DFS strengthens grievance redressal framework to enhance customer trust across banks, insurers
New Delhi, July 9
The Department of Financial Services is strengthening its grievance redressal mechanism to improve customer trust and service delivery across banks and insurance companies, according to the Ministry of Finance.
The Insurance Division of DFS secured second position in the Group A category of the Grievance Redressal Assessment and Index (GRAI) for May 2026. The Banking Division ranked sixth in the same category.
The ministry said the department receives more than 2.5 lakh grievances every year and has consistently featured among the top 10 ministries and departments in the GRAI rankings since November 2025.
The ministry said the government's focus on improving grievance resolution is aimed at making governance more transparent, accountable and citizen-centric. For consumers, stronger grievance redressal systems are expected to improve the quality of complaint handling and build greater confidence in financial institutions.
According to the ministry, since January 7, 2024, the Secretary of the Department of Financial Services has been personally reviewing 20 randomly selected grievances, with complainants participating directly alongside chairpersons, managing directors, chief executive officers and senior management of the concerned financial institutions.
"This initiative aims to improve customer trust and ensure meaningful resolution of grievances," the Ministry said.
The Department of Financial Services has also organised workshops on an "Effective Grievance Redressal Framework" with the Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA) and all public sector banks.
According to the ministry, these workshops focused on identifying the root causes of complaints and improving the quality of grievance resolution. They also encouraged financial institutions to address customer concerns with professionalism, transparency and empathy, with the objective of strengthening public trust and improving service delivery.
The ministry said the government's continued focus on grievance redressal is expected to further strengthen accountability across the financial sector while ensuring that customer complaints are resolved in a more effective and transparent manner.
— ANI
Reader Comments
The Secretary personally reviewing 20 random grievances every month since 2024 is a brilliant move. It shows accountability at the highest level. But what about the other lakhs of complaints? Hope this trickles down to all levels soon. 🇮🇳
As someone who works in finance, I can say that grievance redressal is the backbone of customer trust. India's financial sector is maturing fast, and frameworks like GRAI are a step in the right direction. Good to see the Insurance Division ranking high!
I appreciate the efforts, but 2.5 lakh grievances per year is still a massive number. We need proactive solutions, not just reactive fixes. Maybe more financial literacy camps can help people avoid issues in the first place? Just a thought. 🧐
Workshops with RBI, IRDAI, and all public sector banks is a solid initiative. If they truly focus on root causes and train bank staff to handle complaints with empathy and transparency, this could be a game-changer. Let's see the ground reality in a year.
The concept of GRAI is interesting, but I wish they published the complaints data publicly for each bank and insurer. Transparency would push institutions to improve faster. Also, why does the Banking Division rank only 6th? More work needed there! 🏦
Having lived in India and abroad, I can say that grievance mechanisms here have improved dramatically. But the devil is in the execution. Let's hope these top-down measures actually reach the customer at the branch level. Kudos for the effort though!