FinMin Ranks Banks & Insurers on Grievance Redressal

New Delhi, Dec 12 (PTI) In order to improve the grievance redressal framework, the finance ministry has initiated the ranking of public sector banks, private sector banks and public sector insurance companies, based on quality and timely redressal of grievances.

The initiative started in June this year has significantly improved performance of these entities, the finance ministry said in a statement.

Besides, the ranking of private sector insurers is also in the pipeline.

This has strengthened the grievance redressal mechanism by increased focus on faster turnaround time (TAT) by banks and insurance companies, transparent communication between customer and the respective organisations, and an increase in customer service training in the organisations, it said.

Furthermore, the Department of Financial Services (DFS) has also initiated the 'Financial Institutions Interaction Program' from December 2025, wherein meetings are held with selected organisations based on grievances received on the CPGRAM Portal.

"As a first step, Non-Banking Financial Companies (NBFCs) are selected for this exercise. DFS remains committed to further improving the grievance redressal framework in the financial services sector," it said.

The DFS under the finance ministry has been undertaking several key initiatives aimed at streamlining the process of the grievance redressal mechanism in the banking, financial services and insurance (BFSI) sector.

DFS Secretary has been personally reviewing twenty grievances selected on a random basis every month, wherein citizens are given an opportunity to raise their concerns against the BFSI sector in the presence of the chairman/MD & CEOs/senior managements of the organisations concerned, it said.

Such an exercise had a salutary impact and helped in building greater customer trust in the financial services sector, it said.

To date, fifteen such meetings have been held, and 300 grievances have been analysed to ensure the quality of the resolution, it said.

"Similar meetings are also held by Joint Secretaries of the department. Drawing from the experience, the Chairman/MD&CEO of financial institutions are also conducting a similar exercise at their level for their organizations. Objective is to assess the efficacy of grievance resolution through a 'dip-stick survey' at the top-most level in the Department," it said.

To ensure that branch staff of PSBs provide the highest levels of service to the customers and visitors, all the banks were advised to devise a mechanism to collect feedback on customer services through the help of technology (voice chat, email, QR code, etc.).