Banking ombudsman scheme

The Banking Ombudsman Scheme is a grievance redressal mechanism for bank customers in India. It provides a free and impartial forum for resolving complaints against banks relating to deficiencies in banking services.

What is the Banking Ombudsman?

The Banking Ombudsman is a senior official appointed by the Reserve Bank of India (RBI) to address customer complaints against banks. The Ombudsman's role is to resolve complaints through conciliation and mediation, ensuring fair and timely resolution.

Who can file a complaint?

Any customer of a bank can file a complaint with the Banking Ombudsman if they have a grievance related to:

• Deficiency in service: Delay in providing services, non-adherence to prescribed service standards, etc.
• Non-compliance with RBI directives: Bank not following RBI guidelines on lending, deposit accounts, etc.
• Unfair practices: Levying unreasonable charges, improper debt collection practices, etc.
• Non-payment or delay in payment: Delay in crediting funds, non-payment of cheques, etc.
• Disputes related to loans and advances: Non-observance of fair practices code, incorrect loan calculations, etc.

Grounds for complaint

Some common grounds for filing a complaint include:

• Non-payment or delay in payment of cheques, drafts, bills, etc.
• Non-credit of proceeds to parties' accounts.
• Failure to issue or delay in issue of drafts, pay orders, etc.
• Non-adherence to prescribed working hours.
• Failure to provide or delay in providing banking facilities.
• Levy of charges without adequate prior notice to the customer.

How to file a complaint

• Approach the bank first: Customers should first attempt to resolve the issue by approaching the bank directly.
• If the bank fails to resolve the issue: Customers can file a complaint with the Banking Ombudsman within one year of the bank's final response.
• Complaint filing: Complaints can be filed online, through email, or by post to the respective Banking Ombudsman office.
• Provide necessary details: The complaint should include details of the bank, account number, nature of the complaint, and supporting documents.

Ombudsman's powers

The Banking Ombudsman has the power to:

• Receive and consider complaints: Examine the complaint and supporting documents.
• Mediate and conciliate: Facilitate a settlement between the bank and the customer.
• Award compensation: Award compensation to the customer for financial loss or harassment.
• Issue directions to banks: Direct the bank to rectify the deficiency in service.

Benefits of the Banking Ombudsman Scheme

• Free and impartial: The service is free of charge and the Ombudsman acts as an impartial mediator.
• Simple and accessible: The complaint process is simple and accessible to all bank customers.
• Timely resolution: The Ombudsman aims to resolve complaints within a specified timeframe.
• Effective redressal: The scheme provides an effective mechanism for resolving banking grievances.

Conclusion

The Banking Ombudsman Scheme is a valuable resource for bank customers in India. It provides a fair and accessible platform for resolving complaints and ensuring that banks adhere to proper standards of service and conduct.