A Study of Grievance Redressal Mechanism in Banking Industry in India

Abstract

“Customer service is a business need of banks and not social service.” Customers must have the right to access banking services and to the
grievance redressal machinery - to banks' internal mechanism for grievance redressal as well as the Banking Ombudsman Scheme of the
Reserve Bank - so that they are not 'excluded' from the banking fold. Grievances are an important input into the regulatory and supervisory
process for the banking industry. Therefore, it is imperative to check on the working and operation of the Banking Ombudsman Scheme
and to ascertain the lacking behind it. This paper makes an effort to evaluate the efficiency of customer grievance redressal management
system in the banking industry i.e. Banking Ombudsman. Apart from this, an effort has been made to find out a way to reduce the customer
complaints.