The Department of Financial Services (DFS) in the Finance Ministry has emphasised the need for public sector banks (PSBs) and public sector insurance companies (PSICs) to address public grievances promptly and positively within a defined time frame.

A direction to this effect was given by DFS Secretary M Nagaraju, who chaired a high-level review meeting in the capital.

The meeting, aimed at improving the grievance resolution process, also emphasised leveraging technology to minimise repetitive complaints and enhance efficiency.

The DFS Secretary reviewed 20 randomly-selected grievances resolved by PSBs and insurance companies to evaluate the quality of their resolution. The session was attended by representatives of PSBs and PSICs and regulators. 

Grievance redressal mechanisms

Nagaraju underscored the importance of aligning grievance redressal mechanisms with customer satisfaction, highlighting that complaints often stem from genuine issues with organisations’ services. 

He observed that the majority of customers had raised complaints due to genuine grievance against an organisation, and stressed that customer satisfaction is at the heart of the grievance redressal mechanism. 

Nagaraju reiterated the Prime Minister Narendra Modi’s directive, issued during the Pragati meeting on December 26, 2024, which mandates senior officers at the level of Chairperson, Managing Director, or Executive Director of PSBs and PSICs to review at least 20 resolved cases monthly to monitor the quality of resolution of the resolved grievances every month. 

This initiative aims to ensure that grievances are not only resolved but also handled with due diligence, enhancing the trust and confidence of the public.

During the discussion, Nagaraju stressed that negligence or laxity in grievance redressal contradicts the principles of customer service and adversely impacts the reputation of organisations. He urged PSBs and insurance companies to adopt a customer-centric approach, ensuring that complaints are addressed with sincerity and a positive outlook.

The DFS Secretary also called for the implementation of robust IT and technical solutions to identify and address recurring complaints of a similar nature. 

Such measures, he noted, would streamline the resolution process, reduce duplication of effort, and significantly enhance operational efficiency.

Nagaraju emphasised that effective grievance redressal is integral to upholding the credibility and brand value of financial institutions. By focusing on timely and high-quality resolutions, organisations can reinforce their commitment to customer service while reducing public dissatisfaction.