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Reserve Bank of India (RBI) Deputy Governor Swaminathan J has urged all regulated entities to reassess their internal grievance redressal mechanisms and design complaint management systems to prevent complaints from inadvertently bypassing the Internal Ombudsman process. The deputy governor noted that at the heart of banking and financial services lies a fundamental relationship between the customer and institution.

He stated ‘Customers entrust financial institutions with their savings, their aspirations, their financial security and, increasingly, their digital lives. That relationship is sustained not only by strong balance sheets, adequate capital and advanced technology, but also by how fairly and promptly institutions respond when something goes wrong.’

He said that over the years, the RBI has not only consistently emphasised that consumer protection is integral to financial stability, but has also translated this principle into a comprehensive institutional framework through the RBI Ombudsman mechanism, the Internal Ombudsman framework and robust regulatory expectations for customer service. Together, this framework highlights the RBI's belief that a financial system can be considered truly strong when customers are confident that their concerns will be heard, examined impartially and resolved within a reasonable time.

He said ‘Every unresolved grievance carries a cost. It is not merely a financial cost. It is a cost in terms of customer confidence, institutional reputation and, ultimately, regulatory attention.’ He emphasized that, more importantly, it represents a missed opportunity for the institution to demonstrate fairness, responsiveness, and accountability.