General Awareness for Bank Exams: Banking Ombudsman Scheme, 2006

The Banking Ombudsman Scheme is introduced under the Banking Regulation Act, 1949 by RBI with effect from 1995.The Banking Ombudsman is a senior official appointed by the RBI to redress customer complaints against deficiency in certain banking services.

Created On: Oct 29, 2015 15:46 IST

What is the Banking Ombudsman Scheme?

The Banking Ombudsman Scheme enables an expeditious forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI. The Scheme was first introduced in 1995 and was revised in 2006.

Who is a Banking Ombudsman?

The Banking Ombudsman is a senior official appointed by the RBI to redress customer complaints against deficiency in certain banking services.

Which are the banks covered under the Banking Ombudsman Scheme, 2006?

All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.

What are the grounds of complaints?

The Banking Ombudsman can receive and consider any complaint relating to the following deficiency in banking services (including internet banking):

  • non-payment or  inordinate delay in the payment or collection of cheques, drafts, bills etc.;
  • non-payment or delay in payment of inward remittances ;
  • failure to issue or delay in issue of drafts, pay orders or bankers’ cheques;
  • failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents;
  • complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank-related matters;

The Banking Ombudsman may also deal with such other matter as may be specified by the RBI from time to time.

Does the Banking Ombudsman have any legal power?

The Banking Ombudsman is a quasi judicial authority. It has power to summon both the parties - bank and its customer, to facilitate resolution of complaint through mediation.

When can one file a complaint?

One can file a complaint before the Banking Ombudsman if the reply is not received from the bank within a period of one month after the bank concerned has received one’s representation, or the bank rejects the complaint, or if the complainant is not satisfied with the reply given by the bank.

What is the procedure for filing the complaint before the Banking Ombudsman?

One can file a complaint with the Banking Ombudsman simply by writing on a plain paper. One can also file it online or by sending an email to the Banking Ombudsman.  The Banking Ombudsman does not charge any fee for filing and resolving customers’ complaints.

 Is there any limit on the amount of compensation as specified in an award?

The amount, if any, to be paid by the bank to the complainant by way 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 Rs 10 lakhs, whichever is lower.

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