Bank Complaints Rise 33% in FY24: What You Need to Know

Complaints

A recent report from the banking ombudsman shows a sharp rise in customer complaints. In FY24, complaints jumped by 33%, reaching 2.9 lakh. The biggest issues were loan-related problems, followed by digital banking troubles.

Breakdown of Complaints

  • Loan Issues: A whopping 85,281 complaints (29% of all cases) were about loans and advances, showing ongoing problems in lending.

  • Digital Banking Problems: 57,242 complaints (19.8% of total) were about mobile and internet banking, making it the second biggest concern.

  • Other Issues: Complaints also covered ATM errors, credit card disputes, and account-related problems.

Why Are Complaints Increasing?

Several reasons are behind this surge:

  1. More Digital Transactions – As more people use online banking, glitches and transaction failures have increased complaints.

  2. Loan Processing Troubles – Delays, hidden charges, and unclear loan terms frustrate customers.

  3. Better Awareness – More people now know their rights and are reporting issues to the ombudsman.

What Banks Can Do

To reduce complaints, banks should:

  • Improve digital banking systems for smoother transactions.

  • Be transparent about loan terms and fees.

  • Strengthen customer support for faster issue resolution.

Final Thoughts

The 33% rise in complaints shows that banks need to step up their customer service and fix digital banking problems. Addressing these concerns will lead to a better banking experience for everyone.

Sources:-


https://www.rbi.org.in/

https://financialservices.gov.in/beta/en/banking-ombudsman


Disclaimer:

This article is for informational purposes only and does not constitute financial or legal advice. Readers should consult with a financial expert or legal professional for specific guidance related to banking complaints and grievance redressal processes.