Date: 2026-03-27Category: Press ReleaseState: Union GovernmentCountry: India
Department of Financial Services (DFS) reviews Unsatisfied closed complaints related to Banks and Insurance Companies registered on Centralised Public Grievance Redress and Monitoring System (CPGRAMS)- A step towards Ethical Governance
**Executive Summary**
Since January 7, 2024, the Department of Financial Services (DFS) has conducted 18 review meetings to assess the efficacy of grievance redressal for unsatisfied closed complaints on the CPGRAMS platform. Chaired by the Secretary (FS), these sessions involve a "dip-stick survey" to resolve long-pending claims and address systemic issues within the banking and insurance sectors. To date, 360 grievances have been reviewed through coordinated efforts with regulators and financial institutions.
**Key Points / Main Content**
**Review Mechanism and Scope**
* **High-Level Oversight:** The Secretary (FS) chairs video conferences to review unsatisfied closed complaints, moving beyond mere disposal to actual concern resolution.
* **Scale of Exercise:** 18 meetings have been held to review 360 grievances involving 20 randomly selected complainants per session.
* **Collaborative Effort:** Participants include the Reserve Bank of India (RBI), IRDAI, public and private sector banks, and insurance companies.
**Successful Resolutions and Outcomes**
* **Claim Settlements:** Interventions led to the release of significant funds, including a Rs 18.53 lakh medical claim, a Rs 13.30 lakh death claim, and a Rs 9.65 lakh superannuation fund.
* **Pension Redressal:** Resolved long-standing issues such as a family pension delay pending since 2003 (resulting in a Rs 14.75 lakh credit) and arrears for super senior citizens.
* **Correcting Mis-selling:** Addressed instances of insurance mis-selling to senior citizens, resulting in policy cancellations and premium reversals.
* **Insurance Recoveries:** Facilitated payments for PMSBY claims, deceased claims, and insurance claims for stock hypothecated to banks.
**Strategic Objectives**
* **Corrective Mechanism:** Focuses on fixing pending and systemic issues within financial institutions.
* **Preventive Governance:** Aims to reduce future complaints and ensure transparency and compliance.
* **Ethical Governance:** Transitioning the process from simple grievance disposal to a tool that addresses real citizen concerns.
**Impact Analysis**
**Department of Financial Services (DFS)**
**Impact**
Acts as the primary oversight body, ensuring that the grievance redressal mechanism is effective at the highest level of governance.
**Action Required**
Continue conducting regular "dip-stick" surveys and video conferences to monitor the performance of financial institutions.
**Banks and Insurance Companies (Public and Private)**
**Impact**
Entities are held accountable for unsatisfied complaints and must justify the repudiation or delay of claims under high-level scrutiny.
**Action Required**
Review internal grievance protocols to ensure compliance and prevent systemic issues like mis-selling or delayed settlements.
**Regulators (RBI and IRDAI)**
**Impact**
Involved in the coordinated effort to ensure that the financial sector adheres to ethical governance standards.
**Action Required**
Collaborate with the DFS in review meetings to provide regulatory guidance on resolved cases.
**Citizens / Complainants**
**Impact**
Benefit from a mechanism that allows their grievances to be heard by senior officials, leading to the recovery of long-pending rightful dues.
**Action Required**
Utilize CPGRAMS to register grievances and participate in review sessions if selected.
Key Entities Referenced
Centralised Public Grievance Redress and Monitoring System (CPGRAMS): The online platform used by citizens to lodge grievances, which serves as the primary data source for the Department of Financial Services' review of unsatisfied complaints.
Department of Financial Services (DFS): The government department responsible for conducting high-level 'dip-stick surveys' and review meetings to assess the efficacy of grievance resolution in the financial sector.
Reserve Bank of India (RBI): The central banking regulator that participates in coordinated review meetings to address and resolve pending grievances related to banks.
Insurance Regulatory and Development Authority of India (IRDAI): The statutory body regulating the insurance industry, involved in the review process to resolve complex or unsatisfied insurance-related complaints.
Pradhan Mantri Suraksha Bima Yojana (PMSBY): A government-backed accident insurance scheme referenced as a key area where the review mechanism successfully resolved long-pending claims.
