Page 9 - Banking Finance April 2025

RBI CORNER

2023 increase in risk weights by 25 RBI's Dollar Swap Adds livery. Speaking at the annual confer-
percentage points. That earlier step ence of the RBI's Ombudsmen in
was taken to manage potential risks $15 Billion to Forex Re- Mumbai, Malhotra noted that inad-
due to rapid growth in consumer serves in a Week equate attention to customer service
credit. As of December 2024, lending India's foreign exchange reserves jumped has led to numerous complaints being
to NBFCs rose just 4.8% from March, by $15 billion to $653.9 billion in the week escalated to the RBI Ombudsman.
compared to 13.2% in the same period ending March 7, 2025, marking the larg- He urged top management to allocate
the previous year. est single-week rise in over two years, as more time and resources to address
per RBI data. The sharp increase was customer issues directly, ensuring
RBI Clarifies Disclosure primarily attributed to a dollar-rupee timely and effective redressal. The
Norms for Repo, Reverse buy-sell swap conducted by the RBI on Governor's remarks underline the RBI's
February 28, along with revaluation commitment to improving customer-
Repo Deals gains in the dollar index. centric banking practices across the
The Reserve Bank of India has man- The central bank executed a $10 bil- financial sector.
dated that banks disclose both the lion swap to address liquidity con-
market and face values of repo and Perform or perish: RBI
straints in the banking system by pur-
reverse repo transactions in their fi- chasing dollars in exchange for rupees. Governor to banks on cus-
nancial statements. The clarification
The move significantly boosted re-
follows queries from banks and the In- serves, helping stabilize the rupee and tomer service
dian Banks' Association regarding note Reserve Bank of India (RBI) Governor
support the central bank's liquidity
disclosures to accounts. The RBI stated management strategy. Sanjay Malhotra came down heavily on
that including both valuations ensures regulated entities like banks and non-
a clearer picture of banks' financial banking financial companies (NBFCs)
positions. RBI Governor Urges CEOs for the spike in customer complaints in
to Prioritize Customer Ser- recent years, urging them to improve
Additionally, the central bank clarified
that margin money received as depos- vice Amid Rising Com- services and strengthen grievance re-
dress in a time-bound manner. He said
its, where a lien is marked in regular plaints that senior executives, including chief
business, should be classified under executive officers (MDs), should spend
Schedule 3: Deposits, with appropriate RBI Governor Sanjay Malhotra has ex- time on the issue at least once a week.
disclosures. These changes are aimed pressed concern over increasing cus-
at enhancing transparency and unifor- tomer complaints and urged bank and "In this age of competition, we will not
mity in financial reporting across the NBFC CEOs to become more involved survive long if we do not provide qual-
banking sector. in grievance resolution and service de- ity service to our consumers," Malhotra
said in a speech at the annual confer-
ence of the RBI Ombudsmen.
Indranil Bhattacharyya Appointed Executive Director
Commenting that the high number of
at RBI customer grievances remains a serious
The Reserve Bank of India (RBI) has appointed Indranil Bhattacharyya as concern, Malhotra cited data showing
Executive Director (ED), effective March 19, 2025. In his new role, that complaints received under RBI's
Bhattacharyya will oversee the Department of Economic and Policy Research. Integrated Ombudsman Scheme grew
Prior to this appointment, he served as Adviser in the RBI's Monetary Policy at a compound average rate of almost
Department. 50 per cent per year over the past two
years, reaching 934,000 in 2023-24
With nearly three decades of experience in fiscal policy, banking, and inter- (FY24). The number of complaints pro-
national economic affairs, he has worked in several key departments within cessed by the office of the RBI Om-
the RBI. Notably, Bhattacharyya served as an economic expert in the budsman increased by 25 per cent,
Governor's technical office at Qatar Central Bank between 2009 and 2014,
from about 235,000 in 2022-23 to al-
further enhancing his global financial credentials. most 294,000 in 2023-24.

BANKING FINANCE | APRIL | 2025 | 9