Credit card use jumps but complaints dip

MUMBAI: Despite a sharp jump in the number of credit cards in use, complaints regarding credit cards have dropped significantly. According to data released by the Reserve Bank of India (RBI), credit card-related complaints dropped over 5% despite a 27% jump in customer complaints in the overall banking sector.

According to the annual report of the banking ombudsman — an institution which adjudicates on consumer complaints — there is a decline in the number of credit card-related complaints as well as their percentage share of these complaints. In FY16, the ombudsman received 8,740 credit card complaints, which accounted for 8.5% of total banking complaints. In FY17, the number dropped to 8,297, or 6.5% of the total sector's. This was despite the number of credit cards rising from 2.4 crore to 2.9 crore during the same period.

Bankers say that the number of complaints has dropped because of digitisation and measures to promote electronic bill payments. Also, security features have been improved.

However, while credit card complaints have fallen, there is a perceptible rise in the number of ATM /debit card-related complaints, which increased by 12.5% during the year under review. Out of a total of 24,731 card-related complaints, 16,434 complaints pertained to ATM/debit cards (12.5% of total complaints received). Card-related complaints (both debit and credit) comprised 18.9% of total complaints and accounted for the second highest number of complaints.
Total complaints stood at 1.30 lakh. Non-dispensation/short dispensation of cash in ATM withdrawals was the major cause of complaints under this category. Complaints related to credit cards constituted 6.4% of total complaints received during 2016-17.

Pension-related complaints constituted 6.5% of the total complaints. Delayed payment, errors in calculations, difficulties in converting the pension to family pension on demise of pensioner, non-cooperation of staff, etc, were the areas of grievance under this category.

Other complaints included 'levy of charges without prior notice' (5.5% of total). These included levying charges for non-maintenance of minimum balance, processing fees, pre-payment penalties, and cheque collection charges.