BANKING AWARENESS: BANKING OMBUDSMAN

In view of the ongoing Probationary Clerk Interview, we present to a brief about Banking Ombudsmen.

BANKING OMBUDSMAN
The Banking Ombudsman Scheme enables fast and inexpensive forum to bank customers for resolution of
complaints relating to certain services provided by banks. The Banking Ombudsman Scheme is introduced under
Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.

The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints
against deficiency in certain banking services. As on date, fifteen Banking Ombudsmen have been appointed with
their offices located mostly in state capitals. The addresses and contact details of the Banking Ombudsman offices
has been provided by the banks.

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

PROCEDURE
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. There is a form along with details of the scheme in our
website.However, it is not necessary to use this format.

The complaint should have the name and address of the complainant, the name and address of the branch or office
of the bank against which the complaint is made, facts giving rise to the complaint supported by documents.

The Banking Ombudsman may award compensation not exceeding Rs 1 lakh to the complainant only in the case of
complaints relating to credit card operations for mental agony and harassment. The Banking Ombudsman will take
into account the loss of the complainants time, expenses incurred by the complainant, harassment and mental
anguish suffered by the complainant while passing such award.


BANKING OMBUDSMAN SCHEME 2006
It was re-introduced in the year 2006 to receive and deal with the public complaints against the banks of
deficiencies in specified types of services.

Under this scheme, the customer can give his complaint to the Branch Manager and it should be responded
by the Branch Manager within 30 days, if not the customer can file the complaint with the Banking
Ombudsman.

AMENDMENTS:
In the year May 2007, the RBI has amended the Banking Ombudsman Scheme to enable the customers to
appeal against the Banking Ombudsmans decision. Before the scheme was amended, the bank customers
could appeal only against the awards given by the Banking Ombudsman. The appellate authority for the
Banking Ombudsman scheme is the Deputy Governor of RBI.

The RBI has amended the scheme again on 3rd February 2009, to include deficiencies arising out of
Internet Banking. According to this new amended scheme, a customer would also be able to lodge a
complaint against the bank for its non-adherence to the provisions of the fair practices code for lenders or
the Code of Banks Commitment to Customer issued by the Banking Codes and Standard Board of India
(BCSBI).

On 4TH January 2013, RBI has set up a working group to evaluate and make improvements in this scheme.