As customer grievances under the Integrated Ombudsman Scheme jump by over 13.5%, digital banking and unsecured lending emerge as the primary flashpoints for Indian banking consumers.
The financial landscape in India is evolving rapidly, but so are the challenges faced by consumers. According to the recently released RBI Annual Report of the Ombudsman Scheme for 2024-25, the Reserve Bank of India received a total of 13,34,244 complaints, marking a significant 13.55% increase from the 11.75 lakh complaints recorded in the previous fiscal year.The Core Conflict: Loans and Credit CardsThe report highlights a shifting trend in consumer dissatisfaction. For the first time, credit card-related issues have surged to become the second-largest category of complaints.• Loans and Advances: Remained the single largest category, accounting for 29.25% of all grievances.• Credit Cards: Saw a sharp spike of 20.04%, now making up 17.15% of the total volume.• Digital Banking: While still a major category (16.86%), complaints related to mobile and electronic banking actually decreased by 12.74%, suggesting that technical stability and security measures in digital apps are beginning to mature.Private vs. Public Sector BanksThe data reveals a notable flip in where complaints are originating.• Private Sector Banks: Their share of complaints rose from 34.39% in FY24 to 37.53% in FY25. This is largely attributed to their aggressive expansion in unsecured lending and credit card portfolios.• Public Sector Banks: Successfully lowered their share from 38.32% to 34.80%, indicating improved internal grievance redressal mechanisms in state-owned banks.Resolution and Geographic TrendsThe RBI continues to emphasize digital-first redressal. Over 91% of complaints were filed online via the Complaint Management System (CMS) or email. Geographically, the burden remains urban-heavy:• Metro & Urban Areas: Accounted for 71.5% of total filings.• Rural Areas: Represented only 10%, highlighting a persistent gap in financial literacy and awareness in the hinterlands.Despite the volume, the Offices of the RBI Ombudsman (ORBIOs) maintained a high disposal rate of 93.07%, ensuring that the majority of consumers received a timely response to their disputes
