The annual report of the banking ombudsman scheme for the financial year 2007-08, released by the Reserve Bank of India (RBI), revealed in 2007-08, bulk of the complaints at 92.95% has been received by the new private sector banks, followed by foreign banks.
However, there has been a reduction by 10.85% in the number of complaints received by new private sector banks in India, from 8,28,903 in 2006-07 to 7, 38,942 in 2007-08. As a result, the total number of complaints received has slid marginally from 12, 40,305 in 2006-07 to 11, 79,672 in 2007-08, down by 4.88%. As per the report, metropolitan and urban areas took a lead in receipts of complaints with 45% and 23% complaints respectively. These were followed by rural and semi-urban areas accounting for 18% and 14% of the complaints, respectively.
The report said the larger number of complaints from the urban and metropolitan regions could be attributed to increased penetration of banking, increased awareness and high expectations of customers in these areas. However, there is also evidence of increase in the receipt of complaints from rural and semi-urban areas too, indicating the growing awareness in these areas created through visits of the banking ombudsmen and media coverage, including advertisements issued to popularise the scheme.
Apart from credit cards, misrepresentation and misleading information provided by direct selling agents and marketing agents as also non-fulfillment of such promises made by agents or bank officials while marketing the products, also led to a number of complaints. Complaints relating to failure on commitments made ranked second among the complaints received at the offices of the Banking Ombudsman.
Other complaints were relating to deposits and remittances, non-maintenance of average quarterly balance, revision in locker charges, processing and renewal or pre-closure charges being levied without due notice to the customers.
Despite several RBI initiatives to bring transparency on imposition and application of various charges by banks including display of these charges in bank branches or offices and on the websites of banks, complaints relating to charges for non-maintenance of average quarterly balance, revision in locker charges, processing or renewal or pre-closure charges being levied without due notice to the customers were received, said the RBI. Banking Ombudsman Offices disposed of more than 80% of the complaints dealt on an annual basis. During the year 2007-08, 89% of the complaints dealt were disposed off. Around 53% of the complaints dealt have been disposed by mutual settlement or by award while around 36% of complaints dealt have been rejected.