RBI Strengthens Grievance Redressal & Issues Draft Directions; Money Supply Growth at 12%

The Reserve Bank of India (RBI) has unveiled a series of updates aimed at enhancing transparency and efficiency in the financial sector. Key among them is the strengthening of grievance redressal mechanisms in banks, ensuring faster resolution of customer complaints. Additionally, RBI has issued draft amendment directions governing advertising, marketing, and sales of financial products by regulated entities, reinforcing consumer protection standards.

On the monetary front, RBI reported that reserve money grew 5.8% year-on-year in the week ending January 31, compared to 3.5% growth a year ago. India’s money supply (M3) expanded at 12% year-on-year, while currency in circulation rose 11.1%, significantly higher than the 5.3% growth recorded in the same period last year.

Key Highlights

• Grievance Redressal: Strengthened mechanisms in banks for faster complaint resolution.
• Draft Directions: Issued for advertising, marketing, and sales of financial products.
• Reserve Money: Grew 5.8% YoY in week to January 31 (vs. 3.5% last year).
• Money Supply (M3): Expanded 12% YoY as of January 31.
• Currency in Circulation: Increased 11.1% YoY (vs. 5.3% last year).

These measures highlight RBI’s dual focus on consumer protection and monetary stability, reinforcing confidence in India’s financial ecosystem.

Sources: Reserve Bank of India (RBI), CNBC-TV18, Mint