Banking – Banking Ombudsman Scheme, 2006
Paras Malik
Banking Ombudsman Scheme, 2006 1. What is the Banking Ombudsman Scheme? The Banking Ombudsman Scheme is a prompt and economic forum for bank customers for redressal of complaints relating to certain services provided by the banks. The Banking Ombudsman Scheme is explained under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995. 2. Who do you think is a Banking Ombudsman? The Banking Ombudsman is a senior most official appointed by the Reserve Bank of India to address customer complaints against deficiency in certain banking services. 3. How many Banking Ombudsmen have been appointed till date and where they are located? As till date, 20 Banking Ombudsmen have been appointed by the RBI with their offices located mostly in the state capitals. 4. Which banks are included under the Banking Ombudsman Scheme, 2006? All Scheduled Commercial Banks, Regional Rural Banks, and Scheduled Primary Cooperative Banks are included under this Scheme. 5. In which situation one file a complaint with the BO? One can file a complaint with the BO, if the response is not received from the bank within a period of one month after the concerned bank employee has received one's complaint, or the bank rejects someone’s complaint, or if the complainant is not satisfied with the response given by the bank. For preparation of Bank PO & Clerk exams, visit www.takshilalearning.com for our bank exam course. 6. On what grounds, a complaint can be made to the BO? The BO can receive and consider any complaint relating to the following inadequacy in banking services:
non-payment or unreasonable delay in the payment or receiving of cheques, drafts, bills etc.; non-payment or inordinate delay in payment of remittances;
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Banking – Banking Ombudsman Scheme, 2006
Paras Malik
when banks fail to issue or delay in issue of drafts, bankers’ cheques or pay orders; When bank employees do not work according to the prescribed working hours; When banks are not able to provide or there is a delay in providing a banking facility (apart from loans and advances) promised in writing by a bank official or bank’s direct selling agents; Unnecessary delays, non-credit of proceeds to parties' accounts, non-payment of deposit or non-adherence to the RBI directives, if any, applicable to rate of interest on deposits in any savings, current or other account opened with any bank; Grievances of NRI’s having accounts in India in relation to their remittances from abroad, deposits and other bank related issues; refusal to open deposit accounts without any valid reason for refusal; levying of charges without adequate prior notice to the customer; Banks non-adherence to the instructions of RBI on ATM/Debit Card operations in India by the bank itself or its subsidiaries Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on credit card operations When bank employees do not observe the instructions of RBI with regard to Mobile Banking/Electronic Banking service in India. Non-disbursement or inordinate delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees); When banks close depositors bank accounts without due notice or without sufficient reason; When banks refuse to close or there is an unreasonable delay in closing the accounts; When bank officials do not obey the fair practices code as adopted by the bank; When bank officials do not observe the RBI guidelines on engagement of recovery agents by banks; When bank officials do not follow the RBI guidelines relating to para-banking activities like sale of insurance, mutual funds etc. Any other issue relating to the non-observance of the directives issued by the Reserve Bank relating to the banking or other services.
7. Is there any cost involved in filing complaints with Banking Ombudsman? No, the Banking Ombudsman does not charge any fee for filing and resolving customer’s complaints. 8. Is there any limit on the amount of compensation as defined under this scheme? The amount, if any, to be paid by the bank to the complainant in the form of compensation for any loss suffered by the complainant is limited to the amount arising directly out of the act or omission of the bank or 20 lakh (Two Million), whichever is lower.
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Banking – Banking Ombudsman Scheme, 2006
Paras Malik
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