In a clear indication of the growing discontent among borrowers over inaccuracies in credit reports, complaints against credit information companies have risen almost four-fold in three years, The Times of India reported on December 2.
The sharp jump comes even as overall complaints handled by India's financial ombudsman continue to edge upward across banks, NBFCs and digital payment players, the report said.
The ombudsman’s latest annual review shows that complaints against credit information companies climbed from 1,039 in 2022–23 to 3,847 in 2023–24, and further to 4,585 in 2024–25 -- the steepest rise among all regulated entities. Many of these grievances involve loans and advances, which now make up more than 84% of all complaints tied to credit information companies.
The broader system has also seen a steady build-up in dissatisfaction. Total complaints filed with the ombudsman reached 2.95 lakh in FY25, marginally above 2.93 lakh in FY24 and up from 2.34 lakh in FY23. Although the pace of growth has eased, the numbers reflect a financial sector grappling with expanding customer bases, more sophisticated products, and rising expectations of service accuracy.
Banks remain the dominant source of complaints. Their volumes spiked in FY24 before settling at 2,41,601 in FY25. While loans and advances continued to generate the most grievances, patterns within banking complaints are shifting.
Issues related to deposit accounts rose to 20.63% of all complaints, making them the second-largest area of concern.
Credit card complaints also expanded quickly, gaining more than five percentage points over two years to reach 17.16% in FY25.
Some categories, however, saw a bit of relief. Complaints involving ATMs and debit cards fell sharply from 14.56% to 7.47% over the same period. This decline might hint at a behavioural shift as more consumers move from card-based transactions to digital payment systems, reducing friction in areas once known for high customer dissatisfaction, the report noted.
The complaint landscape within the banking sector also mirrors the increasing dominance of private lenders. Private banks overtook public sector banks in FY25, drawing 1,11,199 complaints against 1,03,117 filed against PSBs.
The gap, though not large, signals a change in customer interaction volumes and the pressures of rapid retail expansion among private players.
Beyond banks, non-banking financial companies and non-bank payment system participants recorded steady rises in complaints. NBFC grievances grew from 33,072 to 43,864 over three years, while complaints tied to non-bank payment systems climbed from 3,456 to 5,617.
The sharp jump comes even as overall complaints handled by India's financial ombudsman continue to edge upward across banks, NBFCs and digital payment players, the report said.
The ombudsman’s latest annual review shows that complaints against credit information companies climbed from 1,039 in 2022–23 to 3,847 in 2023–24, and further to 4,585 in 2024–25 -- the steepest rise among all regulated entities. Many of these grievances involve loans and advances, which now make up more than 84% of all complaints tied to credit information companies.
The broader system has also seen a steady build-up in dissatisfaction. Total complaints filed with the ombudsman reached 2.95 lakh in FY25, marginally above 2.93 lakh in FY24 and up from 2.34 lakh in FY23. Although the pace of growth has eased, the numbers reflect a financial sector grappling with expanding customer bases, more sophisticated products, and rising expectations of service accuracy.
Banks remain the dominant source of complaints. Their volumes spiked in FY24 before settling at 2,41,601 in FY25. While loans and advances continued to generate the most grievances, patterns within banking complaints are shifting.
Issues related to deposit accounts rose to 20.63% of all complaints, making them the second-largest area of concern.
Credit card complaints also expanded quickly, gaining more than five percentage points over two years to reach 17.16% in FY25.
Some categories, however, saw a bit of relief. Complaints involving ATMs and debit cards fell sharply from 14.56% to 7.47% over the same period. This decline might hint at a behavioural shift as more consumers move from card-based transactions to digital payment systems, reducing friction in areas once known for high customer dissatisfaction, the report noted.
The complaint landscape within the banking sector also mirrors the increasing dominance of private lenders. Private banks overtook public sector banks in FY25, drawing 1,11,199 complaints against 1,03,117 filed against PSBs.
The gap, though not large, signals a change in customer interaction volumes and the pressures of rapid retail expansion among private players.
Beyond banks, non-banking financial companies and non-bank payment system participants recorded steady rises in complaints. NBFC grievances grew from 33,072 to 43,864 over three years, while complaints tied to non-bank payment systems climbed from 3,456 to 5,617.
