RBI to do annual evaluation of banks’ grievances redressal system

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RBI to do annual evaluation of banks’ grievances redressal system

The Reserve Financial institution of India (RBI) will undertake annual evaluation of customer support and grievances redressal mechanisms of banks as a part of its supervisory mechanism. The RBI lately determined to place in place a complete framework for grievances redressal.

“The Reserve Financial institution will undertake, as part of its supervisory mechanism, annual assessments of customer support and grievance redressal in banks based mostly on the information and data accessible by the Grievance Administration System, and different sources and interactions,” mentioned an RBI notification.

Banks recognized as having persisting points in grievances redressal shall be subjected to an intensive overview of their mechanisms to higher determine the underlying systemic points and provoke corrective measures.

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The intensive overview will embrace — adequacy of the customer support and buyer grievances redressal-related insurance policies, functioning of the Buyer Service Committee of the Board, stage of involvement of the highest administration in customer support and buyer grievances-related points and effectiveness of the grievances redressal mechanism of banks.

The RBI mentioned that based mostly on the overview, a remedial motion plan shall be formulated and formally communicated to the banks for implementation inside a selected timeframe.

“In case no enchancment is noticed within the grievance redressal mechanism inside the prescribed timelines regardless of the measures undertaken, the financial institution(s) shall be subjected to corrective actions by acceptable regulatory and supervisory measures,” it mentioned.

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