SBI tops customer complaints list; PSU banks have more irate customers than private lenders

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Updated: December 26, 2019 12:39:12 PM

More than three-fourths of all complaints are received in the urban and metropolitan areas that indicate a higher level of awareness among customers.

sbi, allahabad bank, canara bank, psu bank, private bank, rbi, bank complaintsThe largest bank of India – SBI – has also received the highest number of such complaints, comprising nearly half of the total complaints received against 18 PSU banks.

The PSU banks in India received more than 1.2 lakh complaints in only one year during July-June 2018-19. Among these, complaints related to debit or credit cards were maximum, followed by the complaints related to non-observance of fair practices and failure on commitments and non-adherence to other banking codes, shows the latest RBI report on Trend and Progress of Banking in India 2018-19. The largest bank of India – SBI – has received the highest number of such complaints, comprising nearly half of the total complaints received against 18 PSU banks. Punjab National Bank (PNB) and Bank of Baroda followed the State Bank of India in terms of such complaints.

The private lenders, on the other hand, received around 55,000 complaints during the same period, with the highest number of complaints were related to the debit or credit cards. HDFC Bank, ICICI Bank, and Axis Bank left other private banks far behind in receiving complaints from their customers. A disproportionately large share of complaints relating to levy of charges without prior notice was also filed against private banks.

Also Read: SBI, Allahabad Bank worst hit by frauds; nearly 2,500 cases rock PSU banks in Q1

“The increasing trend in complaints received over the years is indicative of greater awareness among consumers, especially against the backdrop of the Reserve Bank’s campaigns such as ‘RBI Kehta Hai Jankar Baniye Satark Rahiye’, and ‘Is Your Banking Complaint Unresolved?’,” said RBI. More than three-fourths of all complaints are received in the urban and metropolitan areas that indicate a higher level of awareness among customers, added the report.

The number of complaints in 2018-19 has surged by 32,311 over the previous year but 94.03 per cent of the complaints filed were disposed of by Banking Ombudsman offices. Even though non-adherence to the fair practices code remained the main grievance against banks, complaints relating to debit or credit cards and mobile or electronic banking grew at a fast pace, in the backdrop of their increasing usage.

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