As per the RBI’s annual report on the Banking Ombudsman Scheme for 2017-18, 22% of the complaints pertained to banks not adhering to the ‘fair practice code’, while ATM and debit card-related issues made up the second largest category at more than 15%.
Together with credit card-related complaints (at 7.7%) and online banking issues (at 5.2%), the total share of complaints on digital channels almost touched 30% of the total complaints filed.
Almost 8,500 complaints were filed on issues around internet and mobile banking. The number was more than 24,000 for issues around debit cards and ATMs and 12,000 regarding issues around credit cards.
In comparison to 2017-18, ATM and debit card-related complaints were less in 2016-17 at about 12%, while problems concerning credit cards were at 6.4%. A comparative figure for internet and mobile banking-related complaints is not available for 2016-17 as the category was added only last fiscal.
Explaining the nature of complaints regarding ATMs and debit cards, the RBI said that more than 60% of the issues regarding cash dispensing machines were raised around non-dispensation of cash in spite of the account being debited. With regard to credit cards, the bulk of the complaints emanated from wrong billing and the rest came from delayed reporting and other issues.
Keeping in mind the high share of complaints emanating in the space of digital payments, the RBI has announced the constitution of a separate Ombudsman for Digital Payments and has also taken industry inputs about its constitution through consultations with multiple stakeholders of the digital payments process.