DFS Strengthens Grievance Redressal in Banking and Insurance

Citizens Can Directly Raise Complaints Against BFSI Institutions

New Delhi: The government today assured that citizens can directly raise complaints against banks, financial services institutions, and insurance companies (BFSI). It said the Secretary of Financial Services was personally reviewing twenty grievances selected at random each month in meetings attended by Chairmen, Managing Directors, Chief Executive Officers, and senior management. Officials said the exercise has helped improve grievance resolution and build customer trust in the financial sector.

Till date, fifteen such review meetings have been held and three hundred grievances analysed to ensure the quality of the resolution. Joint Secretaries of the Department of Financial Services (DFS) also conduct similar meetings. Drawing on this experience, Chairmen, Managing Directors, and Chief Executive Officers of financial institutions are conducting comparable exercises within their organisations. The objective is to assess the effectiveness of grievance resolution through a ‘dip-stick survey’ at the topmost level of the department.

Workshops under the Centralised Public Grievance Redress and Monitoring System were conducted with public sector banks to enhance grievance handling. A workshop with the Pension Fund Regulatory and Development Authority was held on August 4, 2025, and one with the Reserve Bank of India on October 13, 2025. These sessions were attended by Grievance Redressal Officers, senior management, and ombudsmen from across the country, focusing on identifying and addressing root causes of grievances and ensuring qualitative resolution. Workshops with the Insurance Regulatory and Development Authority of India and Grievance Redressal Officers of insurance companies are scheduled on 19 December 2025 in Hyderabad.

To improve service at branches, public sector banks have been instructed to collect customer feedback using technology, including voice chat, email, and Quick Response codes. Since June 2025, the Department of Financial Services has initiated a ranking system for public sector banks, private sector banks, and public sector insurance companies based on the quality and timeliness of grievance redressal. Rankings for private sector insurers are expected to follow. Officials noted that this system has increased focus on faster turnaround times, improved transparency in communication between customers and institutions, and strengthened customer service training.

Additionally, the department has launched the Financial Institutions Interaction Programme in December 2025, beginning with Non-Banking Financial Companies. Under this program, meetings are held with selected organisations based on grievances received through the Centralised Public Grievance Redress and Monitoring System portal to monitor institutional responses. The Department of Financial Services has stated that it remains committed to further improving the grievance redressal framework across the financial services sector.

– global bihari bureau