Consumer Grievance Redress in Indian Financial Markets

We present results from a first ever representative phone survey that measures consumer grievances in Indian retail financial markets. We find that for every com- plaint on banking and payments that makes it to the regulatory system, there are 60 grievances that do not get voiced. In insurance the number is 80 grievances for every official complaint. Grievances in banking and payment mostly pertain to “transaction issues” such as delays in payments, and technology malfunction. Grievances in insurance often pertain to “non transaction issues” such as mis-selling and fraud. There are a number of frictions in the process of voicing complaints - ranging from limited information about the process, to limited faith that a resolution is even possible. Those in vulnerable groups (with low education and low assets) are less likely to voice their complaints, and more likely to not have enough information about the redress procedure