Banking complaints rose 13.55% under the Reserve Bank’s Integrated Ombudsman Scheme between April 1, 2024, and March 31, 2025. The Reserve Bank of India (RBI) received 13.34 lakh complaints through the offices of RBI Ombudsman and the Centralised Receipt and Processing Centre, according to the RBI’s latest annual report on the Ombudsman Scheme.
The surge in banking complaints could indicate growing customer dissatisfaction with banking services, but it might also reflect increased awareness and utilization of the ombudsman scheme, as more individuals seek to resolve their complaints. The report reveals that nearly 66% of complaints received in 2024-25 came through the online portal.
Source: RBI, Annual Report of Ombudsman Scheme, 2024-25
Loans and Advances Emerged as the Top Category for Complaints
Loans and advances topped the list of complaints received by the RBI, with a staggering 86,670 grievances, accounting for 29.25% of the total complaints. This represents a 1.65% increase from the previous year, according to the RBI’s annual report on the ombudsman scheme.
Further, according to the report, credit card complaints saw a significant surge of 20% to 50,811, accounting for 17.15% of the total complaints. On the other hand, mobile and net banking complaints declined 12.74% to 49,951, making up 16.86% of total complaints. Meanwhile, complaints related to opening and operating deposit accounts rose by 7.67% to 49,913, representing 16.84% of total complaints.
Source: RBI, Annual Report of Ombudsman Scheme, 2024-25
The Ministry of Information and Technology (MeitY) has blocked 87 illegal loan apps so far after following the due process, Minister of State for Corporate Affairs Harsh Malhotra informed the Parliament on Monday.
“Regulatory action for inquiry, inspection of books of accounts and investigation under the Companies Act, 2013, is taken from time to time against companies, including the ones indulged in online lending activities through loan apps. Whenever any violation under the Companies Act, 2013, is found on the basis of the above, an appropriate legal action is taken,” the minister said.
This comes amid increasing regulatory scrutiny on Chinese companies, including those hosting loan apps. Last year, the Ministry of Corporate Affairs launched a probe into 665 Chinese loan apps for several non-compliance issues and fraudulent activities, including syphoning off funds. The action was part of India’s broader crackdown on lending apps with purported links to China.
Complaints Against Private Banks, NBFCs Dominate
According to the report, complaints against banks dominated the grievances received by the Reserve Bank’s Ombudsman Offices in 2024-25, accounting for 81.53% of total complaints at 2.41 lakh. Non-banking financial companies (NBFCs) followed with 43,864 complaints, representing 14.8% of the total. Within the banking sector, private sector banks accounted for 37.53%…
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