Microfinance sector introduces new grievance redressal tools for customer protection
Sa-Dhan, the RBI-recognized SRO, has launched a toll-free grievance helpline and a comprehensive Client Grievance Redressal Mechanism (CGRM) manual to enhance customer protection in the microfinance sector. These initiatives aim to foster transpar...
By ET Bureau |
To boost customer protection in the microfinance sector, Sa-Dhan, the RBI-recognised Self-Regulatory Organisation (SRO), on Tuesday launched a sector-wide toll-free grievance helpline along with a comprehensive Client Grievance Redressal Mechanism (CGRM) manual.
The new toll-free helpline is managed in-house and currently operates in Hindi and English, with plans to expand to ten regional languages, Sa-Dhan said in a statement. It will serve as a second-level grievance platform and bridging the gap between the MFI and the RBI.
The CGRM manual has been designed to help smaller MFIs build effective internal systems. It includes process flows, escalation protocols and tools to support ongoing training and monitoring.
During the national conclave held in Bengaluru on the theme ‘Emerging Role of Microfinance in the Changing Financial Landscape,’ the two initiatives were announced in collaboration with M2i Consulting. The SRO said these efforts aim to build greater transparency, trust, and accountability in microfinance operations.
The event revolved around the state of microfinance, practical tools for client protection, and engaging with emerging challenges including recent policy developments in Karnataka.
“Responsible lending and client protection are at the heart of financial inclusion,” said Jiji Mammen, Executive Director and CEO of Sa-Dhan, during his keynote address. “It’s important that grievance redressal is not just a process but a meaningful commitment to our clients,” he added.
The organisation said that while microfinance forms just around 3% of India’s overall retail lending market, its role in supporting underserved communities is seen as critical.
Industry leaders from institutions like Ujjivan SFB, Spandana Sphoorty, and Svamaan Financial Services discussed how grievance redressal is becoming central to institutional strategy, with measures such as board-level oversight, gender-sensitive processes, and regular mystery audits.
The new toll-free helpline is managed in-house and currently operates in Hindi and English, with plans to expand to ten regional languages, Sa-Dhan said in a statement. It will serve as a second-level grievance platform and bridging the gap between the MFI and the RBI.
The CGRM manual has been designed to help smaller MFIs build effective internal systems. It includes process flows, escalation protocols and tools to support ongoing training and monitoring.
During the national conclave held in Bengaluru on the theme ‘Emerging Role of Microfinance in the Changing Financial Landscape,’ the two initiatives were announced in collaboration with M2i Consulting. The SRO said these efforts aim to build greater transparency, trust, and accountability in microfinance operations.
The event revolved around the state of microfinance, practical tools for client protection, and engaging with emerging challenges including recent policy developments in Karnataka.
“Responsible lending and client protection are at the heart of financial inclusion,” said Jiji Mammen, Executive Director and CEO of Sa-Dhan, during his keynote address. “It’s important that grievance redressal is not just a process but a meaningful commitment to our clients,” he added.
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The organisation said that while microfinance forms just around 3% of India’s overall retail lending market, its role in supporting underserved communities is seen as critical.
Industry leaders from institutions like Ujjivan SFB, Spandana Sphoorty, and Svamaan Financial Services discussed how grievance redressal is becoming central to institutional strategy, with measures such as board-level oversight, gender-sensitive processes, and regular mystery audits.
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