Complaints Against Banks and Financial Institutions Surge by 32.8%, Reaching 9.34 Lakh

Despite various measures taken by the Reserve Bank of India (RBI) and the government, consumer complaints against banks and financial institutions have significantly increased. In the 2023-24 financial year, the number of complaints surged by 32.8%, reaching 9.34 lakh, compared to 7.02 lakh in 2022-23.

Major Complaints:
•    Unauthorized transactions and fraud cases rose from 59,762 to 85,281.
•    Issues related to mobile banking and digital transactions accounted for 43,167 complaints.
•    Problems concerning loans and deposits saw a rise, with 46,358 cases reported.
•    Banking service failures, such as payment delays and transaction errors, contributed to 34,151 complaints.
•    Complaints regarding ATM or debit card transactions increased to 29,925 cases.
According to RBI’s Annual Consumer Complaints Report, only 86 cases were resolved with financial compensation, totaling ₹40.5 crore, while in 2022-23, 211 cases received ₹40 crore in compensation.

High-Interest Rates on ₹63 Lakh Crore Deposits
•    Consumers earned 3% interest on ₹63.47 lakh crore deposits in banks.
•    20.24 lakh crore rupees were deposited in current accounts, earning no interest.
•    The gross deposits in banks stood at ₹132.46 lakh crore, with a loan disbursement rate of 79.13 lakh crore.
•    45.49 lakh crore rupees remained unutilized in banks, reflecting liquidity concerns.

Private Banks Witness 25% Employee Attrition Rate
The attrition rate in private banks has reached 25%, as more employees are either quitting or switching jobs. Experts attribute this trend to rising work pressure, lack of incentives, and aggressive sales targets.
According to industry analysts, increased employee turnover could disrupt banking operations, leading to longer processing times and weaker customer service.
•    Gold loan companies are reassessing their policies to prevent operational instability.
•    The rising attrition in banks is also linked to the growing demand for better work-life balance and job security in the financial sector.