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The Banking Ombudsman Scheme provides an inexpensive and impartial system for resolving complaints relating to certain banking services. Under the scheme, the Reserve Bank of India appoints Banking Ombudsmen who are located across India to investigate and settle complaints by consumers against deficient banking services. The Ombudsmen aim to settle complaints relating issues like non-payment or delay of funds, failure to issue bank instruments, or levying unauthorized charges. Complainants must first address the bank directly, and may approach the Ombudsman if their issue remains unresolved for over a month.

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710 views

Bo

The Banking Ombudsman Scheme provides an inexpensive and impartial system for resolving complaints relating to certain banking services. Under the scheme, the Reserve Bank of India appoints Banking Ombudsmen who are located across India to investigate and settle complaints by consumers against deficient banking services. The Ombudsmen aim to settle complaints relating issues like non-payment or delay of funds, failure to issue bank instruments, or levying unauthorized charges. Complainants must first address the bank directly, and may approach the Ombudsman if their issue remains unresolved for over a month.

Uploaded by

monik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Banking Ombudsman

The Banking Ombudsman Scheme is introduced under


Section 35 A of the Banking Regulation Act, 1949 by
RBI
with
effect
from
1995.

INTRODUCTION

THE BANKING OMBUDSMAN SCHEME, 2006


The Scheme is introduced with the object of enabling
resolution of complaints relating to certain services
rendered by banks and to facilitate the satisfaction or
settlement of such complaints.

Appointment :

Tenure :

Qualification :

Which bank covered ?

Organizational Structure
Depu
ty
gove
rnor
of
RBI
Executive Director
(Customer Services
Department
Office of the Banking Ombudsman

1.

15 OBOs are situated across


country

2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Ahmedabad
Bangalore
Bhopal
Bhubaneswar
Chandigarh
Chennai
Guwahati
Hyderabad
Jaipur
Kanpur
Kolkata
Mumbai
New Delhi
Patna
Thiruvananthapuram

Grounds Complaints are as :

non-payment or inordinate delay in the payment or collection of


cheques, drafts, bills etc.;
non-acceptance, without sufficient cause, of small denomination
notes tendered for any purpose, and for charging of commission in
respect thereof
non-payment or delay in payment of inward remittances ;
failure to issue or delay in issue of drafts, pay orders or bankers
cheques;
non-adherence to prescribed working hours ;
failure to provide or delay in providing a banking facility .

complaints from Non-Resident Indians having accounts


in India in relation to their remittances from abroad,
deposits and other bank-related matters;
refusal to open deposit accounts without any valid
reason for refusal;
levying of charges without adequate prior notice to the
customer;
non-adherence by the bank or its subsidiaries to the
instructions of Reserve Bank on ATM/Debit card
operations or credit card operations;
non-disbursement or delay in disbursement of pension
refusal to close or delay in closing the accounts;

Card related problems:

Charging Of amount for 'Free' Card,

Authorization Of Loans Over Phone (oral),

Wrong Billing,

Excessive Charges,

Wrong Debits To Account,

Non-dispensation /Short Dispensation Of Cash From ATM . etc

What is the procedure for


filing the complaint before
the Banking Ombudsman ??

1. Writing on a plain paper.

2. File it online form.

3. Sending an Email

Procedure for getting justice?


Youre unhappy with the bank for xyz reason. But
you cannot directly approach BO.
First youve to give written complaint to the
concerned bank that Ive so and so problem.
and IF the bank doesnt deal with your complaint
within one month, then you can approach BO.
On the other hand, you cannot approach BO if the
matter is older than 1 year.
You dont need lawyer to approach BO.
You dont need to pay any fees/ stamp papers for
approaching BO.

You cant approach BO in following situations


1.
2.

3.

4.

Matter is higher than Rs.10 lakh.


If the matter is pending before any other court,
tribunal, forum then you cannot approach BO.
If any other court, tribunal, forum has already
passed an order on the same matter.
You cannot approach BO for frivolous or vexatious
complaints (e.g. AC or water cooler was off when I
went to the branch. Someone jumped the queue but
security guard did nothing.)

Complaint Form

Appellate authority for Banking


Ombudsman

If either party (Bank / Customer) is unhappy with


Ombudsmans order, then they can approach the
Appellate authority (=Deputy Governor of RBI.)

1.

If youre the customer, you can directly approach


him.
But if youre the Bank, then you can approach him
only after getting permission from your
Chairman/CMD/MD or CEO. (This ensures Banks
lower staff doesnt automatically go for frivolous
appeals against every order).

2.

Redressal Process :
Receipt of
complaint

Review by BO

Reject
(Non
Maintainable)

Maintainable

PROCEDURE FOR REDRESSAL OF


GRIEVANCE

Any person who has a grievance against a bank on


any one or more of the grounds mentioned in Clause
8 of the Scheme may, himself or through his
authorized representative (other than an advocate),
make a complaint to the Banking Ombudsman within
whose jurisdiction the branch or office of the bank
complained against is located.

The complainant shall file along with the complaint,


copies of the documents, if any, which he proposes to
rely upon

A complaint made through electronic means shall also be


accepted by the Banking Ombudsman.

The Banking Ombudsman shall also entertain complaints


covered by this Scheme received by Central Government or
Reserve Bank and forwarded to him for disposal.

The application generates unique complaint ID

Automatic acknowledgement generated on tracking of


complaints

RBI and Finance ministry can also monitor the status of the
complaints

Benefits of the BO scheme

Prompt and impartial resolution of complaints

No cost to the customer

Assessment based on overall fairness, good business


practices, accepted banking law and practice

Focus on customer education and financial literacy

Customer Awareness and Empowerment

Case Study :
Example

of complaints relating to banking

services :

1) Sumangal Rao Vs.Vijaya Bank,(Karnataka)

2) Corporation Bank vs. Smt Nirmala Baliga 1996


(Thiruvananthapuram)

Conclusion
solving of grievances:

users of banking services

inexpensive & fair to improve customer services.


Feedback/suggestions to Reserve Bank: about

guidelines to banks to improve the level of customer


service &

to strengthen their internal grievance redressed


systems

Create awareness: about Banking Ombudsman


Scheme.
To facilitate: Quick and fair (non-discriminatory)
redressed of grievances through use of IT systems,
comprehensive and easily accessible database and
enhanced capabilities of staff through training

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