The Reserve Bank of India (RBI) has advised banks to enhance their Internal Ombudsmen (IO) system to improve customer service and resolve complaints promptly. Deputy Governor Swaminathan J. emphasized the importance of providing fair and effective solutions to customer grievances during the third annual conference of Internal Ombudsmen (IO) of banks and NBFCs in Mumbai.
He urged the IOs to identify recurring issues, conduct root cause analysis, and assist in implementing corrective actions. By strengthening the IO mechanism, external escalations can be minimized, benefiting both customers and the banks. The Internal Ombudsman acts as the final independent level of review within a regulated entity for unresolved customer complaints before they reach the RBI Ombudsman or other external forums.
The conference convened IOs from various regulated entities, including banks, NBFCs, and credit information companies. It also saw the participation of top officials like Managing Directors, Chief Executive Officers, and RBI Ombudsmen. Discussions at the event centered on enhancing grievance redressal, meeting regulatory expectations, and leveraging RBI Ombudsman insights for faster and better resolutions to prevent unnecessary escalations.
RBI Executive Director Sonali Sen Gupta engaged with participants to gather feedback on further improving the effectiveness of the IO framework. Under the RBI’s scheme, the Ombudsman is responsible for addressing complaints related to service deficiencies, irrespective of the monetary value, and facilitating resolutions through conciliation, mediation, or by issuing an Award as per the Scheme’s provisions.
