RBI Reports 13% Rise in Ombudsman Complaints in FY25

Consumer grievances lodged under the Reserve Bank of India’s ombudsman framework rose notably in FY25, reflecting growing dissatisfaction with services offered by banks and financial institutions. The central bank reported a significant increase in complaints, particularly against private sector lenders and small finance banks.

Overall Growth in Consumer Complaints

The Reserve Bank Integrated Ombudsman Scheme received 13,34,244 complaints in FY25, compared with 11,75,075 in FY24. Although the total volume rose by 13 per cent, the growth rate moderated from the 33 per cent surge recorded in the previous financial year. The RBI attributed the rising numbers to expanding digital penetration and heightened consumer awareness of grievance redressal mechanisms.

Breakdown of Complaints by Processing Centres

Of the total grievances, the 24 Offices of the RBI Ombudsman received 2,96,321 complaints. The Centralised Receipt and Processing Centre handled 9,11,384 complaints, forwarding over one lakh to ombudsman offices and sending more than ten thousand to Consumer Education and Protection Cells. A substantial proportion — over 7.7 lakh cases — were categorised as non-maintainable and closed at the CRPC level. Pending cases at the centre stood at 16,128 as of March 31, 2025.

Key Categories and Sector-Wise Trends

Loans and advances formed the largest category of grievances in FY25, while credit card-related complaints rose to become the second-highest. Notably, mobile and electronic banking complaints fell by nearly 13 per cent year-on-year. Banks accounted for more than four-fifths of all ombudsman complaints, followed by NBFCs, which contributed nearly 15 per cent.

Exam Oriented Facts

• Total complaints under RBI’s ombudsman system in FY25: 13,34,244.
• Private sector banks’ complaint share rose to 37.53 per cent.
• Small finance banks saw a 42 per cent rise in complaints.
• Mobile/electronic banking complaints declined by 12.74 per cent.

Sector Performance and Shifts in Consumer Behaviour

Grievances against private sector banks grew by 10 per cent, making them the largest contributors, while state-owned banks registered an 8.45 per cent decline. Complaints involving small finance banks rose sharply from a low base. The data underscores evolving consumer expectations and highlights the need for financial entities to strengthen service quality, dispute resolution and transparency.