Issues concerning Grievance Redress Mechanism (GRM) in Indian financial regulators
Publication dateJan, 2022
DetailsNIPFP Working Paper No. 364
AuthorsKaran Gulati and Karthik Suresh
This paper aims to measure and understand the performance of Indian financial sector regulators vis-a-vis grievance redress. This is based on learnings from international best practices. It looks at the structure and policy apparatus of redress systems of financial regulators and the challenges consumers face while accessing them. Regulators differ in their approaches to grievance redress mechanisms, face conflicts of interest, and follow complicated processes. They also take too long to resolve grievances and do not have a defined point of closure. The regulations are often not accessible to consumers, and when they are, they are difficult to understand. This implies a need to simplify the procedure, better inform consumers, and include enforcement provisions to enable greater grievance redress.