RBI receives highest complaints against private banks in FY25, annual ombudsman report shows

Reserve Bank of India Sees Surge in Complaints Against Private Banks

The Reserve Bank of India has released its annual report for the integrated ombudsman system (IOS), highlighting a significant increase in complaints against private banks in the fiscal year (FY) 2025.

Complaints Against Private Banks Reach Highest Level

According to the annual report, the share of complaints received against private sector banks rose to 37.53% in FY2024-25, up from 34.39% in the previous fiscal year. Conversely, the share of complaints against public sector banks declined from 38.32% to 34.80% during the same period.

Key Statistics from the Annual Report

• Complaints Received: 13.34 lakh (FY25) vs 11.75 lakh (previous fiscal)
• Pending Complaints: 16,128 (as of FY25)
• Complaint Categories: Loans (highest), Credit Cards (second highest), and Mobile/Electronic Banking (decreased by 13% year-on-year)

RBI's Plans for Enhancing Consumer Protection and Grievance Redressal

For the fiscal year 2026, the RBI's Consumer Education and Protection Department has set the following goals:

• i) Review of ‘Reserve Bank-Integrated Ombudsman Scheme, 2021’
• ii) Review of guidelines on ‘Strengthening the grievance redressal system at the RE level’
• iii) Review of ‘Master Direction - Reserve Bank of India (Internal Ombudsman for Regulated Entities) Directions, 2023’
• iv) Issuance of Master Direction on grievance redressal framework in REs
• v) Upgradation of Complaint Management System