Not referring cases to internal ombudsman a concern: RBI

RBI deputy governor Swaminathan J expressed concern over banks bypassing internal ombudsman. He stated that many customer grievances resolved by the RBI ombudsman were never referred internally. This situation undermines the purpose of the internal ombudsman framework, he noted. Banks must refer all eligible complaints promptly and without exception to their internal ombudsmen. Effective internal ombudsman performance should naturally reduce external escalations and provide customer resolutions.

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