The Reserve Bank of India (RBI) released a report surrounding the banking issues faced by the majority of the Indians over the last financial year. According to the report, there has been a sharp increase in complaints filed regarding mobile and electronic banking.
Not only this, the number of complaints filed for credit cards regarding issues has doubled this year, as compared to the last financial year. While mobile banking and electronic banking complaints rose by 12 percent, credit card complaints rose by around 53 percent this financial year.
Finance Minister Nirmala Sitharaman also informed Rajya Sabha on Tuesday that the bank fraud complaints registered by the RBI under the various Ombudsman schemes in different categories have risen to 1,45,309 in 2020-21 against 1,35,448 in FY20.
During her speech, FM Sitharaman said, “RBI has informed that on comparing the complaints against ATM/Debit Cards, Credit Cards and Mobile/Electronic Banking during the period from 2019-20 to 2020-21, there is a decline of 13.01 percent with regard to complaints in ATM/Debit Cards and there is an increase of 12.01 percent and 52.99 percent with regard to complaints in Mobile/Electronic Banking and Credit Card, respectively.”
She further noted that the Reserve Bank of India, vide its circular dated July 6, 2017, has issued guidelines for safeguarding the customers from unauthorized electronic banking transactions, which include steps to address such complaints.
The guidelines mentioned by RBI for safer and more effective transactions are mentioned below-
- Strengthening of systems and procedures
- Reporting of unauthorized transactions by customer to bank
- Limited liability of a customer
- Reversal timeline for zero/limited liability of customer
- Burden of proof on banks
- Board-approved policy for customer protection
- Reporting and monitoring requirements
Further, the Reserve Bank of India has also informed that they have issued a circular on the Strengthening of Grievance Redress Mechanisms in Banks dated January 27 for strengthening and improving the efficiency of the grievance redress mechanism of banks and for facilitating better customer service.
(With PTI inputs)
