Market Snapshot
RBI Ombudsman complaints rose sharply in FY25, underscoring growing stress points in India’s fast-digitising banking ecosystem. According to the RBI Annual Report on the Integrated Ombudsman Scheme (2024–25), the central bank received 13,34,244 customer grievances, a 13.55% jump compared with 11.75 lakh complaints in the previous financial year.
The data highlights a clear shift in the nature of consumer dissatisfaction, with unsecured lending, credit cards, and service-related disputes emerging as the most persistent pain points for banking customers.
Where the Complaints Are Rising the Most
Loans and Advances Remain the Top Concern
Loans and advances continued to dominate RBI Ombudsman complaints, accounting for 29.25% of total cases. Issues ranged from:
- Incorrect interest charges
- Recovery-related disputes
- Loan restructuring and foreclosure complaints
- Lack of transparency in unsecured personal loans
The rise reflects the rapid expansion of retail credit, particularly instant personal loans and BNPL-style products.
Credit Cards: The Fastest-Growing Complaint Category
For the first time, credit cards emerged as the second-largest source of RBI Ombudsman complaints.
- 20.04% year-on-year surge
- 17.15% share of total grievances
Key issues flagged by consumers included:
- Unauthorised transactions
- Incorrect billing and hidden charges
- Aggressive recovery practices
- Delayed dispute resolution
The spike aligns with aggressive customer acquisition by banks and fintech partners, often prioritising growth over customer education.
Digital Banking Complaints Show Early Signs of Maturity
Interestingly, while digital banking still accounted for 16.86% of total complaints, grievances related to mobile and electronic banking fell by 12.74% year-on-year.
This decline suggests:
- Improved app stability
- Better fraud detection systems
- Enhanced two-factor authentication frameworks
However, service issues — not technology failures — continue to drive dissatisfaction.
Private vs Public Banks: A Clear Divergence
Private Banks Under Pressure
The report shows a notable rise in RBI Ombudsman complaints against private sector banks:
- FY24: 34.39% share
- FY25: 37.53% share
The increase is largely linked to:
- Rapid expansion in unsecured lending
- Higher penetration of credit cards
- Outsourced customer support models
Public Sector Banks Show Improvement
In contrast, public sector banks reduced their complaint share:
- FY24: 38.32%
- FY25: 34.80%
This improvement points to:
- Stronger internal grievance redressal systems
- Better escalation mechanisms
- Increased regulatory scrutiny and compliance discipline
How Consumers Are Filing Complaints
The RBI’s push for digital grievance handling is clearly visible:
- 91%+ complaints filed online
- Complaint Management System (CMS)
- Email channels
Geographic Distribution
- Metro & Urban areas: 71.5%
- Semi-urban: Moderate participation
- Rural areas: Just 10%
The data highlights a persistent financial literacy and awareness gap in rural India, despite growing banking penetration.
Resolution Efficiency Remains Strong
Despite the surge in volume, RBI Ombudsman offices delivered a strong performance:
- Disposal rate: 93.07%
- Majority of complaints resolved within prescribed timelines
This reinforces confidence in the Integrated Ombudsman Scheme as a credible consumer protection mechanism.
Why RBI Ombudsman Complaints Are Rising
The increase in RBI Ombudsman complaints reflects deeper structural trends:
- Rapid digitisation outpacing consumer awareness
- Aggressive unsecured credit growth
- Complex product structures
- Gaps in customer communication
- Rising expectations for instant resolution
What This Means for Banks and Consumers
For Banks
- Strengthen pre-disbursal disclosures
- Improve post-sale customer support
- Rein in aggressive recovery practices
For Consumers
- Scrutinise loan and credit card terms
- Escalate issues early through bank channels
- Use RBI’s CMS platform proactively
Conclusion
The sharp rise in RBI Ombudsman complaints is a clear signal that while India’s banking system is innovating rapidly, consumer protection must evolve just as fast. Digital banking and unsecured lending may be driving growth, but without stronger transparency and service accountability, grievances will continue to rise.
