May 30th 2024.
In an effort to protect the rights of customers who use banks and NBFCs, the Reserve Bank has announced plans to incorporate AI and other related tools into their complaint management system. This will make it easier for customers to lodge their complaints and ensure that decisions are made consistently. The RBI released their annual report on Thursday, which outlines their commitment to strengthening the Internal Grievance Redress framework and encouraging banks to improve their customer service.
Looking ahead, the Reserve Bank will continue to take proactive measures to promote a stable and strong financial system, while keeping an eye on potential risks that may arise from advancements in technology, business practices, and the complex nature of the financial sector. They are determined to prioritize the best interests of the economy and ensure that the financial system remains secure. In terms of payment systems, the focus will be on consolidating efforts to enhance customer experience, foster innovation, and support expansion.
Under the 'integrity' pillar, the Central Payments Fraud Information Registry will be expanded to include local area banks, state cooperative banks, district cooperative banks, regional rural banks, and non-scheduled UCBs for reporting payment fraud. To address risks in payments, a risk-based authentication mechanism will be introduced as an alternative to the traditional SMS-based one-time password for an additional layer of security.
The RBI also plans to explore the Fast Payment System and multilateral inter-linkages in collaboration with countries like the European Union and the South Asian Association for Regional Cooperation on the international front. Additionally, they will review the priority sector lending guidelines and work towards formulating the next iteration of the National Strategy for Financial Inclusion for the period 2025-30.
In conclusion, the Reserve Bank remains committed to protecting the interests of customers and ensuring a stable financial system. They will continue to adapt and evolve to keep up with the ever-changing landscape of the financial sector and prioritize the best interests of the economy.
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