RBI GOVERNOR URGES OMBUDSMEN TO 'BE SENSITIVE' WHILE ADDRESSING CUSTOMER GRIEVANCES

The RBI governor, Shaktikanta Das, urged the central bank's ombudsmen and the regulated entitles to first determine the underlying causes of consumer complaints before taking the appropriate systemic corrective action. He was speaking at the annual conference of the RBI ombudsmen in Jodhpur.

Shaktikanta Das, governor of the Reserve Bank of India, has advised the ombudsmen to use tact when resolving client complaints over issues involving digital lending or financial technology.

Das encouraged the regulated entities and the ombudsmen of the central bank to first determine the underlying causes of consumer complaints before taking the appropriate systemic corrective actions at the RBI ombudsmen's annual conference in Jodhpur. Fairness and quickness should be upheld in how the ombudsmen handle client concerns.

The governor stated that the financial landscape is changing and evolving and added that openness, fair pricing, and honest dealings are the guiding principles of good customer service and consumer protection, according to ANI.

Das expressed his concern about recurring complaints in areas such as mis-selling, unclear pricing, excessive service charges, high penal rates, etc. The constructive work done by the regulated firms and the RBI for customer safety, he continued, is being overshadowed by social media stories of recovery agents using strong arm methods.

Das emphasised that a significant proportion of complaints were about traditional banking, which required a thorough examination of the customer service and grievance redressal procedures in the regulated firms. The governor continued that it was important to identify the underlying reasons for persistent complaints and to take the appropriate corrective action.

Das emphasised the importance of the board and top management of the regulated entities in this regard, and he urged them to get involved to make sure that the product design, supporting procedures, delivery system, and post-sales services are all centred on the needs of the customer, according to the ANI report.

The governor emphasised commercial considerations while also stating that they have to be in line with customer orientation in all areas, including strategy and risk management. He emphasised that the results of the root cause analysis should "drive necessary changes" within the organisation.