Credit Card Complaints Surge To 50,000+ In 2025; Debit Card, Net Banking Complaints Reduce

In the mosaic of India’s banks, credit cards painted the boldest streak of customer grievances in FY2025.

The Swipe Trouble – Credit Cards Lead Banking Grievances in FY25

As per the Annual Report of the Ombudsman Scheme 2024-25 released by the Reserve Bank of India (RBI), “Credit cards” have emerged as the leading source of customer complaints in FY2025, with grievances in this segment rising far faster than in other areas of banking. Reaching a total of 50,811 cases in 2025, credit card complaints have surged by 20.04%.

Private sector banks accounted for the majority of these complaints, recording 32,696 casesdriven by their aggressive expansion in unsecured lending and credit card businesses.  On the flipside, only 3,021 complaints were received by the public sector banks, also reflecting their smaller footprint in the credit card landscape.

The high volume of cards in circulation and active usage in private banks naturally led to a greater number of customer grievances.

While credit card grievances soared, other metrics improved.

Complaints related to ATM and debit card transactions fell sharply by 28.33% to 18,082 cases, and issues tied to mobile and electronic banking declined by 12.74%. Pension-related complaints dropped 33.81% to 2,719, remittance and instrument collection grievances fell by 9.73%, and para banking complaints declined 24.16%.

Private Banks at the Eye of the Complaint Storm as Grievances Surge in FY25

However, complaints regarding deposit accounts rose by 7.67%, and loans and advances edged up 1.63%.

Overall, the total number of complaints received by the banking system in FY25 stood at 2,96,321, a modest 0.82% increase year-on-year. Private banks’ share of complaints surged from 34.39% in FY24 to 37.53% in FY25, amounting to 1,11,199 grievances. Public sector banks, traditionally seen as complaint-heavy due to their large customer base, saw a decline in their share, falling from 38.32% to 34.80%, though the absolute number remained high at 1,03,117 cases.

Individuals accounted for 87.19% of total complaints, filing 2,58,365 cases. Loans and advances continued to be the largest area of dispute, with 86,670 complaints, highlighting persistent lending-related issues. Small finance banks also recorded the sharpest rise in grievances, with complaints surging 42%, indicating operational strains as they expand into underserved markets.

The report underscores a broader shift in India’s banking landscape: as private banks grow their market share and digital footprint, they are increasingly becoming the primary focus of customer dissatisfaction, even as other segments show improvement.

As the tide of grievances ebbs and flows, private banks now stand at the eye of the storm in India’s evolving banking landscape.

Summary

In FY2025, credit cards topped customer complaints in India, surging 20.04% to 50,811 cases, primarily from private banks expanding unsecured lending. While ATM, debit, and digital banking grievances declined, complaints on deposits and loans edged up. Overall complaints rose slightly to 2,96,321, with individuals filing 87%. The report highlights private banks as the growing focal point of customer dissatisfaction.