Deputy Governor of RBI stresses that public confidence is as important as money itself

What happens if people lose faith in banks? The answer is simple: the system collapses. This thought framed the speech of Reserve Bank of India Deputy Governor Rajeshwar Rao in September 2025. He reminded the industry that “trust is the currency of banking.”

His words came at a time when official reports show fast growth in accounts and deposits, but also rising concerns on fraud and service disputes.

Recent Development: Trust Linked to Financial Inclusion

The importance of trust in the banking sector is not an abstract line. It can be seen in numbers published by the government.

According to the Ministry of Finance dashboard on Pradhan Mantri Jan Dhan Yojana (PMJDY), by 10 September 2025 there were 56.46 crore accounts with deposits of ₹2.66 lakh crore. This growth in accounts is proof that millions of families now keep money in formal channels.

The table below records the growth of Jan Dhan deposits across three years.

Year	Number of Accounts (crore)	Deposits (₹ crore)	Comment
2,023	50.02	2,04,000	Expansion started
2024	55	2,40,500	Strong inflow
2025 (Sep)	56.46	2,66,648	Continued rise

This rapid rise shows confidence in formal accounts. Yet the rise in numbers also calls for better service quality. People must feel safe not just while opening accounts but also while using them.

What Trust in Finance Really Means?

Trust as currency in financial services is not about goodwill alone. It is the belief that money will be safe, accessible and managed with fairness. In simple words, trust means assurance. It means customers believe that their deposits, payments and personal details are protected.

The Reserve Bank created the Financial Inclusion Index to measure access, usage and quality. Though the first full set of scores is awaited, the plan itself shows how regulators view trust as measurable. The digital shift also shows why trust matters. Payment systems run daily transactions worth trillions. A single failure or fraud shakes confidence.

To see where people feel let down, complaint data tells a clear story. The Integrated Ombudsman Scheme launched in 2021 gives one channel for all grievances.

Complaint Type	Share in 2023	Share in 2024	Note
Digital Payments	28%	32%	Rising sharply
ATM / Card Issues	24%	21%	Small decline
Loan Services	18%	20%	Slight increase

The increase in digital payment complaints shows that while access has grown, safety doubts remain. This makes the link between service quality and trust sharper.

Connection With Past Coverage: Customer Trust and Banking Complaints

The role of customer trust in the banking industry is visible in complaint reports of past years. Earlier coverage in 2024 pointed to a surge in fraud and grievance cases, see LoansJagat’s article “Loan Fraud in the Digital Age: New Scams and Advanced Defences”, which reports that banking frauds rose by 27% in 2024 alone, amounting to over ₹21,367 crore lost in online scams.

Rajeshwar Rao’s reminder fits into this trend. Growth in accounts and digital use is welcome, but service failures test faith in banks.

Numbers tell this contrast well. While Jan Dhan accounts grow, complaints also rise.

Indicator	2023	2024	Comment
PMJDY Accounts (crore)	50.02	54.5	Expansion
Complaints Registered (lakh)	34	39	Increase
Complaints Resolved (%)	96	97	High but constant

These figures show that resolution is quick, but complaints keep growing. This means trust is being tested. Rao’s words therefore connect new growth with old risks.

Government and Bank Responses Over Time

Rajeshwar Rao views on banking trust must also be seen with past responses. In 2018, when public sector banks faced record non-performing assets (NPAs), the government launched recapitalisation to restore confidence.

In 2021, the RBI introduced the Ombudsman Scheme to give customers a single window for disputes. In recent years, fraud numbers have drawn official warnings to banks.

The table below compares NPA levels and fraud amounts as reported in RBI annual reports.

Year	Gross NPAs (% of advances)	Fraud Amount Reported (₹ crore)	Comment
2022-23	4.1	29,000	NPAs fell, frauds high
2023-24	3.9	32,000	Small fall in NPAs
2024-25	3.7	34,500	Fraud increased

These numbers show that even as NPAs decline, fraud amounts rise. That gap explains why Rao stressed that without trust, balance sheets mean little.

How Trust Drives Success in Indian Banking?

How trust drives success in banking is clear when looking at deposits, credit and payments. A bank grows only if people believe in it. The steady inflow of deposits in Jan Dhan accounts proves that families rely on formal banking for safety. Growth in digital payments proves they trust speed and technology. But rising fraud and complaint figures prove that trust is fragile.

RBI reports, government dashboards and annual data confirm that success and trust move together. If either falls, the other follows.

Conclusion

Trust is not an ornament in banking. It is the foundation. Rajeshwar Rao’s line that “trust is the currency of banking” comes when India has both growth and risk. Government reports such as the PMJDY dashboard of September 2025 show record accounts and deposits. RBI’s Ombudsman Scheme report shows complaint levels rising. Fraud figures show how safety doubts grow.

The importance of trust in banking sector, trust as currency in financial services, role of customer trust in banking industry, Rajeshwar Rao views on banking trust and how trust drives success in banking all lead to one idea. Banks may earn profits and regulators may track indices. But unless customers believe, nothing else stands.

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