Das for better grievance redress mechanism

RBI Governor Shaktikanta Das urged regulated entities to enhance their grievance redress mechanisms as “certain gaps” have been identified in the systems and procedures of these entities.

“We have brought these deficiencies to the notice of individual banks and non-banking financial companies (NBFCs). Our effort is to work with the regulated entities and rectify such deficiencies,” Das said at the Annual Conference of the RBI Ombudsman.

The regulator had established an internal ombudsman (IO) mechanism in regulated entities to bolster their internal grievance redressal processes. Das said the functioning of the IO requires “considerable improvement”.

“It has been observed that on many occasions, IOs tend to merely endorse the decision of the regulated entities. In several instances, rejected complaints are not being referred to IOs,” Das said.

“The very foundation of an internal dispute resolution system depends on its ability to provide fair, impartial, and judicious adjudication. The observed trend raises concerns about the robustness of the existing framework. I urge all of you to ensure the overall integrity and efficacy of the internal grievance redress mechanism,” he said.

“There is also a need to further strengthen the internal grievance redress systems, including the internal ombudsman framework, within the regulated entities,” Das said.