Concerns on ATMs, credit & debit cards top complaints

While lenders are keen on diverting basic banking facilities from the traditional branch model to the automated electronic route, the area needs more attention in terms of efficiency, according to the annual report on the banking ombudsman released by the Reserve Bank of India (RBI). The report also said call centres set up by banks to address customer grievances are not able to fulfil their objective effectively.

According to the report, 24 per cent of the total complaints received by banks in 2010-11 pertained to transactions carried out through automated teller machines (ATMs), debit and credit cards.

Complaints filed in this category primarily related to unsolicited cards & policies, charging fees on ‘free’ cards, abusive calls, skimming of cards, excessive charges, wrong debit to accounts and non-dispensation of money from ATMs.

RBI said most queries relating to credit cards were handled by call centres, adding the staff employed at such centres was not very familiar with the card products and the customers of banks. “As such, the response from the call centres is not helpful in resolving customer grievances,” RBI said in the report.

Issues related to pension payments ranked second in the list of grievances. Non-adherence to the prescribed working hours and delays, refusals and failure to offer services were other areas of complaints.

In 2010-11, there was a drop of 10 per cent in the total number of complaints, though at 94 per cent, the rate of disposal was the same as that a year ago.

RBI deputy governor K C Chakrabarty, who is also the appellate authority for the banking ombudsman, said the small drop in the number of complaints did not point to any specific trend.

“What is a matter of satisfaction is the rate of disposal has been sustained,” he said in the report. Selling unsuitable products and charging unfair or unreasonable fees pose challenges to customer services in the Indian banking industry, he added.