Digital currency push: Nearly 13% of all complaints RBI received were 'card' related

The Reserve Bank of India on Friday said during the year 2015-16, 15 offices of the Banking Ombudsmen received nearly 13,000 complaints regarding ATMs/Debit cards.

The central bank released the Annual Report of the Banking Ombudsmen Scheme, where it mentioned that during the year, 1,02,894 complaints were received and out of which 12.7% of complaints comprised of ATMs/Debit Cards. Out of the total, 8.49% of complaints were related to Credit cards. 

Explaining the Scheme, the RBI said, "The Banking Ombudsman Scheme, 1995 was notified by the Reserve Bank of India on June 14, 1995 under section 35A of the Banking Regulation Act, 1949. The aim and objective of the Scheme is to provide a quick and cost free resolution mechanism for complaints relating to deficiency of banking services of common bank customers, who otherwise find it difficult or cost prohibitive to approach any other redressal fora such as courts".

As per the data, the number of complaints increased by 21% as compared to the previous year. The average cost of handling one complaint is Rs 4,396. This means, the RBI has spent around Rs 45 crore on resolving the complaints.

"Offices of Banking Ombudsmen maintained a disposal rate of 95%. Moreover, 18 Awards were issued by the Banking Ombudsmen", the data revealed.

The RBI in the release said complaints pertaining to failure to meet commitments, non-observance of fair practices code, Banking Codes and Standards Board of India (BCSBI) Codes, taken together constituted the largest category of complaints with 33.9% of complaints received.

Following credit and debit cards related queries, the complaints in the category of pension (6.2%), levy of charges without prior notice (5.5%), loans and advances (5.3%), deposit accounts (4.9%), remittances (2.4%) were other areas of concern for the people.

Further, around 330 complaints were received by the Offices of Banking Ombudsman through the Government of India or Centralized Public Grievance Redress and Monitoring System (CPGRAMS) portal. Another 616 applications were received under the Right to Information Act, the RBI data found.

When the government is promoting digital transactions or cashless economy, receiving plastic money related complaints likely to obstruct PM Modi's dream plan.