RBI asks ombudsmen of banks to ensure effective redress of customer grievances

Mumbai: The RBI has asked internal ombudsmen of banks, NBFCs, and credit information companies (CICs) to provide inputs for enhancing internal systems and processes in order to ensure a more effective redress of customer grievances.

As part of the Reserve Bank's continuing engagement with regulated entities, the second Conference of Internal Ombudsmen on the theme 'Orchestrating Customer Delight through an Empowered Internal Ombudsman', was held in Mumbai on January 16, according to an RBI statement issued on Thursday.

Deputy Governor Swaminathan J., in his keynote address, emphasised the pivotal role of Internal Ombudsmen as the vigilant observers and facilitators in a fair and just dispute resolution process, for ensuring effective and impartial redress of customer grievances within the regulated entity itself, the RBI said.

He called upon the Internal Ombudsmen to provide valuable inputs for enhancing internal systems and processes as well as to proactively guide the regulated entity in taking remedial measures to address recurring complaints, it said.

Besides, Swaminathan outlined RBI's expectations from the top management of the regulated entities by emphasising that a well-functioning Internal Ombudsman mechanism is beneficial for all stakeholders.

The conference was attended by MD & CEOs, executive directors in charge of customer service verticals, Internal Ombudsmen, principal nodal officers of select regulated entities from among banks, NBFCs and CICs, besides senior officials from the Reserve Bank of India.

The conference included a presentation on the context, challenges and coordinated approach for an empowered Internal Ombudsman and experience-sharing sessions by Managing Directors, Executive Directors and Internal Ombudsmen of regulated entities.