Banking Complaint

by Kanika Goyal Online Consumer Forum

Banking Complaints

Today banks are the most important institution that safeguard our money and provide loans to individuals and businesses. In India, there are numerous banks, which are a mix of private and government ownership. The Reserve Bank of India oversees them to ensure they comply with regulations, but according to recent survey, many people filed Banking complaints.

India has a total of 34 banks, with 22 under private ownership and 12 under government ownership. A few international banks also function in India. This article highlights some of popular Banking complaints and the types of banking complaints people often encounter.

Famous Banks in India

Today Indian Banking sector is ranked at 6th all over the world. With many private sector and public sector banks in India. Some of the Famous Banks in India are -

1. State Bank of India : SBI, the largest and most established bank in India, has maintained its position on the Fortune 500 list for 14 years in a row with market capital of Rs 2,93,218.11 crores with a market share of 23% presence in 36+ countries.

2. HDFC Bank : HDFC is the first bank who gained approval from the Reserve Bank of India (RBI) to setup itself as a private sector bank. It is established in August 1994 due to the liberalization of the Indian Banking Industry.

3. ICICI Bank Private Limited : It is the ranked at second position in terms of the bank's assets. This bank holds the second position in market capitalization and total assets, which made them as the top private sector bank in India.

4. Punjab National Bank : PNB, the Punjab National Bank, operates as the third biggest bank in India. The bank has a presence in 764 cities, operating 7000 branches serves over 80 million customers.

Type of banking complaints

Along with this growth and rapid expansion of banking sector many cutomer has faced various challenges. Some widespread banking complaints include -

Customers frequently experience frustration due to undisclosed fees and charges from banks.
Inadequate customer service worsens banking problems, as customers face difficulties in finding effective solutions to their issues even after contacting customer support.
Many cases of money being taken out of accounts without being given to recipients are common, especially in EMI payments.
Instances of banking fraud have increased by 74%, mainly through digital transactions such as net banking and UPI.
Transaction failures, caused by server problems or unauthorized deductions, can be inconvenient and embarrassing, especially when other payment options are not an option.

How to resolve banking complaints?

Step 1: Get in touch with the bank customer service to deal with the problem, as they give importance to customer and help in resolving issues.

Step 2: Personally visit the bank or send a written complaint to their grievance cell, making sure to keep a record of your grievance.

Step 3: If the bank does not resolve the problem effectively, take the issue to the Banking Ombudsman, chosen by the Reserve Bank of India, via email.

Step 4: If the banks does not resolve the complaint, think about sending a legal notice.

Step 5: If all else fails, submit a complaint to the consumer forum for additional measures.

Most Common Issue Reported for Banking Complaints

Fraudulent transaction : Most common issues today faced by consumers is fraud transaction leaving you helpless, with an increase in online payments, there has been a rise in fraud cases. Banks take a lot of time in resolving such complaints and customers get frustrated with the process.

Beneficiary not credited : The amount deducted from my account has not been credited to the beneficiary despite showing a successful transaction.

No Cashback : Banking institutions usually decline to refund the amount if something unexpected happens, or notification of casback received but the amount not credited.

Bad customer support : Most customers experience poor customer service, rude behavior, and poor handle of issues from the banking representatives.

Unauthorized Wallet transaction : A complaint regarding an unauthorized transaction from wallet without my consent or knowledge.

Amount deducted but transaction failed : Customer oftenly encounter a issue where an amount was deducted from bank account, but the transaction failed to go through, causing inconvenience and confusion.