–20, from 554 a year ago.

“In 2003, lenders were advised not to resort to undue harassment of customers for recovery of loans. Furthermore, in 2015, banks and NBFCs were advised to take a prudent approach in issuing credit cards and independently assess the credit risk involved, especially if potential card holders are students and others with no independent financial means,” the RBI said in the report.

As the pandemic swept the country, banks’ electronic infrastructure failed to satisfy customers with complaints related to electronic transactions rising sharply. Complaints related to electronic banking rose sharply from 8,487 complaints in 2017–18 to 41,310 complaints in 2019–20, according to the RBI report. This category of complaints has risen the sharpest.

Banks failed to keep their commitments. The RBI received 25,036 customer complaints in 2019–20, rising from the 11,044 complaints it had received at the end of FY 2018–19

During 2019–20, digitisation of grievance redressal at the RBI through CMS helped in uninterrupted resolution of complaints filed by customers of regulated entities despite sharp increase in complaints (57.5%) received by the offices of ombudsman and the nation-wide lockdown imposed due to the pandemic.

“In terms of numbers of complaints pertaining to ATM and debit cards, mobile and electronic banking and non-adherence to the Fair Practices Code were the highest in 2019–20. In comparison, during the previous year, complaints related to non-adherence to the Fair Practices Code topped the list followed by those pertaining to ATM, debit cards and mobile and electronic banking,” the RBI said in the report

The RBI said that awareness has assumed a critical role in view of the widening customer base, introduction of technology-based banking products, and growing usage of these products by vulnerable sections of society.

Complaints pertaining to mobile and electronic banking, credit cards, loans and advances, non-adherence to BCSBI code, direct selling agents (DSAs) and recovery agents, and levy of charges without prior notice more than doubled during the year.

“This suggests that the consumer awareness campaigns such as ‘RBI Kehta Hai Jankar Baniye Satark Rahiye’, and ‘Is Your Banking Complaint Unresolved?’ are helping in bank customer education, awareness and maturity. Root Cause Analysis (RCA) of customer complaints was undertaken to understand the nature of consumer complaints and take appropriate measures,” the RBI added