RBI strengthening consumer grievance mechanism: Patel

With addition of number of account holders through Jan Dhan Yojana, there is need to strengthen consumer grievance mechanism, RBI Deputy Governor Urjit Patel said.
"Consumer protection will become more important as more people down the income level get bank accounts. As far as I know people who are relatively less well-off suffer... They need more protection. New and inexperience customers need more protection," he said at 10th Civil Services Day here.
Since the launch of Pradhan Mantri Jan Dhan Yojana (PMJDY) in 2014, banks have opened 21.5 crore accounts with deposits of over Rs 36,600 crore. Average balance has gone gone up to Rs 1,700 while number of zero account holders have come down to 26.63 per cent.

"Even RBI has strengthen its consumer protection law... RBI is also strengthening its consumer grievance mechanism," he said.
On financial literacy, Patel said one size does not fit all as different groups require different kinds of financial support.
"I think we also need to tailor financial literacy. Once size does not fit all," he said.

Citing example, he said financial literacy need of urban unorganised sector worker is different from farmers.
Farmers would require understanding of farm loan, crop insurance and other issues, he added.
"So we need to tailor financial literacy programme according to group characteristics of these account holders," he added.