BS EDIT: RBI flags rising complaints: Are banks failing customers?

By Business StandardPublished On Mar 19, 2025

Banking complaints soar

Complaints up 50% annually in 2 years

RBI processed 25% more cases in 2023-24, backlog persists

95 banks received 10 million+ complaints

Digital banking, poor service

More digital users, but service lags

Many rural customers lack complaint awareness

Urban areas file 70% of RBI complaints

Fewer staff, more delays

PSBs lost 150,000 clerks (2013-2024)

Longer wait times, unresolved issues

PSBs still have the most complaints

Private banks must do more

Expanding workforce, but service gaps remain

Poor service hurts trust & deposits

Better grievance redress needed

Leadership gaps hurt banks

40% of PSB director posts vacant

Weak leadership affects governance

Govt must fill key positions urgently

Fixing India’s banking system

Banks & RBI must act fast

More staff, better grievance redress

Stronger service benefits all