The Reserve Bank of India has said that customer redressal mechanism of banks should act more swiftly. Currently banks need average six months to respond to customer grievances which the apex bank says needs to be improved.

"We have always emphasised that customers should be treated fairly. The average time taken by banks to redress grievances is six months. This is not fairness," said RBI Deputy Governor K C Chakrabarty.

He said that mostly bankers questioned that in a free market, why does the regulator step in regarding customer service.

"In the normal course, competition will take care. But it does not happen in a regulated market."

"If regulations open up the market, banks will not survive. Because we have restricted the market, entry norms are very strict, we have an obligation to the customer," he said.

Complaints against banking services have risen by 14.63% to 79,266 in the last financial year, as against 69,117 the year before.