Consumer Grievance Redress in Indian Financial Markets

26 Pages Posted: 11 May 2022

See all articles by Vimal Balasubramaniam

Vimal Balasubramaniam

Queen Mary University of London; Centre for Economic Policy Research (CEPR)

Renuka Sane

Trustbridge Rule of Law Foundation; National Institute of Public Finance and Policy

Srishti Sharma

affiliation not provided to SSRN

Date Written: May 10, 2022

Abstract

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.

Keywords: consumer complaints; India; financial markets

JEL Classification: G5, G28

Suggested Citation

Balasubramaniam, Vimal and Sane, Renuka and Sharma, Srishti, Consumer Grievance Redress in Indian Financial Markets (May 10, 2022). Available at SSRN: https://ssrn.com/abstract=4104911 or http://dx.doi.org/10.2139/ssrn.4104911

Vimal Balasubramaniam

Queen Mary University of London ( email )

Mile End Road
London, London E1 4NS
United Kingdom

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Renuka Sane (Contact Author)

Trustbridge Rule of Law Foundation ( email )

New Delhi
India

National Institute of Public Finance and Policy ( email )

18/2, Satsang Vihar Marg
New Delhi, 110067
India

Srishti Sharma

affiliation not provided to SSRN

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