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Swaminathan J, Deputy Governor of the Reserve Bank of India has stated that Internal Ombudsman framework in Indian banks represents a simple but important principle—that every regulated entity should have the ability and the willingness to resolve customer grievances fairly within the institution itself. An effective Internal Ombudsman framework depends on the environment created by the Board and the regulated entity's senior management. He noted that the Board sets the tone for the organisation. If customer-centricity is viewed merely as a compliance requirement, the grievance redress mechanism will inevitably become a compliance exercise. On the other hand, when the Board views customer service as an integral part of good governance, that philosophy permeates the organisation and reflects in every interaction with the customer. He stated that banks need to empower Internal Ombudsmen, value their independence, and treat their insights as opportunities to strengthen the institution. The Board and its Customer Service Committee should therefore not view complaint data merely as statistics or management information. Complaint trends are valuable business intelligence. Rising complaints in a particular product, geography, delivery channel or process often serve as early warning signals of underlying weaknesses that require management attention. Powered by Capital Market - Live News
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