Legal Framework for Grievance Resolution in Banking Industry in India

Abstract

Reserve Bank of India, as a Regulator of Banks has laid down a robust customer complaint resolution mechanism which is speedy and inexpensive. It has issued various guidelines to the Banks for the protection of the customers and set up innovative and unique systems like appointment of Internal Ombudsman who acts like a referee and his decision is binding. Equally, Consumer Commissions have also played a vital role in compensating customers in case of deficiency of service. Therefore, the legal framework for resolution of customer complaints in India is effective and efficient.