It is also a manifestation of more people coming into the banking system, low levels of financial literacy, growing awareness of complaint redress forums and the complexity of newer banking products. It must be understood that many of the new entrants into the banking system have leapfrogged from cash-based payments to electronic banking modes. They are not used to safely operating internet banking, debit and credit cards, ending up compromising their card credentials, disclosing passwords or operating at dodgy or unsafe websites or tampered ATMs.
Hence, growing frauds and unauthorised transactions show up as complaints. The lack of transparency about the products, suitability of products, pressure on bank staff to sell and achieve sales targets and upfront commissions are some of causes for the misselling.
There is a growing need for banks to create continuous awareness among customers about their products and about the ways to use them safely and responsibly.
Arun Pasricha, New Delhi
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 "More steps in the offing for timely fraud detection in banks: RBI")