Banks need to focus more on redressal of customer grievances: RBI DG

Mumbai, Nov 23 (PTI) Reserve Bank of India's Deputy Governor M Rajeshwar Rao on Thursday asked banks to focus more on redressal of customer grievances.

He said banks are 'hugely invested' in customer acquisition but paying little attention to upping redressal of customer grievances.

'Unfortunately, it appears that the efforts of the banks to provide timely solutions to customer grievances have not kept pace with explosion in technology and products,' Rao said addressing the annual Fibac event here.

'… this seems very odd for a sector which prides itself on being a service industry,' he added.

According to him, banks' boards need to give 'serious thought' and show the intent to look into this aspect.

Rao also said that banks have to focus on fortifying cyber security and prevention of cyber frauds in the hyper-personalised and tech-banking environment.

He said misselling has emerged in a digital avatar now -– called Dark Patterns. He explained it as design interfaces and tactics used to trick users into desired behaviour such as availing high-cost short-term consumer credit masquerading as an instant loan.

'We must work hard, work smart and work together to protect customer from these threats to retain and strengthen their trust,' he said. PTI AA RAM