New Delhi: The Ministry of Finance has launched a new initiative to rank public sector banks, private sector banks, and public sector insurance companies based on the quality and timeliness of grievance redressal. This move is aimed at enhancing customer satisfaction and strengthening the overall grievance resolution framework in India’s financial sector.
Ranking Initiative and Its Impact
Launched in June 2025, the ranking system has already shown a positive impact, according to the Finance Ministry. The initiative has encouraged financial institutions to focus on faster turnaround times, improve transparent communication with customers, and provide enhanced customer service training to their employees. The ranking of private sector insurers is also planned as part of this effort.
Financial Institutions Interaction Program
In addition to rankings, the Department of Financial Services (DFS) has introduced the ‘Financial Institutions Interaction Program’ from December 2025. Under this program, selected organizations are engaged in meetings to address grievances received via the CPGRAM portal. Initially, Non-Banking Financial Companies (NBFCs) have been included in this program, with plans to expand further.
DFS officials, including the Secretary, review twenty grievances randomly selected each month. These meetings allow citizens to raise concerns in the presence of senior management, including chairpersons, MDs, and CEOs of the concerned financial institutions. Fifteen such meetings have been conducted so far, analyzing 300 grievances to ensure quality resolutions.
Strengthening Customer Trust and Feedback Mechanisms
The exercise has helped build greater customer trust and improved the grievance redressal process in the banking, financial services, and insurance (BFSI) sector. Joint Secretaries of DFS also hold similar meetings, while the heads of financial institutions conduct internal reviews to evaluate grievance handling effectiveness.
To ensure high standards of customer service at the branch level, banks have been advised to adopt technological tools for collecting customer feedback, such as voice chats, emails, and QR codes. This step aims to continuously monitor service quality and enhance customer experience across the BFSI sector.
About DFS and the Initiative
The Department of Financial Services, under the Ministry of Finance, is responsible for strengthening the grievance redressal mechanism across India’s financial institutions. By implementing these measures, DFS aims to ensure timely, effective, and transparent resolution of complaints while promoting accountability and trust in the financial sector.