Ministry of Finance
Department of Financial Services (DFS) reviews
Unsatisfied closed complaints related to Banks
and Insurance Companies registered on
Centralised Public Grievance Redress and
Monitoring System (CPGRAMS)- A step towards
Ethical Governance
Exercise assesses the efficacy of grievance resolution
through a 'dip-stick survey' at the top most level in the
department
18 review meetings held, 360 grievances reviewed through
coordinated efforts with regulators and financial institutions
Posted On: 27 MAR 2026 3:36PM by PIB Delhi
The Department of Financial Services (DFS), under the chairmanship of Secretary (FS) has been holding
video conferences with Reserve Bank of India, Insurance Regulatory and Development Authority of India,
Public Sector Banks, Public Sector Insurance Companies, Financial Institutions, Private Sector Banks and
Private Sector Insurance Companies, along with randomly selected twenty (20) complainants related to
CPGRAMS since 07.01.2024.
Till date eighteen (18) such meetings have been conducted and 360 grievances have been reviewed. The
objective of such an exercise is to assess the efficacy of grievance resolution through a 'dip-stick survey' at
the top most level in the department.
There were many heart-warming success stories that emerged from these meetings. Excerpts of some of
the resolutions provided are mentioned below to appreciate the struggles experienced by the citizens and
how the mechanism of giving an opportunity to the citizens of being heard at the senior most level of DFS
enabled them to get their long-pending rightful dues/claims.
i. Non-payment of PMSBY claim
A beneficiary, whose husband expired in 2022 had complained about non-receipt of PMSBY claim
on CPGRAMS. The issue was resolved and Rs 2,00,000 was credited in the account of the
complainant maintained at Punjab National Bank (30.06.2025).
ii. Non-payment of superannuation fund of complainant's deceased fatherA beneficiary had complained about non-payment of superannuation fund of his deceased father by
LIC. The issue was resolved and Rs 9,65,000 was credited in the account of the nominee
(30.06.2025).
iii. Non-payment of additional pension.
A 90-year-old super senior citizen pensioner had complained about non-payment of additional
pension. The issue was resolved and an arrear of Rs 33058/- was credited in the account of the
complainant maintained at Bank of Maharashtra (18.07.2025).
iv. Mis-selling of insurance policies to a senior citizen.
A 76-year-old citizen had complained that he had requested M/s India First Life Insurance
Company Ltd for unit link plan but he was sold three single premium policies. The case was
resolved after intervention by the department and all the three policies were cancelled, premium
was also reversed in the account of the complainant (19.08.2025).
v. Non-payment of Medical Claim
A beneficiary was diagnosed with cancer and was successfully operated at a hospital in
Ahmedabad. His medical claim was rejected by HDFC Ergo General Ins. Co. Ltd. citing that the
insured had a tobacco addiction. The issue was resolved and a claim of Rs 18,53,121 was settled
(24.10.2025).
vi. Non-payment of medical claim.
A beneficiary had complained about repudiation of his medical claim by M/s Star Health and
Allied Insurance Co Ltd. The issue was resolved and Rs 50639/- was settled in the account of the
insurer (27.11.2025).
vii. Non-settlement of death claim.
A beneficiary had complained about non-settlement of death claim of her deceased husband by
Axis Max Life Insurance Company Limited. The issue was resolved and Rs 13,30,000 was
credited in the account of the complainant (31.12.2025).
viii. Mis-selling of insurance policy
An eighty-four-year-old citizen had complained about mis-selling of insurance policy by M/s
Canara HSBC Life Insurance Company. The issue was resolved and Rs 10,00,000 was credited in
the account of the complainant. (31.12.2025)
ix. Non-payment of deceased claim.
A beneficiary had complained about delay in settlement of complainant’s deceased husband’s
accident insurance claim by Acko General Insurance Limited. The case was resolved and a claim
of Rs 5,00,000 was credited in the account (21.04.2025).
x. Delay in family pension of a widow pending since 2003.
A beneficiary had complained about non-commencement of family pension pending since 2003.
After intervention by the department, Rs 14,75,299 was credited in her account maintained at Bank
of Maharashtra and regular family pension was also started (25.02.2026).
xi. Rejection of Insurance claim of stock hypothecated to Bank.
A beneficiary had complained about rejection of insurance claim of stock hypothecated to Indian
Overseas Bank. This issue was resolved and Rs 3,00,000/- was credited in the account of
complainant (25.02.2026)Such meetings, chaired by Secretary (DFS), act as:
a. A corrective mechanism thereby fixing pending and systemic issues.
b. A preventive mechanism aimed at reducing future complaints.
c. A governance tool ensuring transparency and compliance.
d. Most importantly, translate outcomes from mere grievance disposal to addressing the real
concerns of the customer / citizen.
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