In a major step aimed at strengthening customer grievance redressal, the Ministry of Finance has rolled out a ranking system for public sector banks, private sector banks, and public sector insurance companies. The ranking, based on the quality and timely resolution of grievances, was introduced in June this year and has already led to a significant improvement in the performance of these institutions, the ministry said in a statement. A similar ranking system for private sector insurance companies is also under consideration.
According to the ministry, the initiative has enhanced the grievance redressal mechanism by pushing banks and insurers to reduce turnaround time (TAT), ensure transparent communication with customers, and improve in-house customer service training. This renewed focus has helped streamline interactions between customers and financial institutions, creating a more responsive system.
In addition to the ranking framework, the Department of Financial Services (DFS) launched the ‘Financial Institutions Interaction Program’ in December 2025. Under this program, meetings are conducted with selected financial organisations based on the nature and frequency of grievances received through the CPGRAMS portal. Initially, Non-Banking Financial Companies (NBFCs) have been chosen for this exercise as the first step toward broader sector-wide engagement.
DFS noted that this initiative has had a positive impact, helping build greater customer trust in the financial services ecosystem. So far, 15 such meetings have been held, and around 300 grievances have been thoroughly analysed to assess the quality of redressal.
The ministry added that Joint Secretaries of the department are also holding similar review meetings. Drawing from this experience, Chairpersons, MDs, and CEOs of various financial institutions have been encouraged to conduct parallel “dip-stick surveys” within their organisations. This top-level evaluation aims to assess the effectiveness of grievance resolution directly and ensure corrective measures wherever necessary.
To further enhance customer service at the branch level, public sector banks have been instructed to implement technology-based feedback systems. These may include tools such as voice chats, emails, QR codes, and other digital methods to capture customer feedback regularly. The goal is to ensure that staff in PSB branches consistently deliver high-quality service to both customers and visitors.