Two-thirds of customer complaints against Public Sector Banks.
Reserve Bank of India (RBI) said in its report on trend and progress of banking in the country said that the state-owned banks accounted for nearly two-third of the customer complaints received during the last financial year.
“Public sector banks accounted for bulk of the complaints (70 per cent) received during 2011-12. Within public sector banks, the State Bank group alone accounted for almost 38 per cent of total complaints received,” Reserve Bank of India (RBI) said.
The number of complaints increased 2.3 per cent year-on-year to 72,889, with 40 per cent coming from major metropolitan cities, including New Delhi, Mumbai, Kolkata and Chennai. Most complaints were related to credit and debit cards followed by violation of fair practice codes, deposit accounts, failure of commitments made by banks and pensions.
RBI suggested banks need to improve their customer data base to prevent incidents of fraud and money laundering. The central bank has already taken a new initiative, unique customer identification code, to ensure this.
RBI noted its decision to allow banks to use business correspondents in remote centres, relax branch authorization policy and use mobile technology has led to improvement in financial inclusion.
Majority of the new bank branches were opened in rural and semi-urban areas while off-site ATMs provided a substitute for brick-and-mortar branches in metropolitan areas.
At the end of March 2012, villages covered through business correspondents constituted more than 80 per cent of the total villages covered under the financial inclusion plan. The volume of transactions through ICT (information and communications technology)-based accounts have also increased steadily.
“In the ensuing year, focus would be on the number and value of transactions in the no-frills accounts and credit disbursed through ICT-based business correspondent outlets,” RBI said.