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Informist, Monday, Mar. 17, 2025

 

--RBI Malhotra: High number of customer grievances matter of serious concern

--CONTEXT: Remarks by Governor Malhotra at RBI Ombudsmen conference on Mon

 

NEW DELHI – Reserve Bank of India Governor Sanjay Malhotra on Monday asked members of the Indian financial system to spend more time on customer service and addressing their complaints, warning that if players did not get their "act together", issues may grow rapidly.

 

"While we have enhanced customer experience over the years, the high number of customer grievances continues to be matter of serious concern," Malhotra said in a speech in Mumbai at the annual conference of the RBI Ombudsmen. "We have 10 million complaints and with the rapidly growing customer base and expanding suite of products, this may grow, if we do not get our act together," he added.

 

The conference was attended by heads of major banks, non-banking financial companies, non-bank payment system operators, credit information companies, RBI Ombudsmen, and senior officials of the central bank.

 

According to Malhotra, every complaint is a "test of trust" and if left unresolved, it can erode consumer confidence and "tarnish the entire ecosystem". "We...need to realise that we are in the business of providing unalloyed customer service and not just selling banking and other financial services."

 

The RBI governor said he suspected not enough time was being spent on customer service and grievance redressal and called on executives at the top, zonal, regional, and branch level "to spend some time every week, if not every day on grievance redressal". Towards this, Malhotra said technology, particularly artificial intelligence, can lead to huge improvements in speed, accuracy, and fairness of complaint resolution by categorising complaints by urgency, complexity, or subject area. While this would ensure minimal delay, AI can also help in making decisions and reducing processing time and identify systemic gaps by analysing emails, chat logs, and call transcripts.

 

"In short, integrating AI at every stage--from complaint lodging to closure--can result in a seamless, efficient, and data-driven grievance redressal system. Such a framework not only reduces processing times and addresses repetitive complaints but also fosters equitable outcomes by mitigating human biases. It is time that the banking industry explores and pioneers the integration of technology--including AI--to strengthen the grievance resolution mechanisms and make it best in class across the globe," Malhotra said.

 

At the same time, the governor warned of the risks from AI and said it is not a substitute for integrity, empathy, and human judgment. As such, it is essential that investment in dedicated human resources for customer service and grievance redressal continues.  End

 

Reported by Siddharth Upasani

Edited by Ashish Shirke

 

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