Banking Grievances Mechanism in India: A Study of Customer‘s Awareness and Understanding

Banking industry is now more competitive than ever, therefore banks require an efficient grievance handling system for their customers. Although, there is already a system in place for customer‘s grievance handling set up by the Reserve Bank of India (RBI). But efficiency of the system has to be confirmed by effective research based on primary data procured directly from the customers. Through this exploratory research paper we want to find out the awareness level of bank customers about the grievance handling procedures setup by the banks and RBI. Data was collected by structured questionnaire from the homogenous group having almost same education level. 500 respondents considered were having graduation as minimum qualification and Judgemental sampling technique was used for data collection. Statistics like simple tabulation, ranking, and Chi-square has been applied to process and analysis the data. It has been found that most of the customers are unaware from the grievance handling system of RBI and commercial banks and unsatisfied customers don‘t even complaint to any authority or system. This phenomenon has been commonly found in Public sector as well as Private sector banks. Further range of problems faced by customer while dealing with the banks has been identified and tabulated.