RBI Governor Pushes for AI To Resolve Bank Customer Complaints
Moneylife Digital Team 18 March 2025
Calling for a paradigm shift in grievance redressal through the adoption of artificial intelligence (AI), Reserve Bank of India (RBI) governor Sanjay Malhotra emphasised the importance of leveraging AI technology to streamline customer complaints and build consumer trust. He was speaking at the annual conference of the RBI Ombudsmen on World Consumer Rights Day.
 
Governor Malhotra acknowledged that while digital banking has revolutionised financial services, consumer grievances remain a significant challenge. “Last year alone, 95 scheduled commercial banks (SCBs) registered over 10mn (million) complaints. As digital transactions grow, so too do customer expectations and grievances. We must address this proactively,” he said.
 
Highlighting the potential of AI to transform grievance redressal, the RBI governor outlined its advantages in categorising complaints, optimising routing, and identifying systemic gaps. He said, “AI can assist in decision-making, speed up complaint resolution, and even predict potential issues before they arise. But we must balance technology with human empathy and integrity.” 
 
Mr Malhotra also underscored the need for responsible AI adoption, addressing concerns around data privacy, algorithmic bias, and the importance of human oversight. “AI should complement human judgment, not replace it. Every complaint is an opportunity to improve and build lasting trust.”
 
The RBI governor also called upon banking leaders to prioritise customer service at all organisational levels. He urged bank management to dedicate time daily to grievance redressal, citing that unresolved complaints risk damaging consumer confidence and reputation.
 
He stressed that complaints should not be seen as nuisances but as valuable insights for improvement. “Repeat complaints often indicate deeper systemic flaws. Addressing these issues comprehensively will help reduce recurrence,” he noted.
 
Addressing ongoing challenges, the governor highlighted areas requiring immediate attention, including know-your-customer (KYC) compliance, digital fraud mitigation, and ethical recovery practices. He urged regulated entities (REs) to invest in customer education and digital literacy to reduce vulnerability to scams.
 
Mr Malhotra also reiterated RBI’s commitment to facilitating smoother operations for regulated entities through initiatives such as the PRAVAAH portal, designed to streamline applications and approvals.
 
Concluding his speech, the governor envisioned a future where technology and empathy coexist to build a resilient, customer-centric financial ecosystem. “Our mission is not just to resolve complaints but to prevent them altogether through innovation and human-centric approaches,” he said.
Comments
cstejastungare
4 weeks ago
I filed a complaint with the RBI Ombudsman on January 1, 2025, which remains unresolved. I am concerned by the absence of a regulatory timeframe for complaint resolution by the RBI Ombudsman. While the 2023 Annual Report indicated an average turnaround time of approximately 30 days, the 2024 report does not provide any corresponding information.
kashyap.joshipura
4 weeks ago
We as citizens of this country are very fortunate that RBI Governor sir has taken note of PSB Customer s hardship in KYC and other matters. It seems PSB are more interested in blocking big amounts hard-earned customer s money… as if all customers are criminals who are unable to visit banks…..for KYC…..What is the meaning of CKYC in ..In fact Bank should visit customers place to verify the sanctity of their customers.
gopalakrishnan.tv
4 weeks ago
It is very unfortunate that banks have to be reminded of the importance of customers and the need to improve their services to customers on whose trust and support the very business of banking thrives and survives. The economy and the bank depends on household savings for the expansion of the economy and its fastest growth and the savings need to be mobilised competitively at minimum cost and maximum efficiency which is measured only in terms of courteous and dependable service.
The savings which are difficult to come because of very high food inflation and low interest rate can only be attracted by banks only if they care for customers and provide complaints free service . Masking of Complaints and ignoring the customers and their complaints can cost the banks heavily as the savings bank interest rate which is always kept below the real rate of interest after adjusting for inflation always at above 4% is not all attractive for the poor who only save with banks. Moneyed people and the , well off the society have umpteen avenues to save , seldom come to banks is the ground reality. Mostly salaried class of people and poor segments of the society approach banks and they are either not cared or ignored by harassing through KYC norms and indifference in the provision of service . Unfortunately major banks like SBI, ICICI Bank can even afford to ignore the customers by all possible means. Glad to read from press reports that the Governor of RBI is seized of the matter and called upon banks to enhance the quality of customer Service. Hope the top management of banks understand the importance of bank customers particularly the Deposit Customers and extend to them the service expected and compensate the customers even for the negative rate of return they provide to them by way of sb Interest . There is a limit to exploit the poor savers.
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